[{"url":"https://www.ftc.gov/business-guidance/blog/2019/04/i-dressup-data-security-mess","source":"FTC USA Business Blog Posts","pubDate":"Thu, 08 Oct 2026 08:06:59 +0200","id":3203250,"titre":"i-Dressup and a data security mess-up","description":"i-Dressup and a data security mess-up lfair April 24, 2019 | 3:08PM i-Dressup and a data security mess-up By Lesley Fair Kids love to play dress-up, but parents wouldn’t want them rummaging through the attic or climbing to the top shelf of the wardrobe without permission and proper supervision. The i-Dressup.com website offered users – including children – a virtual way to play dress-up and design clothes without those potential dangers. But according to an FTC complaint, Unixiz, Inc. , the company behind i-Dressup, violated the Children’s Online Privacy Protection Act in ways that created different kinds of risks. COPPA puts two separate sets of protections in place to help keep parents in control of personal information collected from their kids online. First, COPPA-covered companies must clearly disclose their information policies and get parental consent before collecting personal information from children under 13. Second, companies must provide reasonable and appropriate security for the data they collect. According to an FTC settlement, i-Dressup fell short on both COPPA requirements. The complaint alleges i-Dressup failed to provide sufficient notice on its site of the information it collected online from kids, how it used it, its disclosure practices, and other specifics required by the COPPA Rule. The company’s direct notices to parents were deficient, too. Among other things, they didn’t include the COPPA-required statement that if parents don’t provide consent within a reasonable time, i-Dressup will delete their online contact information from its records. Stick with the story because that failure turned out to be particularly troubling. In addition to letting users play online games, i-Dressup featured a community where they could “explore their creativity and fashion sense with unique personal profiles” and interact with others. To register, i-Dressup required people to submit a user name, password, birthdate, and email address. If the birthdate indicated the person was under 13, the email field changed to “Parent’s Email.” Once the under-13 user filled in the required fields and clicked “Join Now,” i-Dressup collected the personal information and sent a message to the address entered into the Parent’s Email field. The person receiving the email could consent by clicking the “Activate Now!” button. However, if the parent didn’t give consent, i-Dressup retained the personal information it had collected from the child online. The FTC says the company’s failure to delete that information violated Section 312.5(c)(1) of the COPPA Rule. In addition to violating COPPA’s parental consent provisions, i-Dressup allegedly violated the Rule’s data security requirements . According to the FTC, i-Dressup stored and transmitted users’ personal information (including passwords) in plain text. In addition, the company failed to perform network vulnerability testing of its network, even for well-known threats like SQL attacks; it didn’t implement an intrusion detection and prevention system; and it didn’t monitor for potential security incidents. The upshot? The company learned that a hacker had gained entry to its network and accessed information about 2.1 million users, including approximately 245,000 users who indicated they were under 13. To settle the case , i-Dressup and its owners will pay a $35,000 civil penalty. They’re also prohibited from violating COPPA in the future, and can’t sell, share, or collect any personal information until they implement a comprehensive data security program and get independent biennial assessments. In addition, they’ll have to provide the FTC with an annual certification of compliance. The message for sites and operators covered by COPPA is that an effective system of parental consent is only the first step toward compliance. Section 312.8 of the COPPA Rule also requires you to “establish and maintain reasonable"},{"description":"FTC consumer protection year in review offers 2020 vision for your business lfair January 8, 2020 | 9:26AM FTC consumer protection year in review offers 2020 vision for your business By Lesley Fair They say hindsight is 20/20, but what about foresight? We’re not ones to prognosticate, but a look at notable FTC cases and initiatives from the past year suggests some topics likely to be top of mind in months to come. Here is a non-exhaustive list of issues in our 2019 rearview mirror and likely visible through the 2020 windshield. Consumer privacy. The FTC’s $5 billion enforcement action against Facebook made history and headlines, but the other notable part of the case is the monumental change the order mandates to Facebook’s privacy ecosystem. The Commission opinion in Cambridge Analytica reaffirms the proposition that like any other claim, a company’s privacy promises are viewed through the lens of established FTC consumer perception principles. A series of cases demonstrates the agency’s continued commitment to challenging false or misleading representations about businesses’ compliance with the EU-U.S. Privacy Shield Framework. Another important development is the FTC’s proposed settlement with Retina-X . It’s our first action against a marketer of stalking apps – software that allowed purchasers to monitor the mobile devices on which they’re installed, without users’ knowledge. COPPA. Congress passed the Children’s Online Privacy Protection Act to ensure that when it comes to the collection of kids’ personal information online, parents are in the driver’s seat. The FTC settlement with YouTube – brought in conjunction with the New York Attorney General – alleges that the company collected kids’ personal data without parental consent, in violation