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We’ll pay you to give our new rule a good review | Federal Trade Commission
Today the FTC issued a new rule striking against the persistent problem of fake and false consumer reviews and testimonials. Consumers should be able to trust the authenticity of feedback they read, hear, or see about a product or service. But digital content — including reviews and testimonials — has always been easy to fake, and with generative AI tools it’s now even easier. That makes our new rule even more significant.
FTC proposes enhanced protections for kids online. Where do you stand? | Federal Trade Commission
In place since 2000, the Children’s Online Privacy Protection Act (COPPA) Rule makes it illegal for websites and online services to collect personal information from kids under 13 without parents’ verifiable consent. It’s been a decade since the last COPPA Rule update, and the FTC is now proposing revisions to reflect technological changes, provide greater protections for kids’ personal information, and ensure that parents – not companies – are still in the driver’s seat when it comes to children’s data.
Small business people are among those getting $100 million back due to FTC action challenging Benefytt Technologies’ sham health plans | Federal Trade Commission
Finding healthcare coverage can be a challenge for many Americans, including gig workers, the self-employed, and people at small businesses. So when consumers were looking for health insurance under the Affordable Care Act, plans sold by an outfit called Benefytt Technologies seemed like a reasonable option – except that according to the FTC, what Benefytt sold hundreds of thousands of consumers wasn’t comprehensive health insurance, wasn’t ACA-qualified, and often left them unprotected in a medical crisis. But there’s finally some good news for Benefytt customers. Due to the settlement of an FTC law enforcement action, they’ll be receiving close to $100 million in refunds.
Anonymous messaging app targeting teens: Read the disturbing allegations in FTC and Los Angeles DA action against NGL | Federal Trade Commission
An anonymous messaging app marketed to kids and teens: What could possibly go wrong? A lot, allege the FTC and the Los Angeles District Attorney’s Office. A complaint against NGL Labs and founders Raj Vir and Joao Figueiredo alleges violations of the FTC Act, the Children’s Online Privacy Protection Rule (COPPA), the Restore Online Shoppers’ Confidence Act (ROSCA), and the California Business and Professions Code. The company also made AI-related claims the complaint challenges as deceptive. The $5 million financial settlement merits your attention, but it’s the permanent ban on marketing anonymous messaging apps to kids or teens that’s particularly notable.
Business Blog’s Clear Eye on AI | Federal Trade Commission
We like to think the FTC Business Blog offers an occasional notable quote – or quotable note – on the issues businesses and consumers are talking about. Right now no topic is more top-of-mind than artificial intelligence. That’s why we’re pleased that Aspen Digital has named a Business Blog post by FTC attorney Mike Atleson to its first Reporting on AI Hall of Fame.
Warranty warnings: Don’t interfere with consumers’ right to repair | Federal Trade Commission
The Nixing the Fix Report to Congress, the Commission Policy Statement on Repair Restrictions Imposed by Manufacturers and Sellers, and law enforcement actions against companies charged with illegally restricting customers’ right to repair should make the FTC’s position on the subject clear: Consumers deserve choices when it comes to repairing their products, and independent dealers and repair shops should have a fair chance to compete for their business. FTC staff just sent warning letters to eight companies, raising concerns about whether their practices are hindering consumers’ right to repair their products and reminding them of their obligations under the Magnuson-Moss Warranty Act and the FTC Act. Is it time for a Magnuson-Moss compliance check at your company?
PrivacyCon looks at latest research into AI, mobile device security, health privacy, deepfakes, and more | Federal Trade Commission
If there were a bingo board that included just about every privacy and data security issue on the minds of consumers, academics, businesses, and government agencies, the FTC’s eight annual PrivacyCon would be a winner. Take a look at the just-announced agenda and clear your calendar for March 6, 2024, to hear what experts have to say about the latest research and trends.
Safeguards Rule notification requirement now in effect | Federal Trade Commission
If your business is covered by the FTC’s Gramm-Leach Bliley Safeguards Rule, an amendment to the Rule that requires covered companies to report certain data breaches and other security events to the FTC is now in effect – and we’ve made it easy for you to report.
