News & Analysis as of

FTC Act Settlement Section 5

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

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

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

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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

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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

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

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...

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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

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

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

WilmerHale

FTC Continues Enforcement Focus on the Use and Disclosure of Health Information for Advertising

WilmerHale on

On Thursday, March 2, the FTC announced an enforcement action against BetterHelp, Inc., an online mental health counseling service, relating to claims that the company’s collection and use of consumer health data were unfair...more

Venable LLP

FTC Approves Administrative Settlement with Payment Processor, Electronic Payment Systems

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Yesterday, the Federal Trade Commission (FTC) moved to dismiss its long-running enforcement action against Electronic Payment Solutions (EPS) pending in the District of Arizona after the Commission voted 4-0 to approve a...more

Wilson Sonsini Goodrich & Rosati

FTC Settles Data Security Case, Continuing Trend of Requiring Comprehensive Security Programs and Third-Party Assessments

On July 2, 2019, the Federal Trade Commission (FTC) announced a settlement with smart home products manufacturer, D-Link, regarding allegations that D-Link misrepresented the security of its wireless routers, modems, and...more

Goodwin

OCC and CFPB Reach $30 Million Settlement With South Dakota Bank Over Overdraft Fees

Goodwin on

On July 20, 2018, the Office of the Comptroller of the Currency (OCC) and Consumer Financial Protection Bureau (CFPB) reached a $30 million settlement with a South Dakota bank over allegations that the bank had engaged in...more

Troutman Pepper Locke

Recent FTC Settlement Confirms Enforcement Priority to Protect Employees From Employer Collusion

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On July 31, the FTC published its settlement with Therapy Source, LLC; its owner, Sheria Yarbray; and Neeraj Jindal, the former owner of a competing staffing company — Integrity Home Therapy (collectively, the respondents)....more

BakerHostetler

FTC Enters Into $104 Million Settlement With Company for Impermissible Lead Generation

BakerHostetler on

On July 5, 2017, the Federal Trade Commission (FTC) entered into a stipulated order to memorialize a settlement with a lead-generation business, Blue Global LLC, and its CEO (Blue Global), in the U.S. District Court for the...more

Ballard Spahr LLP

FDIC announces settlement with bank and non-bank affiliated parties

Ballard Spahr LLP on

The FDIC announced last week that it had entered into settlements with Bank of Lake Mills and two non-bank “institution-affiliated parties” through which the bank originated loans for allegedly engaging in unfair and...more

Buchalter

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

Buchalter on

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

King & Spalding

FTC Continues To Crack Down On App Developers

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On February 5, 2016, the Federal Trade Commission (“FTC”) announced that it reached a settlement with the San Francisco company General Workings Inc., also doing business as Vulcun, and its founders. The FTC brought a...more

Cozen O'Connor

Wyndham Settles with FTC

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Last month, Wyndham Worldwide Corp. settled its lengthy civil case with the Federal Trade Commission. The suit began in 2012, when the FTC sued Wyndham and three of its subsidiaries, alleging three data breaches between 2008...more

McGuireWoods LLP

The FTC Strikes Back: LifeLock, Inc. Agrees to $100 Million Payout

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On December 17, 2015, the Federal Trade Commission (FTC) announced a $100 million settlement with LifeLock, Inc., to resolve litigation with the FTC and a national class of consumers relating to LifeLock’s marketing...more

Orrick, Herrington & Sutcliffe LLP

FTC and Wyndham Call a Truce

Following the Third Circuit’s ruling upholding the FTC’s authority to regulate unfair and deceptive cybersecurity practices under Section 5 of the FTC Act, Wyndham Worldwide Corporation and the FTC have agreed to settle. ...more

Kelley Drye & Warren LLP

Wyndham Agrees to Settle FTC Data Security Case

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After four years of litigation, this past Wednesday, Wyndham Worldwide Corporation and three of its subsidiaries (collectively, “Wyndham”) settled the Federal Trade Commission’s (“FTC”) allegations that the global...more

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