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.
Blog Posts Tagged with Online Advertising and Marketing
Attending live performances and sporting events again is just one of the things people are looking forward to. But when that time comes, the issues raised at the FTC’s That’s the Ticket workshop will still affect consumers.
The FTC is not the pen pal you want if you operate a multi-level marketing company but aren’t closely monitoring your distributors.
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.
We’ve warned consumers about Coronavirus-related scams, but businesses are at risk, too. Keep your guard up against these seven B2B scams that try to exploit companies’ concerns about COVID-19. In addition to sharing this information with your employees and social networks, read on for how you can report Coronavirus scams to the FTC.
If your business sells online, the price of the product is only one comparative calculation that consumers consider. Shipping matters, too. Does your business deliver to their location? How much will it cost? When will they get their stuff? Here are some practical principles to apply – and some myths to bust – about shipping products to customers from sea to shining sea.
The “what” of the FTC’s settlement with Teami, LLC, shouldn’t come as a surprise. The complaint alleges the defendants took in more than $15 million by deceptively claiming their array of teas could cause rapid and substantial weight loss, “fight against cancerous cells,” decrease migraines, unclog arteries, and prevent colds and flu. What’s different is the “how.” The defendants advertised primarily through a massive social media campaign.
Top picks, star ratings, in-depth reviews. Many consumers don’t buy anything without consulting third-party review sites or checking out the opinions of other customers. But how often are those ratings the product of buying and selling between the “independent” site and companies willing to pay for better play? And are those reviews really from satisfied customers or are they from employees acting on instructions to stuff the ballot box with five-star ratings?
Sometimes FTC cases affirm important legal principles in the courtroom. In other cases, we’re able to get money back for consumers injured by a company’s illegal conduct. The FTC’s action against AT&T for allegedly deceptive and unfair practices related to AT&T’s promises of “unlimited data” resulted in a key ruling last year about the FTC’s jurisdiction and will return $60 million to affected consumers.
There are perceptions some people seem to have about older consumers – and then there’s the data we see in fraud reports from consumers of that age group. Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission calls some common beliefs into question while offering concrete advice to help you, your employees, and others in your community protect older adults from fraud.
There isn’t a competition to find ways to use social media to mislead consumers. (At least we hope there isn’t.) But with apologies to fans of a certain British baking program, separate FTC actions just might qualify two companies as “Star Fakers” for fabricating followers and skewing reviews. The cases demonstrate why cooking up deceptive tactics could land your business on an episode of The Great American Fake-Off.
It’s International Charity Fraud Awareness Week, a global effort to help charities and donors avoid charity fraud. The FTC has united with state charities regulators, the National Association of State Charities Officials, and international partners in the campaign. By joining forces, we can reach more charities with information and advice. This year, the focus is on what charities can do to help defend against cyber threats.
“He just emailed you! You caught his eye and now he’s expressed interest in you... Could he be the one?”
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.
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.