Business Blog

As part of its regulatory review, the FTC announced earlier this year Information Security and Financial Institutions: An FTC Workshop to Examine the Safeguards Rule. If the Safeguards Rule is of interest to you or your clients, you’ll want to know about three new developments.

FTC staff just sent 21 more warning letters to companies that have used allegedly unsubstantiated coronavirus prevention and treatment claims to promote products and services. Many of the latest letters focus on questionable representations for high doses of vitamins, intravenous treatments, ozone, and purported stem cell therapies.

Trend-conscious buyers want the latest styles ASAP and online retailer Fashion Nova reinforced those expectations by promising “Fast Shipping,” “2-Day Shipping,” and “Expect Your Items Quick!” But according to the FTC, the California company’s shipment delays violated the Mail, Internet, or Telephone Order Merchandise Rule and left consumers haute under the collar. The $9.3 million settlement is the largest ever in a case of its kind.

Some things have changed in the rent-to-own business, but a $175 million proposed settlement with Progressive Leasing reminds companies that bedrock consumer protection principles apply, especially the fundamental proposition that deceiving people about cost strikes at the heart of the FTC Act. Not in the rent-to-own industry? Not so fast. The case offers compliance pointers for your company, too.

“Oh, my achin’ . . . .” It’s a common refrain for many older Americans and others who experience chronic pain. Some businesses respond with ads heavy on puffed-up promises, but light on the scientific evidence necessary to support serious health claims. That’s the FTC’s allegation against a company that sold a pill called Isoprex. The complaint also challenges the undisclosed use of compensated friends and family as purported consumer endorsers.

For small businesses, there’s never been a time when “business as usual” has been so unusual. With many companies facing coronavirus-related challenges, the FTC has tips for business owners – and for those offering small business financing – about navigating today’s uncharted financial waters.

The FTC has extended the public comment periods as part of the regulatory review of the Funeral Rule and Endorsements Guides. Because the Coronavirus crisis may affect commenters’ ability to file by the original date, we want to make sure you have enough time to share your feedback.

Headlines tout rapid improvements in artificial intelligence technology. The use of AI technology – machines and algorithms – to make predictions, recommendations, or decisions has enormous potential to improve welfare and productivity. But it also presents risks, such as the potential for unfair or discriminatory outcomes or the perpetuation of existing socioeconomic disparities. Health AI offers a prime example of this tension.

Consumers hate illegal robocalls. And as the thousands of reports pouring into the FTC indicate, they also hate robocalls that exploit concerns about Coronavirus. In recent months, the FTC has taken innovative steps to take on not only illegal robocallers, but also companies that “assist and facilitate” their conduct.