of the COPPA Rule . The $170 million civil penalty broke the record for the largest remedy in an FTC COPPA case, set months before in our $5.7 million settlement with Musical.ly , now known as TikTok. If you’re a YouTube channel owner, read a special Business Blog post for tips on determining if your content is directed to children. Data security. Is your company honoring its data security promises and taking reasonable steps to safeguard the sensitive information in its possession? The FTC, CFPB, and State AG actions against Equifax illustrate how consumers are injured when companies ignore reasonably foreseeable threats. The settlement, which totals between $575 million and $700 million – also reminds businesses that heeding warnings about known risks is more prudent (and cost-effective) than the alternative. Three threads tie together the FTC’s unrelated actions against LightYear Dealer Technologies and InfoTrax Systems . They both sell management software to specific industries. They both allegedly failed to take reasonable steps to secure their networks, resulting in damaging data breaches. And they’re both covered by similar new orders the FTC has introduced in recent data security cases. If you or your clients are players in the Internet of Things, the settlement of the FTC’s litigation against connected device company D-Link sends an unmistakable message: The future of the IoT marketplace depends on secure software development. Endorsements, certifications, and influencers. Why is the FTC concerned about the accuracy of endorsements and certifications? Because they’re material to consumers. The FTC says Truly Organics’ claim that its personal care products were “certified organic” lathered up a double bubble of deception. First, its merchandise contained ingredients that weren’t organic. Second, the company falsely claimed that its products were certified by USDA’s National Organic Program. Other FTC developments focused on the use of endorsements in social media. The FTC’s action against Devumi alleges the company sold fake followers, phony subscribers, and bogus","pubDate":"Thu, 08 Oct 2026 08:06:58 +0200","id":3203247,"titre":"FTC consumer protection year in review offers 2020 vision for your business","url":"https://www.ftc.gov/business-guidance/blog/2020/01/ftc-consumer-protection-year-review-offers-2020-vision-your-business","source":"FTC USA Business Blog Posts"},{"url":"https://www.ftc.gov/business-guidance/blog/2019/03/nixing-fix-warranties-mag-moss-restrictions-repairs","source":"FTC USA Business Blog Posts","description":"Nixing the Fix: Warranties, Mag-Moss, and restrictions on repairs lfair March 18, 2019 | 10:24AM Nixing the Fix: Warranties, Mag-Moss, and restrictions on repairs By Lesley Fair First, the bad news: That nifty purchase needs a repair. Now the good news for consumers: It’s still under warranty. But where can they go to get it fixed? Can the manufacturer restrict a consumer’s ability to go to the independent repair shop of their choice? Can the manufacturer use glue, non-standard screws, and proprietary diagnostic software that make it difficult for independent repair shops to fix things? Do limitations like these affect consumers’ rights under the Magnuson-Moss Warranty Act ? That’s the topic of Nixing the Fix: A Workshop on Repair Restrictions , an FTC event scheduled for July 16, 2019 . Enforced by the FTC, the Magnuson-Moss Warranty Act helps consumers make informed buying decisions and gives them access to remedies if the widget starts to fidget during the warranty period. One key consumer protection under Mag-Moss is that the law prohibits manufacturers from conditioning warranty coverage on the use of particular products or services. Here are some of the questions FTC staff intends to ask at Nixing the Fix : What’s the interplay between repair restrictions and the Magnuson-Moss Warranty Act’s anti-tying provision, which establishes that manufacturers can’t condition coverage on the use of parts or services identified by brand, trade, or corporate name? Do repair restrictions affect the market for extended warranties and service agreements? What types of restrictions are consumers running into when they try to get their stuff repaired? Are manufacturers’ restrictions having an impact on small fix-it businesses? Are manufacturers using software that may render products obsolete or unfixable if consumers engage in DIY or go to a local repair shop? Are repair restrictions necessary to reduce the risk of physical injury or to protect manufacturers from liability for products improperly repaired by others? Do consumers understand the effects of repair restrictions? We’re also looking for empirical research and data about the prevalence and impact of manufacturers’ repair restrictions. For example, what can you tell us about code that disables products that have been repaired by someone other than the manufacturer, product designs that make third-party repairs difficult (like attaching batteries with glue only the manufacturer can remove), contractual post-sale or licensing restrictions, or proprietary diagnostic software and replacement parts? Please send us your research and data by April 30, 2019. Do you have suggestions about possible panelists? Email us at nixingthefix@ftc.gov . Nixing the Fix will take place on July 16th at the FTC’s Constitution Center conference facility, 400 7th Street, S.W., in Washington, DC. It’s free and open to the public. You can file public comments online and we’ll keep the record open until September 16, 2019. Follow the Business Blog for more information about the agenda and for watch-the-webcast instructions.","pubDate":"Tue, 06 Oct 2026 08:06:23 +0200","id":3199073,"titre":"Nixing the Fix: Warranties, Mag-Moss, and restrictions on repairs"},{"source":"FTC USA Business Blog Posts","url":"https://www.ftc.gov/business-guidance/blog/2014/04/keep-fcra-foreground-when-subject-background-screening","description":"Keep FCRA in the foreground when the subject is background screening chundycz April 9, 2014 | 12:13AM Keep FCRA in the foreground when the subject is background screening By Lesley Fair When the talk turns to Big Data, part of the conversation is about all the public information available about people's lives – and how companies market it to prospective employers, landlords, etc.  