: First INFORM ConsumersAct enforcement case filed against online marketplace Temu kkrown September 5, 2025 | 10:00AM First INFORM ConsumersAct enforcement case filed against online marketplace Temu Online marketplaces and third party sellers looking for a refresher on the INFORM ConsumersAct 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 ConsumersAct 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[...]
: 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[...]
: 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[...]
: 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[...]
: 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[...]
: 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[...]
: 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 itsfirst 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 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” [...]
: 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[...]
: 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[...]