Business Blog

In addition to allegations about Activia Yogurt, the FTC’s recent settlement with Dannon Corporation challenged health claims for DanActive, a probiotic dairy drink advertised to reduce the likelihood of getting colds or flu.

If your company keeps sensitive data like Social Security numbers, credit reports, account numbers, health records, or business secrets, you’ve probably instituted safeguards to protect that information, whether it’s stored in computers or on paper. That’s great.  But it’s time to take those safeguards a step further.

When the FTC amended the Telemarketing Sales Rule in 2003, it required telemarketers to transmit Caller ID information.  That policy had three benefits.  It promoted privacy by allowing people to screen out unwanted telemarketing calls.  It increased industry accountability by making it harder for companies to remain anonymous.  And it helped law enforcement by making it easier to identify fraudsters and companies who violated the Do Not Call Registry.

Parents are understandably concerned about keeping their kids safe online.  That’s why many moms and dads paid $3.99 a month for Sentry Parental Controls, software sold by EchoMetrix, Inc.  Once Sentry is installed on a computer, buyers can log into their online account to monitor activity on that computer, including web history, online chats, and password-protected IMs.

So far, so good.  But that wasn’t the only product marketed by EchoMetrix.

These days more and more holiday shoppers will be decking the halls by ducking the malls.  According to some reports, Cyber Monday has eclipsed Black Friday as the day when the going gets tough – and the tough go online shopping.

That’s great news for Internet retailers, but only if they’re up to speed on the FTC’s Mail Order Rule, which also applies to online sales. So now’s the time for businesses to make a list and check it twice to ensure Mail Order Rule compliance.

The FTC’s recent settlement with Allied Interstate, one of the nation’s largest debt collectors, sends a timely reminder to industry members to comply with the law – and an important message to consumers that the FTC has their back when it comes to companies that cross the line.

Short-sighted thinking like that has landed a lot of businesses in hot water with law enforcers.  They forget that the reach of federal and state consumer protection statutes can be expansive.  Under appropriate circumstances, payment processors – as well businesses handling ad copy, telemarketing, fulfillment, and a host of other functions – may be liable for the role they play in another company’s deceptive or unfair practices.

Our mythic business executive is having a busy day.  She’s got a breakfast meeting with Marketing to review an email promotion.  Then it’s on to HR to talk about steps to keep personnel records secure.  She’ll grab coffee with the Web Team to go over an online product launch and then rush to lunch with the local business club, where the topic is truth-in-advertising standards.

For people with an ailment, Direct Marketing Concepts and ITV Direct had the answer: Coral Calcium or Supreme Greens. But according to a recent decision by the U.S. Court of Appeals for the First Circuit, the companies, their corporate officers, and related entities lacked scientific proof for claims that their products could cure or prevent diseases like cancer, arthritis, lupus, Parkinson’s, and MS. The upshot?