Blog

A savvy business person always wants to know the shape of things to come. We won’t make predictions but, based on the FTC’s case against multi-level marketer AdvoCare International, we will say this: Don’t bet on a business model that looks like a pyramid. The FTC says Texas-based AdvoCare operated a pyramid scheme disguised as a business opportunity and swindled hundreds of thousands of consumers who signed up to be “distributors” of its health...

Technology changes at the speed of light, but the touchstone of the Children’s Online Privacy Protection Act Rule remains constant. When it comes to the collection of their kids’ personal information online, parents are in charge. But how does that principle apply in technologies not originally anticipated by the COPPA Rule? Whether it’s social media, the Internet of Things, or educational technology, do changes in media and the marketplace...

People sometimes think scams mostly affect older adults, but reports to Consumer Sentinel tell a different story. People in their 20s and 30s, a cohort that roughly tracks the so-called Millennial generation, are 25% more likely to report losing money to fraud than people 40 and over generally, and much more likely to report a loss on certain types of fraud.

In The Wizard of Oz, Dorothy was told to ignore the man behind the curtain. Some may argue that the same guidance applies to ancillary parts of a merger or joint venture agreement. These can include non-solicitation and non-compete provisions. Even when such provisions are ancillary to an otherwise legitimate business transaction, we will still make a determination that the restraints do not independently violate the antitrust laws by being...

How do consumers interpret “Made in the USA” and other U.S.-origin claims? What can the FTC do to improve its enforcement program? Those are just two of the topics on the table at today’s Made in the USA workshop. FTC Bureau of Consumer Protection Director Andrew Smith will start the discussion at 8:30 a.m. Eastern Time. It promises to be a fast-paced, content-packed half-day event. Minutes before the start time, you can watch the webcast live...

“ He just emailed you! You caught his eye and now he’s expressed interest in you... Could he be the one?” Don’t get excited just yet, lovebirds. According to an FTC lawsuit, the “he” in question – or the “she” – could be an online scammer that Match Group, Inc., the owner of Match.com, has used to induce consumers to upgrade to paid subscriptions. The lawsuit alleges that many of the likes, favorites, emails, and instant messages that led Match...

You’ve probably seen them on TV: announcements with prominent warnings about FDA actions involving certain prescription drugs or medical devices. But they aren’t official health and safety recalls or alerts from the Food and Drug Administration. They’re something else – and FTC staff has sent letters to some of the people involved. What’s really going on? They’re ads soliciting potential clients for personal injury lawsuits against makers of...

When consumers apply for credit, housing, or employment, consumer reports are often used to help decide whether they can get that loan, apartment, or job. With so much at stake, the accuracy of those reports is of the utmost importance. On December 10, 2019, the FTC and CFPB will host a workshop to discuss issues related to the accuracy of traditional credit reports and background screening reports used by prospective employers and landlords. A...

Remember Saturday Night Live’s “Coffee Talk with Linda Richman”? When the host got verklempt, she suggested a paradoxical conversation starter – “The chickpea is neither a chick nor a pea,” “Rhode Island is neither a road nor an island,” “The Partridge Family is neither a partridge nor a family” – always ending with the catchphrase “Discuss amongst yourselves.” According to an FTC lawsuit, many of the personal care products a Miami company...

On her Control album, Janet Jackson posed the musical question, “What have you done for me lately?” It’s a fair question for small businesses to ask the FTC and the most recent answer would be “ Sent 29,333 refund checks averaging $396 and totaling $11.6 million to companies and nonprofits tricked into paying invoices – unvoices, really – for merchandise they didn’t order.” While we’re on the subject, there is something you can do for charities...