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FTC's Myspace case: Part 1

Lesley Fair
Have you reviewed your company’s privacy policy lately? The FTC’s proposed settlement with social network Myspace serves as a timely reminder to make sure what you tell people about your privacy practices lines up with what actually happens in the day-to-day operation of your business. While you’re at it, double-check to make sure you’re giving customers the straight story about third-party access to their information. The Myspace case is the...

Does Hashing Make Data “Anonymous”?

Ed Felten, Chief Technologist
One of the most misunderstood topics in privacy is what it means to provide “anonymous” access to data. One often hears references to “hashing” as a way of rendering data anonymous. As it turns out, hashing is vastly overrated as an “anonymization” technique. In this post, I’ll talk about what hashing is, and why it often fails to provide effective anonymity. What is hashing anyway? What we’re talking about is technically called a “cryptographic...

Nightmare on Main Street

Lesley Fair
With a company name like Broadway Global Master, you might expect high kicks and jazz hands. The defendants told a dramatic story, all right — but according to the FTC, it was a harrowing tale of intimidation. The FTC’s lawsuit alleges the defendants collected “phantom” debts that people didn’t owe them or didn’t owe at all. Often claiming to be American law enforcement officials — like “Officer Mike Johnson" or a representative of the “Federal...

Data security & COPPA: RockYou like a hurricane

Lesley Fair
Are there hotter topics these days than data security and kids’ privacy? An FTC law enforcement settlement with the social networking site RockYou ticks both of those topical boxes and challenges a course of conduct the FTC says made it easier for hackers to access the personal information of 32 million users. The complaint also alleges the company collected info from kids in violation of the Children’s Online Privacy Protection Act. What was...

Network news

Lesley Fair
Through a series of recent law enforcement actions, the FTC has articulated what should be apparent: that truth-in-advertising principles apply to affiliate marketers and to the companies that use them to promote their products. A settlement announced today by the FTC makes a similarly obvious point: The law applies to affiliate marketing networks, too. According to the FTC’s complaint against IMM Interactive — people may know it as Copeac — the...

Buyers burned by BurnLounge

Lesley Fair
If you or your clients work in the multi-level marketing (MLM) arena, a decision by a federal judge in the FTC's lawsuit against BurnLounge, Inc., merits your attention. The defendants — the company, the CEO, and top salesmen — used claims of hefty profits to sell opportunities to run online digital music stores. According to the FTC, the outfit masqueraded as a legitimate MLM program, but really was an illegal pyramid scheme. After a nine-day...

FTC to auto dealers: Back up your ad claims

Lesley Fair
If you have clients in the auto industry, you’ve seen the ads: “We’ll pay off your trade no matter what you owe . . . even if you’re upside down.” It’s an attractive claim to people struggling with their finances. But law enforcement settlements announced by the FTC with five dealers from around the country demonstrate the importance of giving people the straight story when making promises about trade-ins where negative equity is involved. The...

Faking news

Steve Wernikoff
Six online marketers have settled FTC charges stemming from their use of fake news websites to market acai berry supplements and other weight loss products. If you’re an affiliate marketer or you’re thinking about building an affiliate program into your business plan, the cases merit your attention. First, Affiliate Marketing 101. There are lots of ways to advertise on the Internet — email, search engine marketing, display ads, social network...

Watch what you're doing with time-barred debts

Lesley Fair
Of course, people are responsible for their debts. However, at a certain point, how much time has passed becomes an affirmative defense under state law and creditors can’t prevail in court. But what happens if a payment is made on a time-barred debt? A consumer can really get clocked — because in many states the debt can be revived if a person makes a payment or says in writing that they intend to. The FTC has announced a $2.5 million settlement...

Clearing out our IN box

Lesley Fair
We’re glad you’re visiting the BCP Business Center and thanks for your questions. Here are answers to some of your AQs. (Calling them FAQs on a site devoted to truth in advertising doesn’t seem quite right.) I’ve looked everywhere and can’t find the disclosure I’m supposed to add when companies send me products to write about on my blog. Can you tell me the magic words? No — and that’s because there are no magic words. Here’s how it works. Under...
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