: Protecting small businesses seeking financing during the pandemic lfair August 3, 2020 | 11:33AM Protecting small businesses seeking financing during the pandemic By Andrew Smith, Director, FTC Bureau of Consumer Protection Small businesses are a critical part of the U.S. economy, providing opportunity and employment to consumers across the country. Unfortunately, the current health crisis has brought financial strain to small businesses and their ability to secure the financing they need to survive. So now more than ever, struggling businesses and their owners need protection from deceptive and unfair practices. And the FTC is working swiftly to provide it. Since the onset of the pandemic, we have taken enforcement actions and used other tools to stop financing providers and their marketers from targeting businesses with unlawful conduct. For example, today we announced a lawsuit against Yellowstone Capital , a merchant cash advance provider that we allege took unauthorized withdrawals from consumers’ bank [...]
: FTC says Bronx Honda discriminated against African-American and Hispanic consumers lfair May 27, 2020 | 12:55PM FTC says Bronx Honda discriminated against African-American and Hispanic consumers By Lesley Fair The FTC’s complaint against Bronx Honda alleges the company jacked up what consumers had to pay by fabricating fees, inflating charges, and sneaking in stealth add-ons. The lawsuit also alleges the defendants discriminated against African-American and Hispanic consumers by charging them higher financing markups and fees, in violation of the Equal Credit Opportunity Act and Reg B. The $1.5 million proposed settlement, which requires the company to implement a fair lending program that safeguards against discrimination, should serve as a reminder to other businesses that may be overdue for an ECOA compliance check. The FTC says the company’s deceptive advertising claims were just the start. According to the complaint, Bronx Honda advertised some vehicles with a “Was” price and a lower “Now” price. But in[...]
: Joint letters take new steps to stop illegal Coronavirus robocalls lfair April 3, 2020 | 1:57PM Joint letters take new steps to stop illegal Coronavirus robocalls By Lesley Fair Consumers hate illegal robocalls. And as the thousands of reports pouring into the FTC indicate, they also hate robocalls that exploit concerns about Coronavirus. In recent months, the FTC has taken innovative steps to take on not only illegal robocallers, but also companies that “assist and facilitate” their conduct. Just last week, FTC staff sent warning letters to nine businesses that provide Voice over Internet Protocol (VoIP) services or other assistance to some of the entities that may be behind the onslaught of bogus COVID-19 calls. Additional letters just went out that reflect unprecedented actions in the fight against fraud. Warning letters were sent to three VoIP providers: SIPJoin, Connexum, and VoIP Terminator d/b/a BLMarketing. According to the letters, investigations have revealed that these companies transmitted calls [...]
: 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 commitmen[...]
: Showcase your research at PrivacyCon 2020 lfair October 11, 2019 | 1:36PM Showcase your research at PrivacyCon 2020 By Lesley Fair How would we describe PrivacyCon 2020 ? Is it Burning Man without the flames? The New Orleans Jazz Festival – minus the jazz and the festival? The best way to know what PrivacyCon is all about is to mark your calendar for July 21, 2020, and attend the FTC’s fifth annual gathering of leading privacy researchers. And check out our Call for Presentations to see if PrivacyCon would be a good forum for your recent research. Like its four predecessors, PrivacyCon 2020 will consider the broad range of privacy and data security issues. But this time we’re also taking a deeper dive into the privacy of health information that is collected, stored, and transmitted by apps. We’re looking for experts who can summarize their current research in a 10-minute presentation, followed by a panel discussion applying those findings to questions of consumer protection law and policy. The Call for Prese[...]
: Top frauds of 2018 lfair February 28, 2019 | 12:21PM Top frauds of 2018 By Paul Witt, Supervising Data Analyst, FTC Bureau of Consumer Protection Every year, millions of consumers tell us – and our partners – about the frauds they spotted. In 2018, we heard from 3 million people and learned a lot from the reports entered into our Consumer Sentinel database . Here are some notable facts from the Consumer Sentinel Network’s 2018 Data Book – including that a new category of scams has earned the unenviable right to chant "We’re #1." We collected more than 1.4 million fraud reports, and people said they lost money to the fraud in 25% of those reports. People reported losing $1.48 billion (with a “b” ) to fraud last year – an increase of 38% over 2017. The top reports in 2018 were: imposter scams, debt collection, and identity theft. Younger people reported losing money to fraud more often than older people. Let that sink in. It’s what the data have been telling us for a while, but it’s hard for people to grasp. L[...]
: 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 coll[...]
: New date for FTC workshop on ticket sales lfair February 12, 2019 | 10:52AM New date for FTC workshop on ticket sales By Lesley Fair You won’t need a ticket, but you will need to mark your calendar for June 11, 2019 . That’s the new date for That’s the Ticket , an FTC workshop about online ticket sales. The workshop – originally scheduled for March – will explore the ticket sales marketplace, consider industry-wide advertising and pricing issues, and discuss ways to address deception beyond traditional law enforcement. Topics include ticket bots, the Better Online Ticket Sales Act ( BOTS Act ), the resale ticket market, disclosures of pricing and fees, and possible consumer confusion about search engine ads and websites of resellers. (The GAO has issued a report summarizing these issues.) Commissioner Slaughter will offer opening remarks. We’ll announce the rest of the agenda as the event draws nearer. The June 11th workshop – it’s free and open to the public – will be held at the FTC’s Constitution Center, [...]
: FTC sues American Immigration Center for claiming false government affiliation lfair October 16, 2018 | 12:16PM FTC sues American Immigration Center for claiming false government affiliation By Lesley Fair When the FTC warns consumers about government imposter scams, we’re usually referring to bogus calls that falsely claim to come from the IRS or some other official office. But as a case just announced by the FTC demonstrates, that’s not the only kind of false government affiliation that can deceive consumers. A $2.2 million settlement with American Immigration Center reminds other businesses of the dangers of conveying a misleading connection to a government agency. When consumers wanted to renew their green cards or apply for naturalization, where did they go? Online, of course, where they input terms like “USCIS,” “INS,” or “US Immigration” to search for the proper government site. According to the FTC, that’s how they ran across results with tag lines like “USCIS Forms – Easy Online Forms for Green Card[...]
: Protect your business from scams and online threats this National Small Business Week arayo May 1, 2026 | 2:58PM Protect your business from scams and online threats this National Small Business Week By BCP Staff Powered by vimeo embed video generator Share this video using the links in the player above or use the YouTube version . All week long, learn how the FTC can help you protect your small business from scams and online threats. Run a small business or want to support the small businesses in your community? Here’s how you can get involved. View and share the FTC’s videos for small businesses . Join in the #SmallBusinessWeek conversation on social media. Follow the FTC on Facebook , Instagram , and X at @FTC to share graphics this week. Join one (or more) of these virtual events (and invite other small business owners to come too): National Small Business Week Virtual Summit | Tuesday, May 5 and Wednesday, May 6, 11am – 6pm ET Visit the FTC booth at the Small Business Administration’s Virtual Summit [...]
