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FTC Actions Posts
CFPB Shows It’s a Tough New Cop on the Beat With Case Against Payment Processor
Oct 7, 2013
CFPB Shows It’s a Tough New Cop on the Beat With Case Against Payment Processor
On October 3, 2013, the Consumer Financial Protection Bureau announced it had filed a complaint in federal district court in Washington state against a leading debt-settlement payment processor, Meracord LLC, and its CEO. The CFPB contends that Meracord helped third parties collect millions of dollars in illegal upfront fees from consumers. The complaint alleged violations…
How to Break the Federal Debt-Collection Law — By Texting
Oct 4, 2013
How to Break the Federal Debt-Collection Law — By Texting
It’s quite clear that the Federal Trade Commission and the Federal Communications Commission view existing federal consumer protection and communications statutes as fully applicable to new modes of communication such as texting. One excellent recent example is the FTC’s stipulated settlement, including a payment of $1 million, with a debt collection agency that had sent…
FTC Takes First Enforcement Action on ‘Internet of Things’
Sep 29, 2013
FTC Takes First Enforcement Action on ‘Internet of Things’
A company that markets video cameras that are designed to allow consumers to monitor their homes remotely has agreed to settle charges with the FTC that it failed to properly protect consumers’ privacy. This marks the FTC’s first enforcement action against a marketer of a product with connectivity to the Internet and other mobile devices,…
’60 Minutes’ Show Gets Facts All Wrong in Report on Credit Reporting Agencies
Aug 27, 2013
’60 Minutes’ Show Gets Facts All Wrong in Report on Credit Reporting Agencies
The credit reporting industry – dominated by Experian, Equifax and Transunion – maintains a precarious balance of obligations: On the one hand, these companies bear a responsibility to banks and other businesses at large to retain reliable information to ensure that the credit scores they report are a fair representation of the individual’s credit-worthiness. On…
FTC ‘Checks’ In With $3.5 Million Consent Order Under Fair Credit Reporting Act
Aug 16, 2013
FTC ‘Checks’ In With $3.5 Million Consent Order Under Fair Credit Reporting Act
This week the Federal Trade Commission entered into a consent decree with Certegy Check Services, one of the nation’s check authorization service companies, pursuant to which Certegy has agreed to pay $3.5 million to settle charges that it violated the Fair Credit Reporting Act (FCRA). This massive penalty – the second largest ever – reinforces…
FTC to Search Engines: Distinguish Paid Search Results or Risk FTC Action
Jun 30, 2013
FTC to Search Engines: Distinguish Paid Search Results or Risk FTC Action
While Google is already subject to commitments it made to the FTC regarding the requirement to afford advertisers non-discriminatory access to its search engine, the FTC’s latest guidance makes clear that Google and other search engines must also maintain clear disclosures to the public about sponsored content in search results. On June 24, 2013, in…
Wyndham Case Challenges FTC’s Authority Over Cybersecurity
Jun 12, 2013
Wyndham Case Challenges FTC’s Authority Over Cybersecurity
Over the past decade the Federal Trade Commission has brought cybersecurity enforcement actions against various private companies, imposing tens of millions of dollars in monetary penalties and requiring companies to maintain more stringent data-security practices. No company has ever challenged the FTC’s authority to regulate cybersecurity in this way in court – until now. On…
FTC: Data Brokers That Compile Tenant Data May Be Covered by FCRA
May 2, 2013
FTC: Data Brokers That Compile Tenant Data May Be Covered by FCRA
On April 3, 2013, the Federal Trade Commission issued a press release that marks yet another step in its continuing trend of actions involving data brokers and data providers. As we have noted in earlier blog posts, the agency is making a concerted effort on a number of fronts to enforce the laws that protect…
FTC, Rent-to-Own Stores Settle Charges of Spying on Consumers Via Rented Computers
Apr 26, 2013
FTC, Rent-to-Own Stores Settle Charges of Spying on Consumers Via Rented Computers
The Federal Trade Commission recently approved nine final orders that settle charges against seven rent-to-own stores and a software design firm and its principals. The charges stemmed from shocking allegations that the companies spied on consumers using computers that the consumers had rented from them. Among other things, the Commission’s complaint alleged that the computers…
What’s That Charge on My Mobile Phone Bill? The FTC Wants to Know
Apr 25, 2013
What’s That Charge on My Mobile Phone Bill? The FTC Wants to Know
“Cramming” – while it sounds like the experience of being in the middle row of a cross-country flight – actually refers to unauthorized charges on phone bills. Residential and business telecommunications customers have experienced cramming on their wireline bills for years, particularly for premium and other pay-per-call services. And the FTC has brought nearly two…
