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On Open-Weights Foundation Models

Staff in the Office of Technology
The history of traditional open-source software provides a vision of the value that could result from the availability of open-weights AI models – including enabling greater innovation, driving competition, improving consumer choice, and reducing costs. Understanding these models, including their upsides and risks, can help realize potential competition benefits and avoid consumer harm. [1] Open-source software (OSS) has provided significant...

Anonymous messaging app targeting teens: Read the disturbing allegations in FTC and Los Angeles DA action against NGL

Lesley Fair
An anonymous messaging app marketed to kids and teens: What could possibly go wrong? A lot, allege the FTC and the Los Angeles District Attorney’s Office. A complaint against NGL Labs and founders Raj Vir and Joao Figueiredo alleges violations of the FTC Act, the Children’s Online Privacy Protection Rule (COPPA), the Restore Online Shoppers’ Confidence Act (ROSCA), and the California Business and Professions Code. The company also made AI-related claims the complaint challenges as deceptive. The $5 million financial settlement merits your attention, but it’s the permanent ban on marketing anonymous messaging apps to kids or teens that’s particularly notable.

Warranty warnings: Don’t interfere with consumers’ right to repair

Lesley Fair
The Nixing the Fix Report to Congress, the Commission Policy Statement on Repair Restrictions Imposed by Manufacturers and Sellers, and law enforcement actions against companies charged with illegally restricting customers’ right to repair should make the FTC’s position on the subject clear: Consumers deserve choices when it comes to repairing their products, and independent dealers and repair shops should have a fair chance to compete for their business. FTC staff just sent warning letters to eight companies, raising concerns about whether their practices are hindering consumers’ right to repair their products and reminding them of their obligations under the Magnuson-Moss Warranty Act and the FTC Act. Is it time for a Magnuson-Moss compliance check at your company?

Avoid fireworks: Look to the FTC for help with your Made in USA claims

Julia Solomon Ensor
Regular readers know that when it comes to false “Made in USA” claims, the FTC means business. Lying about product origin hurts consumers, honest businesses, and American workers. That’s why we keep suing companies that don’t play by the rules, assessing penalties where appropriate, and returning money to consumers when we can.

Gig work company to pay $7 million to settle FTC charges involving deceptive earnings claims and Business Opportunity Rule violations

Lesley Fair
Many people appreciate the flexibility of gig work. But if your company offers gig work opportunities, there’s one thing that isn’t flexible: your obligation to comply with established consumer protection laws, including the FTC Act and – where applicable – the Business Opportunity Rule. That’s a key takeaway from the FTC’s $7 million proposed settlement with Arise Virtual Solutions. The case also serves as a compliance reminder to the more than 1,100 companies – including Arise – that received the FTC’s Notice of Penalty Offenses Concerning Money-Making Opportunities that violations can prove costly.

First FTC Impersonation Rule case: Why it matters to 43 million consumers – and to your business

Lesley Fair
In finalizing the Trade Regulation Rule on Impersonation of Government and Businesses earlier this year, the FTC said, “This rule banning government and business impersonation will allow us to more vigorously and effectively protect Americans from fraudsters.” The Impersonation Rule enforcement effort on behalf of America’s consumers starts here and now with an action against purported student loan debt relief outfit Prosperity Benefit Services and related companies and individuals that have allegedly taken consumers for more than $20 million by falsely promising debt relief and faking an affiliation with the U.S. Department of Education. Here’s what your business needs to know about the new Rule – and what the FTC is doing to protect consumers from deceptive student loan debt relief claims.

The specs on specs: What eye doctors need to know about the FTC’s revised Eyeglass Rule

Lesley Fair
After a careful review process inviting feedback from consumers and industry members, the FTC has announced final updates to its Ophthalmic Practice Rules, also known as the Eyeglass Rule. The primary focus of the revised Rule is to increase compliance with the longstanding requirement that ophthalmologists and optometrists provide patients with a free copy of their prescription immediately following a refractive eye exam.

FTC says Adobe hid key terms of “annual paid monthly” subscription plan and set up roadblocks to deter customer cancellations

Lesley Fair
Given the injury and irritation inflicted on consumers by buried terms, hidden charges, and complicated cancellation procedures, it’s no wonder they’re called “negative” options. A federal court complaint the Department of Justice filed upon notification and referral from the FTC alleges that Adobe and corporate executives Maninder Sawhney and David Wadhwani have hidden fees associated with the company’s most popular subscription plan and made it hard for consumers to cancel. It’s the latest action challenging allegedly illegal conduct in the subscription space.

Global Perspectives from the International Competition Network Tech Forum

Staff in the Office of Technology
In March, the Federal Trade Commission hosted the first-ever Technology Forum by the International Competition Network (ICN) members in Washington, D.C. The forum brought together 21 competition agencies spanning the globe from Brazil and Japan to South Africa and Sweden. During the two-day event, representatives from these agencies engaged in discussions about tech- related topics including artificial intelligence (AI), commercial surveillance...