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FTC settlement challenges deceptive claims by patent assertion entity (FTC USA Business Blog Posts)
: FTC settlement challenges deceptive claims by patent assertion entity wfg-adm109 November 6, 2014 | 11:07AM FTC settlement challenges deceptive claims by patent assertion entity By Lesley Fair Patent assertion entities have been the subject of much debate in antitrust and intellectual property circles. But there’s one proposition we hope that parties on all sides of the issue can agree on: It’s illegal to falsely threaten patent suits against small businesses or make unfounded claims that other companies have paid for patent licenses. That’s the misconduct alleged in a settlement the FTC just announced with patent assertion entity MPHJ Technology Investments, LLC, MPHJ corporate officer Jay Mac Rust, and Texas-based law firm Farney Daniels, P.C. Generally speaking, patent assertion entities are companies that acquire patent rights and then seek licensing fees from businesses they claim are infringing their patents. The FTC’s action centers on representations that MPHJ made while asserting patents that relate[...]
Instacart to Pay $60 Million in Consumer Refunds to Settle FTC Lawsuit Over Allegations it Engaged in Deceptive Tactics (Federal Trade Commission - Protecting America's Consumers)
: Today, the Federal Trade Commission announced that grocery delivery provider Instacart will pay $60 million in refunds to consumers to settle allegations that the company engaged in numerous unlawful tactics that harmed shoppers and raised the cost of grocery shopping for Americans. Instacart will be required to cease its deceptive practices under a proposed FTC order, and consumers who were charged for Instacart+ without their express informed consent will receive refunds as a result of the settlement. “Instacart misled consumers by advertising free delivery services—and then charging consumers to have groceries delivered—and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.” The FTC has alleged that[...]
FTC wants your feedback about proposed Made in USA Rule (FTC USA Business Blog Posts)
: FTC wants your feedback about proposed Made in USA Rule lfair June 22, 2020 | 4:04PM FTC wants your feedback about proposed Made in USA Rule By Lesley Fair If your clients are interested in Made in USA issues – and you know they are – there are two developments at the FTC they need to know about. First, the FTC just announced a Notice of Proposed Rulemaking for a Made in USA Labeling Rule . You’ll want to read the notice in detail, but the proposed Rule would apply to labels on products that make unqualified Made in USA claims. (In FTC parlance, an “unqualified” claim is a broad representation made without limitations.) The proposed Rule would incorporate established guidance already set forth in FTC decisions and orders and in the agency’s 1997 Enforcement Policy Statement on U.S. Origin Claims . Consistent with that guidance, the proposed Rule would prohibit marketers from making unqualified MUSA claims on labels unless: Final assembly or processing of the product occurs in the United States; All significa[...]
Pink slip slip-up: First FTC cases challenging deceptive car title loans (FTC USA Business Blog Posts)
: 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[...]
FTC Finalizes Order Settling Allegations that GM and OnStar Collected and Sold Geolocation Data Without Consumers’ Informed Consent (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission finalized an order with General Motors and OnStar settling allegations that they collected, used, and sold consumers’ precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers and obtaining their affirmative consent. Under the order finalized by the Commission, General Motors LLC, General Motors Holdings LLC, and OnStar, LLC (collectively GM), which are owned by General Motors Company, are prohibited from sharing certain consumer data with consumer reporting agencies. They also are required to take steps to provide greater transparency and choice to consumers over the collection, use, and disclosure of their connected vehicle data. In a complaint first announced in January 2025, the FTC alleged that GM used a misleading enrollment process to get consumers to sign up for its OnStar connected vehicle service and OnStar Smart Driver feature. The FTC also alleged that GM failed to clearly disclose that it collected consumers’ [...]
FTC Seeks Public Comment on Unfair and Deceptive Fee Practices in Online Food and Grocery Delivery Services (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission today announced it is seeking public comment on whether a rule is needed to address unfair or deceptive fee practices in connection with the services provided by online food and grocery delivery platforms nationwide. As detailed in an Advance Notice of Proposed Rulemaking (ANPRM) to be published shortly in the Federal Register, the FTC is seeking written comments, including data, evidence, analyses, and arguments, to help determine how best to prevent unfair or deceptive acts or practices and to ensure that the agency addresses concerns from both consumers and industry. “Online grocery fees that are unclear, inconsistently disclosed, or revealed only at the last moment before consumers make a purchase distort competition and harm consumers,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Clear and truthful pricing is essential to competitive markets. The Commission’s enforcement track record suggests that consumers continue to face a suite of fe[...]
