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FTC says Made in USA claims about mattress pads for truck bunks were, well, bunk

Lesley Fair
Are we the only ones who remember C.W. McCall’s novelty song, “Convoy”? To paraphrase the lyrics of one of the few #1 hits about truckers, “Mercy sakes alive,” the FTC is “puttin’ the hammer down” on false claims that imported products are American-made. The agency just announced a proposed settlement with Electrowarmth Products, LLC, and owner Daniel W. Grindle, alleging their Made in USA claims for heated truck bunk mattress pads were, well...

FTC and States take on “testi-phony-als” in action against housing platform Roomster and operation that posted bogus reviews on its behalf

Lesley Fair
Reviews and endorsements can be highly influential when consumers are shopping for widgets and gadgets. But when they’re looking for the right platform to use in a rental search, the personal experience of other people takes on even more significance. A complaint filed by the FTC and six States alleges that room finder platform Roomster and its owners used thousands of fake reviews – we call them “testi- phony-als” – to lure consumers to its site...

FTC says data broker sold consumers’ precise geolocation, including presence at sensitive healthcare facilities

Lesley Fair
When people seek medical care or visit other sensitive locations, they may think their presence is confidential. Little do most consumers know that if they have their phones with them, their location – for example, at a women’s health clinic, a therapist’s office, an addiction treatment center, or a place of worship – may be collected by tech companies. From there, that uniquely personal data becomes yet another commodity bought and sold in the...

FTC undertakes inquiry into commercial surveillance practices and wants your insights

Lesley Fair
Commercial surveillance refers to the pervasive collection, tracking, and monetization of personal data. It’s an enterprise that has proven astonishingly lucrative for platforms and other businesses, but often thrives in the shadows without the knowledge of the consumers whose personal information is their stock-in-trade. The FTC has announced an Advance Notice of Proposed Rulemaking – and a September 8, 2022, virtual public forum – to take a...

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...