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FTC challenges supplement claims under COVID-19 Consumer Protection Act

Lesley Fair
“A dose of this formula a day keeps viruses away . . . . and their variants.” That’s just one example of a representation California-based Precision Patient Outcomes, Inc., and CEO Margrett Priest Lewis made for a dietary supplement sold under the names COVID Resist and VIRUS Resist. The FTC has gone to court, alleging that the defendants’ claims that the product can treat, prevent, or mitigate COVID violate the COVID-19 Consumer Protection Act...

Remembering Chairman Michael Pertschuk

Samuel Levine, Director, FTC Bureau of Consumer Protection
You couldn’t miss the six-foot sign former FTC Chairman Michael Pertschuk had on his office wall: “Washington’s Headquarters for Magic Tricks Jokes – Fireworks.” He claimed to have salvaged it when a D.C. novelty shop closed, but it seemed purpose-built to describe his seven-year tenure at the Federal Trade Commission. Magic tricks? He had a few of those up his sleeve. A tireless champion for America’s consumers, his goal was to transform a small...

$2.6 million settlement addresses earnings claims for business opportunities and crypto bot, Consumer Review Fairness Act – and more

Lesley Fair
It’s rare that we’d liken an FTC complaint to a pizza with the works or an everything bagel, but the breadth of violations alleged in the FTC’s action against DK Automation, Kevin David Hulse, David Shawn Arnett, and affiliated companies invites the comparison. The proposed $2.6 million settlement resolves charges that the defendants made deceptive earnings claims, failed to comply with the Business Opportunity Rule, violated the Consumer Review...

Compliance deadline for certain revised FTC Safeguards Rule provisions extended to June 2023

Lesley Fair
If you’ve been working on implementing the revised Safeguards Rule at your business by the upcoming deadline, that’s good news for your company and your customers. Just know that for certain provisions of the updated Rule, the FTC has extended the compliance deadline by six months – to June 9, 2023 – in response to reports of personnel shortages and supply chain issues. Some regulations may have cryptic titles, but you can’t count the FTC...

How readiness can help protect veteran-owned businesses

Lesley Fair
Army brats like me grew up around the word “readiness.” We knew it meant weeks or even months of a parent away on deployment, training for “What if . . .” scenarios. One of the reasons so many veterans have made the successful transition to entrepreneurship is that they continue to put readiness first. A recent FTC proposed settlement serves as a reminder to veterans who own businesses – and to all business executives – about the ongoing threats...

Who experiences scams? A story for all ages

Many people think scams mostly affect older adults. But reports to the FTC’s Consumer Sentinel tell a different story: anyone can be scammed. In fact, reports suggest that many scams are harming younger people more than older adults. While there’s more to the story, the broad theme is that scams affect every age group, but differently. In 2021, Gen Xers, Millennials, and Gen Z young adults (ages 18-59) were 34% more likely than older adults (ages...

And the FTC Bureau of Consumer Protection Partner Award goes to . . .

Lesley Fair
We’re told the name Nebraska comes from the Otoe term Ñí Brásg , meaning “serene water.” The Platte River flows across the state until it converges with the Missouri. From there, it meets the Mississippi, creating the unstoppable force that gives it the name “mighty.” Who doesn’t enjoy a bit of heartland geography, but our purpose today is to draw an analogy to the most recent recipient of the FTC Bureau of Consumer Protection’s Partner Award...

Pulling the mask off impersonation scams: How they impact your business

Lesley Fair
Every year countless people are bilked by impersonation scams. Since 2018, the FTC’s Consumer Sentinel Network has received approximately 3 million reports of impersonation scams citing losses of more than $6 billion. Two particularly pernicious forms of the fraud are committed by crooks who pose as government officials or representatives of well-known companies. They use a false aura of authenticity in an effort to steal money or sensitive...

Checking out the FTC’s $100 million settlement with Vonage

Lesley Fair
Who can forget the eerie admonition about Hotel California : “You can check out any time you like. But you can never leave.” It’s a feeling that may have been echoed by people who attempted to cancel their service with internet phone provider Vonage. In a $100 million settlement , the FTC alleges that Vonage thwarted the efforts of consumers and small businesses who to tried to cancel their service. It’s the latest action in the FTC’s ongoing...

Live from your laptop, it’s PrivacyCon

PrivacyCon 2022 – the FTC’s annual gathering of the tech experts – convenes this morning, Tuesday, November 1st, at 9:00 ET, and you can watch the webcast live . Chair Kahn will convene the proceedings with opening remarks. After that, seven panels will focus on the hottest of hot privacy topics and will feature researchers discussing: Commercial surveillance Automated decision-making systems Children’s privacy Devices that listen to users...