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Privacy and security of genetic information: Putting DNA companies to the test

Lesley Fair
Some secrets are so secret that no one knows about them. Until recently that described the secrets locked within our DNA. But a key to consumer confidence in the burgeoning genetic testing marketplace is the extent to which people can depend on a company’s promise that “Your secret’s safe with us.” In its first case focused on the privacy and security of genetic information, the FTC alleges that San Francisco-based Vitagene, Inc. – now known as...

Contract Terms That Impede Competition Investigations

John Newman & Amy Ritchie, Bureau of Competition
Every company knows it’s usually best to “get it in writing,” and a lot of time is spent negotiating contracts in the ordinary course of business. But some of those contracts contain provisions that can impede the Bureau’s law enforcement investigations of potentially harmful mergers and conduct. Our staff are hearing troubling reports about certain types of contract terms that can get in the way of open, candid conversations with the FTC...

Scammers impersonate funeral home staff to prey on mourning families. Can it get any lower?

Alvaro Puig
There’s a new scheme that involves imposters preying on people who are grieving the loss of a loved one. The imposters pretend to be from the funeral home and say that, unless the family pays more money immediately, the funeral will be canceled. Can you imagine anything more despicable? That’s why we want to alert members of the funeral industry about the scam and hope other businesses will warn their employees and people in their community. If...

Spanish-speaking consumers targeted with bogus earnings claims, FTC alleges

Lesley Fair
The people who pitched business opportunities under the brand name Ganadores – “winners” in Spanish – promised to teach consumers an “infallible system” for making big money. But according to the FTC, the Florida-based defendants bilked Spanish-speaking consumers out of millions of dollars . The complaint, which alleges violations of the FTC Act, the Business Opportunity Rule, the Cooling Off Rule, and the Consumer Review Fairness Act, outlines...

Hey, Alexa! What are you doing with my data?

Elisa Jillson
What you say in your home, what you do in your home. It doesn’t get more private than that. But, according to two recent FTC complaints, Amazon and Ring used this highly private data – voice recordings collected by Amazon’s Alexa voice assistant and videos collected by Ring’s internet-connected home security cameras – to train their algorithms while giving short shrift to customers’ privacy. These matters, the first announced since the FTC’s new...

INFORM Consumers Act takes effect on June 27th. Is your business ready?

Lesley Fair
Certain businesses in the e-commerce space should mark June 27, 2023, on their calendars. That’s the date a new law – the INFORM Consumers Act – takes effect. The FTC and the states share law enforcement authority and violations could result in steep civil penalties and – in cases brought by the states – “damages, restitution, or other compensation.” Are you covered by the statute? And if you are, are you taking the necessary compliance steps...

Can your staff spot the five most common text message scams?

Lesley Fair
According to reports in the FTC’s Consumer Sentinel database, text message scams took consumers for $330 million in 2022. The latest Consumer Protection Data Spotlight focuses on this form of fraud. With reported losses more than doubling in 2021 and nearly five times what people reported in 2019, would you be able to spot the five most common text message scams? What about your employees? First, some background about what may be behind the...

$20 million FTC settlement addresses Microsoft Xbox illegal collection of kids’ data: A game changer for COPPA compliance

Lesley Fair
Care About COPPA Compliance may not be the coolest Xbox gamertag, but an FTC action against Microsoft for alleged violations of the Children’s Online Privacy Protection Act Rule suggests it might be a good choice nonetheless. Filed by the Department of Justice on the FTC’s behalf, the $20 million proposed settlement will require Microsoft to bolster privacy protections for kids who use its Xbox gaming system. The order also makes it clear that...

Out of the mouths of babes? FTC says Amazon kept kids’ Alexa voice data forever – even after parents ordered deletion

Lesley Fair
“Stop it!” Moms and Dads may have to repeat that instruction to their kids, but when parents said it to Amazon in an effort to get the company to delete children’s voice data obtained through its Alexa voice assistant, Amazon should have honored those requests immediately. But according to a complaint filed by the Department of Justice on the FTC’s behalf , Amazon responded by deleting files in some databases while maintaining them elsewhere –...

Not home alone: FTC says Ring’s lax practices led to disturbing violations of users’ privacy and security

Lesley Fair
Many consumers who use video doorbell and security cameras want to detect intruders invading the privacy of their homes. Consumers who installed Ring may be surprised to learn that according to a proposed FTC settlement , one “intruder” that was invading their privacy was Ring itself. The FTC says Ring gave its employees and hundreds of Ukraine-based third-party contractors up-close-and-personal video access into customers’ bedrooms, their kids’...