FTC announces first mobile app case (FTC USA Business Blog Posts)
: FTC announces first mobile app case wfg-adm109 August 15, 2011 | 9:41AM FTC announces first mobile app case By Lesley Fair There are some combinations that raise immediate compliance issues for responsible businesses — and kids’ privacy and mobile applications are among them. A settlement announced by the FTC — the agency’s first involving a mobile app — sends the important message that consumer protection laws and rules apply with full force in the mobile marketplace. W3 Innovations, which does business as Broken Thumbs Apps, develops and distributes mobile apps. Several of their apps, including the Emily’s Girl World, Emily’s Dress Up & Shop, and Emily’s Runway High Fashion apps, were directed to children and were marketed in the Games-Kids section of Apple’s App Store. The Emily apps, which had more than 50,000 downloads, allow kids to play games, create virtual models, and design outfits. The apps encouraged them to email Emily’s Blog with shouts-outs to friends or requests for advice. The Children’[...]
Nixing the Fix: Warranties, Mag-Moss, and restrictions on repairs (FTC USA Business Blog Posts)
: 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 unde[...]
FTC Begins Enforcing the TAKE IT DOWN Act (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission today began enforcing the TAKE IT DOWN Act (TIDA), a law requiring platforms, at the request of victims, to remove intimate photos or videos shared online without victims’ consent. As part of its enforcement role, the FTC has launched TakeItDown.ftc.gov , a website allowing victims and survivors to submit complaints about platforms that have failed to act on valid requests for the removal of nonconsensual intimate images. The website also accepts complaints about platforms that have failed to create a process for people to request removal of these images. “Thanks to First Lady Melania Trump’s dedication, the public, especially children, will have recourse against digital exploitation and extortion,” said FTC Chairman Andrew N. Ferguson. “In the age of AI, anyone can be targeted, and that becomes even more appalling if children are involved. The TAKE IT DOWN Act empowers families and provides the FTC with an effective tool to protect minors against this form of abuse.” The FTC enf[...]
Full Disclosure (FTC USA Business Blog Posts)
: Full Disclosure wfg-adm109 September 7, 2010 | 11:56AM Full Disclosure By Lesley Fair The FTC’s first law enforcement action related to the revised Endorsement Guides offers compliance insights for marketers. In a proposed settlement with Reverb Communications, Inc. , the FTC alleged that employees of a public relations agency hired by game developers posed as consumers and posted reviews on Apple’s iTunes store without disclosing that the reviews came from people working on behalf of the developers. According to the FTC, in addition to giving their clients’ game apps high ratings, Reverb employees posted comments like "Amazing new game," "ONE of the BEST," "[Company] hits another home run with [product name]," "Really Cool Game" "GREAT, family-friendly board game app," "One of the best apps just got better" and "[Company] does it again!" They didn’t disclose that the company was hired to promote the games and that it often got a percentage of the sales. The FTC alleged that these facts would have been rele[...]
FTC consumer protection year in review offers 2020 vision for your business (FTC USA Business Blog Posts)
: 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[...]
New FTC warning letters cite unsupported Coronavirus-related health and earnings claims (FTC USA Business Blog Posts)
: New FTC warning letters cite unsupported Coronavirus-related health and earnings claims sgressin April 24, 2020 | 12:44PM New FTC warning letters cite unsupported Coronavirus-related health and earnings claims By Seena Gressin The FTC is not the pen pal you want if you operate a multi-level marketing company but aren’t closely monitoring your distributors. In its latest round of warning letters, the FTC warns ten MLM companies that they are responsible for the claims made by their participants. The letters direct the companies to report within 48 hours what actions they’ve taken to stop their distributors from claiming their products can treat or prevent Coronavirus disease, that MLM business opportunity participants are likely to earn substantial income, or both. The FTC says that the health and earnings claims are unsubstantiated and therefore violate truth-in-advertising laws. The products at issue are not scientifically proven to treat or prevent COVID-19, the disease that Coronavirus causes. The FTC pre[...]
FTC, Florida AG to small business: Scrutinize “o-fishy-al” invoices (FTC USA Business Blog Posts)
: FTC, Florida AG to small business: Scrutinize “o-fishy-al” invoices lfair July 30, 2018 | 11:05AM FTC, Florida AG to small business: Scrutinize “o-fishy-al” invoices By Lesley Fair If it looks like a duck and quacks like a duck, it’s probably a duck. But the same can’t be said for a mailer that looks like an official invoice. It could be an “o- fishy -al” offer that deceptively mimics the appearance of a government document. A case filed by the FTC and the Florida Attorney General challenges the practice of sending mailers that allegedly create the false impression that small businesses are required to buy labor regulation posters from the sender. Consider what defendants Starwood Consulting, also doing business as Corporate Compliance Services, and company president Thomas Henry Fred, Jr., sent to small businesses. The mailers – which include a Washington, D.C., 202 area code – are titled “LABOR LAW COMPLIANCE REQUEST FORM” and include the warning “Failure to comply with posting regulations can lead to fine[...]
FTC challenges claims for opiate withdrawal products (FTC USA Business Blog Posts)
: 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[...]