Breakdown in the “Fast Lane”: FTC challenges Womply’s promise to get small businesses PPP loans fast | Federal Trade Commission
Tick. Tick. Tick. For small business owners, gig workers, and freelancers fighting for survival during the pandemic, every day that passed without essential capital put their futures at risk. So when Womply – also known as Oto Analytics, Inc. – and CEO Toby Scammell claimed to offer a “PPP Fast Lane” to get them speedy access to funds through the Paycheck Protection Program, it sounded like time was finally on their side. But according to a proposed FTC settlement, consumers got clocked by the defendants’ misleading claims that they could get people PPP loans and their false promise to process applications quickly. As part of the settlement, the defendants will pay $26 million in damages and are prohibited from making those types of misrepresentations in the future.
The DNA of privacy and the privacy of DNA | Federal Trade Commission
Companies selling genetic testing products tout the benefits of DNA-based insights – learning more about health, lineage, family tree – so that consumers can seek medical attention, customize their diet or exercise regimen, find long-lost relatives, or understand more about their background. But for consumers to realize benefits from DNA-based products or services, consumers need to be able to trust their accuracy – and trust that the company’s practices related to the DNA of privacy (data minimization, purpose limitations, retention limits, etc.) will protect the privacy of their DNA. Here are some lessons on privacy, data security, truth in advertising, and artificial intelligence (AI) drawn from a trio of FTC enforcement actions involving sellers of genetic testing products.
Updated FTC Health Breach Notification Rule puts new provisions in place to protect users of health apps and devices | Federal Trade Commission
It was Shakespeare who said, “Once more unto the breach.” The FTC’s goal is never more unto the breach, but until companies keep health data secure and private, we’ll continue to update and enforce the Health Breach Notification Rule to protect consumers and keep up with the digital revolution in health information. Benefited by insights from researchers, industry members, legislators, and consumers who responded to our call for public comments, the FTC just finished a head-to-toe HBNR check-up. The just-announced Final Rule makes it clear that health apps and similar technologies are covered and expands what covered entities must tell consumers if there’s been a breach of their data. How will the new rule affect your business?
Updated FTC-HHS publication outlines privacy and security laws and rules that impact consumer health data | Federal Trade Commission
Ever wondered about the intersection of some of the health privacy and security-related laws and rules enforced by the Federal Trade Commission and the Department of Health and Human Services? You’re not alone, which is why FTC and HHS have teamed up to update a joint publication – "Collecting, Using, or Sharing Consumer Health Information? Look to HIPAA, the FTC Act, and the Health Breach Notification Rule" – that helps businesses learn more about their legal obligations.
BlueSnap complaint alleges unfair payment processing and credit card laundering: Don’t lather, don’t rinse, and definitely don’t repeat | Federal Trade Commission
According to Aesop, you’re known by the company you keep. Put in the FTC context, you’re known by the companies you keep as clients. That’s the message of a $10 million proposed settlement with payment processing company BlueSnap, Inc., a related corporate defendant, former CEO Ralph Dangelmaier, and Senior Vice President Terry Montieth.
FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline | Federal Trade Commission
For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim. According to the FTC, the subscription-based business violated the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Equal Credit Opportunity Act (ECOA) by using deceptive and unfair tactics against its customers, including people on Social Security and veterans receiving military pensions. In addition to $3 million in consumer redress and provisions that will change how FloatMe does business in the future, the settlement includes a provision specifically prohibiting deceptive claims about the use of artificial intelligence, algorithms, or machine learning.
New FTC Data Spotlight offers illuminating insights into impersonation scams | Federal Trade Commission
Is the person who contacted your employee really from the IRS or Social Security Administration? And what about those calls and texts to consumers claiming to be from your company? The FTC’s new Trade Regulation Rule on Impersonation of Government and Businesses takes effect today and a just-released Data Spotlight underscores the Rule’s critical importance to consumers and businesses.