Two cases just announced by the FTC  serve as a cautionary reminder to members of the industry that what they do may be subject to the long-standing consumer protections of the  Fair Credit Reporting Act (FCRA) .  InfoTrack, an Illinois company, and San Diego-based Instant Checkmate will be paying civil penalties to settle FTC lawsuits that they violated the FCRA.  Is it time for an FCRA refresher at your business? Instant Checkmate marketed its reports as a way for prospective employers and landlords to investigate applicants.  For example, the company advertised that one of the “GOOD REASONS to get instant criminal checks on anyone right now” was to “check out tenants before they rent.”  It also used a Google Ad Words campaign to make sure its site appeared when people searched for background checks on nannies, babysitters, maids, and housekeepers.  What kind of information would buyers get?  Current and previous addresses, birth certificates, arrest histories, and marriage and divorce records, to name just a few examples. InfoTrack offered similar services to employers nationwide, including background screening reports with people’s driving records, education and employment information, criminal histories, and even records from sex offender registries. How does the FCRA come in?  The law defines a “consumer report” as a “communication of any information” by a consumer reporting agency (CRA) that bears on a person’s “credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living” which is used (or expected to be used) as a factor in establishing their eligibility for credit, insurance, employment, or other reasons outlined in the law. According to the FTC, what Instant Checkmate and InfoTrack were doing triggered the FCRA.  For example, companies covered by the law must follow procedures to assure their reports are as accurate as possible, must take steps to see that those using their reports have permissible purposes for accessing them, and must provide required User Notices explaining key protections for consumers.  The law imposes special requirements when CRAs provide reports containing public record information that could have an adverse effect on a person’s ability to get a job.  In that case, the CRA must either: 1) notify the consumer that it’s reporting the information in the public record; or 2) maintain “strict procedures” – that’s the language in the law – designed to ensure the reported public information is complete and up to date. You’ll want to read the complaints for specifics of where the FTC says the companies fell short, but one example cited in the lawsuit against InfoTrack offers an object lesson on why FCRA protections are so important to consumers – and how the consequences can be devastating when companies don’t live up to the law.  According to the FTC, the reports InfoTrack provided to prospective employers included information about whether a job applicant was on the National Sex Offender Registry.  The employer would provide the first and last name and the date of birth to help InfoTrack with its search.  The problem was that before the fall of 2011, no date of birth was available for many names on the Registry.  If InfoTrack’s search found more than one person with the same first and last name, it reported a “possible match” to employers and gave them reports that included several different people with the","titre":"Keep FCRA in the foreground when the subject is background screening","pubDate":"Mon, 05 Oct 2026 14:07:46 +0200","id":3198181},{"description":"BEREC presents its assessment of the Digital Networks Act proposal yannick.stephan Wed, 10/06/2026 - 18:07 Press Releases Europe’s electronic communications framework is entering a pivotal phase of reform, with the proposed Digital Networks Act (DNA ) set to update the regulatory framework for connectivity across the EU. At the BEREC public debriefing on 10 June, the BEREC Chair, Marko Mismas (AKOS, Slovenia), and the Working Group Co-Chairs presented BEREC’s assessment of the DNA proposal, outlining key regulatory considerations that emerged from its analysis. BEREC welcomes the ambition of modernising the EU connectivity framework and supporting resilient, sustainable and high-quality digital networks. At the same time, the assessment highlights areas where further refinement may be needed to ensure that the future framework strengthens rather than adds unnecessary complexity to the internal market for electronic communications. BEREC has developed thematic papers examining key elements of the proposal in greater depth, supporting evidence-based input to the co-legislators. To further contribute to the policy debate, BEREC will publish three additional thematic papers by the end of June. BEREC remains committed to providing its technical and regulatory expertise to help shape a competitive, innovative and future-proof digital Europe. 