FTC Seeks Public Comment on Whether to Update Rule on Impersonation of Government and Businesses to Address Platforms’ Role in Promoting Impersonation Scams (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission announced today that is considering whether to update its Rule on Impersonation of Government and Businesses or take other action to prevent online platforms from engaging in ad-optimization practices that may be furthering impersonation scams. In an Advance Notice of Proposed Rulemaking (ANPRM) to be published in the Federal Register , the FTC is seeking comment on the extent to which ad-optimization tools and services offered by social media, search engines and other digital marketplace platforms further efforts by scammers to impersonate legitimate businesses and government agencies using online ads. “Free markets depend on trust, transparency and consumers’ ability to make informed choices. Impersonation scams—especially when amplified by digital platforms that profit from them—do more than rob Americans of their hard-earned money,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “They erode the very foundation that allows competitive markets[...]
FTC Announces 2027 Telemarketer Fees to Access the National Do Not Call Registry (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission today announced new fees for telemarketers to access phone numbers on the National Do Not Call (DNC) Registry for Fiscal Year 2027 which begins on October 1, 2026. All telemarketers calling consumers in the United States are required to download the numbers on the National DNC Registry to ensure they do not call consumers who have registered their phone numbers. The first five area codes are free to download, and organizations that are exempt, such as some charities and political callers, may obtain the entire list for free. Telemarketers must subscribe each year for access to the Registry numbers. The cost of accessing a single area code in the registry will be $85 in FY 2027, which is an increase of $3 from FY 2026. The maximum charge to any single entity for accessing all area codes nationwide will be $23,425 (up from $22,626 in FY 2026). The fee for accessing an additional area code for a half year will increase to $43 in FY 2027 from $41 in FY 2026. The Commission vote autho[...]
FTC takes on unproven health claims and “own-dorsements” (FTC USA Business Blog Posts)
: 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[...]
Planning a social media marketing campaign? Read this first. (FTC USA Business Blog Posts)
: Planning a social media marketing campaign? Read this first. lfair November 13, 2018 | 12:24PM Planning a social media marketing campaign? Read this first. By Lesley Fair It started as one of those “run it up the flagpole” ideas to enlist big-name gymnasts to promote a brand of mosquito repellent just as news stories about the 2016 Brazil Olympics were sounding warnings about the Zika virus. Public relations firm Creaxion Corporation and specialty sports magazine publisher Inside Publications used a variety of digital strategies on behalf of the brand: athlete endorsements, social media posts, “advertorials,” and consumer reviews. But according to the FTC’s complaint , their efforts violated established FTC advertising principles. Which of those strategies are you using? And are you avoiding legal pitfalls by making appropriate disclosures? Creaxion – an Atlanta-based marketing and PR company – was approached by client HealthPro Brands to help launch its mosquito repellent. They agreed Creaxion would produce[...]
Made in USA? Avoiding a Yankee Doodle Don't (FTC USA Business Blog Posts)
: Made in USA? Avoiding a Yankee Doodle Don't wfg-adm109 October 21, 2013 | 11:17AM Made in USA? Avoiding a Yankee Doodle Don't By Lesley Fair There are lots of nifty phone accessories, bottle holders, tow straps, pet items, and lanyards out there. So a label that says the product is Made in the USA may help make the decision for some consumers. When it bears the American flag and says “TRULY MADE IN THE USA,” that just might seal the deal. But according to an FTC lawsuit , a lot of the “Made in the USA” merchandise touted by Logan, Utah-based E.K. Ekcessories wasn’t really made in the USA – turning the company’s claims from a Yankee Doodle Do to a Yankee Doodle Don't. E.K. Ekcessories sells a variety of outdoor equipment through popular retailers and on its own site. In addition to the labels, the company touted its products’ U.S. pedigree with statements like “For 28 years E.K. Ekcessories has been producing superior quality made accessories in our 60,000 sq. ft. facility in Logan, Utah,” and “Our source[...]
FTC, States Sue Amazon Over Secret Ad Surcharge Scheme (Federal Trade Commission - Protecting America's Consumers)
: Today, 22 states joined the Federal Trade Commission in filing suit against Amazon, alleging that the company engaged in deceptive and unfair practices that secretly inflated prices in its online search advertising auctions. The complaint alleges that, for over seven years, Amazon has covertly and substantially increased the prices that more than one million brands and sellers were required to pay to advertise on its platform. As a result, the complaint alleges that Amazon’s scheme has likely extracted tens of billions of dollars from its unwitting advertising customers. “When one of the world’s largest online retailers engages in unfair and deceptive conduct, the impact can be staggering,” said Chairman Andrew N. Ferguson. “Amazon has millions of advertising customers who were misled into paying significantly higher prices. These higher costs were largely passed on to American consumers. The FTC under President Trump won’t allow this deception to continue.” The FTC, along with the attorneys general of Ala[...]
