There are lots of good reasons for infomercial marketers and other retailers to abide by truth-in-advertising principles. But for people who insist on a dollars-and-cents rationale, the Court-ordered $478 million price tag for violations related to national ads for money-making systems makes legal compliance look like a bargain.
Blog Posts Tagged with Credit and Finance
If you’ve been following the ongoing story of the FTC’s law enforcement action stemming from Neovi, Inc.'s Qchex check-writing system, the Court’s recent contempt ruling will make for interesting reading. If those names aren’t familiar to you — and you have clients in the payments arena — it’s time to get up to speed.
“I just want to say one word to you, Benjamin. Plastics.”
During the cocktail party scene in the classic movie “The Graduate,” that’s the advice Ben Braddock got for mapping out his future. It wasn’t such a bad tip after all since so much stuff — including the pocket money we use for day-to-day expenditures — has gone plastic.
How would you like to listen in when federal agencies talk to each other about policies that could have an impact on your company? If your business is breaking into the mobile marketplace, lend an ear.
Never underestimate the creativity of marketers attempting to separate cash-strapped consumers from their last dollar. And never underestimate the FTC’s resolve to protect people from deception in tough economic times. Those are just two points to take from recent FTC law enforcement actions.
At the BCP Business Center, we offer tips on how to stay on the right side of the law. But we also do our best to spread the word about the latest frauds targeting businesses — and this one’s a piece of work. If your company accepts checks or online payments, you’ll want to be on the look-out for a scam that could leave you with a stack of worthless paper.
We've done a little renovating around the BCP Business Center. Nothing major like adding a rumpus room or finishing the basement. Just a few updates in response to your suggestions.
On classic episodes of the Tonight Show, affable sidekick Ed McMahon sought guidance from Johnny Carson's all-knowing Carnac character. But as demonstrated by a recent FTC law enforcement action — which involved a company's misleading reference to the late Mr. McMahon — you don't need a psychic to know that challenging deceptive debt collection practices remains a top priority.
Identity theft hits millions of Americans each year. What many business executives don’t know is that ID thieves are using a variation on the crime to prey on legitimate companies.
People are going mobile — so transactions are, too. Today the FTC is hosting a national workshop, Paper, Plastic . . . Mobile, to consider the consumer protection implications of mobile payments. How can you get involved?
If you haven’t already, hover up to your toolbar and bookmark the FTC’s Regulatory Review page. It’s your one-stop resource for what's coming up and what’s going down with Commission rules and guides of interest to your business and your clients. Recent announcements about the FTC's regulatory review schedule make it a must-read.
Mobile devices are changing how people go about their daily lives, and that includes how they pay for stuff. As announced in January, the FTC is hosting a workshop on April 26, 2012, to examine the use of mobile payments in the marketplace and their effects on consumers. The workshop — which will be held at the FTC’s Conference Center at 601 New Jersey Avenue, N.W., in Washington, D.C. — is free and open to the public. The agenda is now available.
Imagine for a moment your ideal customer. They consider their choices carefully before buying. They keep their accounts current. When service is top-notch, they spread the word to friends and family. If there’s a glitch, they give you a chance to correct the problem before posting thumbs-down reviews. Now imagine you could “create” your own cadre of contented customers. Fantasy Land? It’s more real than you might imagine.
With a company name like Broadway Global Master, you might expect high kicks and jazz hands. The defendants told a dramatic story, all right — but according to the FTC, it was a harrowing tale of intimidation.
Last week saw FTC announcements involving allegations of foreclosure rescue fraud, deception aimed at people trying to resell their timeshares, complaints against payday lenders, and lawsuits against outfits claiming to help consumers behind on their car payments. Is there a theme here? You bet. But the message isn't just for companies engaged in practices targeting consumers struggling to stay afloat. There are words to the wise for businesses of any size and every stripe.
Tough federal and state law enforcement has turned up the heat on mortgage foreclosure rescue scams. So some operators are turning to auto loan modifications to make a fast buck on consumers in financial distress. In the first cases of their kind filed by the FTC, the agency is alleging that two unrelated California outfits charged hundreds of dollars in upfront fees, based on bogus claims they could reduce consumers’ monthly car notes and help them avoid The Repo Man.
Take the case of one person who borrowed money from a payday loan operation the FTC has taken to court for allegedly illegal practices. According to the FTC, the consumer was told that a $500 loan would cost him $650 to repay. But by slicing and dicing repayments in a way that generated undisclosed fees, the defendants allegedly tried to charge him $1,925 to pay off the $500 loan — and threatened him with arrest when he balked.
The FTC has filed another action against defendants who allegedly attempted to squeeze the last drop from homeowners already under water. This case, however, involves a disturbing new variation on foreclosure "rescue" operations.
If you have clients in the auto industry, you’ve seen the ads: “We’ll pay off your trade no matter what you owe . . . even if you’re upside down.” It’s an attractive claim to people struggling with their finances. But law enforcement settlements announced by the FTC with five dealers from around the country demonstrate the importance of giving people the straight story when making promises about trade-ins where negative equity is involved.
South Dakota can be lovely this time of year, but consumers struggling financially shouldn’t have to travel there to respond to actions filed against them in a tribal court that doesn’t have jurisdiction over their case. That’s what the FTC has alleged in its amended complaint against Payday Financial, LLC, a company that pitches its short-term, high-fee loans in TV ads and online.