Closing the door on a money-making scheme that promised big bucks for “closers” | Federal Trade Commission
It’s troubling enough for a company to claim that consumers who take their course can make major money by learning “high demand” sales skills as a telemarketing “closer.” (Insert your favorite David Mamet quote from "Glengarry Glen Ross" here.) But to keep on making those representations after receiving Notices of Penalty Offenses Concerning Money-Making Opportunities and Endorsements from the FTC? That’s brazen. Proposed settlements with operators of a scheme called “The Sales Mentor” serves as a reminder that the law looks askance at outfits that bilk consumers out of their savings through false or unsubstantiated earnings claims.
Revised rule and proposed amendment expand the fight against illegal telemarketing | Federal Trade Commission
The FTC just announced final updates to the Telemarketing Sales Rule and there’s an important revision that will help protect small businesses from scammers making misrepresentations in B2B calls. But that’s not all. The FTC also announced a proposed amendment to the TSR that would extend coverage to inbound telemarketing calls involving technical support services – another category of calls that has inflicted injury on consumers.
FTC proposes junk fee rule to put a stop to bogus and hidden charges | Federal Trade Commission
Many consumers describe them as annoying, injurious, invisible, and all too common. They could be talking about pernicious pests and in some ways, junk fees – hidden or falsely advertised charges that some companies try to sneak past people in an effort to burrow their way into their wallets – bear a resemblance to their six-legged counterparts. In November 2022, the FTC published an Advance Notice of Proposed Rulemaking asking for your input about unfair or deceptive practices relating to fees. We received 12,000 comments from consumers, businesses, law enforcers, and others. Based on what you told us – as well as experience gained from decades of litigation challenging junk fees – the FTC is considering a proposed Rule on Unfair or Deceptive Fees and we’re asking for your comments again.
“Love Stinks” – when a scammer is involved | Federal Trade Commission
"I've had the blues, the reds, and the pinks. One thing’s for sure: Love stinks." Far be it from us to criticize love on Valentine’s Day, but “Love Stinks” – the 80s hit by the J. Geils Band – describes what the FTC Consumer Sentinel Data Book tells us about the injury inflicted by romance scammers. And one statistic is particularly surprising.
FTC announces challenge to prevent harms of AI-enabled voice cloning | Federal Trade Commission
As text-to-speech AI has improved, so has voice cloning technology. The prospects could be promising, but from the FTC’s perspective, voice cloning also presents serious consumer protection concerns. The FTC is committed to using a wide range of tools to prevent harm to the public. That’s the reason for the just-announced Voice Cloning Challenge.
New energy cost comparisons for TVs: What’s going on behind the screens? | Federal Trade Commission
There’s been a development in the world of television, but it has nothing to do with who’s starring or what’s streaming. It’s about an important consideration for consumers to keep in mind when shopping for a new TV – and helpful information businesses can provide to prospective customers.
FTC says Blackbaud’s lax security allowed hacker to steal sensitive data – and that’s just the beginning of the story | Federal Trade Commission
Keep data secure. Safely dispose after use. Tell people the truth. We’re not suggesting that the principles of sound data security can be boiled down to a haiku, but there are certain basics every business should follow. The FTC’s proposed complaint against Blackbaud, Inc., alleges that the company’s failure to implement some of those fundamentals resulted in the theft of highly sensitive data about millions of consumers, including Social Security numbers and bank account information. But that’s just the start of where the FTC says Blackbaud violated the law.
FTC says Avast promised privacy, but pirated consumers’ data for treasure | Federal Trade Commission
When uttered by a pirate, “Avast!” is a nautical term for “Listen up and cut it out.” And when the FTC says “Avast!” to software company Avast, it means the same thing. UK-based Avast Limited told consumers that using its software would protect their privacy by preventing the tracking and collection of their browser information. But according to the FTC, from 2014 to 2020, guess who was tracking consumers’ browser information and then selling it to more than 100 other companies through an affiliate called Jumpshot? Ironically enough, Avast Limited. We’re not sure how much the $16.5 million financial remedy is in doubloons, but we hope the terms of the proposed settlement will remind other companies to relegate conduct like that to Davy Jones’ Locker.
