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A Blog About FTC regulations and happenings

Uber’s former Chief Security Officer, Joe Sullivan, was convicted of two federal charges—obstruction of justice and misprision of a felony—for his role in covering up an extortionate data breach in 2016, which compromised more than 50 million personal records of Uber drivers and passengers, while the Federal Trade Commission (“FTC”) was probing Uber’s privacy protections.  The San Francisco jury’s verdict marks a stunning development in the realm of cybersecurity and in-house legal representation, as Sullivan’s conviction is the first major criminal case brought against a corporate executive over an external data security breach. The prosecution was led by the San Francisco USAO’s office at which Sullivan once served as a federal cybercrime prosecutor. Since his tenure at his now-prosecutor’s office, Sullivan worked for Facebook, Uber, and Cloudflare as the top cybersecurity executive.  While there have been a variety of reports underscoring the first cybersecurity criminal case against a corporate executive, certain critical aspects of the incident have not garnered enough attention and are highlighted here. Facts... Read more

California made history in September as the first state to enact legislation that punishes technology companies for violations of minors’ privacy and for practices that jeopardize minors’ safety in an effort to prioritize “the privacy, safety, and well-being of children over commercial interests.”  On September 15th, Governor Newsom signed The California Age-Appropriate Design Code Act… Read More

WW International (f/k/a Weight Watchers) seems to be doing children a service: the company developed an online program tailored to address childhood weight issues.  The program, offered by WW subsidiary Kurbo, has an app, youthful professional coaches, and many features that look promising both to attract and to retain program young subscribers. Plus, the program… Read More

 As covered in this blog, in most states, companies that offer sweepstakes entries with certain purchases must also allow free entry (often called “alternative means of entry” or “AMOE”). This requirement stems from the three elements that generally make up regulated gambling: (1) consideration, (2) prize, and (3) chance. Random-chance giveaways inherently meet the latter… Read More

  Most states require that companies offering sweepstakes allow entry without requiring purchase or other consideration. This alternate means of entry, or “AMOE,” avoids liability under gambling and lottery statutes by removing the “consideration” element in state gambling and lottery laws. A recent decision in California federal court has shed new light on how sweepstakes… Read More

Law Firms Champing at the Bit(coin)
December 10, 2021

Law Firms Champing at the Bit(coin)

By: James Trusty

Cryptocurrencies, such as the industry leaders Bitcoin and Ethereum, appear to be on the slow march towards popular acceptance as legitimate means of payment. As evidence of both legitimacy and the sluggishness of acceptance, several Bar Associations have weighed in with opinions on the ability of lawyers to accept cryptocurrencies as payment for legal services…. Read More

Does your company or its affiliate advertisers use celebrities or influencers  to market your services? Do you use customer reviews to promote your offerings? The Federal Trade Commission (“FTC”), energized by new Chairperson Lina Khan, just sent out notices to over 700 companies – including many household names (  warning them about using fake reviews… Read More

Last October, we reported on the Third Circuit Court of Appeals’ decision in Federal Trade Commission v. AbbVie, Inc., in which the appeals court overturned a trial court’s decision ordering $448 million in disgorgement pursuant to Section 13(b) of the Federal Trade Commission (“FTC”) Act against a group of businesses accused of trying to monopolize… Read More

As previously reported in this space, the Supreme Court is scheduled to hear argument in its upcoming term regarding whether the Federal Trade Commission was authorized to seek monetary relief such as disgorgement or restitution under Section 13(b) of the FTC Act.  These cases do not just call into question the availability of a certain… Read More

In the latest blow to businesses seeking to offer digital tokens or cryptocurrencies to consumers, the United States District Court for the Southern District of New York ruled on Wednesday that Kik Interactive Inc.’s offering of its Kin digital token violated Section 5 of the federal Securities Act, granting summary judgment to the Securities and… Read More