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Cybersecurity for small business: Hiring a web host

Andrew Smith, Director, FTC Bureau of Consumer Protection
Your website is the online face of your business. Some companies have the in-house capability to manage their web presence. Others hire a web host to handle it for them. When launching a new business or upgrading their site, savvy business owners comparison shop for web hosting services. At the top of your shopping list should be the security features built into what you’re buying. In our meetings with small business owners across the country...

In Fat Giraffe Marketing’s ads, truth was the endangered species

Lesley Fair
The name of the case is FTC v. Fat Giraffe Marketing Group, but the lawsuit has nothing to do with obesity, giraffes, or obese giraffes. OK, perhaps there are some similarities in the sense that the defendants made oversized claims, told tales as tall as tree-topping ungulates, and used protective coloration – in this case, bogus endorsements – to camouflage what they were up to. Fat Giraffe Marketing, four related Utah-based corporations...

They give love a bad name

Lesley Fair
Just in time for Valentine’s Day, the FTC staff released a Data Spotlight highlighting the category of scam with the highest amount of reported financial loss among complaint categories the FTC uses to track fraud. The category may surprise, but here’s a hint. In the words of Bon Jovi, these con artists “give love a bad name.” The category is romance scams and the statistics are staggering. In 2018, Consumer Sentinel – a central hub for consumer...

New date for FTC workshop on ticket sales

Lesley Fair
You won’t need a ticket, but you will need to mark your calendar for June 11, 2019. That’s the new date for That’s the Ticket, an FTC workshop about online ticket sales. The workshop – originally scheduled for March – will explore the ticket sales marketplace, consider industry-wide advertising and pricing issues, and discuss ways to address deception beyond traditional law enforcement. Topics include ticket bots, the Better Online Ticket Sales...

Romance scams rank number one on total reported losses

Emma Fletcher
People looking for romance are hoping to be swept off their feet, not caught up in a scam. But tens of thousands of reports in Consumer Sentinel show that a scam is what many people find. In 2018, Sentinel had more than 21,000 reports about romance scams, and people reported losing a total of $143 million – that’s more than any other consumer fraud type identified in Sentinel. 1 These reports are rising steadily. In 2015, by comparison, people...

FTC-FDA warning letters target treatment claims for Alzheimer’s, dementia, and other serious diseases

Lesley Fair
Alzheimer’s disease poses what experts agree is a looming public health crisis. But it also exacts an incalculable personal toll on people living with the condition and the family and friends who love them. The FTC and the Food and Drug Administration just sent warning letters to three companies advertising that their products can treat diseases like Alzheimer’s. It’s a development that merits industry attention. Like many consumers, the FTC and...

Cybersecurity for small business: Email authentication

Andrew Smith, Director, FTC Bureau of Consumer Protection
As a business person, you know about phishing, of course. At first glance, the email looks like it comes from a recognized company, complete with a familiar logo, slogan, and URL. But it’s really from a cyber crook trying to con consumers out of account numbers, passwords, or cash. In addition to the serious injury these scams inflict on consumers, there’s another victim of phishing: the reputable business whose good name was stolen by the...

The Masked Ringer

Lesley Fair
Some forms of masquerading are just good clean fun. Consider The Masked Singer, a surprise TV hit in which a panel of celebrities tries to guess the identity of other celebrities who sing karaoke while wearing elaborate disguises. (We’re not making that up. It’s a thing now.) But other forms of masquerading are based in deception, as the FTC alleges in a lawsuit against Global Asset Financial Services Group, LLC, and 15 Buffalo- and Charlotte...

Hey Nineteen: Nine FTC developments that could impact your business in 2019

Lesley Fair
Steely Dan may be one of the best duos of the rock era. (Sorry, Donnie and Marie fans.) Their song “Hey Nineteen” reminds us to mention some FTC consumer protection developments that could be of interest to your company or clients in 2019. As “Any Major Dude Will Tell You,” when you’re “Reelin’ in the Years” – or at least recapping the past one – consider this non-exhaustive and in-no-particular-order case compilation. Health claims. In 2019, you...

Cybersecurity for small business: Vendor security

Andrew Smith, Director, FTC Bureau of Consumer Protection
Not many small businesses do business these days without the services of third-party vendors, some of whom have access to your company’s sensitive information. Even if you run a tight cybersecurity ship, what happens if your accountant loses a laptop or the payroll company that connects to your network experiences a security breach? Your business could be in jeopardy, of course, but that’s not all. Regardless of the circumstances surrounding the...