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FTC Actions Posts
FTC Sends Message: Make Your Mobile App Secure
Apr 7, 2014
FTC Sends Message: Make Your Mobile App Secure
Mobile payments have become so commonplace that consumers rarely stop to think about whether their online payment is secure. Mobile app developers can fall into a similar trap of assuming that the necessary security measures are enabled without performing the necessary audits to assure security on a regular basis. A recent settlement between the FTC…
Herbalife Hit with Civil Investigative Demand – Is the FTC Finally Turning up the Heat on Multi-Level Marketers?
Mar 27, 2014
Herbalife Hit with Civil Investigative Demand – Is the FTC Finally Turning up the Heat on Multi-Level Marketers?
For many, the announcement two weeks ago that the Federal Trade Commission has commenced a formal investigation into Herbalife was not terribly interesting. After all, nutritional supplement company Herbalife has been the focus of intermittent media attention since December 2012 when Wall Street hedge fund manager Bill Ackman claimed that it was an illegal pyramid…
FTC Secures Nine Figure Judgment Against Single Co-Defendant in Scareware Case
Mar 19, 2014
FTC Secures Nine Figure Judgment Against Single Co-Defendant in Scareware Case
After the FTC secured a $163MM judgment against Kristy Ross in the US District Court of Maryland, the 4th Circuit affirmed, and so ends the FTC’s six-year “scareware” enforcement action. From beginning to end, this odyssey has been quite colorful, to say the least. The nine-figure judgment against Ross is no exception. Originally, there were…
FTC Clamps Down on EU Safe Harbor Compliance: If Your Company Says It Is Certified, Keep Your Certification Current
Jan 22, 2014
FTC Clamps Down on EU Safe Harbor Compliance: If Your Company Says It Is Certified, Keep Your Certification Current
Once again using its administrative litigation process, the Federal Trade Commission (“FTC”) announced settlements with twelve large businesses, including the Atlanta Falcons and Denver Broncos football teams, the Baker Tilly accounting firm, BitTorrent, Inc., a peer-to-peer file sharing protocol, Level 3 Communications (one of the largest Internet service providers in the world), and Reynolds Consumer Products,…
Industry, Members of Congress Take Action on FTC Process
Jan 9, 2014
Industry, Members of Congress Take Action on FTC Process
As the Federal Trade Commission (“FTC”) continues to flex its consumer protection muscles by bringing numerous administrative lawsuits, industry and members of Congress are questioning whether there is a level playing field that allows companies to properly defend themselves against FTC charges. Or, as some say, does the FTC have the “home court advantage” in…
New Year Brings New Plans by the FTC to Take Down Deceptive Weight Loss Advertisers
Jan 8, 2014
New Year Brings New Plans by the FTC to Take Down Deceptive Weight Loss Advertisers
New year, new resolutions. Yesterday, the FTC announced a resolution of its own: to undertake a nationwide enforcement effort to protect consumers against deceptive weight loss claims. Dubbed “Operation Failed Resolution,” the FTC’s latest enforcement effort seeks to protect consumers who face a barrage of “opportunistic marketers” promising quick ways to shed pounds. According to…
Report From FTC Briefing – Blurred Lines: Advertising or Content?
Dec 5, 2013
Report From FTC Briefing – Blurred Lines: Advertising or Content?
The FTC held a workshop on Wednesday to examine the blurring lines of advertisements and content in digital media today. Executives from a myriad of professions gathered to discuss how sponsored content in digital publications takes form and affects the consumer. Native advertising, or sponsored content, is the practice of masking advertising to look like…
FTC Vigilant on Children’s Privacy – Rejects Proposal for Collecting Verifiable Parental Consent Under COPPA
Nov 20, 2013
FTC Vigilant on Children’s Privacy – Rejects Proposal for Collecting Verifiable Parental Consent Under COPPA
On November 12, 2013, the Federal Trade Commission (“FTC”), in a 4-0 vote, denied AssertID’s application for approval of a proposed verifiable parental consent (“VPC”) method under the Children’s Online Privacy Protection Rule (“COPPA”). Under the FTC’s COPPA rule, covered online websites and services must obtain “verifiable parental consent” (“VPC”) before collecting personal information from…
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…
