Business Blog

The FTC and FDA just sent warning letters to four sellers of e-liquids, the nicotine-laced liquid used in vaping. But even if you don’t have clients in that industry, keep reading. The letters have a lot to say about social media marketing and influencers, regardless of the products they pitch.

Moon Unit Zappa’s 1982 song “Valley Girl” popularized the phrase “gag me with a spoon.” We doubt the lyric “gag me with a form contract clause” would have been a hit, but it’s among the tactics expressly outlawed by the Consumer Review Fairness Act. As two proposed settlements demonstrate, the FTC thinks gag clauses and similar non-disparagement provisions that violate the CRFA are – to quote Ms. Zappa – grody to the max.

The term “FinTech” covers a lot of topics central to the FTC’s consumer protection mission – lending, payment systems, data security, privacy, and truth in advertising, to name just a few. So where can businesses go for resources on how established consumer protection standards apply in this emerging marketplace? FinTech-related materials have a new home in the Business Center: a dedicated FinTech page.

Their lines of work are as different as can be: an HVAC and electrical contractor, a flooring seller, and a company that takes people on horseback rides. But according to the FTC, they have one thing in common. They all violated the Consumer Review Fairness Act. Read on for details about the FTC’s first cases solely enforcing the CRFA, the form contract provisions the FTC says contravened the law, and tips for keeping your contracts CRFA-compliant.

It’s National Small Business Week, a time when we celebrate the businesses that make our communities thrive. For the FTC, it’s an opportunity to let business owners know that when it comes to protecting your business from cyber threats, you’re not alone. The federal government has resources to help you address common cyber threats and create a culture of cybersecurity at your company. The materials at FTC.gov/Cybersecurity were introduced last year in cooperation with DHS, NIST, and the SBA.

Last month the FTC sent staff warning letters to eight firms advertising simulated or laboratory-created diamonds. According to the letters, the companies had promoted their products without adequately disclosing that they weren’t mined diamonds.

Suppose a lunch companion says, “I think there’s something wrong with this tuna salad.” To determine if the problem is tuna not to their taste vs. tuna gone bad, would you scarf it down? Probably not. Now remove tuna salad from the example and substitute a web browser extension. (Stay with us here.) Let’s say you’ve been warned that an unknown extension could be used for fraud. Should you download it and let it marinate in your company’s network?

When a company settles a case with the FTC, it’s not just water under the bridge. An FTC administrative order includes provisions designed to prevent similar deceptive or unfair practices in the future – and violations of those orders may result in civil penalties. The FTC just announced a proposed settlement with Georgia-based iSpring Water Systems for violating a 2017 order related to the company’s Made in USA claims.

“Viagra for the brain.” It’s a slogan designed to attract the attention of consumers concerned about cognition. Then there was a massive online ad campaign of “news” websites featuring supposed testimonials from people like Bill Gates and the now-late Dr. Stephen Hawking. It’s no wonder people forked over millions for supplements that went by names like Geniux, Xcel, EVO, and Ion-Z.