Stick with Security: Require secure passwords and authentication (FTC USA Business Blog Posts)
: Stick with Security: Require secure passwords and authentication lfair August 11, 2017 | 10:47AM Stick with Security: Require secure passwords and authentication By Thomas B. Pahl, Acting Director, FTC Bureau of Consumer Protection To make it harder for hackers to bluff their way onto a computer network, careful companies follow the advice of Start with Security and require strong authentication practices . We’ve considered FTC settlements, closed investigations, and the questions we get from businesses about implementing good authentication “hygiene.” Here are some tips on using effective authentication procedures to help safeguard your network. Insist on long, complex, and unique passwords. A password’s very reason for being is to be easy for a user to remember, but hard for a fraudster to figure out. Obvious choices like ABCABC, 121212, or qwerty are the digital equivalent of a “hack me” sign. Furthermore, experts have determined that passphrases or longer passwords are generally harder to crack. The smar[...]
Franchise Fundamentals: Taking a deep dive into the Franchise Disclosure Document (FTC USA Business Blog Posts)
: Franchise Fundamentals: Taking a deep dive into the Franchise Disclosure Document lfair May 23, 2023 | 6:41PM Franchise Fundamentals: Taking a deep dive into the Franchise Disclosure Document By Lesley Fair Love at first sight may (or may not) be a real thing, but when it comes to investing your money, it’s unwise to fall for a franchise without first subjecting it to tough-minded scrutiny. The third in the FTC’s Franchise Fundamentals blog series walks through an essential part of that evaluation: an in-depth review of the Financial Disclosure Document (FDD) required by the FTC’s Franchise Rule . You must receive the Franchise Disclosure Document at least 14 days before you’re asked to sign any contract or pay any money to the franchisor or one of its affiliates. In fact, you have the right to the FDD once the franchisor has received your application and agrees to consider it. So speak up if you don’t receive it and ask questions – lots of them – as you review the FDD and any attached documents. Image Ind[...]
FTC Approves Final Order Against Publishing.com, Settling Allegations It Misled Consumers (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission finalized an order with Publishing.com LLC and its two principals, settling allegations that they misled consumers about how much money consumers were likely to earn using their self-publishing products. Under the order finalized by the Commission, Publishing.com and its principals, CEO Christian Mikkelsen and Chief Product Officer Rasmus Mikkelsen, will pay $1.5 million and be required to substantiate earnings claims in the future. In a complaint first announced in April 2026, the FTC alleged that Publishing.com claimed its programs and services would help consumers earn substantial income publishing e-books and audiobooks online. The FTC further alleged that Christian and Rasmus Mikkelsen claimed that they personally used this system to obtain significant wealth through online self-publishing. The FTC alleged, however, that most consumers who bought Publishing.com’s products and services never made the income the company promised in its advertising. Consumers who sought refunds[...]
FTC challenges influencer campaign for Warner Bros.’ Shadow of Mordor game (FTC USA Business Blog Posts)
: 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[...]
FTC Sends Warning Letters to Companies About Compliance with the TAKE IT DOWN Act (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission sent warning letters today to a dozen websites advising them of their obligation to comply with the TAKE IT DOWN Act (TIDA), which requires platforms to give people a way to request the removal of intimate photos or videos shared online without their consent, and to remove the intimate photos or videos within 48 hours of a valid request. “Today we’re demonstrating just how serious we are about protecting the public, especially children, from abusive online conduct,” said FTC Chairman Andrew N. Ferguson. “Platforms no longer have any excuses—they must comply with their obligations under the TAKE IT DOWN Act or face the consequences.” The warning letters were sent to 12 companies that offer so-called “nudify” tools that allow people to take a clothed image of an individual and remove the individual’s clothing to create nonconsensual and sexualized images. The letters note that these companies appear to be in violation of TIDA by failing to provide individuals with a process through[...]
FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices (Federal Trade Commission Concurrence communiqués)
: The Federal Trade Commission’s initial findings from its surveillance pricing market study revealed that details like a person’s precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services. The staff perspective is based on an examination of documents obtained by FTC staff’s 6(b) orders sent to several companies in July aiming to better understand the shadowy market that third-party intermediaries use to set individualized prices for products and services based on consumers’ characteristics and behaviors, like location, demographics, browsing patterns and shopping history. Staff found that consumer behaviors ranging from mouse movements on a webpage to the type of products that consumers leave unpurchased in an online shopping cart can be tracked and used by retailers to tailor consumer pricing. “Initial staff findings show that retailers frequently use people’s personal information to set targeted, tailored prices for goods[...]
Founders of Celsius Network Ordered to Pay $16.5 Million to Resolve FTC Charges (Federal Trade Commission - Protecting America's Consumers)
: Alexander Mashinsky, the former CEO of cryptocurrency platform Celsius Network Inc. (Celsius), and his business partners, Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, will pay a total of $16.5 million to resolve the Federal Trade Commission’s charges that they deceived users by falsely promising that deposits made to their cryptocurrency platform would be safe and always available. Mashinsky and Leon have also agreed to a ban on marketing or selling products or services that can be used to deposit, exchange, invest or withdraw assets. Similarly, Goldstein has agreed to a ban on marketing or selling retail products or services that can be used to buy, sell, deposit, withdraw, distribute or trade cryptocurrency. In its July 2023 complaint , the FTC alleged that Celsius and its co-founders promised consumers that Celsius was “safer” than a bank or other traditional financial institutions and misrepresented that their deposits were safe because Celsius earned profits at “no risk” to consumers by making secur[...]
