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 Basics
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.
Fundraiser Outreach Calling’s telephone pitches were persuasive. Generous Americans opened their hearts and wallets to fund personal care packs for hospitalized veterans, support services for women with breast cancer, “financial assistance for families of officers killed in the line of duty,” and other charitable programs – or so they thought.
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.
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.
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.
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.
In the face of COVID-19, many small businesses are looking for help from the CARES Act’s Paycheck Protection Program. They may apply for PPP loans through Small Business Administration-authorized lenders and others the SBA has determined to be eligible. But there are concerns that some companies have falsely claimed an affiliation with the SBA or approved PPP lenders, or have represented untruthfully that people can get PPP or other SBA loans by applying on their sites.
The beige envelope says IMPORTANT COVID-19 ECONOMIC STIMULUS DOCUMENT ENCLOSED. Inside – next to what appears to be the Great Seal of the United States – is the phrase COVID-19 STIMULUS (INDIVIDUAL) and a 16-digit serial number. The mailer also includes a check purporting to be from the “Stimulus Relief Program.” Is it official information affiliated with a COVID-19 economic stimulus program? We won’t leave you in suspense. It’s a car ad.
Dear Multi-Level Marketer. Stop it. Stop all promotions that push your products by claiming they prevent or treat COVID-19. Stop all misleading or unsubstantiated promotions that push your business opportunity by claiming people can earn substantial income peddling your products. The claims are unproven and deceptive. Whether you or your distributors are making them, you’re responsible. That means you could be breaking the law.
The FTC’s complaint against Bronx Honda alleges the company jacked up what consumers had to pay by fabricating fees, inflating charges, and sneaking in stealth add-ons. The lawsuit also alleges the defendants discriminated against African-American and Hispanic consumers by charging them higher financing markups and fees, in violation of the Equal Credit Opportunity Act and Reg B.
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.
As a business owner, you’ve seen the headlines about financial relief that may be available to some companies through the Small Business Administration (SBA). But you’ve also heard about scammers who extract a grain of truth from the news and distort it in an effort to cheat small businesses. Now more than ever it’s critical for small business owners to go straight to the source for accurate information about what’s happening at the SBA. And that source, of course, is the Small Business Administration’s dedicated page, sba.gov/coronavirus.
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 you say you’re better, you’d better be better – and you’d better have appropriate proof to back up that claim. That’s a takeaway tip for businesses from the FTC’s proposed settlement with Federal-Mogul Motorparts, LLC.
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.