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The lawsuit against data broker Spokeo is the FTC’s first Fair Credit Reporting Act case addressing the collection of online info — including data from social networking sites — when used in the context of employment screening. But that’s not the only way the Spokeo settlement touches on social media. The FTC also charged that Spokeo violated Section 5 by having employees post glowing recommendations of the company’s services on news and...

Like chicken and waffles or ham and pineapple on pizza, some combos don’t sound like they’d go together, but make sense once you find out more. Put the FTC’s settlement with Spokeo on that list. According to the FTC, data broker Spokeo violated the Fair Credit Reporting Act and used deceptive endorsements in violation of Section 5. A closer look at the pleadings explains how those two hot topics found their way into one FTC complaint. FCRA first...

On classic episodes of the Tonight Show, affable sidekick Ed McMahon sought guidance from Johnny Carson's all-knowing Carnac character. But as demonstrated by a recent FTC law enforcement action — which involved a company's misleading reference to the late Mr. McMahon — you don't need a psychic to know that challenging deceptive debt collection practices remains a top priority. According to the complaint, defendants Luebke Baker & Associates, CEO...

According to the FTC, Skechers made false and deceptive claims about the benefits of Shape-ups and other Skechers brands. If you’re in the fitness or health business, the $40 million settlement should grab your attention. But the underlying principles apply to all advertisers. If you're looking to get a leg up on substantiation, here are some footnotes to take from the case. Proving ground. To support their representations, advertisers must have...

The terms of FTC law enforcement actions apply just to the company in question and the proposed settlement with social network Myspace for alleged privacy-related glitches is no exception. But how should other businesses respond? Some will scan the headline to make sure their company isn’t named and then do that fingers-in-the-ears la-la-la thing. But savvy executives know that understanding where another company might have gone wrong is a good...

Social network site Myspace promised users it wouldn’t share their personally identifiable information in a way that was inconsistent with the reason people provided the info, without first notifying them and getting their approval. The company also said that information used to customize ads wouldn’t identify people to third parties and that Myspace wouldn’t share browsing activity that wasn’t anonymous. But according to a lawsuit filed by the...

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...

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...