Blog

In its August 2017 proposed consent agreement with Uber, the FTC alleged, among other things, that the company’s unreasonable security practices resulted in a May 2014 data breach. But there’s more to the story now. According to the FTC, Uber experienced another breach in the fall of 2016 – right in the middle of the FTC’s nonpublic investigation – but didn’t disclose it to the FTC until November 2017. To address that issue, the FTC has withdrawn...

Earlier today, the FTC announced a revised settlement with Uber regarding the company’s privacy and data security promises. The case involved multiple breaches of Uber’s cloud storage infrastructure where the company stored full and partial backups of databases containing information about Uber users and drivers. The complaint alleges that Uber failed to reasonably secure this cloud storage. According to the complaint, Uber software engineers...

No matter what you call it – facts and figures, the boxscore, or a report from the stat-o-sphere – a recap is a great way to get the lay of the land. Which brings me to the FTC’s Annual Highlights, a short but detailed summary of the Commission’s 2017 efforts to promote competition and protect consumers. In her statement introducing the Highlights, Acting Chair Maureen Ohlhausen cited the agency’s “robust consumer protection agenda” and the fact...

When the screen goes blue And the car breaks down And the smartphone keeps rebooting eternally Consumers won’ t be afraid No, they won’ t be afraid Just as long as you stand by your warranty. With apologies to R&B legend Ben E. King, when consumers buy a product with a warranty, it’s with the expectation that businesses will stand by what they sell. But standing by your warranty won’t do customers much good if you disregard the Magnuson-Moss...

If you’re a tax professional, business owner, or in a human resources department, the FTC and IRS can help you help clients, employees, or other people who discover they’re victims of tax-related identity theft. Tax-related identity theft happens when someone uses your stolen Social Security number (SSN) to file a tax return and claim your refund. You might find out about it when you try to e-file — only to find that someone else already has...

Here’s the thing about nectar. It can be sweet, but sticky. People who paid Palo Alto-based Nectar Brand LLC for mattresses labeled “Designed and Assembled in the USA” thought they were getting a sweet deal. In fact, buyers were stuck with mattresses imported from China, already completed. The company, which also uses the names Nectar Sleep and DreamCloud, performed no assembly operations in the United States. Thus, the FTC’s complaint alleges...

An FTC lawsuit alleges that money-making claims made by a related group of companies and individuals for their Amazing Wealth System are “amazing” all right – if by “amazing” you mean “not credible” or “unsupported by the facts.” The complaint charges the defendants with violating the FTC Act and the Business Opportunity Rule. One interesting factual twist is how elements of the “system” allegedly depend on subverting Amazon’s rules about online...

Most antitrust practitioners are attuned to advising clients about the antitrust risk that a proposed acquisition may violate Section 7 of the Clayton Act. But counsel and clients must also be conscious of the risks of sharing information with a competitor before and during merger negotiations—a concern that remains until the merger closes. Companies considering acquisitions, mergers, or joint ventures typically have a legitimate need to access...

Today, the FTC announced a lawsuit against four individuals alleging that they have promoted one or more fraudulent “chain referral schemes.” Such schemes are not new – in fact, the FTC has brought chain referral cases for years. What makes today’s announcement interesting is that the alleged schemes used bitcoin, a cryptocurrency. (The FTC brought its first cryptocurrency-related case in June 2015, another in February 2016, and held a public...

When the FTC’s Bureau of Consumer Protection started the Business Blog in 2010, we promised readers “a minimum of ho-hum, a maximum of how-to, and as little yadda yadda yadda as a legal website can manage.” More than 1,000 Business Blog posts later and we’re still striving to keep things engaging and enlightening (although being a legal website and all, we’ve succeeded is cutting out only two of the yaddas). The FTC’s unique dual mission is to...