: Sign of the times? Protecting your company from B2B deception lfair December 9, 2019 | 2:09PM Sign of the times? Protecting your company from B2B deception By Lesley Fair They may look like invoices sent to business owners for posters they may need to display in the workplace. But we think of them as un voices – deceptively worded solicitations that tried to sell companies posters that are readily available for free. A law enforcement action just settled by the FTC and Florida Attorney General offers tips on protecting your business from this form of B2B deception. According to the FTC and AG, four defendants with ties to Texas and Florida – Starwood Consulting, Starwood Capital, Corporate Poster Supply, and Thomas Henry Fred, Jr. – sent letters to businesses across the country with the goal of tricking them into paying $84 for posters about labor practices. To perfect their pitch, the letters had the look of invoices from government agencies or other authorities and warned recipients that they had two choic[...]
: Watch the FTC Made in the USA webcast lfair September 26, 2019 | 7:39AM Watch the FTC Made in the USA webcast By Lesley Fair How do consumers interpret “Made in the USA” and other U.S.-origin claims? What can the FTC do to improve its enforcement program? Those are just two of the topics on the table at today’s Made in the USA workshop. FTC Bureau of Consumer Protection Director Andrew Smith will start the discussion at 8:30 a.m. Eastern Time. It promises to be a fast-paced, content-packed half-day event. Minutes before the start time, you can watch the webcast live from the workshop webpage
: PrivacyCon: Watch the webcast lfair June 27, 2019 | 8:31AM PrivacyCon: Watch the webcast By Lesley Fair The stars are aligning – the privacy and security stars, that is. The FTC’s fourth PrivacyCon convenes today, June 27, 2019. Experts from around the globe will discuss their latest research into privacy and data security, and the consumer protection implications of their findings. Minutes before FTC Chairman Simons convenes PrivacyCon at 9:15 ET this morning, visit the event page to watch the webcast live. Join the discussion on Twitter, using the hashtag #PrivacyCon19.
: FTC’s Approach to Consumer Privacy: Watch the webcast live lfair April 9, 2019 | 8:44AM FTC’s Approach to Consumer Privacy: Watch the webcast live By Lesley Fair We do our best to keep the puffery in check. So when we say an event features a star-studded line-up of panelists, we think we can substantiate that claim. The FTC’s ongoing Hearings on Competition and Consumer Protection in the 21st Century have brought luminaries together to discuss the impact on the FTC’s mission of broad-based changes in the economy, evolving business practices, and tech developments. The April 9th and 10th hearing s on The FTC’s Approach to Consumer Privacy are no exception – and you can watch the webcast live. After opening remarks on Tuesday at 9:0 0 ET from FTC Chairman Simons, the morning panels will discuss Goals of Privacy Protection and The Data Risk Spectrum . Commissioner Phillips will lead off the afternoon session, which features panels on Consumer Demand and Expectations for Privacy and Current Approaches to Privacy[...]
: Data security hearings start today: Watch the webcast lfair December 11, 2018 | 8:43AM Data security hearings start today: Watch the webcast By Lesley Fair Y ou’ve probably been following the FTC Hearings on Competition and Consumer Protection in the 21st Century. The next two days of hearings – Tuesday, December 11th, and Wednesday, December 12th – will take a deep dive into a topic of interest to just about every business and consumer: data security . No matter where you’re located, it’s easy to participate. Today’s proceedings begin at 10:10 Eastern Time. After opening remarks from Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, panels will cover data breaches, incentives to invest in data security, and the consumer demand for it. Speakers include academics, industry members, and security researchers. The two-day hearing is free and open to the public at the FTC’s Constitution Center, 400 7th Street, S.W., located at the Metro L’Enfant Plaza station. Can’t attend in person? Watch the we[...]
: FTC says deceptive rental listings were nothing to write home about lfair September 17, 2018 | 1:03PM FTC says deceptive rental listings were nothing to write home about By Lesley Fair As the song goes, “A house is not a home.” And as alleged in an FTC lawsuit against the operators of rental listing websites , sometimes an apartment isn’t an apartment. Steven Shayan, Kevin Shayan, and affiliated companies run ApartmentHunterz.com, FeaturedRentals.com, and WeTakeSection8.com. For consumers who pay weekly or monthly subscription fees, the defendants promise accurate listings for available units. For example, ApartmentHunterz.com claims its “unique, date-sensitive, rental software updates the listings on a daily basis, so that the data you receive from us is the most accurate and up-to-date information available on the Web today.” Touting “Real-Time Vacant rental listings,” the site purports to feature “over 1,000,000 hourly updated ads” and “over 15,000 exclusive vacant and upcoming listings, giving you the ad[...]
: Recognize Data Privacy Day by protecting your small business from cybercriminals chundycz January 28, 2026 | 8:02AM Recognize Data Privacy Day by protecting your small business from cybercriminals Your small business likely has had many milestones. Hiring your first employee. Opening your doors for the first time. Making your first sale. But some milestones you’d probably rather avoid — like experiencing your first cyberattack. Think you’re too small to target? Think again. Cybercriminals target companies big and small, so this Data Privacy Day keep your business’s data (and your customers’ data) safe by reviewing the FTC’s updated resources at ftc.gov/cybersecurity . At ftc.gov/cybersecurity , you’ll find the FTC’s updated article, Cybersecurity for Small Business, included in the FTC’s suite of small business materials at ftc.gov/smallbusiness . This covers eight topics ranging from the importance of using email authentication technology and how to protect your business from phishing and ransomware, to q[...]
: “Amazing Wealth System” not so amazing, alleges the FTC lfair March 23, 2018 | 12:17PM “Amazing Wealth System” not so amazing, alleges the FTC By Lesley Fair An FTC lawsuit alleges that money-making claims made by a related group of companies and individuals for their Amazing Wealth System are “amazing” all right – if by “amazing” you mean “not credible” or “unsupported by the facts.” The complaint charges the defendants with violating the FTC Act and the Business Opportunity Rule . One interesting factual twist is how elements of the “system” allegedly depend on subverting Amazon’s rules about online reviews and third-party sales. Defendants advertise their Amazing Wealth System via direct mail, radio, YouTube videos, social media, and live events. (Consumers may know them by names like Amazon Wealth Systems, FBA Stores, Insider Online Secrets, or Online Auction Learning Center. But let’s be clear: The defendants have no affiliation with Amazon.) According to the FTC, the defendants lure prospective purchas[...]
