53 and it’s likely to go up. That’s the number of data security law enforcement actions the FTC has settled so far. The facts of each case are different, but distilled down to the basics, they stand for one central proposition: Your company’s data security measures should be reasonable and appropriate in light of the sensitivity and amount of consumer information you have, the size and complexity of your business, and the availability and cost of tools to improve security and reduce vulnerabilities.
57,606,609. That’s the staggering number of illegal telemarketing calls a federal judge in Illinois has ruled that satellite TV company Dish Network is liable for. The Order granting partial summary judgment against Dish is the latest development in an ongoing case filed by the Department of Justice on behalf of the FTC and in cooperation with four states – California, Illinois, North Carolina, and Ohio.
A chocolate cake that causes weight loss? A recliner that tones your abs while you watch TV? They’re in our pantheon of products we’d buy in a second. Here’s something to add to that list: a videogame scientifically proven to help kids focus, enhance memory, boost attention, and improve behavior and school performance. That’s what Focus Education promised in infomercials and other ads for its ifocus System Jungle Rangers videogame.
The FTC has brought a number of cases against payday lenders who use deceptive or unfair tactics. But a just-announced settlement with online lenders AMG Services and MNE Services comes with a twist: This time it’s the lenders who will be paying – and it’s the FTC’s largest recovery in a payday lending case.
For most people, January offers a lull after the holidays. But if you’re a tax professional, the busy season just started. Now that figures are flying, the FTC reminds tax preparers, accountants, and others in the industry about the role they can play in fighting back against tax identity theft. Participate in events scheduled for January 26th through 30th – Tax Identity Theft Awareness Week – and consider five timely tips from the FTC.
The FTC adopted final amendments to the Children’s Online Privacy Protection Rule on December 19, 2012, just over two years ago. The amendments strengthened kids’ privacy in several ways.
Silence may be golden, but not for the parents of kids with speech disorders. Illinois-based NourishLife marketed two dietary supplements, Speak and Speak Smooth, advertised as the answer for kids with a broad range of speech disorders, including those associated with autism. But the FTC says the company’s claims were long on talk and short on scientific substantiation.
In late 2010, we were thrilled to tell you about the Bureau of Consumer Protection’s Business Center, a new website that gives you tools to understand and comply with the law. We also debuted the Business Center blog which allowed us to engage in conversations with you. In fact, we’ve published more than 1,000 of your comments, so a big thank-you goes out to all of you.
Years ago, a TV network repackaged the summer rerun season with the brilliant tagline, “If you haven't seen it, it's new to you!” Going through this year’s Business Blog posts, we spotted the 10 most-read topics of 2014. Others in your industry are up on the latest. Are you?
Listed alphabetically, here's what business people were reading.
If you've been waiting for a substantive legal discussion that works in a reference to the B-52s’ surreal 1980 hit “Rock Lobster,” today’s your lucky day. The FTC announced a settlement with DERMAdoctor, Inc., and owner Audrey Kunin, M.D., for false and deceptive claims for Photodynamic Therapy anti-aging lotions and a body slimming lotion called Shrinking Beauty, advertised to “simulate a lobster’s ability to shrink its body.” (See? We weren’t kidding.)
On the “Evaluate your options carefully before trying this at home” list, how about adding the do-it-yourself removal of moles, skin tags, and warts, including genital warts. That's one message to take from a just-announced FTC settlement, but the case also offers insights for companies that feature consumer endorsements in their ads or use affiliate marketing programs.
“$1 gets you out of your current loan or lease!” According to Trophy Nissan in the Dallas area, consumers could end their loan or lease for a buck – less than the cost of one of those air fresheners hanging from the rearview mirror. Trophy also promised to “match your tax refund so you can use it for a down payment!” Those are just two of the claims the FTC challenged as deceptive in a proposed settlement with the dealership.
Some of the apps offered by China-based BabyBus teach kids the fundamentals of the alphabet. Correspondence just sent to BabyBus by the FTC staff focuses on five of those letters: C-O-P-P-A.
Flashes at a railroad crossing. That chirp from a smoke detector. The “check engine” light on the dashboard. Those are just a few warnings that merit your attention. The FTC’s proposed settlement with T-Mobile – which imposes at least $90 million in financial remedies, including full consumer refunds – highlights another warning that businesses should heed: clear indications that consumers are getting billed without consent.
The FTC’s status as an independent agency, secured in an early constitutional challenge to the FTC Act, was tested during the early years of the Cold War when the agency’s international work provoked a national security debate at the highest levels.
When it comes to cars, sometimes good things come in twos: double wishbone suspension, dual overhead cams, twin torsion bars, and classic 2 + 2 muscle cars. What’s not on that list? Two lawsuits charging two auto dealers with deceptive advertising in violation of two FTC orders.
It’s called human chorionic gonadotropin and it’s a hormone produced by the human placenta – which explains why marketers call it HCG when advertising it for weight loss. The FTC just settled a second case against a company that pitched homeopathic HCG drops as an easy way to drop the pounds.
“No need to be fat. No need to diet or go through unpleasant exercise.”
“Your thin friends can tell you the right way to fight fat.”
“Men avoided me. I was too fat.”
Sounds like a lot of the bogus diet promotions the FTC has gone to court to shut down. But there are two things different about this false advertising case.
First, it went to the Supreme Court. And second, the year was 1931.
From a patient’s perspective, it was one of those “It seemed like a good idea at the time” innovations: a free online portal that lets people view their billing history with a number of different healthcare providers. But according to the FTC, Atlanta-based PaymentsMD, LLC and former CEO Michael C. Hughes signed consumers up for their service and then went on a medical information scavenger hunt without their permission.
As the FTC celebrates its Centennial, we are thankful for all of the very talented folks who chose to spend part or all of their career with us protecting consumers and promoting competition. You can visit FTC Moments to read, hear, or watch as present and former FTC’ers share special moments from their time with the agency. And if you only have a moment, here are our highlights.