Fighting Coronavirus scams: Taking stock (FTC USA Business Blog Posts)
: Fighting Coronavirus scams: Taking stock chundycz May 8, 2020 | 9:01AM Fighting Coronavirus scams: Taking stock By Andrew Smith, Director, FTC Bureau of Consumer Protection Since the beginning of the COVID-19 crisis, the FTC has released dozens of warning letters against people trying to make an illegal buck off the Coronavirus. More than a month in, it seems like a good time to look back at what’s happened. If you follow this blog, you’ll know these have been busy weeks – with advice about spotting the many scams we’re all facing, news of the warning letters sent on a wide range of scams, and some enforcement actions filed. You might wonder: Why send letters? Why not just sue the !*$@&#? 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[...]
Green Lights & Red Flags: FTC Rules of the Road for Business rocks on in Cleveland (FTC USA Business Blog Posts)
: 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[...]
FTC Secures Settlement that Protects Small Businesses from Illegal Price Discrimination (Federal Trade Commission Concurrence communiqués)
: The Federal Trade Commission secured a settlement agreement with Southern Glazer’s Wine and Spirits LLC, the nation’s largest distributor of wine and spirits, that will redress allegedly illegal price discrimination practices and make it easier for small businesses to compete against large chain retailers. The sweeping settlement covers nearly all Southern wine and spirits sales to the five largest chain retailers in 26 states. The settlement will also provide direct cash payments to harmed small businesses if an independent monitor finds that Southern violates the settlement order going forward. “This settlement marks a significant milestone for the FTC in its enforcement of the Robinson-Patman Act, which Congress enacted to empower small businesses to compete against large ones,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “Small businesses are an invaluable part of the American economy and way of life. The FTC is committed to ensuring that all businesses, no matter their size, can c[...]
$88 million back for AT&T customers: An inside look at a refund program (FTC USA Business Blog Posts)
: $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[...]
Is it amour – or scam-more? (FTC USA Business Blog Posts)
: 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[...]
Keep FCRA in the foreground when the subject is background screening (FTC USA Business Blog Posts)
: 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 anyo[...]
FTC Issues COPPA Policy Statement to Incentivize the Use of Age Verification Technologies to Protect Children Online (Federal Trade Commission - Protecting America's Consumers)
: 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[...]
Joint letters take new steps to stop illegal Coronavirus robocalls (FTC USA Business Blog Posts)
: 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 [...]
Spilling the beans: The anatomy of a diet craze (FTC USA Business Blog Posts)
: Spilling the beans: The anatomy of a diet craze lfair January 26, 2015 | 1:07PM Spilling the beans: The anatomy of a diet craze By Lesley Fair Some people call it the “Oz Effect” – the bump in consumer demand after a product or ingredient is featured on the The Dr. Oz Show. In a just-announced settlement, the FTC says defendants Lindsey Duncan, Pure Health LLC, and Genesis Today, Inc., took advantage of that phenomenon by deceptively touting the purported weight loss benefits of green coffee bean extract . The complaint recounts how defendant Duncan fueled a diet craze. The story has it all: a national TV appearance, a popular host, claims that people would lose weight without diet or exercise, and a comprehensive marketing campaign designed to take advantage of all of the above. The only thing missing, according to the FTC, was proof the product actually worked. As the complaint recounts, a Dr. Oz producer contacted Texas-based Lindsey Duncan, who had been on the show before, about an appearance to talk abo[...]
Setting the debt parking brake (FTC USA Business Blog Posts)
: 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[...]
Sign of the times? Protecting your company from B2B deception (FTC USA Business Blog Posts)
: 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[...]
We can’t go for that (no can do) (FTC USA Business Blog Posts)
: We can’t go for that (no can do) lfair July 17, 2017 | 11:38AM We can’t go for that (no can do) By Lesley Fair Of course, phantom debt collection – the practice of pressuring people to pay “debts” they don’t owe – harms consumers. But as an FTC complaint demonstrates, when phantom debt collectors strike, they could affect your company, too. According to the FTC , a Florida-based outfit engaged in a scheme to defraud consumers through the collection of debts people didn’t actually owe or the company didn’t have the authority to collect. The complaint charges that the defendants – Hardco Holding Group, S & H Financial Group, Dequan M. Sicard, and Daryl M. Hall (no, not that Daryl Hall) – violated the FTC Act and Fair Debt Collection Practices Act. When contacting consumers, in many instances the defendants allegedly impersonated attorneys and threatened to have people thrown in jail if they didn’t pay up on delinquent payday loans – loans, remember, that many consumers didn’t take out in the first place and de[...]
