Business Blog

Like the character in the 70s movie “Network,” many consumers are “mad as hell and not going to take this anymore.”  What’s aroused their ire?  Robocalls made in violation of a 2009 rule outlawing many of these automated calls.  That’s why the FTC is convening Robocalls: All the Rage, a one-day conference —  it’s free and open to the public — set for October 18, 2012, in Washington, DC.

For most consumers, the scam started with a disturbing phone call.  We’re from Microsoft (or Dell or Norton or McAfee), the “tech support” person on the line said, and we’ve detected a serious problem with your computer.  To underscore the need for immediate action, the caller directed people to a particular location on their computers and claimed that the presence of certain files — often accompanied by red Xs, yellow triangles, and other ominous features — was proof that their computers were riddled with malware and in imminent danger of crashing.  "Tech support" promised to correct the i

The charges outlined in the FTC’s lawsuits against a software business and seven rent-to-own companies are surprising — and OK, some might say a little creepy.  Software on rented computers gave the companies the ability to hit the kill switch if people were behind on their payments.  But according to the complaints, it also let them collect sensitive personal information, grab screen shots, and take webcam photos of people in their homes.

"Hey, I've never met you.
So don't get clever.
That's my number.
Robocall me never."

No one is going to amend the nursery rhyme, but if you market products aimed at fighting bed bugs or head lice and are itching to keep your promotions in line with the law, two FTC lawsuits merit your attention.  Even if bugs aren’t your bag, the cases are a reminder of the need to back up your claims with solid science.

If you use consumer testimonials in your ads or have clients  who do, check out the FTC’s settlement with Jason Pharmaceuticals, a subsidiary of the diet company, Medifast, Inc.  But to really explore what the case is about, we’ll need to take a trip back to 1992.  (Sorry -- we should have asked our UK consumer protection counterparts to let us borrow the TARDIS for this.)

Are you in the mobile app business?  If so, you’re probably considering some important questions, like what to tell users about your app, what information to collect from users, and what to do with any information you collect.  Whether you work for a tech giant or are striking out on your own with that gotta-have-it app, the same truth-in-advertising standards and basic privacy principles apply.

Tell people your baby is adorable and no doubt you have the photos to back it up.  But market a product called “Your Baby Can Read!” and you better have real proof.  According to a lawsuit filed by the FTC, ads for the “Your Baby Can Read!” program made false and deceptive claims that the product could teach infants and toddlers to read.

If you haven’t heard of the Ab Circle Pro, you need to spend more time in your recliner.  Between the infomercial blitz, the online presence, and a retail campaign that promoted the product with a prominent “As Seen on TV” logo, ads were everywhere.  The marketers claimed that using the device for just three minutes a day would lead to a 10-pound weight loss in two weeks and inches off the stomach, hips, and thighs — benefits equal to or better than longer workouts at the gym.