Business Blog

Pages

FTC and Florida allege magazine subscription company deceived inmates’ families

Misleading tactics in the sale of magazine subscriptions is an illegal practice the FTC has challenged in numerous cases. But an action just filed by the FTC and the State of Florida focuses on a new audience allegedly targeted for deception: the families of people who are incarcerated and inmates themselves. The pending case also suggests compliance reminders that apply to companies in just about any industry.

Community Advocate Center: Listening to what consumers have to say

Wondering what you can do to help protect consumers in your area? The FTC just launched an initiative aimed at partnering with legal aid organizations to expand outreach to lower-income members of the community. The goal: to connect people who have experienced fraud and other consumer problems with an easy way to report it and with advice to help them recover.

Bringing Dark Patterns to Light

It’s like a scene from an Indiana Jones movie. Our hero enters a cave in search of treasure and every labyrinthine turn poses another unexpected hazard – trip-wired blades, runaway boulders, and snakes (“I hate snakes”). But we’re not talking about a rollicking adventure flick. We’re describing the experience of many online shoppers as they navigate some companies’ websites to avoid digital danger – for example, extra items showing up in a consumer’s cart, unauthorized charges, or the unintended disclosure of personal information.

Amazon to pay $61 million for tapping into tips promised to drivers

A lot has been said about changes to the marketplace spurred by the gig economy, but some things remain constant, including established truth-in-advertising principles. Amazon told delivery drivers in its Amazon Flex program – as well as customers who placed orders through services like Prime Now and AmazonFresh – that 100% of tips would go directly to the drivers. But according to an FTC lawsuit, for a period of more than two years, Amazon secretly pocketed over $61 million of those tips.

Identity Theft Awareness Week starts today

Among the challenges that COVID-19 has brought, add a higher risk of identity theft to the mix. In the past year, we had about 1.4 million reports of identity theft, double the number from 2019. Repeatedly, identity thieves targeted government funds earmarked to help individuals and small businesses hard hit financially by the pandemic. Find out about identity theft in the age of COVID-19.

Multi-party liability

Today we are announcing another enforcement action seeking to hold companies responsible for consumer injury caused by others or in which they directly participated in the misconduct. In this action against Seed Consulting, we allege, among other things, that Seed assisted and facilitated several deceptive schemes that cheated consumers out of thousands of dollars.

How a “funding” company and business coaching outfits joined forces to deceive consumers

For people who were looking to run their own businesses, the lesson of the FTC’s proposed $2.1 million proposed settlement with Las Vegas-based Seed Consulting, LLC, is that neither their future nor their fortune was in the cards – credit cards, that is. The defendants’ modus operandi was to file falsified credit card applications in consumers’ names – a service for which they charged a hefty fee – so that consumers could use those lines of credit to pay for “business seminars” offered by third-party outfits with whom Seed Consulting was in cahoots.

FTC’s first BOTS Act cases: Just the ticket to help protect consumers from ticket bots

Remember live music? Remember the thrill of enjoying a performance or sporting event with a packed house of fans? As we look forward to a return to in-person entertainment, it’s easy to forget the frustration of trying to buy tickets as soon as online sales opened only to be shut out by companies that used tricks to grab them up and sell them at much higher prices. That’s the conduct Congress intended to stop with the passage of the Better Online Ticket Sales (BOTS) Act.

Business owners: Latest COVID scam is directed at you

Fraudsters have concocted a new COVID-related scam and this time they have businesses in their sights. According to reports, business owners are getting emails that appear to be about government-sponsored loan programs. But they’re really phishing messages trying to trick people into turning over personal information. The FTC has tips on how to spot the latest scam and how to defend your company’s good credit – and your good name – against other coronavirus cons targeting businesses.

Health app broke its privacy promises by disclosing intimate details about users

Flo Health pitched its Flo Period & Ovulation Tracker as a way for millions of women to “take full control of [their] health.” But according to the FTC, despite express privacy claims, the company took control of users’ sensitive fertility data and shared it with third parties – a broken promise that left consumers feeling “outraged,” “victimized,” and “violated.” Read on for details, including a notable feature in the proposed settlement.

Facing the facts about facial recognition

Aside from obligatory shots of the Grand Canyon or the Leaning Tower of Pisa, many photos that consumers want to keep feature the faces of friends and family. Using a service like Everalbum’s Ever app to store photos and videos in the cloud is one way to free up space on consumers’ devices. But what was Everalbum doing behind the scenes after consumers entrusted the company with those images?

New toolkit for retailers to help stop gift card scams

In many ways, gift cards ushered in a win-win era. Better gift-giving (and getting) for consumers and increased sales for retailers. But leave it to scammers to try to mess up a good thing. According to an FTC Data Spotlight, gift cards are now the top method of payment favored by many fraudsters. For years, the FTC has warned consumers about gift card grifters.

One thing marketers of CBD products need to know right now

“It’s the Wild West out there!” How often have you heard that statement made about health claims for products containing CBD? But here’s the thing: It’s not the Wild West. In fact, health-related representations for CBD products are subject to the same established requirements of scientific substantiation the FTC has applied for decades to any advertised health claim.

FTC says flight service winged it by leaving data unprotected in the cloud

To meet the needs of consumers who are injured or face a medical emergency while traveling, Scottsdale-based SkyMed International sells air evacuation plans and other services. The FTC’s action against SkyMed also involves consumer injury, but not of the fractured-femur-in-France variety. According to the FTC, SkyMed put consumers’ sensitive information at risk of compromise by failing to employ a robust data security program.

Pages