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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.

FTC issues 6(b) orders to social media and video streaming services

One digit can make a lot of difference. Would the Proclaimers have walked 501 miles? How effective was Love Potion #10? Did the Beatles ask would you still need me, would you still feed me when I’m 65? With so much attention on Section 5 of the FTC Act, some may overlook another important provision of the statute: Section 6(b).

Operation Income Illusion cracks down on illusory income claims

There’s a standard movie trope of a group stranded in the desert. Parched and burned, their spirits soar when they see an oasis on the horizon. With their last ounce of energy, they crawl toward the lush palms and beckoning pool. But as they dip their hands in the water, they realize it was just a mirage. For consumers looking to supplement their income and gain financial independence, promoters’ promises may seem like that oasis on the horizon. But in many cases, those money-making promises are an illusion.

Ransomware prevention: An update for businesses

Imagine turning on your computer one morning to discover you and your employees are locked out of your system. A threatening message appears on the screen demanding a ransom if you ever want to see your data again. You check your backups and they’ve been destroyed. Your business is at a standstill, losing money with every passing minute. It may sound like a nightmare, but for many companies, a ransomware attack is all too real. And even more disturbing is that reported ransomware attacks have increased dramatically since the beginning of the COVID-19 pandemic.

FTC’s AppFolio case: The Fair Credit Reporting Act does more than just abide

Cult classic The Big Lebowski proves that mistaken identity can be entertaining on film. But for people looking to rent a house or apartment, it wasn’t so entertaining when tenant background reports about them provided by California company AppFolio included someone else’s convictions and evictions.

Setting the debt parking brake

What are the biggest risks of parking? A dinged door? A bruised bumper? For consumers victimized by the pernicious practice of debt parking, the impact on their financial health can be devastating. And if you’re a debt collector who engages in debt parking, an FTC settlement with Midwest Recovery Systems suggests you could face law enforcement action for violations of the FTC Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.

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