Showing posts filed under: FTC Beat by Nicole Kardell

July 13, 2011

Feds Should Think Twice About Regulating For-Profit Colleges

Business is booming at America’s for-profit colleges. With steady high unemployment rates, many of the job-hungry have opted to pursue higher or specialized degrees in an effort to make themselves more marketable. Pricy for-profit institutions, like the 400,000 strong University of Phoenix, are flourishing with this increased demand as students flock to their courses to… Read More

June 23, 2011

FTC Goes After a Consumer-Endorser for the First Time

When deciding whether to buy a product or service, how often do you check out product reviews or testimonials and how often does that research impact your purchasing decision? The FTC seems to consider consumer reviews and testimonials as pretty persuasive – most notably in the context of online write-ups. In 2009, the Commission revised… Read More

June 14, 2011

FTC Tries to Stay One Step Ahead of Internet Fraud

The FTC’s recent settlement with a California-based Internet marketer may provide a good example of why the Commission is revising its online advertising guidelines. The FTC announced last Thursday that it has reached a settlement with Jaivin Karnani, his company, Balls of Kryptonite, and several associated companies.  The settlement resolves charges the FTC brought against… Read More

May 18, 2011

Sellers Beware: Regulatory Action May Lead to Criminal Charges

Having the Federal Trade Commission – or any other government agency – initiate an action against you or your company may seem like very bad news. But it can get much worse. Sometimes, what starts as a civil action by a government regulator can culminate in jail time. This is the hard lesson learned by… Read More

May 11, 2011

Since 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 More

April 29, 2011

FTC 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 More

April 12, 2011

Do Companies Need to Change the Way They Use Online Consumer Data?

The FTC recently entered into an agreement with Internet advertising company Chitika, Inc., settling charges that the company deceptively tracked consumers’ online activities. At issue in the FTC’s complaint was that Chitika’s privacy policy gave consumers the ability to opt out of being tracked by the company’s use of online “cookies,” but that – unbeknownst… Read More

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