MilConsumer Blog Feed

July is designated as Military Consumer Month, but a $43.5 million proposed FTC settlement with a company called Career Step serves as a reminder that when it comes to protecting servicemembers and their families from deceptive practices, every month is Military Consumer Month at the FTC. Even if your company doesn’t operate in that sector, this FTC action offers guidance about truth in advertising, ad substantiation, consumer reviews, and other legal fundamentals.

The Federal Trade Commission routinely evaluates the privacy representations a company makes against their data handling practices. [1] When discrepancies arise between claim and reality, incorrect assertions about data identification are often to blame. Companies often claim and act as if data that lacks clearly identifying information is anonymous, but data is only anonymous when it can never be associated back to a person. If data can be used...

For thousands of years, from ancient Mesopotamian markets to the modern-day yard sale, sellers have set their prices based, in part, on who was buying. In these transactions, prices can be targeted based on information the seller has about that customer, like their home address, their shopping history, or demographic makeup. Technology has boosted sellers' ability to gather consumer data en masse. Early market research firms developed “Audimeters...

Meet smiling social worker Ana Rojas. According to social media posts by USA Student Debt Relief, the company was able to reduce payments on her $200,000 student loans from $1300 a month for 28 years to just $417 a month for eight years. Posts featuring attorney Jorge Florez touted similar successful results by working with USA Student Debt Relief. But according to an FTC complaint filed in federal court in Florida, “Ana” and “Jorge” aren’t real customers of the company – their smiling faces are stock photos – and the repayment scenarios the posts describe aren’t attainable. What’s more, the FTC says those alleged untruths are just the tip of USA Student Debt Relief’s iceberg of deceptive practices.

Consumer protection enforcers have challenged bait-and-switch tactics for years. But a complaint filed by the FTC and the Arizona Attorney General against Tempe-based Coulter Motor Company and former General Manager Gregory Depaola alleges the defendants engaged in illegal conduct that could be more accurately described as bait, switch, hitch, and which? – in other words, deceptive advertising, hiked prices, unauthorized add-ons, and discriminatory practices targeting Latino consumers. The proposed settlement, which includes a $2.6 million financial judgment, is designed to replace those tactics with two other rhymed imperatives: abate, stop illegal conduct immediately, and elevate, raise your business practices now and in the future.

The packages look like candy and snacks that kids like – for example, Double Stuf Oreos, Jolly Ranchers, and Chips Ahoy! cookies. But what’s inside are cannabis edibles containing Delta-8 tetrahydrocannabinol (THC), products that children most definitely shouldn’t be eating. The FTC and FDA just sent joint cease-and-desist letters to five companies selling edibles masquerading as popular snacks. The letters cite chapter and verse from the FTC Act and the Federal Food, Drug, and Cosmetic Act, but the overarching message is unmistakable: Stop it now.

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...

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.

“I was online shopping, but you let me down. I was looking for the nicest set of wheels around. You promised to deliver, but it showed up late. And the car that you sold me – well, it’s not so great. It’s my little used coupe. Now I’m stuck with what I got.”

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?