: Concerned about deceptive earnings claims? So’s the FTC, and we want your feedback jensor January 13, 2025 | 2:45PM Concerned about deceptive earnings claims? So’s the FTC, and we want your feedback By Julia Solomon Ensor It’s a persistent problem the FTC’s aggressive enforcement program’s been fighting for decades: we’re talking about companies and programs that lure in entrepreneurs, investors, or participants with promises of significant earnings, and then fail to deliver. Today the FTC announced proposed rulemakings to strengthen the agency’s tools to curb deceptive earnings claims in industries where reports indicate they are pervasive: money-making opportunities and multi-level marketing (MLM) programs. If finalized, the proposals would allow the FTC to seek stronger relief – like money back for consumers or civil penalties – from covered companies making deceptive claims. Today’s announcement involves three proposals that work together. Each proposal includes a set of questions to consider, but, in ge[...]
: Online sellers: How the INFORM Consumers Act could impact your business lfair August 18, 2023 | 12:43PM Online sellers: How the INFORM Consumers Act could impact your business By Lesley Fair The INFORM Consumers Act took effect on June 27, 2023. The FTC has issued staff guidance for online marketplaces and now we have advice for online sellers whose businesses may be affected by the new law. Congress passed the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – to make online transactions more transparent. The law requires “online marketplaces” to collect, verify, and disclose certain information about “high-volume third party sellers.” Informing Businesses about the INFORM Consumers Act explains more about how the law defines those terms, discusses what’s required of online marketplaces, and outlines the substantial penalties the FTC and state law enforcers may seek if online marketplaces violate the law. A new FTC publication, What Third Pa[...]
: Watch what you're doing with time-barred debts wfg-adm109 January 30, 2012 | 10:56AM Watch what you're doing with time-barred debts By Lesley Fair Of course, people are responsible for their debts. However, at a certain point, how much time has passed becomes an affirmative defense under state law and creditors can’t prevail in court. But what happens if a payment is made on a time-barred debt? A consumer can really get clocked — because in many states the debt can be revived if a person makes a payment or says in writing that they intend to. The FTC has announced a $2.5 million settlement with Asset Acceptance, LLC, for allegedly breaking the law in how it tried to collect time-barred debts. Michigan-based Asset Acceptance buys unpaid debts from credit card companies, health clubs, companies that provide telecom or utility service, and other debt buyers. Getting the debts for pennies on the dollar, the company targets accounts other collectors have pursued unsuccessfully and are more than a year past d[...]
: Free means free, says the FTC wfg-adm109 May 23, 2011 | 3:37PM Free means free, says the FTC By Lesley Fair You can swim freestyle. You can work freelance. And there are those among us who still hold up lighters and yell “Play Free Bird.” But for marketers, one thing you can’t do is advertise a product as free and then bill customers’ credit cards — not once and certainly not over and over and over again. The legal theories advanced in the pending case against Canadian Jesse Willms , ten companies the FTC says he controls, and other individual and corporate defendants aren’t new. What’s noteworthy is the sheer scope of the international enterprise: The FTC says the defendants raked in more than $467 million from consumers in the US, Canada, UK, Australia and New Zealand through an elaborate scheme of false product claims, unauthorized celebrity endorsements, forced upsells , undisclosed terms and conditions, unauthorized charges, and ruses designed to evade the credit card industry’s risk management syst[...]
: FTC’s Lord & Taylor case: In native advertising, clear disclosure is always in style lfair March 15, 2016 | 8:37AM FTC’s Lord & Taylor case: In native advertising, clear disclosure is always in style By Lesley Fair It’s a fetching frock with spaghetti straps, an engineered paisley print, and an asymmetrical hemline. And it’s at the center of a law enforcement action against department store chain Lord & Taylor for its allegedly deceptive use of native advertising – the first case of its kind since the FTC released its Enforcement Policy Statement in December. The lawsuit also challenges Lord & Taylor’s “product bomb” campaign on Instagram as misleading. Lord & Taylor used an extensive social media push to launch Design Lab, its own apparel line aimed at women between 18 and 35. The strategy was interesting: Focus on just one item – that paisley asymmetrical dress. For the native advertising part of the campaign, Lord & Taylor signed a contract to have Nylon, an online fashion magazine, run an article about t[...]
: Background checks? Don’t double-dip. lfair February 16, 2017 | 9:56AM Background checks? Don’t double-dip. By Tiffany George Need to verify an applicant's employment or income history? Checking to see if a candidate has a criminal history or civil judgments? If you get information from a company that compiles it so you can make eligibility determinations, you must comply with the Fair Credit Reporting Act (FCRA) . That means no double-dipping. If you get a consumer report for one purpose, don’t use it for a different purpose. The FCRA applies when you use consumer reports to determine things like eligibility or pricing for credit, insurance, or housing; eligibility for employment, government benefits, licenses, membership in an organization; or admission to an educational institution. If you use consumer reports to make eligibility decisions, make sure you review the Notice to Users of Consumer Reports . Consumer reporting agencies (CRAs) are required to give you this document to inform you of your obligatio[...]
: A clothes look at the RN database: Q&A with FTC staff lfair October 5, 2017 | 11:18AM A clothes look at the RN database: Q&A with FTC staff By Lesley Fair It’s not much bigger than a postage stamp, but the label on many textile, wool, and fur products provides important information, including fiber content, country of origin, and a company name or Registered Identification Number (RN). The FTC administers the RN system and industry members will want to check out recent upgrades to the RN website . With RNs and labels on our mind, we asked some common RN-related questions to attorney Josh Millard, whom we’d label as one of the FTC’s go-to people on the subject. First things first. What’s an RN? JOSH: A Registered Identification Number (RN) is a numerical designation – the prefix RN followed by a set of digits – that identifies the company responsible for marketing, distributing or otherwise handling a product covered by the Textile, Wool, and Fur Acts. Because some labels are small and some company names a[...]
: $88 million back for AT&T customers: An inside look at a refund program lfair December 8, 2016 | 11:15AM $88 million back for AT&T customers: An inside look at a refund program By Lesley Fair Chances are that you or someone you know will be among 2.7 million AT&T Mobility customers who will be getting a refund soon. The FTC is returning a total of $88 million to people who were billed for premium text message services they didn’t authorize. But even if the settlement doesn’t directly benefit you as a consumer, it offers insights for business people about the steps the FTC takes to get refunds back to consumers – and the seriousness with which we approach that stewardship role. The FTC settlement was part of a joint action with the FCC and Attorneys General from all 50 states and the District of Columbia to crack down on mobile cramming. The FTC alleged that third parties placed unauthorized charges for trivia, horoscopes, celebrity tidbits, etc., on the phone bills of AT&T customers with AT&T pocketing a siz[...]
