News & Analysis as of

Misrepresentation Section 5

Venable LLP

FTC Steps on Career Step and Alleged Inflated Promises of Employment Opportunities

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In July, the Federal Trade Commission (FTC) brought a complaint against Career Step LLC for targeting servicemembers with misrepresentations concerning Career Step’s ability to match its customers with jobs in the healthcare...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

WilmerHale

FTC Announces Enforcement Action Against Global Tel*Link Corporation for Unfair Data Security Practices and Inadequate Data Breach...

WilmerHale on

On November 16, the Federal Trade Commission (FTC) announced an enforcement action against Global Tel*Link Corporation and two of its subsidiaries (collectively, “GTL”), which provide communications and payment services to...more

Manatt, Phelps & Phillips, LLP

FTC Puts Advertisers and Agencies on Notice for Fake Online Reviews and Other Deceptive Endorsements

The Notice was sent within a week of another notice to 70 for-profit higher education institutions, which focused on “false promises they make about graduates’ job and earnings prospects and other outcomes.”...more

Jenner & Block

FTC Warns Companies It Will Impose Civil Penalties for Misleading Online Reviews

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Shoppers in online marketplaces, or customers checking reviews before dining or retaining a service, have become increasingly reliant on internet testimonials. Mark P. of Hoboken, NJ rates Hank’s Burger Depot 5 out of 5...more

BCLP

Much Ado About DeFi

BCLP on

Given that the charged entity’s name included “DeFi,” there was an inevitable flurry of news around last week’s SEC action against DeFi Money Market (“DMM”), including that it was the “first” enforcement action involving...more

Ballard Spahr LLP

FTC files lawsuit against distributor of mobile banking application for alleged false misrepresentations concerning access to...

Ballard Spahr LLP on

In a complaint filed in the U.S. District Court for the Northern District of California, the FTC alleges that a company that distributes a mobile banking application (App) and its founder who is the company’s sole officer...more

Sheppard Mullin Richter & Hampton LLP

“Good Genes?”: Maybe Not. FTC Takes Action Against Sunday Riley and Sunday Riley Modern Skincare, LLC For Employees False Reviews

Sunday Riley launched her skincare firm Sunday Riley Modern Skincare, LLC (“SRMS”) in 2009 and its skincare products, including Good Genes, Power Couple, U.F.O., C.E.O., Luna and Tidal, have enjoyed tremendous success, having...more

Akin Gump Strauss Hauer & Feld LLP

Recent FTC Settlements Highlight Risks of Flawed Information Security Practices and Related Representations

In a set of recent settlements, the Federal Trade Commission (the FTC or Commission) resolved charges against two companies, ClixSense and D-Link, for failing to provide reasonable security and to live up to their data...more

Ballard Spahr LLP

FTC settles Section 5 claims against company promoting schools to military servicemembers

Ballard Spahr LLP on

The FTC has entered a proposed consent order with Victory Media, Inc. (VMI) to settle the FTC’s charges that VMI violated Section 5 of the FTC Act by engaging in deceptive acts or practices in connection with its promotion of...more

Kelley Drye & Warren LLP

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

WilmerHale

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

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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

Akerman LLP

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Its Formatting

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Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

Manatt, Phelps & Phillips, LLP

Advertising Law - May 2016 #3

Fake Subscription Notices, Real FTC Lawsuit - Fake subscription notices are the subject of a new lawsuit filed by the Federal Trade Commission in an Oregon federal court. The defendants, a web of dozens of...more

Manatt, Phelps & Phillips, LLP

Advertising Law - March 2016 #3

New in False Advertising Lawsuits: Security Systems and Oatmeal - Class action complaints alleging false advertising run the gamut of products and services, and recent lawsuits filed across the country bear this...more

Manatt, Phelps & Phillips, LLP

"Phantom" Debt Collectors Actually Sued by FTC, Banned From Business

Why it matters - The operators of a scam that processed more than $5.2 million in payments from consumers for payday loans that were not owed to the operators are now banned from the debt collection business, the...more

Manatt, Phelps & Phillips, LLP

Add-On Products Add up to $63M Settlement With FDIC

Why it matters - Credit card add-on products were the subject of a recent enforcement action brought by the Federal Deposit Insurance Corporation (FDIC) against Comenity Bank of Delaware and Comenity Capital Bank in...more

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