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A Blog About FTC regulations and happenings

For-Profit Education Flunking Regulations Overload 101
September 15, 2014

For-Profit Education Flunking Regulations Overload 101

By: Nicole Kardell
  The last few years have been tough on the for-profit education industry – it’s not easy being the target of a host of federal and state investigations. For-profit educators have been poked and prodded by, among others, the U.S. Congress, a coalition of state attorneys general, the Consumer Financial Protection Bureau, the Federal Trade Commission, and the Securities and Exchange Commission. Federal and state authorities, who see the industry as predatory, seem determined to squeeze it out of the education industry. A draconian set of regulations, known as the Gainful Employment Rule, that were issued by the Department of Education last year may be just what it takes for these detractors to get their way. Amidst tougher regulations and incessant government probes, already two large institutions have flat-lined. In June, Corinthian Colleges announced its imminent bankruptcy. At the end of August, Anthem Education said that it would be closing its doors. Declining enrollment numbers, costly investigations and rigorous regulations (with hefty compliance costs) have been too much for these colleges... Read more
Federal Trade Commission Checks Out Mobile Shopping Apps
September 4, 2014

Federal Trade Commission Checks Out Mobile Shopping Apps

By: Michelle Cohen

  In August, the Federal Trade Commission (“FTC”) released a staff report concerning mobile shopping applications (“apps”).  FTC staff reviewed some of the most popular apps consumers utilize to comparison shop, collect and redeem deals and discounts, and pay in-store with their mobile devices.  This new report focused on shopping apps offering price comparison, special… Read More

Restaurant chain Applebee’s has joined other businesses such as Overstock.com, Hilton, Capitol One, and Bass Pro Shops as defendants in purported class action lawsuits alleging that they illegally recorded calls to or from California residents.  In fact, plaintiffs have filed hundreds of individual and class actions in California courts under California’s various eavesdropping/call recording laws…. Read More

  In this health-conscious age, consumers are always on the lookout for new products which will improve wellness and quality of life.  Marketers attuned to this trend may be tempted to increase sales by extolling the virtues of their products, even if health claims are unsubstantiated by scientific testing.  A recent FTC case, however, demonstrates… Read More

Capital One Gets an Unwanted Wake Up Call
August 8, 2014

Capital One Gets an Unwanted Wake Up Call

By: Ifrah Law

In what could become the largest ever settlement in a case brought in the 22 year history of the Telephone Consumer Protection Act (“TCPA”), Capital One and three collection agencies agreed to pay over $75 million into a settlement fund to settle a consolidated class action lawsuit alleging that the companies used an automatic telephone… Read More

Recently, the Maryland Attorney General’s Office announced that it reached a settlement with Snapchat, Inc. over alleged deceptive trade practices in violation of Maryland law and violations of federal laws that are intended to protect children’s online privacy.  This is another reminder that state attorneys general’s offices will continue to be vigilant in addressing consumer… Read More

Weight Loss Claims and Dr. Oz Gain Congressional Interest
June 20, 2014

Weight Loss Claims and Dr. Oz Gain Congressional Interest

By: Michelle Cohen and Ifrah Law

We’ve all heard the statistics showing obesity rates rising in the U.S. year after year. Most of us are well aware of the billion dollar diet and weight-loss supplement industry to which millions turn with the hope of finding that one “miracle pill” to help them lose that stubborn belly fat or get rid of… Read More

Higher Ed False Claims Act Suits – Pass or Fail?
June 10, 2014

Higher Ed False Claims Act Suits – Pass or Fail?

By: Nicole Kardell

Career Education Corporation, like a host of other for-profit education companies, has found itself spinning on the courthouse revolving door. The latest legal challenge for CEC: a False Claims Act suit filed in federal court in New Jersey on May 16. The lawsuit alleges that CEC defrauded the federal government by (1) falsifying job placement… Read More

Yesterday, the Federal Communications Commission (“FCC”) announced a consent decree with Sprint Corporation for federal do not call violations. Specifically, under the terms of the agreement, Sprint will make a $7.5 million “voluntary contribution” to the United States Treasury.  This payment represents the largest do not call settlement reached by the FCC.  Sprint also agreed… Read More

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