Unfair or Deceptive Trade Practices Federal Trade Commission

News & Analysis as of

LifeLock Inc. sued by FTC for allegedly violating order and misleading customers

In 2010, LifeLock Inc. entered into a settlement with the Federal Trade Commission (FTC) and 35 state attorneys general for $12 million for allegations involving false promises and lack of security. The settlement was...more

Consumer Group Asks FTC to Adopt EU’s Right to be Forgotten

Last year we wrote about the EU’s adoption of an individual’s “right to be forgotten”, which gives Europeans the right to require search engines to remove information about them from search results for their own names, if the...more

FTC Targets Consumer Tracker for Violating own Privacy Policy

The Federal Trade Commission has sent companies an unequivocal message about consumer privacy: Keep the promises you make in your privacy policy. In April, the FTC settled its privacy-related enforcement action against...more

Advertising Law - July 2015 #4

FTC And Florida AG Team up Against Medical Alert Systems - Together with the Florida Attorney General, the Federal Trade Commission filed suit against Lifewatch for allegedly using deceptive robocalls to urge older...more

FTC to hold workshop on lead generation

The Federal Trade Commission will be holding a workshop in Washington, D.C. onOctober 30, 2015 to explore the growing use of online lead generation in various industries, including consumer lending. The workshop is free and...more

Regulators Keep Their Feet on the Gas in Actions Against Auto Lenders; NY AG Latest to Bring Suit

Why it matters - The automotive industry is continuing to face heavy scrutiny from regulators. On the heels of a Federal Trade Commission operation and new oversight from the Consumer Financial Protection Bureau, the...more

FTC Takes Its First Action Against Crowdfunding Site

As the Federal Trade Commission (FTC) targets more FinTech (new and emerging financial technology) under the banner of protecting consumers from deceptive trade practices, the Commission finally turned its attention to the...more

Advertising Law - July 2015 #2

EPIC Drives Uber Complaint to FTC - Uber’s recent legal woes continue. The Electronic Privacy Information Center (EPIC) challenged the ride-sharing company’s new privacy policy and requested that the Federal Trade...more

FTC Eyes Kickstarter Campaigns for Consumer Protection

Most Kickstarter projects never reach the funding threshold, so funders never pay anything into the venture. However, as shown by recent enforcement action, agencies such as the FTC (Federal Trade Commission) have become...more

Mobile App Developer Settles with FTC and New Jersey AG Over Virtual Currency Mining

On June 29, a mobile app developer entered into an agreement with the FTC and the New Jersey AG to settle allegations that the developer engaged in deceptive and unfair practices by marketing its rewards app, called “Prized,”...more

FTC Resolves Claims Against Auto Dealers Based on Alleged Deceptive Advertising

On June 29, the FTC filed two administrative complaints and issued proposed orders against two Las Vegas auto dealers to resolve allegations that they engaged in misleading advertising practices that misrepresented the...more

FTC Shuts Down a Risky Risk-Free Offer

This morning, the FTC announced that it had stopped a group of 15 companies and 7 individuals from using deceptive “risk-free trial” offers to sell skincare products online. At the Commission’s request, a federal court issued...more

RadioShack’s Consumer Data: A Highly Scrutinized Asset

Following the Texas Attorney General’s objection to the sale of RadioShack Corporation’s consumer data as an asset in its bankruptcy, 37 other state attorneys general and a large number of other consumer protection entities...more

EU/Swiss-U.S. Safe Harbor: More Scrutiny by the FTC?

On May 29, 2015, the Federal Trade Commission ("FTC") announced the approval of the final orders for two U.S. companies, TES Franchising, LLC ("TES") and American International Mailing, Inc. ("AIM"), settling complaints that...more

Free* to Play Means Only If You Pay

As online gaming companies compete for business, they are offering customers increasingly large incentives to play on their websites, often in the form of deposit bonuses. These deposit bonuses allow players to play with the...more

FTC Announces First Action Involving Crowdfunding

Last week, the FTC announced its first legal action involving crowdfunding. For those of you who don’t know, crowdfunding is the practice of raising money for a project by seeking contributions from a large number of people,...more

Crowdfunding Project Creator Settles FTC Charges of Deception

In the FTC's first case involving crowdfunding, the agency took action against a project creator who was ostensibly raising money from consumers to produce a board game, but instead used most of the funds on himself....more

Tailoring the Suit: Plaintiffs File Amended Complaint in Nordstrom Rack Price-Tag False Advertising Lawsuit

Nordstrom Rack has recently found itself at the center of an unwelcome suit over its labeling practices. Nordstrom Rack discloses the savings it offers customers by placing “compare at” labels on its price tags which show two...more

The FTC Weighs in on In-Store Tracking. Or Does It?

In law school, everybody learns the adage that hard cases make bad law. When it comes to the Federal Trade Commission, a better aphorism might be, “easy cases make new law.” The FTC’s recent settlement with Nomi Technologies...more

Choppy Seas for Companies Falsely Claiming Compliance with U.S.-EU Safe Harbor

Ensuring and maintaining compliance with the U.S.-EU Safe Harbor principles should be a priority for U.S. entities receiving personal data relating to EU residents, in no small part to avoid the FTC leveling the charge and...more

Two Regulatory Crises

It strikes me that two civil regulators are facing dire attacks on aspects of their enforcement programs – both in different U.S. Courts of Appeals – at the same time. Both of these attacks arise out of generalized statutes...more

FTC Launches Office of Technology Research and Investigation

The Federal Trade Commission (FTC) recently announced formation of its Office of Technology Research and Investigation (OTRI), an office meant to “ensure that consumers enjoy the benefits of technological progress without...more

FTC Announces Results of “Operation Ruse Control” on Auto Industry

On March 26, the FTC announced the results of Operation Ruse Control, “a nationwide and cross-border crackdown” on the auto industry with the intent to protect consumers who are purchasing or leasing a car. Efforts taken...more

CFPB announces proposals for limiting activities of payday lending market participants and other lenders: 6 questions answered

The CFPB has released proposals for a future payday loan rulemaking that will have a far-reaching impact on the $46 billion payday loan industry and on other markets. Under its proposals, the CFPB is offering industry...more

Critics Renew Call for FTC Guidelines on Unfair and Deceptive Practices

Companies and institutions hoping for clarification on how to protect themselves from potential antitrust claims or consumer fraud violations recently participated in a symposium sponsored by law firm Baker & Hostetler. The...more

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