: Setting the debt parking brake lfair November 30, 2020 | 12:14PM Setting the debt parking brake By Lesley Fair What are the biggest risks of parking? A dinged door? A bruised bumper? For consumers victimized by the pernicious practice of debt parking, the impact on their financial health can be devastating. And if you’re a debt collector who engages in debt parking, an FTC settlement with Midwest Recovery Systems suggests you could face law enforcement action for violations of the FTC Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. Just what is debt parking? It’s the practice of placing purported debts on consumers’ credit reports without first attempting to communicate with the consumer about the debt. Some call it “passive debt collection,” but there’s nothing passive about the injury it can inflict. Consumers often don’t learn about it until a mortgage company, prospective employer, or other decision maker pulls their credit report and spots what appears to be an unpaid deb[...]
: 20 more warning letters tell companies to cut out unproven COVID-19 claims lfair August 14, 2020 | 11:41AM 20 more warning letters tell companies to cut out unproven COVID-19 claims By Lesley Fair Coronavirus claims for zappers, virus-busting cards, sage, oregano, and bay leaves are among the representations called into question in the latest round of warning letters sent by FTC staff . With the total closing in on 300, the letters make it clear that companies need to clean up their claims about preventing or curing COVID-19. Here are the products and promises that have raised the most recent concerns. The1VirusBuster. Citing statistics on the proliferation of coronavirus, the company promoted The 1 Virus Buster Cards as “safe, simple, and effective. All you need to do is hang it on your neck or attach it to your collar, close to your mouth and nose. If used correctly, it kills 99.99% of most harmful bacteria and viruses, which live in the air you breathe, within a three-foot radius.” Active Lifestyle Clin[...]
: Root, root root for the regions lfair September 24, 2018 | 2:03PM Root, root root for the regions By Andrew Smith, Director, FTC Bureau of Consumer Protection T his year eight major league baseball teams are celebrating milestone anniversaries – and so are the FTC’s regional offices. In 1918, the Commission opened the first three of its regional offices. Today, eight regional offices continue to knock it out the park on behalf of America’s consumers. So it’s only fitting that on this momentous day we acknowledge the regional offices’ century of pennant-winning performances. According to the Commission’s 1918 Annual Report, “In order to expedite the greatly increased work of the Commission . . . small branch offices were established in New York, Chicago, and San Francisco.” Over time, the FTC has added other locations for a current total of eight offices in seven regions. Regional staff work with the Bureau of Consumer Protection and the Bureau of Competition on investigations and litigation. But they are in [...]
: COPPA Guidance for Ed Tech Companies and Schools during the Coronavirus lschifferle April 9, 2020 | 8:18AM COPPA Guidance for Ed Tech Companies and Schools during the Coronavirus By Lisa Weintraub Schifferle “Social distancing,” “shelter-in-place,” “virtual happy hour”— these are some of the new expressions on everyone’s lips the past few weeks. For many, add “remote learning” to the list. Because of school closures, millions of students are now using online, education technology (or “ed tech”) services to engage in remote learning from home. And while this fills a vital need, it’s important to keep in mind that many of these ed tech services collect and use student’s personal information. So, it’s a good time to remind ed tech providers and schools about the continued need to protect student’s privacy and safeguard their personal data. To help, here are some FAQs. What is the Children’s Online Privacy Protection Act (COPPA)? Importantly, COPPA does not impose obligations on schools. Instead, COPPA spells ou[...]
: FTC takes on unproven health claims and “own-dorsements” lfair March 19, 2020 | 4:38PM FTC takes on unproven health claims and “own-dorsements” By Lesley Fair It’s a disturbing trend. Companies are targeting older consumers, claiming to have easy answers for serious diseases for which there may not be a proven cure. That’s one allegation in the FTC’s action against Nevada-based telemarketer Health Center, Inc. Another count challenges what we call “own-dorsements.” According to Health Center’s telemarketing scripts, websites, social media, and testimonials from supposedly satisfied customers, the company’s Rejuvi-Cell oral spray and Rejuvi-Sea and Rejuvi-Stem pills could treat a broad range of medical conditions: everything from cancer, Alzheimer’s disease, and Parkinson’s disease to hepatitis, heart attacks, and high cholesterol. In promoting the products, which sold in packages priced between $350 and $800, the company checked the buzzword boxes with science-y sounding terms like homeopathic , adult stem[...]
: Debt collection company pays record-setting civil penalty wfg-adm109 March 22, 2011 | 3:40PM Debt collection company pays record-setting civil penalty By Lesley Fair Incessant phone calls to consumers, often about accounts that weren't theirs. Repeated autocalls to wrong numbers. Illegal disclosures to other people that a consumer owes money. Those are just some of the allegations in the FTC's recent settlement with West Asset Management , a debt collection company that employs more than 1,500 collectors in 13 states and one offshore location. According to the FTC's lawsuit filed in federal court in Atlanta, the company violated the FTC Act and the Fair Debt Collection Practices Act (FDCPA) through those illegal tactics — and more. The FTC also charged that West Asset Management ignored consumers' written demands that the company stop calling them and in certain cases, withdrew funds from consumers' bank accounts or charged their credit cards without their consent. No lightweight in the business, West Asse[...]
: FTC challenges influencer campaign for Warner Bros.’ Shadow of Mordor game lfair July 11, 2016 | 11:17AM FTC challenges influencer campaign for Warner Bros.’ Shadow of Mordor game By Lesley Fair In the popular video game Shadow of Mordor , players don’t just randomly slash, hack, and pillage. They battle specific opponents through a feature known as the Nemesis System. In the FTC’s lawsuit against Warner Bros. Home Entertainment , truth in advertising had a nemesis: paid pitches for Shadow of Mordor that Warner Bros. deceptively claimed were independent reviews. And read on for a startlingly candid statement by one of those influencers. To help launch Shadow of Mordor , Warner Bros. brought a social media company on board to coordinate a YouTube influencer campaign. One strategy was to hire influential gamers to post videos promoting Shadow of Mordor – videos that ultimately yielded more than 5.5 million YouTube views. In addition to free game access, Warner Bros. paid the influencers cash – ranging from hun[...]
