Legal Library: Cases and Proceedings

SkyMed must put in place a comprehensive information security program as part of a settlement with the FTC over allegations the company failed to take reasonable steps to secure sensitive consumer information such as health records.

Zoom Video Communications, Inc. will be required to implement a robust information security program to settle FTC allegations that the video conferencing provider engaged in a series of deceptive and unfair practices that undermined the security of its users.

Pharmaceutical companies Pfizer Inc. and Mylan N.V. have agreed to divest assets and abide by other conditions to settle Federal Trade Commission charges that the proposed combination of Upjohn Inc. and Mylan N.V. will harm current or future competition in ten generic drug markets. The FTC’s complaint alleges that the proposed combination would harm current U.S. competition in seven product markets by reducing the number of existing suppliers, and that it would harm future U.S. competition in three additional product markets. The proposed consent order requires divestitures in all 10 markets.

The Federal Trade Commission took legal action against three ticket brokers based in New York who allegedly used automated software to illegally buy up tens of thousands of tickets for popular concerts and sporting events, then subsequently made millions of dollars reselling the tickets to fans at higher prices.

The three ticket brokers will be subject to a judgment of more than $31 million in civil penalties for violating the Better Online Ticket Sales (BOTS) Act, under a proposed settlement reached with the FTC. Due to their inability to pay, the judgment will be partially suspended, requiring them to pay $3.7 million.

This is the first case brought under the BOTS Act, which was enacted in 2016 and gives the FTC authority to take law enforcement action against individuals and companies that use bots or other means to circumvent limits on online ticket purchases.

The Federal Trade Commission took legal action against three ticket brokers based in New York who allegedly used automated software to illegally buy up tens of thousands of tickets for popular concerts and sporting events, then subsequently made millions of dollars reselling the tickets to fans at higher prices.

The three ticket brokers will be subject to a judgment of more than $31 million in civil penalties for violating the Better Online Ticket Sales (BOTS) Act, under a proposed settlement reached with the FTC. Due to their inability to pay, the judgment will be partially suspended, requiring them to pay $3.7 million.

This is the first case brought under the BOTS Act, which was enacted in 2016 and gives the FTC authority to take law enforcement action against individuals and companies that use bots or other means to circumvent limits on online ticket purchases.

The Federal Trade Commission filed an administrative complaint  and authorized a suit in federal court to block The Procter & Gamble Company’s proposed acquisition of Billie, Inc., a direct-to-consumer company that began selling women’s razors and body care products in November 2017. The complaint alleged that the proposed acquisition would allow P&G, the market-leading supplier of both women’s and men’s wet shave razors, to buy Billie, a newer but expanding maker of women’s razors, and thereby eliminate growing competition that benefits consumers. On Jan. 5, 2021, the parties announced that they terminated their agreement for P&G to acquire Billie.

The Federal Trade Commission filed an administrative complaint and authorized a suit in federal court to block internet listing services provider CoStar Group Inc.’s proposed $587.5 million acquisition of competitor RentPath Holdings, Inc. The complaint alleged that the acquisition would significantly increase concentration in the already highly concentrated markets for internet listing services advertising for large apartment complexes in 49 individual metropolitan areas across the United States. On Dec. 31, 2020, the FTC issued a statement on the parties’ announcement that they had abandoned the acquisition.

AppFolio will pay $4.25 million as part of a settlement with the FTC over allegations the firm failed to follow reasonable procedures to ensure the accuracy of its reports about potential tenants.

In December 2020, Voice over Internet Protocol (VoIP) service provider Alcazar Networks Inc. and its owner settled FTC charges that they facilitated tens of millions of illegal telemarketing phone calls, including some calls from overseas and some that displayed spoofed caller ID numbers. The proposed settlement bars the defendants from similar misconduct in the future, imposes a monetary penalty, and requires them to screen and monitor their customers. This was the FTC’s second case against a VoIP service provider.

The FTC issued an administrative complaint challenging the merger of two prosthetics manufacturers that are top sellers of prosthetic knees equipped with microprocessors. According to the FTC’s complaint, Otto Bock’s consummated acquisition of FIH Group Holdings (owner of Freedom Innovations) harmed competition in the U.S. market for microprocessor prosthetic knees by eliminating head-to-head competition between the two companies, removing a significant and disruptive competitor, and entrenching Otto Bock’s position as the dominant supplier. Microprocessor knees, which use microprocessors to adjust the stiffness and positioning of the joint in response to variations in walking rhythm and ground conditions, provide a stable platform for amputees. Compared to other products, microprocessor prosthetic knees reduce the risk of falling, cause less pain, and promote the health and function of the sound limb. In addition to issuing an administrative complaint, the Commission authorized agency staff to seek a temporary restraining order, preliminary injunction, and ancillary relief in federal court, should doing so be necessary to ensure the Freedom Innovations business remains viable and to preserve the Commission ability to order effective relief. On Dec. 1, 2020, the Commission announced approval for the divestiture of the Freedom assets.

CoreLogic, Inc. agreed to settle FTC charges that its proposed $661 million acquisition of DataQuick Information Systems, Inc. from TPG VI Ontario 1 AIV L.P. would likely substantially lessen competition in the market for national assessor and recorder bulk data. The FTC’s proposed settlement order requires CoreLogic to license to Renwood RealtyTrac national assessor and recorder bulk data as well as several ancillary data sets that DataQuick provides to its customers. The order allows RealtyTrac to offer customers the data and services that DataQuick now offers and to become an effective competitor in the market.