MilConsumer Blog Feed

The INFORM Consumers Act is effective as of June 27, 2023. Online marketplaces, have you taken the steps the statute requires? And is your site ready for scrutiny by the FTC and state law enforcers? The INFORM Consumers Act requires “online marketplaces” – a term defined in the statute – to protect consumers from counterfeit, unsafe, and stolen goods by verifying the identity of high-volume third-party sellers on their platforms and by making it...

When thou makest claims to thy consumers, Base them in facte, not boast or rumours. Nowhere is this truer say eth Than when thou claim “Made in USA-eth.” OK – that’s not even close to Ye Olde English, but when a company’s name is Chaucer Accessories, it’s hard for Literature majors not to harken back to their Canterbury Tales days. The FTC just announced a proposed settlement with the company, affiliated entities, and the company president for...

Most people are familiar with the Publishers Clearing House Prize Patrol and their visits to consumers’ homes to deliver those big checks. In a twist on the familiar scenario, this time the FTC is – metaphorically speaking – paying a call on Publishers Clearing House as the Apprise Patrol, apprising companies and consumers of a proposed settlement with Publishers Clearing House for multiple violations of federal law. However, a big check is still...

In the latest action to challenge alleged digital dark patterns, the FTC has sued Amazon for enrolling people in its Prime program without the consumer ’s consent. Once consumers were signed up, the complaint also charges that Amazon set up online obstacles that made it difficult for them to cancel their Prime subscription. According to press reports, Amazon’s in-house nickname for its efforts to deter consumers from unsubscribing from Prime may...

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...

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...

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...

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...

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...

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...