: Ad agency liability: FTC looks to conduct, not the grey flannel suit lfair August 23, 2017 | 11:40AM Ad agency liability: FTC looks to conduct, not the grey flannel suit By Lesley Fair According to the “Mad Men” stereotype, you could spot an old-school advertising agency executive by the tailored wardrobe and expense account lunch. A lot has changed in the ad game, but two truths remain: 1) More than 50 years of FTC cases establish that ad agencies may be liable for their role in deceptive campaigns; and 2) Companies that may not describe themselves as “ad agencies” may still be held responsible for illegal acts or practices. In other words, the FTC looks to the facts, not the grey flannel suit. That’s one of the messages of proposed settlements announced by the FTC and the Maine Attorney General against Synergixx, LLC, Charlie R. Fusco, and Ronald Jahner, all of whom played prominent roles in the promotion of the cognition supplement CogniPrin and a pain relief product called FlexiPrin. Earlier this year, t[...]
: FTC case against DeVry yields $100 million settlement lfair December 15, 2016 | 11:59AM FTC case against DeVry yields $100 million settlement By Lesley Fair Claims about employment prospects and income levels are like any other objective advertising representation – and Job #1 for advertisers is to support those promises with solid evidence. DeVry University and its parent company have entered into a $100 million settlement to resolve the FTC’s allegations that the defendants’ claims didn’t make the grade. According to the FTC, DeVry violated the law by deceptively claiming that 90% of its grads actively seeking employment landed jobs in their field within six months of graduation. The complaint also challenged as misleading DeVry’s representation that one year after graduation, its bachelor’s degree grads had, on average, incomes that were 15% higher than the incomes of bachelor’s degree grads from all other colleges and universities. How will the $100 million settlement be distributed? DeVry will pay $49.4[...]
: Business owners: Scams will follow new rescue plan lfair March 12, 2021 | 11:03AM Business owners: Scams will follow new rescue plan By Jennifer Leach, Associate Director, FTC Division of Consumer and Business Education The pandemic is still taking a toll on your customers, your employees – and your business. The new American Rescue Plan, just signed into law, gets the ball rolling to help out on many people’s financial well-being. Payments will soon be coming by direct deposit, checks, or a debit card to people eligible for the payment. You can learn more about who’s eligible, and the timing, at IRS.gov/coronavirus . Share that link with your staff to help keep them informed. But let me tell you what will NOT happen, so you can spot and avoid the scammers who are right now crawling out from under their rocks. The government will never ask you to pay anything up front to get this money. That’s a scam. Every time. The government will not call/text/email/DM you to ask for your Social Security, bank account, or[...]
: The FTC Chairman is not writing to you lfair October 1, 2020 | 4:13PM The FTC Chairman is not writing to you By Karen Hobbs, Assistant Director, Division of Consumer & Business Education, FTC Bureau of Consumer Protection If you saw an email from FTC Chairman Joseph Simons, it wasn’t. From him, that is. Scammers pretending to be him are emailing, though. They’re trying to trick you into turning over personal information, like your birth date and home address, which could help them scam you. So: if you get an email from the Chairman of the Federal Trade Commission about getting money because of an inheritance or relief funds related to the impact of the COVID-19 pandemic — or anything else — do not respond. Do not give out your personal information. But do hit “delete.” Scammers like to make themselves look official by pretending to be from the government. They use official-sounding language and images that impersonate federal agencies like the FTC to trick or scare people into responding. Rest assured, these[...]
: PrivacyCon 2020: What you’ll see on the webcast lfair July 2, 2020 | 11:07AM PrivacyCon 2020: What you’ll see on the webcast By Lesley Fair PrivacyCon is going virtual this year. As the just-released agenda for the fifth annual Gathering of the Gurus demonstrates, you’ll want to mark July 21, 2020, on your calendar and watch the webcast for thought-provoking research into topics related to consumer privacy and data security. FTC Bureau of Consumer Protection Director Andrew Smith will convene PrivacyCon at 9:00 AM Eastern Time. Session #1 will explore privacy and security issues related to Health Apps , including mental health apps and sensor technologies that power apps. Bias in AI Algorithms is the topic of Session #2. Session #3 will explore The Internet of Things and will include a discussion of privacy and security labeling. The afternoon panels will convene at 1:15 ET. Session #4 will consider the privacy implications of Specific Technologies – Cameras, Smart Speakers, and Apps . Section #5 will discus[...]
: Fighting Coronavirus scams: Taking stock chundycz May 8, 2020 | 9:01AM Fighting Coronavirus scams: Taking stock By Andrew Smith, Director, FTC Bureau of Consumer Protection Since the beginning of the COVID-19 crisis, the FTC has released dozens of warning letters against people trying to make an illegal buck off the Coronavirus. More than a month in, it seems like a good time to look back at what’s happened. If you follow this blog, you’ll know these have been busy weeks – with advice about spotting the many scams we’re all facing, news of the warning letters sent on a wide range of scams, and some enforcement actions filed. You might wonder: Why send letters? Why not just sue the !*$@&#? Fair question. But the letters are working. And, given the scope of the scams out there right now, we want to get the best and fastest results we can with the most efficient tool we have. Right now, for these Coronavirus-related issues, that’s warning letters. In general, here’s how it goes: We spot someone advertising some[...]
: FTC challenges claims for Quell pain relief device lfair March 4, 2020 | 2:00PM FTC challenges claims for Quell pain relief device By Lesley Fair Real estate professionals say it’s all about “location, location, location.” For health-related claims, the FTC says it’s all about “substantiation, substantiation, substantiation.” Marketers of an electric device called Quell claimed their product could treat chronic and severe pain throughout the body caused by conditions as diverse as arthritis, nerve damage, sciatica, shingles, and fibromyalgia. And they said all that could be accomplished by placing their product on one single location below the knee. According to the FTC , the defendants made a number of false and unsubstantiated representations about Quell – including a false claim about the nature of the FDA’s clearance of the product. Massachusetts-based NeuroMetrix advertised Quell through TV ads, online, via social media, and at major trade events like the Consumer Electronics Show. The product set consu[...]
: Free vulnerability scanning for your business lschifferle December 4, 2019 | 8:29AM Free vulnerability scanning for your business By Lisa Weintraub Schifferle You know the importance of strong cybersecurity, but have you heard about free vulnerability testing? As part of its mission to protect the nation’s cyber infrastructure, the Department of Homeland Security’s Cyber-Infrastructure Security Agency (CISA) offers free vulnerability scanning to government, critical infrastructure, and private businesses. What does this mean for you? You may be eligible for no-cost vulnerability scanning that will continuously check your internet-facing assets. The testing checks for known vulnerabilities and weak configuration, then recommends ways to improve your security. Using commercial vulnerability scanners, each host is evaluated against a library of vulnerabilities. How does it work? To get started, contact CISA at NCATS_INFO@hq.dhs.gov . Next, they’ll send you documents to return and sign, confirm a scanning schedu[...]
