Blog

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’...

As anyone of a certain age can attest, the 1970’s were all about change. Hairstyles and hemlines were obvious signs, but in the world of antitrust, change came in the form of applying competition standards to the “learned professions,” and new thinking about the role of competition in helping contain health care costs. Professionals as CompetitorsTwo Supreme Court decisions from the 1970’s fundamentally changed the application of competition...

POM Wonderful’s advertising claims were false and deceptive. That’s the conclusion of the United States Court of Appeals in upholding the FTC’s ruling. We think it’s a momentous victory for our two clients: American consumers and the cause of truth in the marketplace. You’ll want to read the entire opinion, of course, but here are twelve quotes from the D.C. Circuit’s decision that businesses, attorneys, and law enforcers will be citing for years...

She’s got a competition clutch with four on the floor And she purrs like a kitten ‘til the lake pipes roar. And if that ain’t enough to make you flip your lid, There's one more thing. I got the pink slip, Daddy. Back in the days of the Beach Boys’ “Little Deuce Coupe,” the only risk to a car title – the pink slip – was when hot rodders bet them on drag races.The FTC just announced its first two settlements with car title lenders that underscore...