5G slicing guidance BEREC experts look forward to receiving stakeholders’ input to the public consultation on the draft further guidance on 5G network slicing by 6 August 2026. The draft guidance aims to provide greater regulatory certainty for market players and support innovation in 5G services, while safeguarding open internet principles. Building on the existing Open Internet framework, the guidance will assist providers in assessing whether network slicing-based services comply with the Regulation, including in relation to internet access and specialised services. Reflecting the principle of technological neutrality, the approach is intended to remain relevant beyond 5G and to apply to other technologies that use comparable quality-of-service mechanisms. Call for inputs on roaming BEREC has issued a call for inputs regarding its work on roaming. This call aims to support the preparation of BEREC’s Opinion for the European Commission on the upcoming review of the EU Roaming Regulation and the Implementing Regulation on Fair Use Policy and Sustainability, which is scheduled for submission by the first quarter of 2027. Building on its 2025 Opinion, BEREC invites stakeholders to provide new information, evidence, and perspectives by 21 August 2026. In addition, following the consultation on possible amendments to the BEREC Roaming Benchmark Data Collection procedure, BEREC decided to maintain the current quarterly data collection approach. However, the expansion of the Roam-Like-at-Home regime to Ukraine and Moldova on 1 January 2026, together with the simplification proposals in BEREC’s 2025 Opinion on the Roaming Regulation, requires an update of the roaming data collection template. BEREC therefore launched a call for input on the revised template and invites operators to submit their comments by 3 July 2026. Emergency communications resilience Ensuring uninterrupted access to emergency services for end users remains a critical priority as 2G and 3G mobile networks are progressively phased out across Europe. During its latest plenary meeting, the Heads of the European regulators for electronic communications discussed and adopted a BEREC statement addressing concerns that some devices may fail to connect to emergency communications services, including 112, once legacy networks are switched off. The statement aims to raise awareness of the issue and calls for closer cooperation across the entire communications ecosystem. BEREC underlines the need for further investigation, improved detection of potential failures, and greater transparency among stakeholders to help safeguard the reliability of emergency communications throughout the technological","titre":"BEREC presents its assessment of the Digital Networks Act proposal","id":2947754,"pubDate":"Thu, 11 Jun 2026 10:23:49 +0200","source":"BEREC Office","url":"https://www.berec.europa.eu/en/news/press-releases/berec-presents-its-assessment-of-the-digital-networks-act-proposal"},{"pubDate":"Wed, 17 Dec 2025 09:50:37 +0100","id":2577895,"titre":"FTC Will Require Illusory Systems to Return Money Stolen by Hackers and Implement an Information Security Program","description":"The Federal Trade Commission is taking action against Illusory Systems Inc. for failing to implement adequate data security measures, leading to a major security breach in which hackers stole $186 million from consumers. Under a proposed order settling the FTC’s allegations, Utah-based Illusory, which does business as Nomad, will be required to implement an information security program to address numerous alleged security failures and to return recovered money to affected consumers. “The FTC Act requires companies to take reasonable security measures,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “It’s important that companies live up to their security promises to consumers.” In its complaint , the FTC alleged that Nomad prominently touted its security in its advertising, claiming that it offered “security-first” services. The FTC, however, alleged that the company failed to live up to these promises by failing to: use secure coding practices; implement processes for receiving and addressing vulnerability reports and responding to security incidents; and utilize widely known technologies that might have helped mitigate consumer losses. According to the complaint, in June 2022, Nomad introduced inadequately tested code that included a significant vulnerability. Just over a month later, hackers began exploiting the vulnerability. The FTC alleged that Nomad failed to respond to the attack in time because of its inadequate security and incident response measures, which led to the loss of $186 million. The company was able to recover some money, but consumers lost approximately $100 million. Nomad was warned about the dangers of inadequate testing as well as the need to ensure it had adequate staff and security in place. The company, however, failed to implement basic safety measures that would mitigate consumer losses, the FTC alleged. Under the proposed order , Nomad will be prohibited from making misrepresentations about its security practices. In addition, the company will also be required to: Implement a comprehensive information security program that is designed to protect consumers from theft or other unauthorized access and address the security issues outlined in the FTC’s complaint; Obtain biennial assessments of its information security program by an independent third party and cooperate with the third-party assessor; and Return to consumers money recovered following the security breach that was not already returned to customers. The Commission voted 2-0 to accept the proposed complaint and order for public comment. The FTC will publish a description of the consent agreement package in the Federal Register soon. The agreement will be subject to public comment for 30 days after publication in the Federal Register after which the Commission will decide whether to make the proposed consent order final. Instructions for filing comments will appear in the published notice. Once processed, comments will be posted on Regulations.gov. NOTE:  The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $51,744. The lead staff attorneys on this matter are M. Hasan Aijaz and Julia Horwitz with the FTC’s Bureau of Consumer","url":"https://www.ftc.gov/news-events/news/press-releases/2025/12/ftc-will-require-illusory-systems-return-money-stolen-hackers-implement-information-security-program","source":"Federal Trade Commission - Protecting America's Consumers"}]