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Date and switch: Busting five myths about online romance

Lesley Fair
It’s a “tale as old as time.” But unlike Beauty and the Beast, in the online version, the transformation often goes in the opposite direction with the entrancing lover ultimately revealed to be a monster. Of course, everyone knows at least one Romance of the Century that began online. However, people may be reticent to reveal the episodes that led to heartbreak, identity fake, and wallet take. As Valentine’s Day approaches, your BFFs at the FTC...

Reports of romance scams hit record highs in 2021

Emma Fletcher
Online dating can be a great way to find lasting love – or even your next fling. But reports to the FTC suggest it also creates opportunities for scammers. In the past five years, people have reported losing a staggering $1.3 billion to romance scams, [1] [2] more than any other FTC fraud category. The numbers have skyrocketed in recent years, and 2021 was no exception – reported losses hit a record $547 million for the year. That’s more than six...

Fast food franchisees raked over the coals, alleges FTC

Lesley Fair
For many Americans, owning a fast food franchise seems like a promising way to secure their financial future. Hamburger chain franchisor Burgerim sold more than 1,500 franchises, pocketing tens of millions of dollars from would-be entrepreneurs. But according to a lawsuit the Department of Justice just filed on behalf of the FTC , the defendants served up a double decker of deception and Franchise Rule violations. The complaint alleges that...

$3.5 million FTC settlement with Hubble signals that ignoring the Contact Lens Rule can be costly

Lesley Fair
As a result of a $3.5 million FTC settlement , Vision Path – the online seller of Hubble contacts – must eye its legal responsibilities through a stronger lens. But even if your business isn’t covered by the Contact Lens Rule, don’t blink or you could miss an important FTC message about the appropriate use of endorsements and customer reviews. The Fairness to Contact Lens Consumers Act and the Contact Lens Rule require prescribers to...

Gold mine for scammers: Social media

Lesley Fair
Social media is a gold mine for scammers , and in the latest FTC Data Spotlight , we’re digging deeper into this deceptive trend happening across social media platforms. Why do we repeatedly ask people to file reports at ReportFraud.ftc.gov to let us know when they spot questionable conduct? Because – among other things – the FTC and law enforcement members of the Consumer Sentinel Network use that information to spot, track, and ultimately...

I’ll pay you to give this blog post five stars

Mike Atleson, Attorney, Division of Advertising Practices
Online customer reviews of products and services have become increasingly important in the marketplace. Many consumers rely on them to decide what to buy or where to buy it, and many companies rely on them to attract customers and stand out from the pack. That was true even before the pandemic hit, and it’s even more true now. Consumers should be able to trust that these reviews reflect the honest opinions of actual customers. But some businesses...

Abracadabra: Bad reviews be gone

Amber Lee, Attorney, Division of Advertising Practices
It’s the oldest trick in the book: Now you see it, now you don’t . This illusion is fine on a Las Vegas stage, but on an online retailer’s website, making negative reviews disappear is hardly magical. The FTC calls it review suppression – and companies engaging in this practice will be held accountable. In its first case challenging a company’s failure to post negative reviews as a deceptive practice, the FTC has reached a proposed settlement...

Social media a gold mine for scammers in 2021

Emma Fletcher
Social media permeates the lives of many people – we use it to stay in touch, make new friends, shop, and have fun. But reports to the FTC show that social media is also increasingly where scammers go to con us. More than one in four people who reported losing money to fraud in 2021 said it started on social media with an ad, a post, or a message. [1] In fact, the data suggest that social media was far more profitable to scammers in 2021 than any...

Revised Health Breach Notification Rule resources spell out companies’ legal obligations

Lesley Fair
Shoppers can find a plethora of apps, trackers, and sensors that hold or capture almost every conceivable form of personal health information. If your business or nonprofit offers products like that or provides certain services to entities that do – and you aren’t subject to HIPAA – you may be covered by the FTC’s Health Breach Notification Rule (HBNR). The FTC has two new publications to help determine if the Rule applies to you and the steps...

Cease and Desist Demands show the role social media platforms play in the spread of dubious COVID claims

Lesley Fair
The Omicron variant has consumers saying “Omigosh,” but even before the current surge, advertisers have been using questionable COVID-related claims to promote their products. FTC staff sent 25 more Cease and Desist Demands to businesses, most of whom have made unsubstantiated prevention or treatment representations for tinctures, teas, and sundry services. But there’s a key point that differentiates these Demands from the more than 400 letters...