Speaking of Spokeo: Part 2 — The company’s allegedly bogus endorsements (FTC USA Business Blog Posts)
: Speaking of Spokeo: Part 2 — The company’s allegedly bogus endorsements wfg-adm109 June 13, 2012 | 12:25PM Speaking of Spokeo: Part 2 — The company’s allegedly bogus endorsements By Lesley Fair The lawsuit against data broker Spokeo is the FTC’s first Fair Credit Reporting Act case addressing the collection of online info — including data from social networking sites — when used in the context of employment screening. But that’s not the only way the Spokeo settlement touches on social media. The FTC also charged that Spokeo violated Section 5 by having employees post glowing recommendations of the company’s services on news and technology websites without disclosing their true identity. Perhaps just the work of a rogue cubicle occupant? No, said the FTC. According to the complaint , Spokeo directed its employees to write the comments. Spokeo managers then edited what they wrote and had the staffers post the endorsements using account names provided by Spokeo. The purpose, says the FTC, was to give read[...]
FTC Will Require Illusory Systems to Return Money Stolen by Hackers and Implement an Information Security Program (Federal Trade Commission - Protecting America's Consumers)
: 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[...]
First Consumer Review Fairness case takes on promoter’s “big bucks on Amazon” claim (FTC USA Business Blog Posts)
: First Consumer Review Fairness case takes on promoter’s “big bucks on Amazon” claim lfair August 6, 2018 | 11:11AM First Consumer Review Fairness case takes on promoter’s “big bucks on Amazon” claim By Lesley Fair T he marketers behind a purported money-making promotion called Sellers Playbook appear to have skipped the chapter about complying with federal and state consumer protection laws. That’s the allegation in a complaint filed by the FTC and the Minnesota Attorney General . In addition, it’s the FTC’s first case charg ing violations of the Consumer Review Fairness Act. The roots of the allegations go back to another venture sued by the FTC earlier this year: FBA Stores, also known as Amazing Wealth System and Amazon Wealth Systems. The defendants in that case ran online ads and in-person workshops that claimed to reveal the secret s of making major money on Amazon. But few, if any, of the consumers who forked over thousands of dollars and implemented their “plug-and-play systems” earn ed the kind of c[...]
Buckle up for a two-lane look at car buying (FTC USA Business Blog Posts)
: Buckle up for a two-lane look at car buying lfair July 30, 2020 | 1:04PM Buckle up for a two-lane look at car buying By Lesley Fair It’s one of the biggest purchases people make, but two new FTC staff reports examine some common pitfalls when consumers are in the market for a car. Buckle down and read the Bureau of Consumer Protection’s Buckle Up: Navigating Auto Sales and Financing , which focuses on the challenges buyers face in getting accurate, understandable information when shopping for a vehicle. Not in the auto business? Not so fast. The deep-dive analysis of Buckle Up and an accompanying report by BCP staff and the Bureau of Economics – The Auto Buyer Study: Lessons From In-Depth Consumer Interviews And Related Research – offer insights into the perception and behavior of consumers in the study that can apply to other industries. The FTC’s interest in auto-related transactions goes back decades. (Check out Volume 1 of Federal Trade Commission Decisions for a 1919 case regarding deception in the s[...]
FTC is Sending Nearly $23 Million to Consumers Who Invested in the Deceptive Sanctuary Belize and Kanantik Real Estate Development Schemes (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission is returning nearly $23 million to consumers nationwide who bought deceptively marketed overseas real estate lots in what the sellers pitched as Sanctuary Belize, a supposed luxury development in southern, coastal Belize, as well as its nearby sister development, Kanantik. The FTC is mailing 1,659 checks to defrauded investors. The average amount of each check for Sanctuary Belize consumers is $16,462 and the average amount of each check for Kanantik consumers is $6,346.39. Today’s announcement represents the second mailing to consumers who invested in the Sanctuary Belize scheme, with approximately $10 million distributed previously . The first round of checks was sent only to consumers who bought property within Sanctuary Belize. Today’s checks are going to both Sanctuary Belize investors, as well as consumers who invested in Kanantik, a related development owned and operated by some of the Sanctuary Belize defendants, and other areas covered by the court relief in this case. [...]
FTC Secures Settlement Banning Growth Cave Defendants from Marketing and Selling Business Opportunities and Credit Repair Programs (Federal Trade Commission - Protecting America's Consumers)
: Defendants behind a wide-ranging operation known as Growth Cave, including its co-CEOs, are permanently banned from marketing and selling business opportunities and credit repair programs as part of an FTC settlement to resolve allegations that their scheme cost consumers nearly $50 million. As part of that settlement, Growth Cave’s co-CEOs also will be required to liquidate millions of dollars’ worth of assets, including a multimillion-dollar house, to provide consumer redress. “On day one, the Trump-Vance FTC reprioritized combatting fraud that harms American markets. Today’s successful resolution demonstrates that the Commission is focused on protecting our markets from dishonest actors,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. The FTC sued Growth Cave in February 2025, alleging that consumers were deceived by false promises of significant income. Growth Cave allegedly offered numerous business opportunities, which regularly failed to deliver the promised results[...]
