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FTC-Wisconsin settlement challenges car dealers’ sales practices, including alleged discrimination against American Indian consumers | Federal Trade Commission
In the automotive world they’re called “add-ons.” But for many consumers, they really amount to junk fees on wheels that add to the cost of a car while subtracting from
First FTC Impersonation Rule case: Why it matters to 43 million consumers – and to your business | Federal Trade Commission
In finalizing the Trade Regulation Rule on Impersonation of Government and Businesses earlier this year, the FTC said, “This rule banning government and business impersonation will allow us to more vigorously and effectively protect Americans from fraudsters.” The Impersonation Rule enforcement effort on behalf of America’s consumers starts here and now with an action against purported student loan debt relief outfit Prosperity Benefit Services and related companies and individuals that have allegedly taken consumers for more than $20 million by falsely promising debt relief and faking an affiliation with the U.S. Department of Education. Here’s what your business needs to know about the new Rule – and what the FTC is doing to protect consumers from deceptive student loan debt relief claims.
Facts about fraud from the FTC – and what it means for your business | Federal Trade Commission
The FTC just issued its 2023 Consumer Sentinel Network Data Book jam-packed with facts about the kind of scams consumers have reported to us. Has the reported dollar amount lost to fraud gone up or down this year? And what are the most frequently reported scams? At this point you may ask, “I run a lawful business. Why should it matter to me?” Two reasons. First, scammers have you, your company, and your community in their sights and the Data Book can help you defend against emerging fraud trends. Second, scammers often try to mask their illegal intent by hiding behind legitimate businesses. For companies that work hard to maintain their good reputation, it’s not enough not to be a scammer. You also don’t want to be “scam-adjacent.”
The specs on specs: What eye doctors need to know about the FTC’s revised Eyeglass Rule | Federal Trade Commission
After a careful review process inviting feedback from consumers and industry members, the FTC has announced final updates to its Ophthalmic Practice Rules, also known as the Eyeglass Rule. The primary focus of the revised Rule is to increase compliance with the longstanding requirement that ophthalmologists and optometrists provide patients with a free copy of their prescription immediately following a refractive eye exam.
FTC’s CARS Rule: Why a new rule to combat auto retail scams is great news for consumers and honest dealers | Federal Trade Commission
In the drive toward Combating Auto Retail Scams, the FTC’s just-announced CARS Rule is a big win for consumers, who lose billions of dollars in wasted time and money each year to illegal practices like bait-and-switch tactics and junk fees. It’s also a big win for honest car dealers who strive to apply established truth-in-car-buying principles at their dealerships and shouldn’t have to compete against dealers who don’t. Why is the CARS Rule such a game changer and what compliance guidance does the FTC have for industry members? Read on for more information.
Donation vexation: FTC and 10 States challenge cancer “charity” as a sham | Federal Trade Commission
Think about the two women across from you in the office. Now consider the sobering statistic that of those two women, one will battle cancer in her lifetime. The bad news gets worse when you realize there are sham charities out there that claim to offer financial assistance for people undergoing cancer treatment, but then spend donations for other purposes. The FTC and 10 states just sued Cancer Recovery Foundation International (also known as Women’s Cancer Fund) and Gregory B. Anderson, alleging the defendants collected $18 million from generous Americans between 2017 and 2022 while providing only $194,809 in financial support for cancer patients – literally about a penny of every donated dollar. According to the lawsuit, Anderson pocketed $775,139, nearly four times more than what the “charity” gave collectively to women battling cancer. But hold on to your hat – and your wallet – when you learn where the FTC and the States say the rest of the money went.
