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A Blog About FTC regulations and happenings

The Wall Street Journal has acknowledged the serious problem that chargebacks pose to businesses in an article posted on its website. Merchants pay a heavy price for these reverse credit card transactions, which cost them a lost sale, the lost product, and a fine imposed by the credit card company. What’s more, courts have equated chargebacks to merchant fraud, using merchants’ chargeback rates against them in lawsuits regardless of the reason for the reverse transaction. Long considered evidence of consumer injury, chargeback rates are not a reliable indicator of merchant wrongdoing. When courts cite a merchant’s chargeback rate in litigation, they do not analyze the reasons for the chargebacks, but only the percentage of the merchant’s total sales that were charged back to credit cards. As the article discusses, chargebacks do not always indicate that a customer has been fraudulently charged. Rather, chargebacks can be triggered for any number of reasons, including when a card issuer finds an authorization or processing error, such as an invalid account number or an... Read more
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February 16, 2011

Wu Appointment May Mean More Regulation to Come

By: Ifrah Law

On February 8, the Federal Trade Commission announced that Columbia Law Professor Tim Wu would be joining the Commission’s Office of Policy Planning. The law professor known for coining the phrase “net neutrality” reportedly will advise the Commission on long-range competition and consumer protection policy initiatives. Professor Wu’s appointment is considered by many in the… Read More

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February 10, 2011

FTC Cracks Down on Bogus Virus-Removal Software

By: Ifrah Law

It’s a gut-wrenching feeling when a computer owner realizes that his or her computer may be infected with a virus. Immediately, one’s thoughts turn to the data that could be permanently lost — documents and pictures that may be difficult or impossible to replace. Next comes the realization that if the documents can be recovered… Read More

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February 7, 2011

FTC Looks at Football Helmet Safety Claims

By: Ifrah Law

Helmet safety has caught the attention of the Federal Trade Commission, which is looking into marketing claims that some football helmets can help reduce concussions. Recent months have seen widespread publicity about concussions and other traumatic head and neck injuries suffered by football players, prompting the National Football League to step up enforcement of rules… Read More

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February 3, 2011

Middlemen Run Afoul of FTC Suspicions

By: Ifrah Law

Brokers, middlemen, and intermediaries serve an economic purpose: to put people who want a product or service in touch with a product maker or service provider. Real estate brokers help us buy and sell homes; mortgage brokers help us find lenders for our home purchases; manufacturing reps help get new products on our grocery shelves,… Read More

The Federal Trade Commission has been clamping down on several major food companies regarding health claims in their advertising.  Iovate Health Sciences USA and Nestle S.A. subsidiary, Nestle Healthcare Nutrition, Inc., were the first to come under FTC fire, both entering into settlement agreements last summer.  Dannon Company, Inc. and POM Wonderful LLC were next. … Read More

This is the first of a regular series of posts that summarize and wrap up our latest thoughts that have appeared recently on Ifrah Law’s two blogs. 1. Can Police Read a Suspect’s Text Messages Without a Warrant? What happens when the usual rules of search and seizure collide with the new world of information… Read More

In a cybermarket full of every product and service imaginable, advertisers go to great lengths to make their products stand out by grabbing consumers’ attention and interest. In recent years blogs have become a popular forum for sharing tips and information, and advertisers have used blogs to promote their products. While advertisers are perfectly entitled… Read More

Customers are flocking to electronic cigarettes — battery-operated nicotine delivery devices that are meant to replicate the flavor and sensation of smoking a tobacco cigarette. While merchants and advertisers are understandably eager to participate in this growing industry, we predict that the FTC will be watching ads carefully in anticipation of enforcing its advertising rules…. Read More

The affiliate sales industry is thriving and is attracting a committed group of young entrepreneurs, according to Jeff Ifrah, founding partner of Ifrah Law. Jeff gave a presentation on January 11, 2011, in Las Vegas at the Affiliate Summit West conference. The conference, which grows larger every year, attracted more than 4,600 people this year,… Read More

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