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Penn Corner December 2010

Protecting Kids' Privacy

OnGuard Online: Kids' Privacy

According to the FTC, EchoMetrix sold a software program — Sentry Parental Controls — that let parents view their children's online activities, like chat conversations, instant messaging, and web history. What the company didn't disclose adequately is that they allegedly fed that information into a database they turned around and sold to marketers. To settle the case, EchoMetrix agreed not to use or share the information it got through its Sentry program — or any similar program — for any purpose other than allowing registered users to access their accounts. For more information about kids' online privacy, visit OnGuard Online.

A Bad Mix

FTC Sends Warning Letters to Marketers of 4 Caffeinated Alcohol Drinks

The Federal Trade Commission sent warning letters to four marketers of caffeinated alcohol drinks urging them to review the way they market these drinks because they may be violating federal law. The letters noted recent incidents that suggest that alcohol with added caffeine presents unusual risks to health and safety, particularly for young adults. The Food and Drug Administration simultaneously announced that it is sending letters to the same four companies warning that caffeine is an "unsafe food additive" as used in their products.

New Rule Protects Homeowners

Money Matters: Your Home

Beginning January 2011, foreclosure relief companies will not be allowed to charge a fee for their services until their homeowner clients accept a written offer from the mortgage lender or servicer. The FTC says the new rule will protect struggling homeowners from companies that charge big fees before they make good on promises to negotiate a loan modification or other foreclosure relief. The FTC and state and federal law enforcement partners have brought hundreds of cases against such companies, including many that pretend to be affiliated with the government. Check out the press release to learn other requirements of the rule. Homeowners: visit ftc.gov/YourHome for more information.

Wreaking Havoc on Robocallers

Rules for Robocalls

At the request of the FTC, a court recently shut down an international robocall ring that allegedly defrauded nearly 13,000 people out of almost $13 million. The robocallers promised to reduce credit card interest rates for a fee of $995 and to give refunds to customers who didn't save at least $2,500. According to the FTC, the defendants failed to lower interest rates, didn't save customers the promised $2,500, and didn't provide refunds. When disappointed customers called to complain, the robocallers had disappeared. To learn more about settling credit card debts, check out this FTC alert.

Simon Says They'll Settle

Simon Property Group Agrees to FTC Conditions

The FTC required Simon Property Group, the outlet mall owner, to sell property and modify leases to settle charges that its $2.3 billion merger with Prime Outlets threatened competition in certain local markets. According to the FTC, the deal could have raised rents in outlet malls in Ohio, Illinois, and Florida. To settle the charges, Simon agreed to sell one outlet center in Ohio, and remove radius restrictions in Chicago and Orlando so tenants there also can lease at nearby outlet centers.

"In fact, there is good reason to believe that these caffeinated alcohol drinks pose significant risks to consumer health and safety. Consumers — particularly young, inexperienced drinkers — may not realize how much alcohol they have consumed because caffeine can mask the sense of intoxication."

–David Vladeck, Director of the FTC's Bureau of Consumer Protection


Heads Up for the Holidays

Teaching kids about online safety? Give them a copy of a new guide from OnGuard Online: Heads Up: Stop Think Click. It gives kids the tools they need to live their lives safely online.

Pipe up about Privacy

The FTC has released a preliminary report that proposes a new framework for consumer privacy and is accepting comments about it until January 31, 2011.

LifeLock Refunds

According to the FTC, LifeLock's identity theft prevention services didn't live up to claims of fail-safe identity protection. As part of a settlement with the FTC, the company is providing refunds to customers to the tune of $11 million. If you're considering buying a product or service that claims to minimize the risk of identity theft, the FTC offers these tips.

IN OTHER News:

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  • Looking for love online? So are scam artists. Get to know the warning signs of an online dating scam at http://go.usa.gov/1cg.
  • Buying gift cards this holiday season? Learn about important new changes and get tips for buying and using gift cards at http://go.usa.gov/1c4.

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