A Blog About FTC regulations and happenings
Artificial intelligence (“AI”) was once thought of as science fiction – something we could only see on a movie screen or read about in a comic book. But in recent years, the technology has become both accessible and popular, proliferating nearly every sector of society. From healthcare to the legal industry, AI technology has been praised for its ability to cut costs and improve efficiency.
Despite the technology’s apparent benefits, the Federal Trade Commission (“FTC”) isn’t so eager to jump on the AI bandwagon. In a recent blog post, the FTC warned AI advertisers to keep their AI “claims in check,” and refrain from “overpromise what algorithm or AI-based tool can deliver.”
The post characterized “AI technology” as a “hot marketing term” that is ripe for abuse by advertisers. Specifically, the FTC warned that the popularity of AI technology may encourage advertisers to overpromise and under deliver when it comes to the... Read more
Former Uber Security Chief Convicted of Federal Charges Stemming From 2016 Extortionate Data Breach
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. … Read More
New California Law Establishes Broad Protections for Children’s Online Privacy – Exceeding Federal Requirements
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
Federal Court Dismisses Illegal Lottery Claims Against Omaze, Emphasizing Adequacy of Fundraiser’s Alternative Means of Sweepstakes Entry
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
New Federal Court Decision Counsels “Clear and Conspicuous” Advertisement of Alternative Means of Sweepstakes Entry – Coinbase Suit Proceeds
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
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 (https://www.ftc.gov/system/files/attachments/penalty-offenses-concerning-endorsements/list-recipients-endorsement-notice.pdf) warning them about using fake reviews… Read More
Supreme Court rules that FTC cannot seek disgorgement under Section 13(b) of the FTC Act
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
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