Wonder what “blatantly illegal conduct” looks like? Court opinion about how a defendant harmed small businesses offers insights | Federal Trade Commission
Small businesses are the engines that drive the American economy and capital is the fuel that propels them forward. So when fast-talking operators target small businesses with deceptive or unfair tactics, the FTC takes action. Following a January 2024 jury trial, a federal court entered a judgment requiring merchant cash advance company owner Jonathan Braun to pay $20.3 million in monetary relief and civil penalties for misleading small businesses and unlawfully seizing their assets. Read on for some staggering examples of what the court described as Braun’s “lack of remorse for his blatantly illegal conduct.”
Kubota North America’s false claims for farm equipment replacement parts yield record-setting FTC Made in USA civil penalty | Federal Trade Commission
When companies sow deception, they often reap law enforcement. That’s the lesson of a $2 million civil penalty that Kubota North America Corporation will pay for allegedly violating the Made in USA Labeling Rule by falsely labeling replacement parts for its tractors and other agricultural equipment as “Made in USA.”
Influence peddling? Bogus “brand ambassador managers” scam prospective influencers | Federal Trade Commission
We’ve warned professionals about online job scams involving phony “recruiters” who falsely claim to represent big-name businesses. Employment impersonators are still at it, but this time they’re approaching people with bogus offers to be “brand ambassadors” for well-known consumer products companies.
What goes on in the shadows: FTC action against data broker sheds light on unfair and deceptive sale of consumer location data | Federal Trade Commission
SCENE: A crowded city or a dark street. (Cue ominous music) The camera focuses on the protagonist as they make their way to a location – maybe it’s a place of worship, a doctor’s office, or a reproductive health clinic. They think they’re alone, but what they don’t know is that they’re being tailed. What’s more, highly personal information regarding their whereabouts will be shared with third parties, all without their knowledge or consent.
From the FTC: Another 10 spine-tingling Halloween tales of deception | Federal Trade Commission
We’re ba-aack. Last year we offered our Top 10 “Nightmare on Main Street” consumer protection horror movies. Just in time for Halloween, the FTC Multiplex has reopened with ten more scary screens of deceptive practices.
Eviction fiction? $15 million FTC-CFPB settlement with Trans Union and tenant screening subsidiary underscores importance of FCRA’s “maximum possible accuracy” requirement | Federal Trade Commission
Section 607(b) of the Fair Credit Reporting Act requires consumer reporting agencies to follow reasonable procedures to assure maximum possible accuracy of consumer report information concerning the person in question. “Reasonable procedures to assure maximum possible accuracy” isn’t a wish, a hope, or a lofty aspiration. It’s the law. A proposed $15 million FTC-CFPB settlement with Trans Union and its subsidiary TransUnion Rental Screening Solutions underscores that fundamental legal principle.
Nine takeaways from the Initial Decision in the Intuit TurboTax action | Federal Trade Commission
The Initial Decision in the administrative action challenging allegedly deceptive “free” claims for Intuit’s TurboTax product was just released, and the meticulous 237-page opinion is a must-read for anyone in the advertising arena.
FTC settlement suggests Lurn didn’t learn from Penalty Offense Notice about money-making claims | Federal Trade Commission
The people behind online business coaching outfit Lurn promised that consumers could become “Stay-At-Home Millionaires.” But according to the FTC, Lurn, Inc., CEO Anik Singal, Tyrone Cohen, and David Kettner are now Stay-At-Home Defendants in an FTC law enforcement action challenging their deceptive money-making representations. What’s more, the complaint alleges even after receiving FTC Notices of Penalty Offenses concerning Money-Making Opportunities and Endorsements, Lurn and Singal continued to use deceptive advertising claims to bilk consumers out of millions.
FTC announces challenge to prevent harms of AI-enabled voice cloning | Federal Trade Commission
As text-to-speech AI has improved, so has voice cloning technology. The prospects could be promising, but from the FTC’s perspective, voice cloning also presents serious consumer protection concerns. The FTC is committed to using a wide range of tools to prevent harm to the public. That’s the reason for the just-announced Voice Cloning Challenge.