FTC’s Mortgage Acts and Practices Advertising Rule May Not Help Consumers
The FTC recently issued the Mortgage Acts and Practices – Advertising Final Rule. This rule is the FTC’s response to a congressional directive to address unfair or deceptive acts in the mortgage loan industry. Briefly, the MAP Rule (1) gives the FTC and state authorities the ability to seek civil penalties for deceptive mortgage advertising,…
Read MoreShould FTC Sue Law Schools For Misrepresentation?
On May 25, 2011, a class action was filed against the Thomas Jefferson School of Law (TJSL) in San Diego for intentionally misrepresenting employment data of recent alumni. The complaint states that in order to continue attracting students despite exorbitant law student debt and a depleted legal job market, TJSL has “adopted a practice of…
Read MoreInternet Affiliates Fight Back in Court Against Illinois Retail Tax
An organization that represents online affiliates filed suit in federal court this month challenging the constitutionality of a new Illinois law targeted at collecting sales tax from Web retailers. Internet retail giant Amazon.com has threatened to cut off its marketing affiliates in Illinois in an effort to avoid paying the tax, and other companies are…
Read MoreSince When Did the FTC Start Regulating Cyber Security?
There’s no question that the Federal Trade Commission has the authority to prevent deceptive and unfair trade practices, such as false or misleading claims directed at consumers. Somehow, however, that authority has morphed into a much broader reach than one would have expected on the basis of common sense. We’ve written extensively about such jurisdictional…
Read MoreFTC Files Suit Against Acai Marketing Sites Disguised as ‘News’
The FTC recently filed suit against ten operations with websites that market acai berry weight loss products. The FTC alleged that the companies’ websites – which look like news websites – deceived consumers who thought the sites were credible journalistic outlets as opposed to elaborate marketing schemes. According to the FTC, the sites contained titles…
Read MoreNew Illinois Tax Law May Strike Hard Against Affiliates
A new Illinois law purporting to preserve and create jobs in the state may soon be putting Illinois affiliates out of business. Governor Pat Quinn recently signed a law requiring online retailers to collect sales tax on purchases made in Illinois, on the premise that the companies have a presence in the state due to…
Read MoreAn Interview With David Deitch, New Ifrah Law Partner
On April 1, 2011, David Deitch started work as a partner at the Ifrah Law Firm. David is an experienced trial lawyer and former Department of Justice counterterrorism prosecutor. Because he will now be a regular contributor to this blog, the editor of FTC Beat conducted this brief interview to introduce David to our readers.…
Read MoreFTC Files First Lawsuit Against ‘Text Spam’
Spam seems to be everywhere these days, and it has now invaded your wireless handheld. Last month, the Federal Trade Commission filed its first lawsuit ever against an alleged perpetrator of “spam texting” – the practice of sending unsolicited commercial text messages to a large number of people. The FTC is alleging that Phillip Flora…
Read MoreIdentity Theft Tops List of FTC Complaints in 2010
This month, the Federal Trade Commission released its list of the top ten consumer complaints received by the agency in 2010. This list represents a good indication of some of the areas toward which the FTC may direct its resources and increase its scrutiny. For the 11th year in a row, identity theft was the…
Read MoreOnline Sellers Need to Beware of State Attorneys General
The Pennsylvania Attorney General filed a consumer protection lawsuit last month against Zoommania, LLC, a Philadelphia-based Internet electronics store, for a bait-and-switch scheme the company allegedly employed in online sales and for its creation of new websites to avoid negative customer feedback resulting from the scheme. The complaint, which seeks restitution for consumers, alleges that…
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