: 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 recei[...]
: Federal Trade Commission Chairman Andrew N. Ferguson today announced he has appointed Taylor C. Hoogendoorn as Deputy Director of the Bureau of Competition and Katherine White as Deputy Director of the Bureau of Consumer Protection. Hoogendoorn is a talented litigator with expertise in a wide range of litigation, including antitrust, tort, contractual, energy, and intellectual property matters. Hoogendoorn joins the FTC after spending time in private practice at a law firm in Houston. He clerked for the Hon. Samuel A. Alito Jr. on the Supreme Court of the United States; the Hon. Gregory G. Katsas on the United States Court of Appeals for the D.C. Circuit; and the Hon. J. Harvie Wilkinson III on the United States Court of Appeals for the Fourth Circuit. Hoogendoorn holds a J.D. from Yale Law School, where he won the Morris Tyler Moot Court of Appeals and served on the Yale Law Journal, and a B.B.A. with majors in Economics, Finance, Mathematics, and Business Fellows from Baylor University. While at Baylor, h[...]
: Green Lights & Red Flags: FTC Rules of the Road for Business rocks on in Cleveland sgressin September 21, 2020 | 12:03PM Green Lights & Red Flags: FTC Rules of the Road for Business rocks on in Cleveland By Seena Gressin Natives and fans heartily agree that “Cleveland Rocks!” That’s why the Federal Trade Commission and its Ohio partners are ready to roll with the next installment of Green Lights & Red Flags: FTC Rules of the Road for Business , set to make its online debut on October 29, 2020, from Cleveland. The free business workshop focuses on current topics in truth-in-advertising law, social media marketing, data security, business-to-business fraud, and more. Who should attend the virtual event? Ohio business owners, marketing and advertising professionals, attorneys — anyone who needs to know how established consumer protection principles apply in today’s fast-paced marketplace. The Office of the Ohio Attorney General, Better Business Bureau Serving Greater Cleveland, and the Cuyahoga County Departme[...]
: New data from the Federal Trade Commission reveal that people reported losing a staggering $3.5 billion to imposter scams in 2025, with reported losses increasing nearly three times since 2020. FTC data also show that people reported imposter scams more than any other fraud category in 2025—nearly one in three fraud reports were about imposter scams. These scams lured consumers through text, phone, email, social media, search engine results and other means. Some of the costliest impersonation scams start with a fake security alert, often from a bank. People are convinced to move money to “protect” it, with their losses often limited only by their available funds. Last year, people reported losing nearly $1 billion to business impersonators with the highest reported losses to bank impersonators—and about $920 million to government impersonators, up from $866 million and $789 million respectively in 2024. The FTC has seen a striking increase in reported fraud losses to all types of fraud—about $16 billion was [...]
: Amazon will pay $2.25 million in civil penalties to settle Federal Trade Commission allegations that the online retail giant knowingly violated the Fair Credit Reporting Act (FCRA) by refusing to provide transaction records to consumers whose personal information was used by identity thieves to commit fraud. The complaint , filed by the Department of Justice upon notification and referral from the FTC, alleged that in numerous instances, Amazon.com Inc. failed to comply with Section 609(e) of the FCRA, which requires companies to, within 30 days of a consumer’s request, provide victims of identity theft with application and business transaction records about fraudulent transactions made in their names. According to the complaint, Amazon had no written policy to respond to Section 609(e) requests until early 2025, after it learned of the FTC’s investigation, despite prior outreach from FTC staff advising the company to review its compliance with Section 609(e). “Amazon often put identity theft victims through[...]
: The Federal Trade Commission issued a policy statement today announcing that the Commission will not bring an enforcement action under the Children’s Online Privacy Protection Rule (COPPA Rule) against certain website and online service operators that collect, use, and disclose personal information for the sole purpose of determining a user’s age via age verification technologies. The COPPA Rule requires operators of commercial websites or online services directed to children under 13, and operators with actual knowledge they are collecting personal information from a child, to provide notice of their information practices to parents and to obtain verifiable parental consent before collecting, using, or disclosing personal information collected from a child under 13. Age verification technologies play a critical role in helping parents as they monitor their children’s online activities. Since COPPA was enacted in 1998, there’s been an explosion in the use of internet-connected technologies by children. To he[...]