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The FTC's settlement with Google: Part 3

Lesley Fair
As any business knows, it is indeed a small world after all. And the FTC’s recent settlement with Google related to the launch of its Google Buzz social network demonstrates why it’s important for companies to think about the global ramifications of their privacy practices. In addition to concerns about allegedly deceptive representations in the company’s privacy policy and misleading practices that exposed information to public disclosure...

The FTC’s settlement with Google: Part 2

Lesley Fair
According to the FTC’s recent settlement with Google, when people declined to sign up for Google Buzz, the company’s new social network, Google nonetheless enrolled them in certain features without their consent. But what about people who clicked the link that said “Sweet! Check out Buzz”? The FTC’s complaint alleged that they, too, weren’t adequately informed that certain information that had been private — including the people they chatted with...

The FTC's Google settlement: What's the buzz?

Lesley Fair
“Sweet! Check out Buzz.” “Nah, go to my inbox.” That was the intriguing choice facing Gmail users last year when Google launched Google Buzz, its social network. But according to a settlement announced this week by the FTC, the company violated the privacy promises it made to Gmail users and used deceptive tactics in the Buzz rollout. The story starts with Google’s privacy policy. From October 2004 until October 2010, Gmail users were told,...

Debt collection company pays record-setting civil penalty

Lesley Fair
Incessant phone calls to consumers, often about accounts that weren't theirs. Repeated autocalls to wrong numbers. Illegal disclosures to other people that a consumer owes money. Those are just some of the allegations in the FTC's recent settlement with West Asset Management, a debt collection company that employs more than 1,500 collectors in 13 states and one offshore location. According to the FTC's lawsuit filed in federal court in Atlanta...

Endorsements & Affiliate Marketing: The Legacy Learning Systems Order

Lesley Fair
Two hot topics in the advertising arena: affiliate marketing and consumer testimonials. The FTC’s settlement with Legacy Learning Systems touches on both of those buzzworthy issues. According to the agency’s complaint, Legacy — which sells instructional DVDs, including a “how to play the guitar” series — represented, directly or indirectly, expressly or by implication, that reviews of their products were endorsements reflecting the opinions of...

FTC says buyers strung along by deceptive endorsements for guitar DVDs

Lesley Fair
If you’ve been following recent developments about endorsements and affiliate marketing, the FTC’s settlement with Nashville-based Legacy Learning Systems and Lester Gabriel Smith — marketers of a “learn to play the guitar” DVD series – should strike a chord. One way Legacy promoted its products was through an affiliate program — a set-up in which hyperlinks on one site will direct potential buyers to another site. Affiliates typically get paid...

Consumer Protection on Camera

Lesley Fair
It’s awards season for the entertainment industry. There’s no red carpet in front of the FTC and no one’s likely to ask “Who are you wearing?” — except to ascertain that the manufacturer complied with the Care Labeling Rule. But consumer protection is a common theme in movies nonetheless. With acknowledgments to Steve Baker, director of the FTC’s Midwest Region who first started the list, here are some of our favorite consumer protection-themed...

LOANMOD TXT MSGS VIOL8 LAW, SEZ FTC

Lesley Fair
The FTC has gone to court in an effort to shut down an operation that allegedly blasted consumers with more than five million illegal spam text messages, including many pitching loan modification help, debt relief, and other services. The agency also has charged that the defendant marketed his text message services with email that violated the CAN-SPAM Act. According to the FTC, here’s how the operation worked. When people responded to the...

Data Resellers Liable for Downstream Security Failures

Lesley Fair
Of course, no legitimate business would put out a welcome mat for crooks. But as the FTC’s data security cases make clear, that’s the effect when companies fail to take reasonable steps to secure sensitive information in their possession — or data they allow others to access. Three recent settlements with companies that resell credit reports illustrate that point. The companies contract with the nationwide credit reporting agencies to assemble...

"Talkin' 'bout lead gen-eration"

Lesley Fair
As a recent FTC action against three companies and their owner proves, ads promising quick and easy relief from credit card debt are likely to attract law enforcement attention. But this case featured an interesting twist because what the company really was up to was generating leads it turned around and sold to other companies. According to the FTC’s lawsuit against Media Innovation, Hermosa Group, Financial Future Network, and Jonathan...