: 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 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[...]
: 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[...]
: On Tuesday, Federal Trade Commission Chairman Andrew N. Ferguson submitted recommendations for deleting or revising anticompetitive regulations across the entire federal government to the White House’s Office of Management and Budget. This report is a response to President Trump’s Executive Order on Reducing Anticompetitive Regulatory Barriers . The Executive Order tasked the FTC with finding unnecessary regulations that exclude new market entrants, protect dominant incumbents, and predetermine economic winners and losers, as a first step to repealing them. “President Trump’s Executive Order recognizes that heavy-handed regulations can hurt competition, including by entrenching incumbent firms, raising costs for new entrants, and discouraging innovative new ways to serve customers,” said FTC Bureau of Competition Director Daniel Guarnera. “Competitive markets lower the cost of living, improve the quality of products and services, and drive innovation. Our engagement with citizens across the country and agenc[...]
: 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[...]
: 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” [...]
: 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[...]
: 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[...]
: 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[...]