: Negative options – make them a positive lschifferle September 22, 2016 | 11:06AM Negative options – make them a positive By Lisa Weintraub Schifferle There’s no such thing as a free lunch. That’s what consumers who signed up for NutraClick’s “free” samples learned. But what can your business take away from the FTC’s settlement with NutraClick ? If your company is considering offering a negative option program, and wants it to be a positive experience, you’ll want to read on. Maybe you’ve heard of NutraClick. They sell nutritional supplements and beauty products including Force Factor, Peak Life, ProBioSlim, SomnaPure, VolcaNO, and Stages of Beauty. Their products are available online and in stores like Walgreens, Walmart, GNC and CVS. NutraClick advertised “free” product samples. But the company didn’t clearly tell consumers that to get the samples, they were automatically signed up for a membership for nutritional supplements, costing $29.99 to $79.99 per month. This type of offer – where consumers get re[...]
: Is it amour – or scam-more? lfair February 11, 2021 | 12:17PM Is it amour – or scam-more? By Lesley Fair Online romance may begin with Panic! At The Disco’s High Hopes , but according to a new FTC Data Spotlight , all too often it ends with the conclusion that – to quote the J. Geils Band – Love Stinks . Far be it from us to put a damper on Valentine’s Day, but reports to the Consumer Sentinel Network suggest that the injury inflicted by romance scams is on the rise. According to the new Data Spotlight , “For three years running, people have reported losing more money on romance scams than on any other fraud type identified in Sentinel. In 2020, reported losses to romance scams reached a record $304 million, up about 50% from 2019. For an individual, that meant a median dollar loss of $2,500.” Why the increase? The continued popularity of dating apps is part of the story, but the pandemic has played a part, too. For right now, the need for social distancing and masking makes the “meet cute” at the local cof[...]
: Fake government affiliation: A name game no one should play lfair September 25, 2020 | 2:00PM Fake government affiliation: A name game no one should play By Lesley Fair What’s in a name? According to an FTC lawsuit filed in April, if you’re an outfit that uses the name “SBA Loan Program” – and you falsely claim to be an approved lender for the Small Business Administration’s coronavirus relief lending program – what’s in your name is deception. Under the terms of a settlement , that shady tactic stops right here, right now. For many small businesses struggling to stay afloat during the pandemic, SBA’s Paycheck Protection Program (PPP) has been a welcome lifeline. Business owners who visited a website called SBALoanProgram.com looking for PPP information saw statements like “WE ARE A DIRECT LENDER FOR THE PPP LOAN PROGRAM!” and “We are currently offering stimulus relief spending under the Economic Security Act (CARES Act).” In addition, business people were targeted with similar messages in phone calls and em[...]
: Lights out on unsubstantiated pain relief claims and deceptive native advertising lfair June 25, 2020 | 3:00PM Lights out on unsubstantiated pain relief claims and deceptive native advertising By Lesley Fair For consumers struggling with severe or chronic pain, ads for a product called Willow Curve appeared to offer light at the end of the tunnel. But the FTC alleges the marketers made false and unsubstantiated claims for the product , a device that applied low-level light and mild heat to the site of pain – and set people back between $599 and $799 in the process. The proposed settlement also sheds light on the FTC’s ongoing concern with deceptive native advertising. The complaint names two Michigan companies, Physician’s Technology, LLC, and Willow Labs, LLC, and two individuals affiliated with both businesses, Dr. Ronald Shapiro and David Sutton. In ads on national TV, satellite radio, online, and in social media, the defendants claimed that for people suffering from rheumatoid arthritis, diabetic neuropa[...]
: When the economic impact of COVID-19 hits home lfair May 1, 2020 | 9:06AM When the economic impact of COVID-19 hits home By Lesley Fair As companies struggle to stay afloat financially due to the economic reverberations of COVID-19, your employees are facing the same challenges at home. The FTC has something you can share with staff members in need – and it won’t cost you a thing. We’ve created a special page, Financial Impact of the Coronavirus, where we’ve compiled dollars-and-cents tips for consumers, as well as new information specifically addressing the effect of COVID-19 on personal budgets. For example, for people with family members facing job loss, we have information about looking for work after a coronavirus-related layoff. We also have advice on what to do about mortgage payments, car notes, and student loans when there’s less income coming in. For employees facing financial shortfalls, the FTC has things to think about if they’re considering payday loans or cash advances. We also have tips on de[...]
: Small business financing: Staff Perspective outlines issues lfair February 26, 2020 | 11:10AM Small business financing: Staff Perspective outlines issues By Lesley Fair As an essential engine of the American economy, small business has a big impact. But where can small business owners turn for the capital they need to grow? Traditional lenders are one option, but the “It’s a Wonderful Life” image of George Bailey at the Building & Loan may not reflect reality. New online options may broaden the availability of credit, but they also raise some consumer protection concerns. That was the topic of Strictly Business: An FTC Forum on Small Business Financing and you’ll want to read a new FTC Staff Perspective on the subject. According to Federal Reserve statistics, in 2018, 32% of small businesses reported applying for online financing – up from 24% in 2017 and 19% in 2016. Many lenders are new to the market. Some base their underwriting on financial technologies and alternative data. In addition, payment processo[...]
: Be a privacy hero at your company (shield included, cape optional) lfair December 3, 2019 | 9:05AM Be a privacy hero at your company (shield included, cape optional) By Lesley Fair Want to be your company’s Privacy Shield hero? Four proposed FTC settlements suggest actions you can take to keep your business Privacy Shield-compliant. The EU-U.S. Privacy Shield framework enables companies to lawfully transfer consumer data from European Union countries to the United States. (There also is a Swiss-U.S. framework .) The Department of Commerce administers both frameworks, while the FTC challenges false or deceptive representations companies make about their participation or compliance. In separate complaints, the FTC alleges that four companies – Click Labs, Inc. , a Seattle-based website and app services provider; Incentive Services , a Minnesota developer of employee award programs; Global Data Vault , a data storage and recovery business in Dallas; and North Carolina IT services company TDARX – made misleading[...]
: FTC sues marketers of student loan “debt relief” – and financer who helped it happen lfair September 12, 2019 | 12:35PM FTC sues marketers of student loan “debt relief” – and financer who helped it happen By Lesley Fair Every spring at colleges across the country, many graduates receive a diploma in their hand – and an albatross around their neck. The burden of student loan debt weighs heavily on American families. And given the pressures on cash-strapped employees, businesses say they’re paying a price in productivity. The FTC has brought numerous cases against companies that pitch deceptive student loan “debt relief.” Actions announced by the FTC and the Minnesota Attorney General continue that effort, but come with a twist that should be relevant to those in the financial sector. Manhattan Beach Venture, LLC, undertook a massive telemarketing campaign to sell purported services to consumers struggling with student loan debt. The pitch was persuasive. According to the complaint, the company’s telemarketers[...]
