Section 5

News & Analysis as of

Advertising Law - March 2017

FTC Fights Back in LabMD Suit - The Federal Trade Commission demonstrated its intention to fight for the power to regulate data security by filing a 111-page brief with the U.S. Court of Appeals for the Eleventh Circuit...more

FTC Action Against Physician Cooperative Illustrates Risks of Collective Contracting Activity Among Independent Providers

A recent Federal Trade Commission (“FTC”) enforcement action against a physician cooperative in Puerto Rico for organizing a group boycott of a health plan underscores the need for providers to be cognizant of the antitrust...more

A Primer On FTC Cybersecurity Enforcement

According to the Breach Level Index, the total number of data records lost or stolen in just the first half of 2016 was 554,454,942, stemming from 974 breach incidents. In the entire year of 2015, there were 707.5 million...more

FCC Chairman Announces Intent to Stay Broadband Data Security Rules

The Federal Communications Commission’s (FCC) Media Relations Office has released a statement announcing Chairman Pai’s intention to stay a data security rule adopted by the Commission late last year in its Broadband Privacy...more

The Real Takeaway from VIZIO’s Privacy FTC Settlement

It has been widely reported that VIZIO, Inc., a large television manufacturer, settled a Complaint brought by the FTC and the Attorney General of New Jersey for $2.2 million for alleged unfair and deceptive acts and practices...more

Advertising Law - February 2017 #4

Not-So-Smart TV: Vizio Settles Over Data Collection - For installing software on smart TVs and collecting viewing data on 11 million consumers without their knowledge or consent, Vizio, Inc. will pay the Federal Trade...more

FTC Report Reinforces the Rules for Cross-Device Tracking

Well over a year after holding a workshop addressing privacy issues associated with cross-device tracking, Federal Trade Commission (FTC) staff have issued a report. The report sets the stage by describing how cross-device...more

FTC Case Will Test Its Power in IoT Space

A recent action by the Federal Trade Commission (FTC) against an internet of things (IoT) device manufacturer in the Northern District of California is a significant development in the IoT space and data security law. The...more

VIZIO to Pay $2.2 Million to Settle Consumer Tracking Charges; FTC Treats Television Viewing History as “Sensitive Information”...

On February 6, 2017, the FTC and New Jersey Attorney General and Department of Consumer Affairs filed a Complaint and Stipulated Order for Permanent Injunction and Monetary Judgment against television manufacturer VIZIO,...more

Not a Passing Grade: FTC Settles with Company Over Alleged False Advertising for High School Diploma Program

On February 3, 2017, the Federal Trade Commission (FTC) announced a new settlement against Stratford Career Institute alleging that Stratford’s advertising for its high school diploma program (claiming that it provided the...more

Time to Review Your Online Marketing Practices and Privacy Policies

Earlier this week, the Federal Trade Commission (FTC) released a staff report on cross-device tracking which is part of a larger series of efforts by the FTC to explore emerging issues in the ever-evolving area of online...more

Disclosure Is Key for Cross-Device Tracking, FTC Staff Report Says

If you or your third-party providers are engaged in cross-device tracking, you must adequately disclose the practice to your end users, provide them control over their information, and exercise care when collecting sensitive...more

New Lawsuits Challenge Qualcomm’s Allegedly Anticompetitive Patent Practices

The Federal Trade Commission filed suit last week in federal court against Qualcomm, Inc., following its investigation launched in September 2014. The FTC alleges that the semiconductor manufacturer illegally maintained a...more

IoT Vendors Beware: FTC’s Latest Enforcement Action Signals Further Scrutiny of the Industry

The FTC’s first data security enforcement action in 2017 sends a clear signal to vendors serving the Internet of Things (“IoT”) marketplace: make sure your data security promises match your data security practices. IoT is in...more

FTC Announces Settlement with Uber over Allegedly Deceptive Earnings Claims; Commissioner Ohlhausen Dissents

In its latest action involving allegedly deceptive earnings claims, the FTC announced yesterday that Uber had agreed to settle charges that it misled potential drivers with inflated earnings claims. The complaint also...more

Alert: New Federal Law Prohibits Non-Disparagement Provisions in Form Contracts

A new federal law provides protection for US consumers who post negative reviews online.1 The Consumer Review Fairness Act of 2016 (the "Act") prohibits companies from including provisions in their form agreements that ban or...more

FTC Files Lawsuit Against Taiwanese Manufacturer for Alleged Lax Security in Wireless Routers and Cameras and Related Marketing...

The Federal Trade Commission has filed a lawsuit in federal court claiming that a networking equipment manufacturer engaged in unfair and deceptive acts, exposing thousands of consumers to the risk of cyberattack from...more

The FTC Brings Section 5 Charges Against Internet-of-Things Companies

On January 5, 2017, the FTC filed a complaint against the Taiwanese company D-Link and its US subsidiary, D-Link Systems. D-Link and its subsidiary manufacture and sell networked devices, including routers and...more

#MLWashingtonCyberWatch: 2017 FTC and Google Complaint

Google’s recent changes to its privacy policy are coming under fire from a complaint filed late last year with the Federal Trade Commission (“FTC”) that accuses the company of downplaying “transformational change” in its...more

LabMD’s 11th Circuit FTC Appeal: The Opening Shot

Firing the opening salvo in its appeal of one of the most controversial data security decisions by the U.S. Federal Trade Commission in years, LabMD accused the agency of overstepping its authority and “destroy[ing] [the]...more

FTC Grants Summary Judgment Against California Naturel, Inc. Falsely Advertising “All Natural” Sunscreen Products

In its opinion in In re California Naturel, Inc., the Federal Trade Commission held that the California Naturel, Inc. advertising promoting its “all natural” sunscreen on its website as containing “only the purest, most...more

Bank Must Pay Federal Reserve Almost $1M

A Pennsylvania bank reached a deal with the Board of Governors of the Federal Reserve System over Board-alleged violations of Section 5 of the Federal Trade Commission Act, agreeing to pay an almost $1 million civil penalty....more

President-Elect Trump Has Once-in-a-Century Opportunity to Substantially Revise the FTC’s Law Enforcement and Regulatory Agenda

SUMMARY: Regulatory reform is the “cornerstone of the Trump administration,” and incoming President Donald Trump has a unique opportunity to quickly and substantially influence Federal Trade Commission (FTC) policy through...more

FTC Enters Into Landmark Settlement With Network Marketing Company; Vemma Lives To Play Another Day

The sixteen month long lawsuit between the Federal Trade Commission and Vemma Nutrition Company has come to a negotiated resolution under terms which will allow Vemma to continue operating its business under restrictions...more

Legal Considerations for Website Privacy Policies

We get questions from clients about whether they are required to include a privacy policy and, if so, what should it say. The answers may surprise you, but a privacy policy should definitely not be an afterthought for...more

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Cybersecurity

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