Blog

The FTC’s law enforcement action against Amazon for unauthorized billing recently settled, leaving two key takeaways: 1) Consumers are eligible for more than $70 million in refunds; and 2) Businesses need to get customers’ express consent before placing charges on their credit or debit cards. Last year, a federal judge in Seattle ruled in the FTC’s favor in an action against Amazon for billing consumers for unauthorized in-app charges incurred by...

Is there a family or a workplace that hasn’t been touched in some way by the public health crisis of opiate addiction? It’s no wonder that advertisers are offering purported treatments. But an FTC settlement with a Texas-based business stands for the fundamental principle that companies’ health claims need the support of sound science. The products at issue were Withdrawal Ease and Recovery Ease – and the names were the first of many...

If your company gets background information on prospective employees, it’s likely you’re covered by the Fair Credit Reporting Act. Before you get a background screening report, the law requires that you make certain disclosures and get a prospective employee’s authorization. Is it time for a FCRA compliance check? Background screening reports are “consumer reports” under the FCRA when they serve as a factor in determining a person’s eligibility...

If Instagram is the home of Throwback Thursday and Flashback Friday, #IGers should think of today as Word to the Wise Wednesday. We’ve been spending some time on Instagram lately. Why? Because advertisers, endorsers, and consumers are spending time there, too. What we saw raised concerns about whether some influencers are aware of truth-in-advertising standards about endorsements and disclosures. So the FTC staff sent 90+ letters to celebrities...

It used to be a rite of passage: spending the night in a line outside the box office to score tickets to the Stones, Springsteen, or [insert your favorite group here]. The convenience of internet ticket sales ended the sleeping-on-the-sidewalk ritual. But online ticket sales raised another concern: Were prospective buyers losing out to computer programs that scooped up the best seats only to resell them at inflated prices? Congress responded to...

When websites prominently advertised “FREE!” golf balls and other gear, duffers and low-handicappers alike swung for the deal. But according to the FTC, 10 related defendants drove consumers into the rough with poorly disclosed terms and conditions, deceptive negative options, and misleading upsells, in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act. On their sites, the defendants pitched golf equipment, kitchen gadgets...

According to a settlement announced by the FTC, a Texas-based company used misleading Made in USA claims to push its pulleys. Read on for an ironic object lesson related to a specific pulley component engraved with the phrase “Made in USA.” Among other things, Block Division, Inc., sells metal pulleys for industrial use – for example, to lift boats, operate overhead doors, or move theatrical scenery. The company advertises its products online, in...

This is National Consumer Protection Week, a week set aside every year to help consumers know their rights and make well-informed choices in the marketplace. Here at the FTC, we’re all about protecting consumers. One way we do this is by enforcing the antitrust laws. Competition is the fuel that drives America’s free-market system. But competition can only thrive if firms respect the antitrust laws, which are the rules of the free market. When...

When internet fraudsters mimic a legitimate business to trick consumers into giving out their personal information, it’s called phishing. It’s not just a problem for consumers, but for the companies the scammers are impersonating too. The FTC has long provided advice to consumers about steps they can take to avoid phishing scams. But what should you do if customers contact your company upset that they responded to a phishing email from a scammer...

Imagine a series of promotions that involve pain relief promises, cognition claims, endorsements, 30-minute radio ads, “risk-free” money-back guarantees, “free” trial offers, negative options, telemarketing, and upsells of buying club memberships. What could possibly go wrong for consumers? Where would you like to start? The FTC and the Maine Attorney General announced settlements with six defendants and complaints against three others involved...