: Can you support your claims about Privacy Shield, CBPR participation? lfair June 19, 2019 | 10:35AM Can you support your claims about Privacy Shield, CBPR participation? By Lesley Fair Phileas Fogg was famous for going around the world in 80 days, but when it comes to global commerce, consumers can manage the same feat with just one click. Recent FTC actions touch on the international implications of consumer protection. SecurTest is a Florida-based background screening company that claimed to participate in the EU-U.S. and Swiss-U.S. Privacy Shield programs. Privacy Shield establishes a process to allow companies to transfer consumer data from European Union countries and Switzerland to the United States in compliance with EU and Swiss law. To participate, companies must complete a self-certification process with the Department of Commerce and then recertify annually. Privacy Shield participation is voluntary, but the FTC can take action if companies make deceptive representations about their status. Accord[...]
: It’s a fact: No changes to FTC “Lighting Facts” requirements lfair March 25, 2019 | 2:26PM It’s a fact: No changes to FTC “Lighting Facts” requirements By Colleen Tressler Word has it there’s been some confusion as to whether the FTC’s “Lighting Facts” label requirements are still in place. So we thought it would be a good idea to shed some light on the issue. The FTC’s requirements at 16 C.F.R. Part 305 still apply and, what’s more, nothing has changed: The FTC’s black and white Lighting Facts labels, like the one below, must still appear on packages for general service lamps and specialty consumer lamps. Confusion may have arisen due to the closure of the voluntary DOE LED Lighting Facts® program , which is separate from the FTC labels. On March 1, 2018, the DOE stopped accepting new lighting facts products for that agency’s program. The end of DOE’s program does not affect the existing consumer Lighting Facts labels that the FTC Rules require.
: Pink slip slip-up: First FTC cases challenging deceptive car title loans lfair January 30, 2015 | 9:12AM Pink slip slip-up: First FTC cases challenging deceptive car title loans By Lesley Fair She’s got a competition clutch with four on the floor And she purrs like a kitten ‘til the lake pipes roar. And if that ain’t enough to make you flip your lid, There's one more thing. I got the pink slip, Daddy. Back in the days of the Beach Boys’ “Little Deuce Coupe,” the only risk to a car title – the pink slip – was when hot rodders bet them on drag races.The FTC just announced its first two settlements with car title lenders that underscore additional risks to consumers’ pink slips and wallets. What should other companies consider if they want to avoid crossing the yellow line? The complaints challenge allegedly illegal practices by First American Title Lending of Georgia, which operates over 30 locations in that state, and Finance Select, which does business as Fast Cash Title Pawn at five Georgia locations and tw[...]
: Buyers burned by BurnLounge wfg-adm109 March 19, 2012 | 4:50PM Buyers burned by BurnLounge By Lesley Fair If you or your clients work in the multi-level marketing (MLM) arena, a decision by a federal judge in the FTC's lawsuit against BurnLounge, Inc., merits your attention. The defendants — the company, the CEO, and top salesmen — used claims of hefty profits to sell opportunities to run online digital music stores. According to the FTC, the outfit masqueraded as a legitimate MLM program, but really was an illegal pyramid scheme. After a nine-day trial, the court ordered a total of $17 million in refunds for consumers who were burned by the scam. BurnLounge promoted itself online, through phone calls, and via in-person meetings with claims of big money to be made. According to the FTC, at a recruiting presentation in New York, the company's CEO said: "[I]f you build a community that sells a few movies and sells a few games and sells a few downloads, you will have a license to print money. Don't take my w[...]
: Thigh maintenance wfg-adm109 July 6, 2011 | 3:48PM Thigh maintenance By Lesley Fair A skin cream that can reduce body size. Are historians sure that wasn’t what Ponce de Leon was seeking? It’s certainly what buyers are looking for, if ads are any indication. But claims like that have to be backed up by solid science, as is clear from the FTC’s $900,000 settlement with Beiersdorf , Inc., marketer of Nivea My Silhouette! (Yes, the exclamation point is on the package.) Ads for the product touted its “Bio-slim Complex,” a combination of ingredients that includes white tea and anise. In one TV ad, as the voice-over claimed “New Nivea My Silhouette! with Bio-Slim Complex helps redefine the appearance of your silhouette and noticeably firms skin in just four weeks,” the ad showed a woman digging into the recesses of her closet, taking out an old pair of jeans, and trying them on to learn that they fit. “So you can rediscover your favorite jeans and how they still get his attention.” Um, OK. Except that accor[...]
: Let's Make a Seal wfg-adm109 January 12, 2011 | 5:31PM Let's Make a Seal By Lesley Fair For many people, environmental considerations play an important role in what they put in their shopping carts. But it's tough to know when green claims are credible. Seals and certifications can be a useful tool to help shoppers decide where to place their trust and how to spend their money — but only if they're backed by solid proof. The FTC’s proposed settlement with Tested Green, Nonprofit Management LLC, and Jeremy Ryan Claeys demonstrates the importance of ensuring that claims conveyed to consumers through seals and certifications are supported by sound science. According to the FTC, the company and Claeys advertised and sold a Tested Green certification, touted as “the nation’s leading certification program for businesses that produce green products or use green processes in the manufacture of goods and services.” The company’s website hyped the program as “the nation’s leading certification for green businesses[...]
: Lock Mess wfg-adm109 September 24, 2010 | 3:56PM Lock Mess By Lesley Fair There’s lots of public information out there about people. So it’s no surprise there’s a booming business in the sale of data – and in the sale of services that promise to protect personal information. The FTC’s recent settlement with data broker US Search demonstrates that like any other advertising claims, representations about privacy and security must be substantiated. US Search sells search services through a website. For a fee, people can enter someone’s name, address, or phone number and get additional information about them – like their age, address history, relatives, neighbors and associates, marriages and divorces, bankruptcies, tax liens, lawsuits, state criminal records, home value, and email addresses. In addition to selling access to information, US Search sold a "PrivacyLock" service that claimed to block the appearance of buyers’ names and addresses in their search results. The company charged $10, but waived the fee f[...]
