APPENDIX A

SAMPLING OF UNFAIRNESS CASES
Possible Rationales for FTC Unfairness Cases

Case(1)
Coercion or
Fraud
Inequity of
Information
Vulnerable
Consumers: children
Vulnerable
Consumers: other
Lack of Privity
International Harvester (1984)
Failing to disclose fuel cap risks for tractors 		         
Orkin (1986)
Unilaterally terminating consumer contracts

 

        
Audio Communications (1991) (consent)
900 number sales to children		    

 

    
FTC v. Capital Club (1994) (consent)
Sale of credit card information to marketers engaged in fraud

 

      

 
Case(2)
 
Windward Marketing (1997)
Fraudulent processing of consumers' bank payments ("demand drafts")		          
R.J. Reynolds (1997)
Joe Camel ads		          
F.T.C v. Amkraut (1997) (consent)
Attorney withholding information from clients and other conduct jeopardizing clients' ability to receive visas		          
CME Letter (1997)
Online collection of children's information		          
Case(3)
 
Hold Billing (1998)
Billing aggregator's phone charges to consumers for unauthorized services 		         
Beck's North America (1999) (consent)
Ads showing beer drinking on boats 		         
HOEPA cases (1999) (consents)
Predatory lending practices 		         
Touch Tone (1999)
Sale of financial information obtained through pretexting

 

      

 
Case(4)
 
Pereira (1999)
Hijacking to and trapping consumers in pornographic web sites

 

  

 

    
J.K. Publications (2000)
Charging consumers for non-existent Internet services		          
ReverseAuction (2000) (consent)
Use of information obtained in violation of a competitor's privacy policy to spam consumers 		         
   
1. In re International Harvester Co., 104 F.T.C. 949 (1984).
In re Orkin Exterminators, 108 F.T.C. 263 (1986).
In re Audio Communications, Inc., 114 F.T.C. 414 (1991).
F.T.C. v. Capital Club of North America, Inc., No. 94-CV-6335 (D.N.J. filed Dec. 28, 1994).
2. F.T.C. v. Windward Marketing, 1997 U.S. Dist. LEXIS 17114 (N.D. Ga. Sept. 30, 1997)
In re R.J. Reynolds Tobacco Co., D. 9285, 1997 F.T.C. LEXIS 118, (May 28, 1997) (complaint issued) (dismissed without prejudice, Jan. 26, 1999).
F.T.C. v. Amkraut, No. 97-0354 RSWL (BQRx) (C.D. Cal. complaint and stipulated final judgment filed Jan. 17, 1997) (available at /os/1997/9701/amkrautc.htm   and /os/1997/9701/amkrauto.htm ).
Letter from Jodie Bernstein, Director, Bureau of Consumer Protection, Federal Trade Commission, to Kathryn C. Montgomery, President and Jeffrey A. Chester, Executive Director, Center for Media Education (July 15, 1997) (available at http://ftc.gov/os/1997/9707/cenmed.htm).
3. F.T.C. v. Hold Billing Services, Ltd, No. SA-98-CA-0629 FB (W.D. Tex. filed July 19, 1998) (available at /os/1998/9807/hold2cmp.ct.htm).
In re Beck's North America, Inc., File No. C-3859, 1999 F.T.C. LEXIS 40, (March 25, 1999) (complaint and final order).
HOEPA cases (1999), see supra, n. 27.
F.T.C. v. Rapp., No. 99-WM-783, 1999 F.T.C. LEXIS 112 (D. Colo. filed Apr. 12, 1999) (stipulated consent agreement and final order entered June 23, 2000) (Touch Tone).
4. F.T.C. v. Pereira, No. 99-1367-A (E.D. Va. filed Sept. 14, 1999) (available at /os/1999/9909/atarizfcomplaint.htm   and /os/1999/9909/atarizmemo.htm ).
F.T.C. v. J.K. Publications, 99 F. Supp. 2d 1176 (C.D. Ca. 2000).
F.T.C. v. ReverseAuction.com, Inc., No. 00-0032 (D.D.C. filed Jan. 6, 2000) (available at /os/2000/01/reversecmp.htm   and /os/2000/01/reverseconsent.htm ).

Last Modified: Monday, June 25, 2007