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Deceptive duo: Made in USA falsity and misleading COVID claims

Lesley Fair
Like peanut butter and jelly, some things just go together. Then there are things that are bad on their own and even worse when combined. A proposed FTC settlement adds a new duo to that category: false Made in USA representations and deceptive COVID claims. The case was filed by the Department of Justice on the FTC’s behalf against Adam J. Harmon and two companies he controls. The action also sends a loud-and-clear warning to the many businesses...

Healthcare “plans” and “products” didn’t deliver as promised, says the FTC

Lesley Fair
It’s a discussion taking place around kitchen tables at this very moment: “What healthcare coverage is best for us – and how can we afford it?” Even with glossaries, tables, and charts ‘n’ graphs, it can be a complicated decision. Now factor in the companies that trick people into buying insurance “plans” or healthcare products that make impressive claims, but deliver less than promised – or businesses that add on fees without consumers’ express...

Holding franchisors accountable for illegal practices

Samuel Levine, Director, FTC Bureau of Consumer Protection
We often talk about homes, cars, and education as the largest purchases people will ever make. But for many consumers, the cost of buying a franchise is the financial commitment of a lifetime. Some prospective franchisees may be sophisticated entrepreneurs. But many others are hard-working people who sink their life savings – or take on substantial debt – to buy a franchise. The FTC’s Franchise Rule requires franchisors to make key disclosures...

Directory assistance: FTC honors AUSA for work in prosecuting business directory scammer

Lesley Fair
Globe-trotting swindlers may try to evade law enforcement agencies intent on bringing them to justice. But they’re not factoring in the tenacity of public servants like Assistant United States Attorney Katherine Kopita of the U.S. Attorney’s Office for the Northern District of New York. Ms. Kopita’s work in prosecuting criminals who ripped off more than 1,300 small businesses, medical providers, and schools by illegally billing them for bogus...

Two decisions highlight Mail Order Rule compliance during the pandemic – and beyond

Lesley Fair
The FTC has been fighting COVID-related deception on multiple fronts. We’ve challenged bogus claims for “treatments.” We’ve taken action against companies that targeted cash-strapped small businesses. And we’ve sued defendants that failed to honor shipment promises for personal protective equipment. In separate actions, federal courts have entered judgments against California-based QYK Brands LLC d/b/a Glowyy and Louisiana-based American...

Home economics: $62 million FTC settlement addresses Opendoor’s alleged misrepresentations to homeowners

Lesley Fair
As the old adage goes, the three rules of real estate are “location, location, location.” But according to the FTC, online real estate company Opendoor Labs pitched its services to home sellers with “misrepresentation, misrepresentation, misrepresentation.” A proposed settlement imposes a $62 million financial judgment and requires the company to change its business practices. Arizona-based Opendoor advertised its iBuyer service to people looking...

FTC says payment processor’s illegal pitches and practices harmed small businesses

Lesley Fair
We’ll lay our cards on the table: Protecting small businesses from deceptive and unfair practices is a key priority for the FTC. That includes taking action when payment processing companies that offer small business owners access to the credit and debit card system allegedly use illegal tactics to pitch their services. According to the FTC, Texas-based First American Payment Systems made misleading statements about fees and cost savings, used...

Amplifying the impact of your research

Lesley Fair
To paraphrase that famous question of acoustics and philosophy, if research falls in the forest and no one hears it, does it still make a sound? The FTC needs to hear from you by Friday, July 29, 2022 , if you have research about consumer privacy or data security that you would like considered for the agency’s seventh annual PrivacyCon . Bringing together academics, industry representatives, consumer advocates, and government regulators...

FTC and 18 states join forces to protect military consumers from jewelry retailer’s illegal practices

Lesley Fair
Take a closer look at some of the companies that publicly proclaim to “Support Our Troops” and you may find illegal conduct suggesting that a more accurate slogan for them could be “Thwart Our Troops.” The FTC and 18 states just announced a settlement with Harris Jewelry , a national retailer alleged to have targeted military families with a host of deceptive and unfair practices, including violations of the Military Lending Act. Among other...

Location, health, and other sensitive information: FTC committed to fully enforcing the law against illegal use and sharing of highly sensitive data

Kristin Cohen, Acting Associate Director, FTC Division of Privacy & Identity Protection
Among the most sensitive categories of data collected by connected devices are a person’s precise location and information about their health. Smartphones, connected cars, wearable fitness trackers, “smart home” products, and even the browser you’re reading this on are capable of directly observing or deriving sensitive information about users. Standing alone, these data points may pose an incalculable risk to personal privacy. Now consider the...