Car dealers included add-ons without consumers’ consent and discriminated against Black and Latino buyers, alleges FTC | Federal Trade Commission
Recent law enforcement and regulatory developments demonstrate the FTC’s efforts to put the brakes on deceptive add-ons in the car buying process. How pervasive has the problem been at three Texas dealerships owned by Asbury Automotive Group? According to an FTC complaint, of consumers who were charged for at least one add-on at Asbury’s McDavid Ford Ft. Worth, McDavid Honda Frisco, and McDavid Honda Irving, a study shows that between 58% and 75% of them were charged for at least one add-on they didn’t agree to buy or were falsely told was a required purchase. These unwanted add-ons, the complaint alleges, can cost consumers hundreds or even thousands of dollars per transaction. What’s more, the FTC says that the respondents discriminated against Black and Latino consumers by charging them more for those add-ons than other consumers.
Franchise Fundamentals: Reducing the risks – and reporting if things go awry | Federal Trade Commission
We’ve all heard the adage “Proper preparation prevents poor performance.” It’s been attributed to everyone from Vince Lombardi to Secretary of State James Baker. As we’ve discussed in the first four installments of our Franchise Fundamentals series, proper preparation – including a thorough pre-commitment investigation into the franchise – may help reduce the risk of painful problems later. But what if a franchisee is concerned that a subsequent business breakdown could be due to a franchisor’s precarious promises?
Three ways your business can mark Identity Theft Awareness Week | Federal Trade Commission
January 29th kicks off 2024’s Identity Theft Awareness Week, but consumer-conscious companies promote identity theft awareness – and prevention – 52 weeks a year. As the FTC, federal and state agencies, consumer groups, and others sponsor events across the country and online, here are three things your business can do to promote identity theft awareness to customers, employees, and members of your community.
FTC says Adobe hid key terms of “annual paid monthly” subscription plan and set up roadblocks to deter customer cancellations | Federal Trade Commission
Given the injury and irritation inflicted on consumers by buried terms, hidden charges, and complicated cancellation procedures, it’s no wonder they’re called “negative” options. A federal court complaint the Department of Justice filed upon notification and referral from the FTC alleges that Adobe and corporate executives Maninder Sawhney and David Wadhwani have hidden fees associated with the company’s most popular subscription plan and made it hard for consumers to cancel. It’s the latest action challenging allegedly illegal conduct in the subscription space.
Tenant background check reports: Put it in writing | Federal Trade Commission
As a landlord – or property manager or other housing provider – you may run background checks on prospective tenants. These reports can include rental and eviction history, credit history, criminal records, and more. Background checks from consumer reporting agencies are consumer reports and under the law you have certain responsibilities when it comes to using them. For instance, you can get a consumer report only if you have a permissible purpose – and you may not use the consumer report for another reason.
Brigit’s misleading financial practices were a bridge too far for consumers, FTC says | Federal Trade Commission
Personal finance app Bridge It – consumers may know the company as Brigit – promised that people could get cash advances of up to $250 “within seconds” and with no “hidden fees.” But the FTC alleges that for many consumers, Brigit was a bridge to false promises, extra charges, and dark patterns that made it easy to sign up for its $9.99 per month membership, but hard to cancel. In addition to an $18 million financial remedy, the proposed settlement will require the company to bridge the gap between its promises and its practices.
Tolling Agreements: A Win-Win for Parties and the Public | Federal Trade Commission
The Bureau of Consumer Protection welcomes an open dialogue with parties cooperating with its investigations. Such dialogue allows the Bureau to make more informed decisions on whether to recommend an enforcement action and, if so, whether such an action can be resolved without the need for protracted litigation. But the Bureau is also mindful that delays in our investigations can undermine the public interest by allowing lawbreaking to continue and by depriving consumers of redress for harms they have suffered. As such, today we are making clear that while substantive engagement is welcome and constructive, we are prepared to pivot more quickly to litigation if undue delay comes at the expense of redress for consumers.
Little used coupe: $1 million FTC settlement with online auto dealer Vroom sends key compliance messages to industry | Federal Trade Commission
“I was online shopping, but you let me down. I was looking for the nicest set of wheels around. You promised to deliver, but it showed up late. And the car that you sold me – well, it’s not so great. It’s my little used coupe. Now I’m stuck with what I got.”