Colleges are known for team sports, but it’s an unfortunate fact that consumer deception can be a team sport, too. A proposed FTC settlement with Career Education Corporation, American InterContinental University, Colorado Technical University, and related defendants alleges they used illegal game plans to lure consumers to their post-secondary and vocational schools.
Blog Posts Tagged with Online Advertising and Marketing
The time has come to take a closer look at loot boxes. The FTC’s workshop, Inside the Game: Unlocking the Consumer Issues Surrounding Loot Boxes, begins at 10:00 ET today. Moments before the start time we’ll post a link to the live webcast.
For members of the videogame industry, loot boxes are no game. They’re a serious part of the revenue stream. But do loot boxes – grab bags of digital goodies bought with in-game virtual currency or real money – raise consumer protection concerns? What about the potential impact on young consumers?
Whether you’re taking the midnight train to Georgia, a quick trip on MARTA, or a drive around the Perimeter on your way to one of the many Peachtree Streets, meet us in Atlanta on Thursday, August 15, 2019, for Green Lights & Red Flags: FTC Rules of the Road for Business.
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.
Humphrey Bogart said it in “The African Queen” and it was a catchphrase popularized by Jon Lovitz on “Saturday Night Live.” But to the FTC, That’s the Ticket is the name of a June 11, 2019, workshop to explore consumer protection issues related to online ticket sales – and the agenda is out now.
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.
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.
Where do entrepreneurs go if they’re long on ideas, but short on capital? In their short history, crowdfunding platforms have often been the financial sparkplug that ignites the engine of innovation. But some campaigners promote zealously and deliver zilch. According to the FTC, a company raised over $800,000 in four crowdfunding campaigns for a high-tech backpack and other items, but used a large portion of the money on personal expenses.
“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.
Gamers call them loot boxes – in-game rewards players can buy that contain a random assortment of virtual items. The loot may help players advance in an online game or allow them to customize their avatars. The rewards may be virtual, but they’ve become a very real revenue stream for game developers.
Is there anything you can’t get delivered to your front door? (And yes, home renovators will attest you can even get a front door delivered to your front door.) The burgeoning subscription model can offer convenience to customers, but only if companies honor established consumer protection principles.
It’s an illegal practice the FTC has challenged for decades: companies convincing consumers to pay for “repairs” on products that don’t really need fixing. The FTC alleges that Office Depot and service vendor Support.com engaged in a 21st century version of that misleading tactic. According to the complaint, the defendants tricked customers into spending millions on repairs by deceptively claiming they had found malware symptoms or infections on consumers’ computers.
In explaining FTC cases, we try to give readers a behind-the-scenes perspective and sometimes the most accurate insights are out of the mouths of corporate insiders. In the FTC’s first case challenging fabricated reviews on an independent retail site, consider an email from the CEO of Brooklyn-based Cure Encapsulations about a weight loss pill it was selling.
For people looking for highly-paid executive positions with private equity or venture capital firms, Worldwide Executive Job Search Solutions and PrivateEquityHeadhunters.com claimed to offer the inside track to the suite life.
Just in time for Valentine’s Day, the FTC staff released a Data Spotlight highlighting the category of scam with the highest amount of reported financial loss among complaint categories the FTC uses to track fraud. The category may surprise, but here’s a hint. In the words of Bon Jovi, these con artists “give love a bad name.”
Steely Dan may be one of the best duos of the rock era. (Sorry, Donnie and Marie fans.) Their song “Hey Nineteen” reminds us to mention some FTC consumer protection developments that could be of interest to your company or clients in 2019. As “Any Major Dude Will Tell You,” when you’re “Reelin’ in the Years” – or at least recapping the past one – consider this non-exhaustive and in-no-particular-order case compilation.
According to a lawsuit filed by the FTC, an international network of corporations and individuals put consumers through the wringer with false claims about “free” trial offers, followed by unauthorized charges to their accounts.