News & Analysis as of

FTC Act Settlement

Sheppard Mullin Richter & Hampton LLP

Lessons from the FTC: The Cleo AI Settlement

The FTC’s settlement with Cleo AI gives some indication as to what we might see from the agency in the coming months. The FTC alleged, among other things, that Cleo AI’s actions violated Section 5 of the FTC Act. In...more

Hudson Cook, LLP

FTC Takes Action against AI Company over Deceptive Accuracy Claims about AI Content Detection

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On April 24, 2025, the Federal Trade Commission (FTC) finalized a Decision and Order against an Artificial Intelligence (AI) Company (the "Company"), alleging that it made false and unsubstantiated claims about its AI Content...more

Kelley Drye & Warren LLP

Jury Awards Tea Drinkers $2.36 Million in Made in USA Dispute

In 2020, plaintiffs filed a class action complaint in California federal court against Bigelow Tea, alleging that the company falsely represents that its teas are made in the United States, when the tea leaves are actually...more

Davis Wright Tremaine LLP

Stay ADvised: 2025, Issue 7

New Suit Claims "Scientifically False" Pheromone Ads Are "Pure" False Advertising - "It's not myth. It's science." So claims Pure Instinct in its ads for pheromone perfumes. But a new class action lawsuit claims it's not...more

Orrick, Herrington & Sutcliffe LLP

FTC finalizes $7M order against tax prep company

On January 8, the FTC finalized an order requiring a tax preparation company to implement the terms of a settlement and mandating the company pay $7 million to compensate consumers affected by the company’s practices...more

Venable LLP

FTC and New York Attorney General Settle with Handy for Deceptive Practices

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This week, the Federal Trade Commission (FTC) and the New York attorney general announced a settlement with Handy Technologies, Inc. to resolve allegations that the company engaged in an array of unfair and deceptive...more

Troutman Pepper Locke

Misleading Artificial Intelligence Claims by Marketer of Website Accessibility Widget Lead to $1 Million FTC Settlement

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On January 3, the Federal Trade Commission (FTC) issued a press release announcing that accessiBe Inc. and accessiBe Ltd. (collectively, accessiBe) agreed to pay $1 million to settle allegations of deceptive advertising...more

Troutman Pepper Locke

FTC and Illinois AG Settle Matter Against Grubhub for $140M

Troutman Pepper Locke on

On December 17, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General (AG) Kwame Raoul settled their lawsuit against Grubhub for $140 million (Grubhub will only have to pay $25 million, with the balance...more

Seyfarth Shaw LLP

FTC Posts $20 Million Settlement With Dealer Group For Alleged Deceptive Practices - Seyfarth's Future of Automotive Series

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On Thursday, December 19, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General announced a massive $20 million settlement with Leader Automotive Group, the operator of 10 dealerships in and around...more

Troutman Pepper Locke

FTC and Illinois AG Secure $20M Settlement with Leader Automotive Group Over Allegedly Deceptive Practices

Troutman Pepper Locke on

In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over...more

Ballard Spahr LLP

Vroom, FTC Agree to $1 Million Settlement over Car Sales Misrepresentation

Ballard Spahr LLP on

Vroom, the former used car sales website which halted vehicle sales in January 2024, has agreed to a proposed settlement with the FTC over allegations the company misrepresented that it had examined all vehicles before...more

Goodwin

FDIC Announces $1.5 Million Settlement with Arkansas-Based Bank and Employees

Goodwin on

​​​​​​​​On May 17, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with an Arkansas bank and nine of its employees, resolving allegations that the bank and the employees violated Section 5 of the...more

BakerHostetler

What’s the Damage? - The FTC Cracks Down on False Promises of PPP Loans

BakerHostetler on

Note: The March 25 version of this article has been updated. The other day, the FTC announced settlements with two different companies that allegedly made false promises to small businesses that their companies could help...more

Cozen O'Connor

Software Provider Avast to Pay $16.5 Million in Proposed FTC Settlement

Cozen O'Connor on

The FTC has issued a proposed order against Avast Limited and its subsidiaries (collectively “Avast”) to resolve allegations that the company violated the FTC Act when it unfairly collected and indefinitely stored consumer...more

Hinch Newman LLP

FTC Order Will Ban U.K.-Based Software Provider from Selling Browsing Data for Ad Purposes and Require It to Pay $16.5MM Over...

