FTC Actions Posts

The FTC Kills Noncompetes

Apr 30, 2024

The FTC Kills Noncompetes

In a groundbreaking move that will reshape the workplace and many litigation practices nationwide, the FTC has issued a final rule that effectively bans all employee non-compete clauses.  Approximately 30 million Americans currently work under a non-compete clause.  All but a few applicable to senior executives will be void upon the effective date of the…

Got Endorsers? Federal Trade Commission Issues Updated Advertising Guides

Jul 10, 2023

Got Endorsers? Federal Trade Commission Issues Updated Advertising Guides

The Federal Trade Commission (“FTC”) recently issued updated “Endorsement Guides.” Guides, last revised in 2009, give businesses guidance on what endorsement practices may be considered “unfair” or “deceptive” under the FTC Act.  They also provide the general principles the FTC will use in evaluating endorsements and testimonials. As social media has evolved, the FTC has…

A Review of Top-Rated AI Tech Companies Undermines the FTC’s Warning of Deception

Mar 22, 2023

A Review of Top-Rated AI Tech Companies Undermines the FTC’s Warning of Deception

               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 FTC Weighs In: Online Services Must Be Diligent When Kids’ Privacy At Stake

Mar 9, 2022

The FTC Weighs In: Online Services Must Be Diligent When Kids’ Privacy At Stake

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…

FTC Tells Advertisers – Fake Reviews and Endorsements Are Going to Cost You

Oct 14, 2021

FTC Tells Advertisers – Fake Reviews and Endorsements Are Going to Cost You

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…

Supreme Court rules that FTC cannot seek disgorgement under Section 13(b) of the FTC Act

Jul 12, 2021

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…

Plot thickens in FTC disgorgement debate, as $448 million award is reversed

Oct 2, 2020

Plot thickens in FTC disgorgement debate, as $448 million award is reversed

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…

Upcoming Supreme Court cases could stop FTC from halting businesses and freezing assets via TROs

Jul 16, 2020

Upcoming Supreme Court cases could stop FTC from halting businesses and freezing assets via TROs

If it was not already apparent, the Supreme Court last week made it clear that it is taking a close look at the power of federal agencies to obtain monetary relief such as disgorgement or restitution through civil proceedings.  Indeed, on June 22, the Court in Liu v. Securities and Exchange Commission held that although…

FTC Settles with Gaming App for False Representations about Children’s Privacy

Jul 9, 2020

FTC Settles with Gaming App for False Representations about Children’s Privacy

On July 6, 2020, the Federal Trade Commission announced a settlement with gaming app developer Miniclip S.A. The settlement addresses allegations that Miniclip falsely claimed membership in a Children’s Online Privacy Protection Act (COPPA) safe harbor program for the last several years. Miniclip boasts more than 1 billion downloads of its 45 “high-quality mobile games”…

FTC Enforcement reminds Companies to live up their Promises

Apr 15, 2020

FTC Enforcement reminds Companies to live up their Promises

The FTC recently announced its settlement with Tapplock, Inc., a maker of smart padlocks (Internet-connected fingerprint-enabled padlocks that you can use in lieu of old-fashioned combo locks). The FTC investigated the Canadian-based company for its allegedly false claims that its Internet-connected smart locks were designed to be “unbreakable” and that the company took reasonable steps…