7-Eleven to Pay Record $4.5 Million Penalty to Settle FTC Antitrust Order Violation Case (Federal Trade Commission Concurrence communiqués)
: 7-Eleven, Inc. and its parent company, Seven & i Holdings Co., Ltd., (collectively 7-Eleven) will pay $4.5 million to settle a Federal Trade Commission lawsuit alleging that the convenience store chain violated a 2018 FTC consent order by acquiring a fuel outlet in St. Petersburg, Fla. without providing the Commission prior notice. The $4.5 million penalty marks the largest civil penalty ever collected in an FTC case involving a prior-notice violation. It is also the largest negotiated settlement of any order violation in the FTC Bureau of Competition’s history. “Under the Trump-Vance FTC, merger remedies that protect competition are once again on the table. But for merger remedies to work, firms must abide by the terms of their consent orders, and we will hold parties accountable when they don’t live up to their commitments,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “7-Eleven failed to fulfill the terms of the FTC’s consent order and is now paying a record price. The FTC will not h[...]
How an “invention promotion” outfit demoted the truth (FTC USA Business Blog Posts)
: How an “invention promotion” outfit demoted the truth lfair September 13, 2017 | 11:15AM How an “invention promotion” outfit demoted the truth By Lesley Fair It sounds like there was some “inventing” going on at Florida-based invention promotion firm World Patent Marketing, but a Preliminary Injunction in a case brought by the FTC suggests it wasn’t the kind that unsuspecting consumers bargained for when they forked over millions of dollars based on the defendants’ misleading promises about patenting and promoting their products. For FTC watchers, the opinion is a page-turner from start to finish. We’ll focus on just a few of the claims the company “invented.” The defendants’ initial business model involved online ads that induced people to submit their product ideas. Salespeople responded, telling interested consumers that World Patent Marketing’s “review team” was researching the proposal because “the company is so selective with the ideas they choose to work with.” After a bit of a wait, salespeople calle[...]
First INFORM Consumers Act enforcement case filed against online marketplace Temu (FTC USA Business Blog Posts)
: First INFORM Consumers Act enforcement case filed against online marketplace Temu kkrown September 5, 2025 | 10:00AM First INFORM Consumers Act enforcement case filed against online marketplace Temu Online marketplaces and third party sellers looking for a refresher on the INFORM Consumers Act should look no further than the recent settlement with Whaleco, Inc., which operates the online marketplace Temu. The complaint alleges the company failed to provide online shoppers with required information and tools. This is the first case brought to enforce the INFORM Act. The INFORM Act, which went into effect in 2023, seeks to make online transactions more transparent. Among other things, 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 has more on how the law defines terms, what’s required of online marketplaces, and the substantial penalties the FTC and state law enforcers may se[...]
A clothes look at the RN database: Q&A with FTC staff (FTC USA Business Blog Posts)
: 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[...]
FleetCor Agrees to Pay $100 Million to Resolve Administrative Action After Federal Court Finds that It Violated the FTC Act by Charging Unauthorized Fees (Federal Trade Commission - Protecting America's Consumers)
: FleetCor and its CEO will pay $100 million to settle a Federal Trade Commission administrative action alleging that the company charged its customers, who overwhelmingly are small businesses, undisclosed fees in connection with their use of fuel cards that FleetCor falsely promised businesses would save them money. In a complaint first filed in federal court in 2019 , the FTC alleged that FleetCor Technologies Inc., now known as Corpay Inc., and its CEO Ronald Clarke imposed a broad array of unauthorized fees that its customers never knew about and did not agree to pay, totaling hundreds of millions of dollars and harming tens of thousands of customers. In addition, FleetCor charged late fees to customers who had either paid on time or were prevented by FleetCor from paying on time. FleetCor also misrepresented the gas savings, fraud-control features, and fees associated with its fuel cards. “FleetCor deceived its small business customers by promising fuel savings that never materialized, while unfairly cha[...]
Root, root root for the regions (FTC USA Business Blog Posts)
: 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 [...]
FTC recaps consumer complaint data for 2017: Who’s on the list? (FTC USA Business Blog Posts)
: FTC recaps consumer complaint data for 2017: Who’s on the list? lfair March 1, 2018 | 5:17PM FTC recaps consumer complaint data for 2017: Who’s on the list? By Lesley Fair Once bitten, twice shy. That fundamental principle of human behavior is why reputable businesses that work hard to earn consumers’ confidence should support the FTC’s ongoing efforts to fight fraud. According to the FTC’s 2017 Consumer Sentinel Data Book , consumers reported losing a total of $905 million to fraud last year. That’s close to a billion bucks people won’t be able to spend on legitimate products and services from credible companies. That figure is up $63 million from last year, although the total number of reports received from consumers is down from 2.98 million in 2016 to 2.68 million in 2017. Topping the list that no industry wants to be on is debt collection, making up 23% of the total number of complaints. But there are two caveats: 1) that number is down from 2016; and 2) the high number of debt collection reports was du[...]
