FTC v. Jerk.com: Did the FTC’s “Jerk.com” Complaint Just Turn API Terms into Federal Law?

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The Federal Trade Commission’s announcement earlier this week that it had filed a complaint against Jerk, LLC and its websites like “jerk.com” (“Jerk”) looks at first glance like a run-of-the-mill FTC Section 5 enforcement action involving allegedly deceptive practices online. But hidden in the facts of Jerk’s alleged misbehavior is a potentially significant expansion of the FTC’s use of its deception authority.

According to the FTC’s complaint, Jerk allegedly led consumers to believe that the profiles on its websites were created by other users of the website. The company also allegedly sold “memberships” for $30 a month that supposedly included features that would enable consumers to alter or delete their profiles, or to dispute false information in the profiles. Jerk also charged consumers a $25 fee to email Jerk’s customer service department, according to the FTC’s complaint.

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