Hinch Newman LLP on

On February 24, 2024, the Federal Trade Commission announced that it will require software provider Avast to pay $16.5MM and prohibit the company from selling or licensing any web browsing data for advertising purposes to...more

Venable LLP

FTC Bans Lead Generator from Participating in Robocalls in $7 Million Settlement

Venable LLP on

This week, the Federal Trade Commission (FTC) announced a Proposed Stipulated Order with lead generator Response Tree LLC and its president, resolving allegations that the company violated the Telemarketing Sales Rule (TSR)...more

Ballard Spahr LLP

FTC announces settlement with operator of personal finance mobile app alleged to have used “dark patterns” in connection with...

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The Federal Trade Commission recently announced that it has entered into a settlement with Bridge It, Inc. (“Brigit”), the operator of a personal finance mobile application, to resolve the FTC’s allegations that Brigit...more

Sheppard Mullin Richter & Hampton LLP

FTC and Wisconsin DOJ Agree to $1.1M Settlement with Auto Dealers over Unlawful Junk Fees and Discrimination Against American...

On October 24, the FTC and the Wisconsin Department of Justice (DOJ) announced a $1.1 million settlement with a group of Wisconsin auto dealers for allegedly charging customers illegal junk fees and unlawfully discriminating...more

Ballard Spahr LLP

FTC and Wisconsin AG enter into settlements with auto dealerships for alleged discriminatory financing practices deceptive add-on...

Ballard Spahr LLP on

The Federal Trade Commission and Wisconsin Attorney General have entered into settlements with a group of auto dealerships, their current and former corporate owners, and their general manager for allegedly engaging in...more

Ballard Spahr LLP

NJAG and FTC announce $4.605 million settlement with for-profit college over job placement rate claims and income share...

Ballard Spahr LLP on

The New Jersey Attorney General (NJAG) and the Federal Trade Commission (FTC) recently announced settlements in concurrent actions against Sollers College, a for-profit college, its parent company, Sollers, Inc., and, in the...more

Troutman Pepper Locke

FTC and Wisconsin DOJ Settle with Auto Group over Alleged Illegal Add-Ons and Discrimination Against American Indian Consumers

Troutman Pepper Locke on

On October 24, the Federal Trade Commission (FTC) and the Wisconsin Department of Justice announced a settlement with Wisconsin auto dealer group Rhinelander Auto Center, Inc. (Rhinelander), its current and former owners, and...more

Ballard Spahr LLP

CFPB and FTC announce settlements with TransUnion

Ballard Spahr LLP on

The CFPB and FTC announced last week that they had entered into a settlement with Trans Union LLC (TU LLC) to resolve a lawsuit filed jointly in a Colorado federal district court by the agencies alleging that TU LLC and its...more

Sheppard Mullin Richter & Hampton LLP

CFPB Reaches $2.6 Billion Settlement with Credit Repair Company

On August 28, the CFPB announced a proposed settlement with Utah-based credit repair telemarketing company and its affiliates for allegedly committing deceptive acts and practices in violation of the Telemarketing Sales Rule...more

Ballard Spahr LLP

CFPB announces settlement with nation’s largest credit repair organizations

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The CFPB announced this week that it has entered into a proposed settlement of a lawsuit it filed in 2019 in Utah federal district court against a group of defendants who constitute the largest credit repair organizations in...more

ArentFox Schiff

Crypto Anti-Touting Lawsuits: Celebrity Settlements with SEC Following Alleged Failures to Disclose Payment for Promotion of...

ArentFox Schiff on

On August 4, 2023, celebrity singer Austin Mahone entered into a settlement agreement with the US Securities and Exchange Commission (SEC) after being sued in the US District Court for the Southern District of New York (SDNY)...more

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