FTC Challenges Anticompetitive Medical Device Deal (Federal Trade Commission Concurrence communiqués)
: The Federal Trade Commission today moved to block medical device supplier Edwards Lifesciences Corp.’s (Edwards) proposed acquisition of JenaValve Technology, Inc. (JenaValve) due to concerns that the acquisition would limit patient access to lifesaving medical devices used to treat a potentially fatal heart condition. The FTC alleges that over the span of two days in July 2024, Edwards executed agreements to acquire both JenaValve and JC Medical, the two leading companies competing to bring to market transcatheter aortic valve replacement devices that treat a heart condition called aortic regurgitation (TAVR-AR devices). Edwards closed its acquisition of JC Medical in August 2024, and its proposed $945 million acquisition of JenaValve would combine the only two companies with ongoing clinical trials in the United States for a TAVR-AR device. The deal threatens to reduce competition in the TAVR-AR market, likely resulting in reduced innovation, diminished product quality, and potentially increased prices for[...]
FTC challenges Online Trading Academy’s money-making claims (FTC USA Business Blog Posts)
: FTC challenges Online Trading Academy’s money-making claims lfair February 12, 2020 | 4:35PM FTC challenges Online Trading Academy’s money-making claims By Lesley Fair Ads for health products often target Boomer Consumers, but those aren’t the only claims pitched to people looking toward retirement. An FTC action alleges a company called Online Trading Academy has taken in more than $370 million by gearing its deceptive representations to that demographic. In addition, the complaint alleges violations of the Consumer Review Fairness Act. According to the FTC, the California-based operation, related companies, and three individual defendants advertise a “patented strategy” that consumers can apply “to any asset class including stocks, options, futures and currencies” to rake in big money. They claim their “training programs” – with price tags as high as $50,000 – will teach consumers how to “invest like the pros on Wall Street.” ”No matter your experience and goals,” people were told the defendants’ “proven” [...]
FTC sues American Immigration Center for claiming false government affiliation (FTC USA Business Blog Posts)
: 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[...]
StubHub Refunding $10 Million in Fees to Consumers After Deceptive Ticket Pricing (Federal Trade Commission - Protecting America's Consumers)
: StubHub, the nation’s largest ticket exchange and resale ticket provider, will pay $10 million to settle Federal Trade Commission charges that the company violated the FTC Act and the agency’s Rule on Unfair or Deceptive Fees by deceptively advertising ticket prices on its website without clearly and conspicuously disclosing up-front how much consumers actually would pay, including all mandatory fees. “The Commission’s Fees Rule makes it very clear that the total price of live-event tickets must be disclosed up-front to enable consumers to make fully informed purchasing decisions,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Price transparency is essential to a free and competitive marketplace. Today’s settlement underscores the Commission’s commitment to ensuring that consumers pay the price they are promised.” The FTC’s action against StubHub Holdings, Inc., follows a warning letter the agency sent the online ticket platform in May 2025 stating that multiple prices di[...]
FTC Data Show People Reported Losing $3.5 Billion to Imposter Scams in 2025 (Federal Trade Commission - Protecting America's Consumers)
: 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 [...]
Practice Fusion case suggests 6 health privacy pointers (FTC USA Business Blog Posts)
: 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 Sends More Than $27.6 Million to Consumers Harmed by Unauthorized Billing Schemes (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission is sending payments totaling more than $27.6 million to consumers who were enrolled, without their knowledge, in plans where they were shipped and charged repeatedly for products marketed to promote weight loss, clear skin, and other healthcare benefits. According to the FTC’s July 2024 complaint , defendants Legion Media, LLC, KP Commerce, LLC, Pinnacle Payments, LLC, Sloan Health Products, LLC, and their principals, operated two types of unauthorized billing scams. In the first, the FTC alleged that the defendants defrauded consumers who bought CBD and Keto-related products by charging them more than the advertised price and enrolling them in continuity plans without their consent in which they are charged for products they never intended or agreed to buy. Several defendants participated in a second scheme where consumers paid a small shipping fee for a supposedly free “gift.” However, after consumers used their credit and debit cards to pay the fee, they incurred recurring un[...]
FTC Releases Annual Do Not Call Registry Data Book (Federal Trade Commission - Protecting America's Consumers)
: The Federal Trade Commission today released the National Do Not Call Registry Data Book for Fiscal Year 2025 , which shows that, while overall complaints rose in FY 2025, unwanted calls remain about 48% lower than in FY 2021, when the FTC received approximately five million reports about unwanted calls. The FTC’s annual data book provides detailed information on robocall and live-caller complaints, the topics consumers report most often, and a state-by-state breakdown of registrations and complaints per 100,000 people. As in prior years, calls about reducing debt, imposters, and medical and prescription issues remained among the topics consumers most frequently reported in FY 2025. The National Do Not Call (DNC) Registry lets consumers add their phone numbers and opt out of most legal telemarketing calls. In FY 2025, more than 4.7 million additional phone numbers were added to the Registry, bringing the total to about 258.5 million active registrations as of September 30, 2025—an increase of roughly 1.9% ove[...]