Last week, the Federal Trade Commission (FTC) released an interesting case against a lead generator (ITMedia) that purportedly collected sensitive information from consumers who were seeking loans and sold that information to entities that were not in the business of providing loans. The defendants settled charges that they violated both the FTC Act and the … Continue Reading
Much like an artist looking for a muse, I keep up with consumer protection developments and ponder – is this blog-worthy? Well, the other day, the Federal Trade Commission (FTC) announced the annual updates to its civil penalty numbers. I yawned and returned to the task at hand. My colleague Amy, however, wisely thought that … Continue Reading
I made my last New Year’s resolution 10 years ago in 2012. Technically, it wasn’t a resolution; maybe it was more of a lifestyle choice. I vowed that I would no longer drink the coffee that was sold in the Federal Trade Commission’s (FTC) now-defunct Top of the Trade cafeteria. It was a great place … Continue Reading
Back in September, the Federal Trade Commission (FTC) issued (by a 3-2 vote) a policy statement (the Statement) regarding the oft-forgotten Health Breach Notification Rule (the Rule). I was at the FTC when the Statement was released and have since joined BakerHostetler. Around the time I joined BakerHostetler, my new colleague Melissa Hewitt published an … Continue Reading
I used to read a lot of TV show recaps that were touted as “We watch so you don’t have to.” Little did I know that same concept would apply to these new public meetings of the Federal Trade Commission (FTC) and that I would be the one recapping. The meetings aren’t quite must-see TV, … Continue Reading
As many of our readers know, the U.S. Supreme Court decision in AMG dramatically changed things with respect to the ability of the Federal Trade Commission (FTC) to obtain certain monetary remedies. A lot has been written and theorized about the FTC’s post-AMG strategies, but certainly Section 19 of the FTC Act was lined up … Continue Reading
Kudos to Commissioner Noah Phillips and Commissioner Christine Wilson for creating and/or popularizing the catchiest Federal Trade Commission (FTC or Commission) phrase of 2021 – zombie votes. But what are these zombie votes that are the latest FTC bone of contention, and do they relate to the traditional lumbering George Romero zombies or to the … Continue Reading
I was an FTCer for many years, and one issue we would face every few years was how to objectively measure the success (or failure) of a law enforcement agency. It is an important issue that has to be addressed when crafting an agencywide strategic plan, a draft of which was released a few weeks … Continue Reading
The latest Federal Trade Commission (FTC or Commission) public meeting was notable for what did not happen – there were no 3-2 votes taken over the strong objections of the Republican commissioners. With former Commissioner Rohit Chopra’s departure to head the CFPB, for at least the next few weeks – or, more likely, months – … Continue Reading
So we have been writing quite a lot about the recent deluge of FTC Notice of Penalty Offense letters. And as we have told you, at their core, the letters are a vehicle that would potentially allow the agency to seek significant civil penalties against companies with actual knowledge that their actions violate the principles … Continue Reading
The FTC’s Notice of Penalty Offenses concerning endorsements and testimonials is barely a week old and it’s likely already had its intended effect. Hundreds, if not more, of consumer products companies are taking a second or third look at their practices when it comes to endorsements and testimonials and are beefing up their training and … Continue Reading
Policy statements are neither rules nor notices of penalty offenses, but when the FTC issues a policy statement discussing an area that has been the subject of a lot of enforcement activity, it warrants serious attention, particularly when the press release discusses ramping up enforcement on “illegal dark patterns that trick or trap consumers.” That’s … Continue Reading
Whether you are old-school and call them Synopses or you use the new, more in-your-face term Notices of Penalty Offenses, the fact is that this tool has dramatically and quickly increased in significance under Chair Lina Khan’s Federal Trade Commission (FTC), and this warrants attention. Round one focused on 70 for-profit colleges; round two went … Continue Reading
I’m a longtime consumer protection practitioner but a new blogger in a new role. Now, I am well aware that there are many talented folks out there writing about these issues, but I will try my best to make these entries worthwhile, concise and valuable reads, with maybe just a touch of snark. And after … Continue Reading
By: Amy Mudge, Mike Ingram and Carolina Alonso The Children’s Advertising Review Unit (CARU) recently held their “Kidvertising” workshop to discuss the revised CARU Advertising Guidelines, which are set to take effect on January 1, 2022. The workshop tackled several issues important to child advertising including diversity and inclusion, influencers, and in-app and in-game advertising. … Continue Reading
By: Linda Goldstein, Amy Mudge, Randy Shaheen, Jack Ferry and Matt Renick The Federal Trade Commission (FTC or Commission) announced on Oct. 13 a widespread enforcement action against deceptive endorsement practices. The Commission sent a Notice of Penalty Offenses to more than 700 companies, notifying them that conduct related to fake or misleading endorsements and … Continue Reading
By Randal Shaheen and Matthew Renick To kick off the final day of the National Advertising Division’s (NAD) 2021 virtual conference last week, FTC Commissioner Rebecca Slaughter gave a keynote address laying out her views on consumer privacy and the digital data economy writ large. Specifically, Commissioner Slaughter sought to bust five myths about privacy … Continue Reading
A recent Federal Trade Commission (FTC) action demonstrates how the FTC has pivoted toward enforcement actions based on specific acts of Congress and rules in light of the Supreme Court’s ruling in AMG Capital. Congress passed the COVID-19 Consumer Protection Act in December 2020, which made deceptive acts or practices involving the treatment, cure, prevention, … Continue Reading
Well, the buck stops here (for now). Last week, in AMG Capital Management, LLC v. Federal Trade Commission, the Supreme Court unanimously ruled that Section 13(b) of the Federal Trade Commission (FTC) Act does not authorize the FTC to obtain equitable monetary relief such as restitution or disgorgement. This highly anticipated landmark decision reverses decades … Continue Reading
We regularly tell clients that intent is meaningless when it comes to deception under Section 5 of the FTC Act. And that’s true (or we wouldn’t say it). But fewer people realize that it’s not necessarily true when it comes to a minority of the states. As of a couple weeks ago, however, that number … Continue Reading
As we wait to see how the Supreme Court will rule on the FTC’s redress authority and whether the FTC will potentially be controlled by Republicans or Democrats for at least the next four years, it is worth noting that Commissioner Chopra and one of his attorney advisors has written an interesting draft paper advocating … Continue Reading
All eyes remain on the Supreme Court and what, if any, changes the Court may make to the Federal Trade Commission’s (FTC’s) authority to seek consumer redress. Will the Court strip the FTC of that authority entirely? The Third Circuit’s recent decision in an antitrust matter suggests so. The circuit court held Section 13(b) of … Continue Reading
Online retailers are well aware of how the promise of quick delivery can influence consumer purchasing decisions. Especially in times like these, when delivery times have slowed for many companies, marketers might be even more tempted to promise fast delivery as a way to entice consumers to place an order. A recent enforcement by the … Continue Reading
The Rent to Own industry has been a frequent target of Federal Trade Commission (FTC or Commission) action. While the industry notes that it provides an ownership option for consumers who are unable to pay up front and who may not qualify for traditional credit, critics point to the fact that the final cost of … Continue Reading