MilConsumer Blog Feed

As the FTC observed in enacting the Funeral Rule, “A funeral is more than a social ritual: it is also an expensive consumer purchase.” But unlike other major expenditures, “Decisions must often be made while under the emotional strain of bereavement. In addition, consumers lack familiarity with the funeral transaction.” Those considerations are still at the forefront of the protections the Funeral Rule extends to grieving families, but traditions...

When it comes to the car buying process, there a world of difference between going for a test drive and getting taken for a ride. An FTC complaint against DC-based Passport Automotive Group alleges that the company deceived customers by packing junk fees onto the cost of its vehicles. According to the complaint, Passport also discriminated against Black and Latino consumers by charging them higher financing costs and fees, in violation of the...

Today’s the day the FTC will convene Protecting Kids from Stealth Advertising in Digital Media and you can watch the webcast live. Chair Khan will lead off the virtual proceedings at 9:00 AM Eastern Time. After an introductory “show and tell” session, panelists will delve into children’s cognitive abilities at different developmental stages to recognize and understand advertising content; the impact the current advertising landscape has on kids...

Companies are increasingly marketing payment plans known as Buy Now, Pay Later (BNPL). Although BNPL plans vary in their exact terms, people typically pay for purchases over a period of several weeks, generally in equal installments. To transform consumers into customers, companies often make a variety of claims about the costs and conditions of BNPL plans. If your business offers BNPL payment options as a retailer or BNPL company – or if you...

What marketing techniques do kids, including teens, encounter in the various digital spaces they frequent? And what do we know about their cognitive abilities at different ages and developmental stages to recognize and understand advertising content? Those are just some of the topics on the table at the FTC’s October 19, 2022, virtual event, Protecting Kids from Stealth Advertising in Digital Media. As the just-released agenda demonstrates, you...

Whether you’re a gig worker, work at a business that relies on gig workers, or enjoy the benefits of their labor, the FTC just announced a policy statement about the gig economy that merits your attention. There’s no denying that the gig economy has grown exponentially. With 16% of Americans reporting that they earn money through the gig economy, a Federal Reserve study estimates that gig work accounts for hundreds of billions of dollars in...

It’s ironic that the only thing clear about digital dark patterns is the FTC’s commitment to protect consumers from the injury they inflict. A new FTC Staff Report sheds light on the ways that marketers can manipulate people into buying merchandise or giving up personal information through the use of dark patterns – a phrase that describes a broad range of deceptive design elements. If your business is involved in web-based commerce, the Report...

Most people now rely on online reviews of products and services to help decide what to buy or where to buy it, and many companies rely on reviews to attract customers. People should be able to trust that these reviews reflect the honest opinions of actual customers. But several FTC cases, including a pending complaint against Roomster, show that some companies abuse that trust by posting fake or deceptive reviews. Such reviews are used to tout a...

Clear your calendar this afternoon – Thursday, September 8, 2022 – and watch the live webcast of the FTC’s virtual public forum regarding its Advance Notice of Proposed Rulemaking on commercial surveillance and data security practices. Chair Kahn will convene the event at 2:00 ET. Following remarks from Commis sioner Slaughter and FTC staff, the first panel will discuss industry perspectives on commercial surveillance and data security. The...

In the annals of marketing, “pre-approved” ranks right up there with “free” and “low-calorie” as a term guaranteed to attract people’s attention. The FTC just announced a $3 million proposed settlement with Credit Karma for allegedly luring consumers in with deceptive promises they had been “pre-approved” for financial products, including major credit cards. The truth? For many of these offers, almost a third of the people who received a “pre...