Blog Posts Tagged with Payments and Billing

Pages

(Con)tempting fate

We’re not lyricists, but had the 1972 hit “You Don’t Mess Around with Jim” been addressed to defendants in FTC actions, here’s our proposed rewrite:

You don’t tug on Superman’s cape.
You don’t spit into the wind.

You don’t pull the mask off that old Lone Ranger.
And you don’t engage in acts and practices in contempt of a United States District Judge’s Permanent Injunction.

FTC to advertisers: 7 New Year's resolutions

Sprinkle it on food.  Slather it on skin.  Place drops under the tongue.  Regardless of how consumers use your product, if you make weight loss claims, here’s a New Year’s resolution to consider:  Make sure you have sound science to support what you say.  That’s just one message marketers can take from FTC actions against Sensa, L’Occitane, HCG Diet Direct, and LeanSpa, settlements that will return big money back to consumers – including $26.5 million to peopl

Combating "cramouflage": What businesses can learn from the FTC's latest mobile case

Call it "cramouflage" — unauthorized (and unexplained) charges that show up on people's mobile phone bills.  Regardless of whether consumers use cell phones, land lines, or two cans tied together with string, it’s illegal to bill them without their express consent.  That’s always been the law.  It’s the law now.  And we’ll go out on a limb and predict it’ll always be the law.  A settlement involving "cramouflage" charges is the FTC's latest foray against deception in the mobile marketplace.

Heads up, payment processors

Here’s a fun fact we didn’t know:  Contrary to popular belief, ostriches don’t bury their heads in the sand.  And here's a disturbing observation borne out by FTC experience:  Some companies that grease the wheels for fraudsters do bury their heads in the sand.  Others go a step further and help cover up their affiliates’ wrongdoing.  Either course of conduct could land them in legal hot water.  That’s just one message businesses can take from the FTC’s settlement with Process America, Inc.

A Mark, A Yen, A Buck or A Pound

Those billions of dollars people send from the U.S. to other countries make the world go around. If your company or your clients are in the business of sending remittances overseas for consumers, you need to know about a rule from the Consumer Financial Protection Bureau (CFPB) that just took effect.

FTC's Jamster case: 5 tips for mobile marketers

So people were taking a few minutes to play the free version of Angry Birds on their Android device.  At some point between the Giant Slingshot and the Mighty Eagle, they got a "Virus Detected" warning.  But according to an FTC lawsuit, that scary-looking security alert was phony and just a way for Jamster (the court papers use the corporate name Jesta Digital) to place charges on people's cell phone bills without their express consent.

Surely you Jesta: Jamster jammed for mobile cramming

You thought Angry Birds get peeved at those annoying green pigs?  That's nothing compared to consumers’ reaction when they found unauthorized charges “crammed” onto their cell phone bills for phony virus scans that showed up when they played Angry Birds on their Android devices.  To settle an FTC lawsuit, Jesta Digital LLC — you may know them as Jamster — will give refunds to a significant number of consumers, pay an additional $1.2 million, and change the way they do business.

Business buyer beware

As a small business person, you’re looking for ways to keep your credit and debit card processing costs down.  So when someone calls claiming to be associated with your current card processor, Visa or MasterCard, or your bank and promises big savings, of course you’d be all ears.  But according to a lawsuit filed by the FTC, the deceptive practices of one processing outfit have given new meaning to the word “swipe.”

Calling for comments about proposed changes to the Telemarketing Sales Rule

We’re not one to loft accolades in the direction of fraudulent telemarketers, but we’ll say this about them:  They’re a quick study when it comes to using new technologies and business methods to their shady advantage.  As part of its ongoing effort to protect consumers from deceptive telemarketing, the FTC is proposing amendments to the Telemarketing Sales Rule that would curtail the use of certain kinds of payments that have become fast favorites among fraudsters.

Fraud harms 25.6 million people: Anyone you know?

The FTC is always working to know more about the types of fraud being committed and who spends money on them.  Periodically, we survey consumers and ask them to share details about their recent marketplace experiences and a bit about themselves.  Our most recent survey found that nearly 11% of U.S. adults — an estimated 25.6 million people — paid for fraudulent products and services in 2011.

Mo' bill messaging

We can’t figure out why Hollywood hasn’t returned our call, but here's a great idea for an action movie.  FTC attorneys go to court to stop a company from illegally billing people for text message-based subscription services they never asked for and didn’t authorize.  We even have a can’t-miss title:  Crambo.

Shell game?

“Payment processing” used to involve standing in the checkout line and handing the cashier your pennies.  (Remember checkout lines?  Remember cashiers?  Remember pennies?)  In a lawsuit filed in federal court, the FTC alleges that Ideal Financial Solutions and more than a dozen individual and corporate defendants used an “intricate web of concealment” to game the payment processing system in a way that resulted in more than $25 million in unauthorized credit card charges and bank account debits.

Room for improve-mint

The Hobby Protection Act is something of a misnomer.  Most hobbies don’t need much by way of protection.  But if you or your clients are involved in the sale of coins or certain collectibles, it’s a law you need to know about.  The FTC’s settlement with the National Collector’s Mint and Avram C. Freedberg alleges violations of the Hobby Protection Act — and also raises interesting issues about how the company’s automated ordering system compounded other deceptive practices challenged in the case.

Pages