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The FTC Kills Noncompetes
FEATURED
April 30, 2024
The FTC Kills Noncompetes
By: George Calhoun
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 rule. After the rule is effective, no new non-compete clauses will be enforceable, even for senior executives. Noncompetition clauses have long been a contentious issue in the labor market. Employers claim that they protect intellectual property, trade secrets, and business interests. Employees find that such agreements limit worker mobility and suppress wages. According to FTC chairperson Lina Khan, “Noncompete clauses keep wages low, suppress new…
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Ad-Tech Europe: The Moving Target Marking Targeted Advertising
April 26, 2024
Ad-Tech Europe: The Moving Target Marking Targeted Advertising
By: Nicole Kardell
The European Data Protection Board (“EDPB”) recently published an opinion on the legality of pay-or-consent models for online platforms offering services in Europe. While the opinion is non-binding and limited to “large online platforms[1],” companies that offer platforms large and small in Europe should pay attention to the EDPB’s analysis—it will inform their future guidance for entities large and small. The upshot: Pay-or-consent models [for…
Social Media Networks’ Section 230 Immunity on the Chopping Block? New York Court Allows Claims to Proceed Stemming from Buffalo Shooting
April 1, 2024
Social Media Networks’ Section 230 Immunity on the Chopping Block? New York Court Allows Claims to Proceed Stemming from Buffalo Shooting
By: Michelle Cohen
Since 1996, Internet platforms and social media companies have relied on a federal law, Section 230 of the Communications Decency Act, to protect them from liability for civil law claims stemming from content on their platforms. As the influence of platforms like Facebook, Twitter (now X), and others has grown, members of Congress, consumer groups, and other stakeholders have urged Congress to restrict or repeal…
Schrems II Screams: CJEU Decision Puts Companies in Tailspin Over EU-US Data Transfers
July 17, 2020
Schrems II Screams: CJEU Decision Puts Companies in Tailspin Over EU-US Data Transfers
By: Nicole Kardell
The privacy world is abuzz about the European Court of Justice’s July 16, 2020 decision in Schrems II: Europe’s highest court invalidated the EU-US Privacy Shield framework. The Privacy Shield provides a streamlined mechanism to facilitate personal data transfers from Europe to the U.S. It was implemented in 2016 following the invalidation of an earlier “safe harbor” system. Europe deems the U.S. to have insufficient…
Upcoming Supreme Court cases could stop FTC from halting businesses and freezing assets via TROs
July 16, 2020
Upcoming Supreme Court cases could stop FTC from halting businesses and freezing assets via TROs
By: Ifrah Law
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 the SEC had the power to obtain disgorgement in civil…
FTC Settles with Gaming App for False Representations about Children’s Privacy
July 9, 2020
FTC Settles with Gaming App for False Representations about Children’s Privacy
By: Nicole Kardell
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” (such as Agar.io and Soccer Stars) and a further catalogue…
Supreme Court Finds That CFPB Director Can Be Removed By President, But Allows Agency To Continue To Operate
June 29, 2020
Supreme Court Finds That CFPB Director Can Be Removed By President, But Allows Agency To Continue To Operate
By: Ifrah Law
On June 29, 2020, the Supreme Court issued a ruling that expanded the President’s authority to remove a director of the Consumer Financial Protection Bureau (CFPB), while simultaneously finding that the Bureau itself could continue to exist an operate. In Seila Law LLC v. CFPB, both the law firm Seila Law—which was under investigation by the CFPB for charging consumers with improper fees in association…
FTC Enforcement reminds Companies to live up their Promises
April 15, 2020
FTC Enforcement reminds Companies to live up their Promises
By: Nicole Kardell
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 to secure the data that it collected from consumers. According…
