News & Analysis as of

FTC Act Settlement Unfair or Deceptive Trade Practices

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

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

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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

Ballard Spahr LLP

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

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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

BakerHostetler

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

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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

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

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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

Troutman Pepper Locke

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

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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

Venable LLP

In AWAREmed Settlement FTC Says Opioid and Chronic Disease Ad Claims Must Be Backed by Science

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The Federal Trade Commission’s recent settlement with Dalal A. Akoury and AWAREmed Health & Wellness Resource Center provides a good overview of how today’s FTC approaches medical claims it believes are unsubstantiated. The...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

Hinch Newman LLP

FTC Finalizes Credit Karma Order Requiring Hefty Payment and the Cessation of Allegedly Deceptive ‘Pre-Approved’ Claims

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In September 2022, the Federal Trade Commission announced that it had taken action against credit services company Credit Karma for allegedly deploying dark patterns to misrepresent that consumers were “pre-approved” for...more

WilmerHale

Settlement with Epic Games Highlights Continued Focus by Regulators on Unfair Privacy Practices, Teens, and User Interface Design

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On December 19, the Federal Trade Commission (FTC) reached two separate record-breaking settlements with Epic Games, Inc. (“Epic”) over allegations, among others, that the Fortnite video game maker knowingly violated the...more

International Lawyers Network

Don’t Be Bamboozled by Environmental Benefit Claims

$5.5 Million FTC Settlements for Bamboo Textile and Environmental Benefit Claims Under Penalty Offense Authority - The FTC recently announced that it has reached a $2.5 million settlement with Kohl’s and a $3 million...more

Hudson Cook, LLP

Current Developments in Bank Deposits and Payment Systems (Spring 2020)

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This survey summarizes several recent developments affecting bank deposits and payment systems. These include payments-related consent orders and enforcement actions by the Consumer Financial Protection Bureau (“CFPB”) and...more

Goodwin

FTC Settles With Operators of Debt Collection Scheme, Permanently Barring Defendants From Debt Collection

Goodwin on

On December 11, the Federal Trade Commission (FTC) announced it had reached a settlement with the remaining Defendants in an enforcement action against multiple related companies and their controllers involved in an alleged...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

Hudson Cook, LLP

Compliance: Setting up a Preventative Maintenance Compliance Budget

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Prioritizing compliance with federal and state law may be the last item on your never ending to-do list. Most days, you have bigger fish to fry - you want to increase sales and decrease overhead. However, a small investment...more

Goodwin

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

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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

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