It’s called the MAP Rule — and it will help chart the course for people in the market for a mortgage by banning deceptive claims about mortgages in advertising and other commercial communications. If you’re in the mortgage business, it’s worth your time to find out more about the rules of the road.
As businesses executives have noticed, recent changes in the credit laws reflect a move toward more transparency. For example, it’s generally lawful to factor a consumer’s credit history into your decision about what rate to offer them. But last year, the FTC and Federal Reserve Board shed a little more light on that process by implementing the Risk-Based Pricing Rule.
They say life begins at 40 — so watch what’s happening to the Fair Credit Reporting Act as it enters an exciting new phase of its regulatory career.
To mark this consumer protection milestone, the FTC has issued Forty Years of Experience with the Fair Credit Reporting Act: An FTC Staff Report and Summary of Interpretations. The report offers a brief overview of the FTC’s role in enforcing and interpreting the FCRA and includes a section-by-section summary of the agency’s interpretations of the Act.
Homeowners in financial trouble aren’t getting a lot of great news these days. But 450,177 of them will be getting a check in the mail that represents their share of the FTC’s $108 million settlement with mortgage giant Countrywide. And companies that take advantage of Americans struggling to pay the bills will be getting a little something, too: a strong message from the FTC that unfair or deceptive practices targeting cash-strapped consumers won’t be tolerated.
Perhaps you see cops on the beat when they pass by your office. Maybe you serve on a committee with the Chief of Police or have a relative in the Sheriff’s Department. However you cross paths with local law enforcement, do them — and yourself — a favor by telling them about Consumer Sentinel.
Today, the FTC announced it won't enforce most parts of the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and their agents who help consumers with short sales. A short sale — a phrase consumers have heard a lot recently — is the sale of a home for less than the homeowner owes on the mortgage, and where the bank accepts the sale proceeds instead of foreclosing.
Say “spam” and most business executives think of annoying messages that litter their IN box. But the CAN-SPAM Act and the FTC’s CAN-SPAM Rule cover a much broader range of commercial email. Yes, that includes messages offering to split $50 million languishing in the foreign bank account of a deposed prince. But the Rule also applies to a wide variety of communications with customers or potential customers — for example, an email notifying them about a product you’re featuring or an upcoming sale.
Last week, Facebook announced new video calling and group chat services for the social network. That same afternoon, the President of the United States held a town hall on Twitter to talk about the economy and jobs in America. Today, people have many methods to communicate, often right at the tips of their fingers. That’s why the FTC has introduced a new STAY CONNECTED feature on ftc.gov.
Is your briefcase feeling lighter? That’s because your dog-eared copy of Volume 16 of the Code of Federal Regulations (where most FTC rules and guides live) is decidedly thinner these days. For the past two decades, the agency has undertaken a systematic review of its rules and guides to make sure they’re up to date, effective, and not overly burdensome. As each rule comes up for review, we ask ourselves — and you — four questions:
A skin cream that can reduce body size. Are historians sure that wasn’t what Ponce de Leon was seeking? It’s certainly what buyers are looking for, if ads are any indication. But claims like that have to be backed up by solid science, as is clear from the FTC’s $900,000 settlement with Beiersdorf, Inc., marketer of Nivea My Silhouette! (Yes, the exclamation point is on the package.)
The preliminary voluntary principles proposed in April by the Interagency Working Group on Food Marketed to Children have got people talking about kids, advertising, and nutrition. Congress — in a bipartisan effort led by former Senator Sam Brownback and Senator Tom Harkin — directed the FTC, the Food and Drug Administration, the Centers for Disease Control, and the U.S. Department of Agriculture, to develop recommendations for the nutritional quality of food marketed to kids, ages 2 to 17.
Today, tech-savvy entrepreneurs use mobile apps to build buzz, save money, and stay in touch on the go. But how can you make sure all those apps you buy protect your privacy, keep your data secure, and wind up costing you exactly the advertised price? OnGuardOnline, the federal government’s online safety and security site, has some questions to consider before you click DOWNLOAD.
Sometimes it’s great to put stuff to more than one use. Think the versatile Swiss Army knife, the iconic Little Black Dress, or the typical elementary school “cafetorium” where kids can eat lunch, shoot hoops, and put on plays. But when what’s at issue is information from people’s credit reports, that kind of double duty can violate the Fair Credit Reporting Act — as the FTC’s $1.8 million settlement with Teletrack, Inc., makes clear.
You have some job openings at your company or maybe you’re thinking of promoting people to new positions. You’ve winnowed that stack of resumes down to some promising candidates. Now it’s nitty gritty time: background checks.
“If a tree falls in a forest and no one’s around to hear it, does it make a sound?” Law enforcers often ask themselves a similar question: “If a lawsuit reaches final judgment without concrete protections in place for the future, does it have any impact?” That explains the FTC’s keen interest in remedies with the teeth necessary to do the job. Simply put, when it comes to consumer protection, it’s all about the order.
You use them everyday at home and at the office, they’re within an arm’s reach of where you’re sitting — and they’re undergoing the most profound change since the days of Thomas Edison. Any guesses?
Hmm. Escape for a few days at the beach or burn the midnight oil to meet the impending deadline for comments about the FTC’s guidance document, Dot Com Disclosures: Information About Online Advertising? No need to make that choice now that the Commission has extended the deadline for comments to Wednesday, August 10, 2011.
Yes, it’s a global marketplace, but geography still matters. Misrepresentations about where a company is based can have significant implications for buyers. That’s the message of an FTC settlement announced today against a California online retailer that allegedly deceived British consumers into thinking it was a “hometown operation” by falsely using a .co.uk website.
Years ago any conversation about kids’ identities was about sewing name tags in their clothes before they left for summer camp. How times have changed.
If you work in the telecommunications field, you’ll want to follow the FTC’s pending lawsuit against Millennium Telecard. But even if telecom isn’t your line, the case illustrates a key principle of FTC advertising law: “What the headline giveth, the fine print cannot taketh away.”