You’ve heard the truisms. Never eat at a place called Mom’s. Never play cards with a guy named Doc. We’ve got another one for you: Think twice before doing business with a company called Legitimate Debt Settlement.
The biggest decision facing a DIYer in the paint store used to be whether Dusting of Snow or Wistful Beige was right for the dining room. But nowadays more businesses are making express claims about their products, including purported environmental benefits. Two of the nation’s leading paint companies — The Sherwin-Williams Company and PPG Architectural Finishes, Inc. — advertised that some of their paints were free of volatile organic compounds (VOCs).
Old Blue Eyes wasn’t in the tech biz, but before giving the ring-a-ding-ding to a B2B transaction that allows partners to share customer data through software one company licenses to the other, we’re guessing he would have agreed with some basic principles derived from the FTC’s proposed settlement with web analytics company Compete, Inc.
Twenty years ago nobody told their third grade classmates they wanted to go into web analytics when they grew up. But unlike cowboys and dinosaur wranglers, the analytics business is booming. Information about consumer behavior can offer companies helpful insights to boost web traffic and sales. But as a recent FTC settlement suggests, it’s wise to be transparent about your practices and take reasonable and appropriate measures to keep sensitive information secure.
If you or your company comes up with a technological solution to the scourge of illegal robocalls, you could earn national accolades — and, under the right circumstances, $50,000. Yes, you read that right.
Bulk up while partying down. At least, that’s the message FTC staff was concerned consumers might take from ads for Devotion Vodka. According to the staff, the beverage was advertised to contain a significant amount of protein and to help build muscle mass — with the additional benefit of not causing hangovers.
If information is your stock in trade, FTC settlements with consumer reporting giant Equifax Information Services and San Diego-based Direct Lending Source merit your attention. The cases are a timely reminder to businesses that when buying and selling data, it’s important to build legal compliance into your day-to-day operations.
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.
It's not likely we'll succumb to Bieber Fever. We're of a generation more susceptible to the Rockin' Pneumonia and the Boogie Woogie Flu. But a company that ran official fan websites for pop stars may be feeling the effects of an FTC law enforcement action alleging violations of the Children's Online Privacy Protection Act and COPPA Rule.
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
If you make environmental claims in your marketing or have clients who do, today’s the day you’ve been waiting for: the release of the FTC’s revised Guides for the Use of Environmental Marketing Claims — the Green Guides. In the next few weeks, we’ll follow up with blog posts going into detail about what’s new, what’s changed, and what’s stayed the same. But here’s our suggested TO DO list to help you get started.
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.
Paranoid delusion from 80s R&B artist Rockwell? Not necessarily, if he had used a computer from a rent-to-own store. Because according to lawsuits filed by the FTC, many stores — including franchisees of Aaron’s, ColorTyme, and Premier Rental Purchase — spied on their customers through secret software that logged key strokes, captured screen shots, and in some cases, remotely activated the computer’s webcam to take pictures of people in their homes. Huh? Yeah, really.
"Hey, I've never met you.
So don't get clever.
That's my number.
Robocall me never."
It can take a lot of shoe leather to investigate housing options for older relatives. So entrepreneurs have stepped in to help make those transitions easier. But according to the FTC, two unrelated businesses that offered free online placement services for people looking for long-term care facilities didn’t live up to their claims that they researched each location thoroughly. The settlements offer compliance insights for other companies, too.
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.
Coleadium, Inc. The corporate name sounds like tropical foliage or a precious metal on the Periodic Table of Elements. But the moniker more familiar in the world of affiliate marketing networks — Ads4Dough — puts the FTC’s law enforcement action into perspective.
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.)
There are lots of good reasons for infomercial marketers and other retailers to abide by truth-in-advertising principles. But for people who insist on a dollars-and-cents rationale, the Court-ordered $478 million price tag for violations related to national ads for money-making systems makes legal compliance look like a bargain.
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.