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FTC’s Lord & Taylor case: In native advertising, clear disclosure is always in style

Lesley Fair
It’s a fetching frock with spaghetti straps, an engineered paisley print, and an asymmetrical hemline. And it’s at the center of a law enforcement action against department store chain Lord & Taylor for its allegedly deceptive use of native advertising – the first case of its kind since the FTC released its Enforcement Policy Statement in December. The lawsuit also challenges Lord & Taylor’s “product bomb” campaign on Instagram as misleading...

Suspension and prevention: The story behind suspended judgments

Lesley Fair
It’s a phrase you see every now and then in announcements about FTC settlements: “The order includes a $___ judgment, which has been partially suspended based on the defendants’ inability to pay.” What happens if it turns out the defendants weren’t telling the truth about their financial condition? A ruling by a federal judge in Arizona explains the consequences. The story starts with a 2014 lawsuit against Clint Ethington and HCG Diet Direct for...

Time to rethink mandatory password changes

Lorrie Cranor, Chief Technologist
Data security is a process that evolves over time as new threats emerge and new countermeasures are developed. The FTC’s longstanding advice to companies has been to conduct risk assessments, taking into account factors such as the sensitivity of information they collect and the availability of low-cost measures to mitigate risks. The FTC has also advised companies to keep abreast of security research and advice affecting their sector, as that...

Antitrust Violation vs. Injury-in-Fact: A distinction that makes a difference

Dan Butrymowicz, Bureau of Competition
There is a basic but important difference between antitrust cases brought by the government and those brought by private parties: All plaintiffs, including government enforcers like the FTC, must prove an antitrust violation, which requires showing harm to competition. But private plaintiffs must make an additional showing: to establish antitrust ‘standing,’ private plaintiffs must prove that the antitrust violation caused harm to them. This...

ASUS case suggests 6 things to watch for in the Internet of Things

Lesley Fair
The router is Grand Central Station for home technology. It manages the connections between all of the smart devices in the home, from the computer in the den and tablet on the coffee table, to the smart thermostat on the wall and internet-connected baby monitor in the nursery. Consumers expect that route to be a limited access highway with the router forwarding data securely while blocking unauthorized access. But an FTC complaint against tech...

5 steps to help protect your business from a supplies surprise

Lisa Lake
You’ve got lots of needs as a business owner – among them, supplies you rely on from square-dealing vendors. But what if the vendor misleads your staff about the price or quantity of those supplies, hits you with a huge invoice you didn’t authorize, and then tries to pressure you into paying it? Those are just some of the sales tactics the FTC is challenging in recent law enforcement actions. In three unrelated cases, the FTC has sued California...

When touting auto systems checks, it’s wise to recall recalls

Lesley Fair
Make, model, and cup holders are considerations, of course, but what really matters to a prospective used car buyer is whether the vehicle’s systems check out. It just makes sense, since so many of those systems are tied to safety. But it’s not easy for consumers to tell if they’re buying a lemon or a creampuff. Many dealers try to assuage that concern by advertising that their used cars have passed multi-point checks. FTC complaints charge that...

Is FTC v. Actavis Causing Pharma Companies to Change Their Behavior?

Jamie Towey and Brad Albert, Bureau of Competition
Since 2004, brand-name and generic drug manufacturers have filed certain agreements with the FTC and DOJ as required by the Medicare Prescription Drug, Improvement and Modernization Act (also known as MMA filings). Congress required these filings after the FTC raised concerns that some agreements between brand-name and generic drug companies had the potential to unlawfully delay generic drug entry and thereby undermine the goals of the Hatch...

Disguise the limit: FTC sues debt collectors who claimed official affiliation

Lesley Fair
When we announced Operation Collection Protection in November, a federal-state crackdown on illegal debt collection practices, we said it was just the start of a historic partnership – and we weren’t kidding. Today marks the next phase: four FTC cases against debt collectors who falsely claimed an affiliation with local courts or law enforcement, new actions from the CFPB and state law enforcers, and a video you won’t want to miss. The name...

Mind the gap: What Lumosity promised vs. what it could prove

Lesley Fair
Ads for Lumosity’s “brain training” program made it sound simple. Play games for 10-15 minutes several times a week to delay memory decline; protect against dementia and Alzheimer’s disease; improve school, work, and athletic performance; and reduce the effects of everything from ADHD to post-traumatic stress disorder. But an FTC complaint alleges that defendant Lumos Labs didn’t have sound science to support those claims. What’s the message for...