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Trash Talking

Lesley Fair
Some things you’d expect to find in a trash can: last night’s potato peelings, the casserole that looked so promising in the cookbook photo, and Oscar the Grouch. But if you run a business, the one thing you don’t want in the dumpster behind your office is paperwork containing sensitive information about your customers. Just ask PLS Financial Services, PLS Group, and the Payday Loan Store of Illinois. PLS Group owns about two dozen companies...

Painting the town green

Lesley Fair
The biggest decision facing a DIYer in the paint store used to be whether Dusting of Snow or Wistful Beige was right for the dining room. But nowadays more businesses are making express claims about their products, including purported environmental benefits. Two of the nation’s leading paint companies — The Sherwin-Williams Company and PPG Architectural Finishes, Inc. — advertised that some of their paints were free of volatile organic compounds...

Justin, Demi, Selena, Rihanna - and COPPA

Lesley Fair
It's not likely we'll succumb to Bieber Fever. We're of a generation more susceptible to the Rockin' Pneumonia and the Boogie Woogie Flu. But a company that ran official fan websites for pop stars may be feeling the effects of an FTC law enforcement action alleging violations of the Children's Online Privacy Protection Act and COPPA Rule. The defendant, Artist Arena, operated authorized sites for Justin Bieber, Demi Lovato, Selena Gomez, and the...

Private eyes: Lessons from the rent-to-own webcam cases

Lesley Fair
The charges outlined in the FTC’s lawsuits against a software business and seven rent-to-own companies are surprising — and OK, some might say a little creepy. Software on rented computers gave the companies the ability to hit the kill switch if people were behind on their payments. But according to the complaints , it also let them collect sensitive personal information, grab screen shots, and take webcam photos of people in their homes. We hope...

"I always feel like somebody's watching me"

Lesley Fair
Paranoid delusion from 80s R&B artist Rockwell? Not necessarily, if he had used a computer from a rent-to-own store. Because according to lawsuits filed by the FTC, many stores — including franchisees of Aaron’s, ColorTyme, and Premier Rental Purchase — spied on their customers through secret software that logged key strokes, captured screen shots, and in some cases, remotely activated the computer’s webcam to take pictures of people in their...

Robocall me never

Lesley Fair
"Hey, I've never met you. So don't get clever . T hat's my number. Robocall me never." When consumers are struggling with their finances, is there anything worse than getting solicitations from debt settlement outfits deceptively promising to reduce their unsecured debt by 50% or more? Actually, there is something worse. According to a lawsuit filed by the FTC, it’s when those bogus claims are conveyed via illegal (and annoying) robocalls to...

Good night. Sleep tight. Be sure to get your ad claims right.

Lesley Fair
No one is going to amend the nursery rhyme, but if you market products aimed at fighting bed bugs or head lice and are itching to keep your promotions in line with the law, two FTC lawsuits merit your attention. Even if bugs aren’t your bag, the cases are a reminder of the need to back up your claims with solid science. The first case, which resulted in a settlement , challenged claims for Rest Easy, a liquid containing cinnamon oil, peppermint...

Life in the (Medi)fast lane

Lesley Fair
If you use consumer testimonials in your ads or have clients who do, check out the FTC’s settlement with Jason Pharmaceuticals, a subsidiary of the diet company, Medifast, Inc. But to really explore what the case is about, we’ll need to take a trip back to 1992. (Sorry -- we should have asked our UK consumer protection counterparts to let us borrow the TARDIS for this.) 1992 is when the FTC settled a case with Jason for allegedly deceptive weight...

Make your claims crystal clear

Lesley Fair
Earlier this year, the FTC settled five law enforcement actions against companies making allegedly deceptive energy savings claims for their replacement windows. Now the FTC has sent letters to 14 window manufacturers and one window glass manufacturer, warning that they may be making unsupported energy savings representations for their products. According to the letters, FTC staff saw some statement on the companies’ websites that looked a lot...

The Ab Circle Pro case: A gut check for marketers

Lesley Fair
The FTC’s multimillion dollar settlement involving the Ab Circle Pro exercise device is great news for consumers. But what does it say to businesses? Inc.-orporate compliance. Yes, there are good reasons why business people incorporate their ventures, but that “Inc.” after a company’s name doesn’t shield you from individual liability under the FTC Act. In appropriate cases, the FTC will name key players to make sure an order will be effective in...
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