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When playing hide and seek as a child, remember those kids who always seemed to find that hidden crawl space or cranny? Whatever happened to them? Let’s hope they didn’t grow up to go into advertising since current marketing methods offer lots of ways for companies to hide important terms and conditions. The FTC's proposed settlement with Network Solutions illustrates a few examples. For individuals and businesses in the market for web hosting...

In recent investigations of hospital mergers, the merging parties often make the argument that the acquired firm is flailing, if not outright failing. Thus, the argument goes, the transaction is necessary to keep the acquired hospital in operation. But courts have set stringent requirements for meeting the failing firm defense, and as set out in the Horizontal Merger Guidelines §11, a company can assert what is known as a “failing firm” defense...

When it comes to car advertising, truth should be standard equipment. That’s the message of Operation Ruse Control, a coast-to-coast and cross-border sweep by the FTC and state, federal, and international law enforcers aimed at driving out deception in automobile ads, adds-ons, financing, and auto loan modification services. The FTC cases offer 6 tips to help keep your promotions in the proper lane. 1. Avoid practices that turn add-ons into bad...

If your company offers warranties, a proposed FTC settlement with BMW of North America’s MINI Division suggests that a compliance check-up could be warranted. Section 2302(c) of the Magnuson-Moss Warranty Act makes it illegal for a company to condition a warranty “on the consumer’s using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is...

Some will remember 1976 as the year of the nation’s bicentennial, but it was also the year that Congress gave the antitrust agencies an important tool to prevent harmful mergers before the harm occurs and before the assets and operations of the merging parties are joined in a way that precludes effective relief after-the-fact. Named for its three principal sponsors, Senators Philip Hart and Hugh Scott, and Representative Peter W. Rodino, Jr., the...

Recently, I appeared on a panel that discussed the Commission’s recent Section 5 cases. While my colleague, BCP Director Jessica Rich, addressed the use of Section 5 to combat modern-day fraud, deception, and unfair business practices in critical areas such as data security and privacy, I spoke primarily about our use of Section 5 on a stand-alone basis to address unfair methods of competition, i.e., in those situations where the Sherman and...

Have you seen the ads where a popular celebrity touts DIRECTV on his own behalf and as the Painfully Awkward, Overly Paranoid, or Crazy Hairy version of himself? Applying that to a lawsuit just filed by the FTC, there’s DIRECTV – and then there’s Deceptively Advertised DIRECTV. DIRECTV is one of the biggest names in the business with more than 20 million customers. Through TV, print, direct mail, phone, and online promotions, the company...

If you watch as much TV as we do, you may have been tempted to reach for the phone to order the Snuggie, that blanket with sleeves for couch potatoes; Forever Comfy, the answer to rump-sprung chairs; or a host of other items sold by New York-based Allstar Marketing Group. And if one Magic Mesh, Cat's Meow, Roto Punch, or Perfect Tortilla wasn’t enough, the ads reeled buyers in with a “double the offer” buy-one-get-one-free promotion the FTC and...

Although FTC staff often rely on voluntary requests for information in the early stages of an investigation, the use of official subpoena and civil investigative demands authorized by the Commission is essential to uncover potential law violations, and when necessary, to pursue a law enforcement action in court to remedy any harm to competition. In practice, the majority of companies and individuals who receive a subpoena or CID for documents...

Consumers often first go to online review sites when they are thinking about buying a product or hiring a service provider. As a result, most businesses are concerned about managing their online reputation. But a recent FTC proposed settlement offers some lessons for businesses that seek to solicit online reviews with cash or other incentives. AmeriFreight is an automobile shipment broker – it arranges for freight carriers to ship its customers’...