Blog

For businesses, cloud services are kind of like clouds. At their best, they can be soothing and expansive. But for companies that fail to appreciate the security implications, their ethereal presence may hide dangerous storms within. As cloud computing has become business as usual for many businesses, frequent news reports about data breaches and other missteps should make companies think carefully about how they secure their data. The FTC has...

An FTC complaint against Kohl’s Department Stores alleges the retailer violated the Fair Credit Reporting Act by refusing to provide victims of identity theft with complete records of questionable transactions – a right the FCRA guarantees to victimized consumers. The $220,000 settlement is a reminder to other companies to rethink their approach to that provision of the law. The FTC’s allegations start with the plain language of Section 609(e) of...

Many small businesses, medical offices, non-profits, and religious organizations turned to a New York company called Richmond Capital for financing, but according to a lawsuit filed by the FTC, they got less – and way more – than they bargained for. The just-filed law enforcement action against a network of related companies and individuals is the latest step in the FTC’s ongoing effort against questionable financing practices that target small...

If your business sells funeral goods and services, you probably know that the FTC Funeral Rule requires funeral providers to give itemized price lists to consumers. To help ensure that you know what specific information needs to be in the lists and when you must provide it, the FTC has released a new tip sheet, Funeral Rule Price List Essentials. The Funeral Rule requires three price lists: the General Price List (GPL), the Casket Price List (CPL...

Dear Multi-Level Marketer. Stop it. Stop all promotions that push your products by claiming they prevent or treat COVID-19. Stop all misleading or unsubstantiated promotions that push your business opportunity by claiming people can earn substantial income peddling your products. The claims are unproven and deceptive. Whether you or your distributors are making them, you’re responsible. That means you could be breaking the law. That’s the message...

FTC staff sent the latest round of warning letters to 35 businesses alleged to have made unsubstantiated coronavirus prevention or treatment claims. What they sold diverges widely – IV vitamin treatments, products containing silver, patches purporting to block electromagnetic radiation, etc. – but they have one thing in common: According to the FTC, their claims aren’t supported by sound science. Here are the companies that received the letters...

A large-scale scam involving phony unemployment benefits claims has been making headlines. Criminals, possibly based overseas, are filing claims for benefits, using the names and personal information of people who have not lost their jobs. The investigation is ongoing, but this much is known: the fraud is affecting tens of thousands of people, slowing the delivery of benefits to people in real need, and costing states hundreds of millions of...

Ostriches get a bad rap. The popular perception is that the species Struthio camelus bury their heads in the sand. But, in fact, they flee from perceived danger at speeds that top 60 miles per hour. An FTC proposed settlement with a payment processor that ignored signs that certain clients were engaged in fraud suggests that more companies should follow the real-life example of the ostrich and hightail it away from any association with illegal...

I am pleased to announce the appointment of a new manager in the Bureau of Competition: Patty McDermott has joined the Anticompetitive Practices Division as Deputy Assistant Director. Patty has served in the FTC’s Health Care Division since 2014, and received the Commission’s Louis D. Brandeis Award in 2018 for leading the trial team in FTC v. AbbVie. Before joining the FTC, Patty worked in private practice and clerked for the Honorable Cameron...

The FTC’s complaint against Bronx Honda alleges the company jacked up what consumers had to pay by fabricating fees, inflating charges, and sneaking in stealth add-ons. The lawsuit also alleges the defendants discriminated against African-American and Hispanic consumers by charging them higher financing markups and fees, in violation of the Equal Credit Opportunity Act and Reg B. The $1.5 million proposed settlement, which requires the company to...