What’s in a name? According to an FTC lawsuit filed in April, if you’re an outfit that uses the name “SBA Loan Program” – and you falsely claim to be an approved lender for the Small Business Administration’s coronavirus relief lending program – what’s in your name is deception. Under the terms of a settlement, that shady tactic stops right here, right now.
Blog Posts Tagged with Advertising and Marketing
It’s National Small Business Week, a time set aside annually to salute American’s 30 million small businesses – companies that employ almost half of the country’s private sector workforce. The special focus this year is on the resilience and resolve of entrepreneurs and workers as they battle back against the impact of the pandemic.
Oh, what a tangled web they weave,
When with telemarketing scams they do deceive.
Natives and fans heartily agree that “Cleveland Rocks!” That’s why the Federal Trade Commission and its Ohio partners are ready to roll with the next installment of Green Lights & Red Flags: FTC Rules of the Road for Business, set to make its online debut on October 29, 2020, from Cleveland.
In a lawsuit filed earlier this year, the FTC alleged that Online Trading Academy made unsubstantiated mega-bucks promises about their purported investment training programs. According to the complaint – and the defendants’ own data – for most OTA customers, the only time they saw big money was as it flew out of their hands and into the defendants’ pockets.
Last year the FTC and the Utah Division of Consumer Protection sued Nudge, LLC, and related companies and individuals, alleging they used bogus money-making claims to lure people into buying real estate training programs – a scheme the two agencies say ultimately took consumers for more than $400 million. Soon after that, the parties entered into a stipulated preliminary injunction.
Online subscription services can be a convenience for consumers and a boon for business – especially now that so many people are shopping from home. But under the law, companies have an obligation to explain the details of the deal up front, clearly disclose any automatic renewal terms, get consumers’ express consent before billing, and offer simple ways to cancel.
Tenth anniversaries are traditionally for tin. So we’re commemorating the tenth anniversary of the FTC’s Bureau of Consumer Protection Business Center and Business Blog by doing some tin-kering that regular readers may have noticed. (Sorry. After a decade, the wordplay is second nature.)
Every day, the FTC is collecting data, watching the numbers, and spotting the trends. We’re also spreading the word about COVID-19-related scams that target consumers and businesses. Because the more you know about what’s happening, the easier it will be to protect yourself and others from these scams.
As parents know, kids spend a huge amount of time online, especially now with COVID-19 school and camp closures. They get ideas from influencers on social media and video platforms, make purchases on their smartphones, and influence a lot of family spending. This phenomenon is not limited to the U.S. alone.
If you’re unfamiliar with loot boxes, you probably don’t have clients in the video game industry, aren’t a gamer yourself, or aren’t the parent of one.
Coronavirus claims for zappers, virus-busting cards, sage, oregano, and bay leaves are among the representations called into question in the latest round of warning letters sent by FTC staff. With the total closing in on 300, the letters make it clear that companies need to clean up their claims about preventing or curing COVID-19. Here are the products and promises that have raised the most recent concerns.
Consumers and small businesses want personal protective equipment now. So when companies advertise those items online with promises of in-stock merchandise and fast shipping, those claims may be the difference between a big sale and no sale.
Golden Sunrise Nutraceutical and related company Golden Sunrise Pharmaceutical sell “plans of care” – regimens of health-related products – advertised to treat COVID-19 and other serious medical conditions. The FTC has gone to court in an effort to see the sun set on what it alleges are Golden Sunrise’s deceptive claims.
Ask consumers what would make their lives easier and some lists might include a more comfortable home and lower bills. Four cases just filed by the FTC challenge allegedly deceptive R-value, energy-savings, or money-savings claims by unrelated companies that sell a variety of architectural coatings for houses and other structures.
As adage-writers go, whoever penned, “Sticks and stones will break my bones, but words will never hurt me,” should have looked for another line of work. And, the writer should have hoped that prospective employers wouldn’t spot a promotion for MyLife.com, saying they could see the writer’s criminal and sexual offender records by subscribing to MyLife’s background reports.
The FTC’s actions against Volkswagen for false “clean diesel” claims were record-setting in size, scope, and seriousness. The defendants spent millions to pitch their cars to environmentally conscious consumers. But behind those low emissions numbers was a dirty little secret – and we do mean dirty: The defendants had cheated on the test. The cases made headlines in 2016 and 2017 and for many people, that was the end of the road.
Your patient calls you panicked because she’s on her last pair of contact lenses. Perhaps due to COVID-19, she isn’t able to (or doesn’t want to) come into the office. You may determine, in your medical judgment, that it’s appropriate to renew or extend that prescription. How do the Contact Lens Consumer Act and the Contact Lens Rule apply to that interaction?
An online company advertising consumer goods, including personal protective equipment like masks and respirators, does business under the name SuperGoodDeals.com. But based on the illegal conduct alleged in a lawsuit just filed by the FTC, maybe it’s because the URL SuperDeceptivePractices.com was already taken.
For consumers struggling with severe or chronic pain, ads for a product called Willow Curve appeared to offer light at the end of the tunnel. But the FTC alleges the marketers made false and unsubstantiated claims for the product, a device that applied low-level light and mild heat to the site of pain – and set people back between $599 and $799 in the process. The proposed settlement also sheds light on the FTC’s ongoing concern with deceptive native advertising.