MilConsumer Blog Feed

Keep data secure. Safely dispose after use. Tell people the truth. We’re not suggesting that the principles of sound data security can be boiled down to a haiku, but there are certain basics every business should follow. The FTC’s proposed complaint against Blackbaud, Inc., alleges that the company’s failure to implement some of those fundamentals resulted in the theft of highly sensitive data about millions of consumers, including Social Security numbers and bank account information. But that’s just the start of where the FTC says Blackbaud violated the law.

A look into multi-party computation and oblivious proxies The landscape of digital privacy is constantly evolving as companies and researchers implement new methods to enhance user privacy. For example, browsers are removing third party cookie functionality and mobile operating systems are integrating more transparency and user controls over data collection. “Privacy enhancing technologies” (PETs), such as end-to-end encryption, are a broad set...

January 29th kicks off 2024’s Identity Theft Awareness Week, but consumer-conscious companies promote identity theft awareness – and prevention – 52 weeks a year. As the FTC, federal and state agencies, consumer groups, and others sponsor events across the country and online, here are three things your business can do to promote identity theft awareness to customers, employees, and members of your community.

When companies sow deception, they often reap law enforcement. That’s the lesson of a $2 million civil penalty that Kubota North America Corporation will pay for allegedly violating the Made in USA Labeling Rule by falsely labeling replacement parts for its tractors and other agricultural equipment as “Made in USA.”

When consumers have questions about a company’s services, they often pick up the phone and call. It’s no different when consumers must select a funeral home to handle a loved one’s final arrangements. Telephone inquiries are particularly important for people who are grieving a loss or making arrangements for a loved one in a different city. That’s why the Funeral Rule requires funeral homes to provide accurate price information over the phone. The results of an undercover FTC phone sweep suggests that some providers would benefit from a compliance refresher – especially when it comes to how they handle telephone inquiries.

For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim. According to the FTC, the subscription-based business violated the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Equal Credit Opportunity Act (ECOA) by using deceptive and unfair tactics against its customers, including people on Social Security and veterans receiving military pensions. In addition to $3 million in consumer redress and provisions that will change how FloatMe does business in the future, the settlement includes a provision specifically prohibiting deceptive claims about the use of artificial intelligence, algorithms, or machine learning.

Decades ago, the FTC described the advertising claim “free” as “a lure,” “the bait,” and “a powerful magnet,” and its appeal continues to attract consumers. Need proof? Just look at how Intuit made “free” the centerpiece of its ad campaign for TurboTax, blanketing TV, radio, print media, and the internet with claims that consumers could use the company’s TurboTax service to file their taxes not just for “free,” but for “Free. Free. Free. Free.” What the company didn’t clearly disclose was that approximately 100 million people – about 2/3 of filers – didn’t qualify for “free” filing with TurboTax.

Do consumers attend a Christian church? Are they the parents of preschoolers? Would the description “wealthy and not healthy” apply to them? By tracking people’s mobile devices, Texas-based InMarket Media has collected their precise geolocation and cross-referenced their location histories with other personal data to categorize them into roughly 2,000 different audience segments that the company then marketed for the purpose of targeted...

The launch of OT coincided with another type of technology’s rapid growth: Artificial Intelligence. And, on January 25th, OT will hold the FTC Tech Summit on AI to lead discussions among individuals with a diverse set of perspectives across academia, industry, civil society organizations, and government agencies. These conversations will cover AI across the layers of the technology stack—from computer microprocessors and cloud infrastructure to data and models to consumer applications.

The FTC announced proposed revisions to the Children’s Online Privacy Protection Act (COPPA) Rule on December 20, 2023. The online portal to file public comments is now open and the FTC welcomes your feedback by the March 11, 2024, deadline.