: Stick with Security: FTC resources for your business lfair October 13, 2017 | 2:10PM Stick with Security: FTC resources for your business By Thomas B. Pahl, Acting Director, FTC Bureau of Consumer Protection In our Stick with Security blog series , we’ve done our best to dive deeper into data security by focusing on the lessons learned from recent cases, insights from closed investigations, and the questions and comments we’ve received from businesses. One remark we’ve heard from companies that want to implement the lessons of Start with Security is “Just give us a list of what to do.” Unfortunately, data security can’t be boiled down to a one-and-done checklist. What’s reasonable depends on the circumstances – for example, the nature of your business and the sensitivity of the information you must collect and maintain – so there’s no one-size-fits-all approach. In addition, data thieves’ tactics are constantly evolving. Last year’s precautions may not protect your company from tomorrow’s threats. That said,[...]
: FTC says DIRECTV wasn’t so direct about fees and negative options lfair March 11, 2015 | 12:21PM FTC says DIRECTV wasn’t so direct about fees and negative options By Lesley Fair Have you seen the ads where a popular celebrity touts DIRECTV on his own behalf and as the Painfully Awkward, Overly Paranoid, or Crazy Hairy version of himself? Applying that to a lawsuit just filed by the FTC , there’s DIRECTV – and then there’s Deceptively Advertised DIRECTV. DIRECTV is one of the biggest names in the business with more than 20 million customers. Through TV, print, direct mail, phone, and online promotions, the company advertises satellite TV packages for as low as $19.99 a month for 12 months. What’s more, DIRECTV said premium channels like HBO and Showtime are “free for 3 months.” But according to the FTC, DIRECTV failed to adequately disclose the true nature of the deal, meaning that consumers got stuck with higher prices and unauthorized charges. The complaint offers a closer look at how the FTC says DIRECTV’s[...]
: FTC issues 6(b) orders to social media and video streaming services lfair December 14, 2020 | 2:11PM FTC issues 6(b) orders to social media and video streaming services By Lesley Fair One digit can make a lot of difference. Would the Proclaimers have walked 501 miles? How effective was Love Potion #10? Did the Beatles ask would you still need me, would you still feed me when I’m 65? With so much attention on Section 5 of the FTC Act, some may overlook another important provision of the statute: Section 6(b). The FTC has issued 6(b) orders to nine well-known social media and video streaming platforms seeking information about their data collection, use, storage, disclosure, and deletion; advertising; user engagement; and demographic information. Under Section 6(b), the FTC may require a company to file “reports or answers in writing to specific questions” about its business practices. The FTC just sent 6(b) orders to Amazon.com, Inc., ByteDance Ltd. (operator of TikTok), Discord Inc., Facebook, Inc., Reddit, [...]
: $10 million ABCmouse settlement: Avoiding auto-renewal traps lfair September 2, 2020 | 12:10PM $10 million ABCmouse settlement: Avoiding auto-renewal traps By Andrew Smith, Director, FTC Bureau of Consumer Protection Online subscription services can be a convenience for consumers and a boon for business – especially now that so many people are shopping from home. But under the law, companies have an obligation to explain the details of the deal up front, clearly disclose any automatic renewal terms, get consumers’ express consent before billing, and offer simple ways to cancel. The FTC just announced a $10 million settlement with online learning company ABCmouse for allegedly violating those established consumer protection principles. The case offers lessons for subscription-based businesses about the perils of snaring customers in a negative option trap. The Restore Online Shoppers’ Confidence Act (ROSCA ) makes it illegal to charge consumers for products sold through online negative options unless the sell[...]
: Cleaning up ad claims wfg-adm109 April 18, 2011 | 1:55PM Cleaning up ad claims By Lesley Fair Science, studies, and statistics. There’s a reason advertisers feature them so prominently. When used accurately, they can be powerful tools for distinguishing your product from the competitors. But scientific claims — especially health-related ones — need solid proof. That was the cause of the recent legal dust-up between the FTC and Oreck Corporation involving the Oreck Halo vacuum and the Oreck ProShield Plus portable room air cleaner. The company touted the products as “flu fighters” that could “help stop the flu on virtually any surface and in the air in your home.” One infomercial claimed, “The Oreck Halo has killed up to 99.9 percent of bacteria exposed to its light in one second or less,” and that the vacuum’s light chamber “has been tested and shown to kill up to 99.9 percent of certain common germs, plus dangerous pathogens like E. Coli and MRSA.” According to the FTC’s complaint, the company’s ads represe[...]
: Practice Fusion case suggests 6 health privacy pointers lfair June 8, 2016 | 9:01AM Practice Fusion case suggests 6 health privacy pointers By Lesley Fair Combine two of the most talked-about consumer protection topics – health privacy and consumer-generated online content – and what do you get? A proposed FTC settlement with Practice Fusion, the largest cloud-based electronic health records company in the country, and six compliance tips for others in the industry. One of San Francisco-based Practice Fusion’s primary products is an electronic records system for outpatient providers. In 2009, the company launched “Patient Fusion,” an online portal where patients whose providers were already using Practice Fusion could view or download their health information or transmit it to another provider. Patient Fusion also let patients send and receive secure messages from their providers. Fast forward several years and the company decided to expand Patient Fusion to include a public directory where current and prosp[...]
: FTC challenges claims for opiate withdrawal products lfair May 4, 2017 | 11:04AM FTC challenges claims for opiate withdrawal products By Lesley Fair Is there a family or a workplace that hasn’t been touched in some way by the public health crisis of opiate addiction? It’s no wonder that advertisers are offering purported treatments. But an FTC settlement with a Texas-based business stands for the fundamental principle that companies’ health claims need the support of sound science. The products at issue were Withdrawal Ease and Recovery Ease – and the names were the first of many representations that Catlin Enterprises made about what it pitched as “The Leader in Home Opiate Detox Since 2009.” Withdrawal Ease and Recovery Ease included daytime formulations of vitamins, minerals, and herbs. The nighttime versions had different herbal blends minus the vitamins and minerals. Among the ingredients were passionflower, milk thistle, turmeric, ginger, peppermint, pomegranate, and horseradish. For people dependent o[...]
: Fraud alerts vs. credit freezes: FTC FAQs lfair September 14, 2017 | 10:51AM Fraud alerts vs. credit freezes: FTC FAQs By Lesley Fair UPDATE: As of September 21, 2018, the law says credit freezes are free for everyone, and alerts now last one year (not 90 days). Read more here . Consumers are apprehensive about the security of their personal information and recent headlines about data breaches have moved the needle substantially on the -ometer that measures such things. As a business executive, your customers and employees may be coming to you with questions. Here are answers from the FTC about two topics on consumers’ minds: fraud alerts and credit freezes. Fraud alerts and credit freezes can be very helpful tools for consumers. People don’t have to be victims of identity theft to use them, but they should weigh their options in light of their personal circumstances. If they’re not sure what’s right for them, here are some points to ponder. What do fraud alerts and credit freezes do? With a fraud alert , a [...]