Blog

The FTC is not the pen pal you want if you operate a multi-level marketing company but aren’t closely monitoring your distributors. In its latest round of warning letters, the FTC warns ten MLM companies that they are responsible for the claims made by their participants. The letters direct the companies to report within 48 hours what actions they’ve taken to stop their distributors from claiming their products can treat or prevent Coronavirus...

FTC staff just sent 21 more warning letters to companies that have used allegedly unsubstantiated coronavirus prevention and treatment claims to promote products and services. Many of the latest letters focus on questionable representations for high doses of vitamins, intravenous treatments, ozone, and purported stem cell therapies. Abundant Life Wellness Center. The Florida business has said its Zyto biofeedback software system can “scan...

In these unprecedented times, the Commission is working on all fronts to stop pandemic-related scams or deception – and to warn consumers and businesses about them. But our work in other areas continues, too. Today, we’re taking a minute to take stock of some of the highlights from 2019. Law and order. Fraudulent telemarketers, disreputable debt collectors, imposters, and other schemers follow the headlines and are good at what they do. That’s...

Trend-conscious buyers want the latest styles ASAP and online retailer Fashion Nova reinforced those expectations by promising “Fast Shipping,” “2-Day Shipping,” and “Expect Your Items Quick!” But according to the FTC, the California company’s shipment delays violated the Mail, Internet, or Telephone Order Merchandise Rule and left consumers haute under the collar. The $9.3 million settlement is the largest ever in a case of its kind. People...

For decades the FTC has been warning people about online ports, portals, and pop-ups that can be conduits for questionable claims. But companies shouldn’t think we’ve taken our eye off another potential doorway for deception: direct mail. According to an FTC lawsuit, a group of seven U.S. and Canadian defendants used glossy magazine-style mailers to advertise that Neurocet, Regenify, and Resetigen-D could treat a list of diseases, maladies, and...

Some things have changed in the rent-to-own business, but a $175 million proposed settlement with Progressive Leasing reminds companies that bedrock consumer protection principles apply, especially the fundamental proposition that deceiving people about cost strikes at the heart of the FTC Act. Not in the rent-to-own industry? Not so fast. The case offers compliance pointers for your company, too. Progressive Leasing is a major player in the rent...

The COVID-19 crisis has many small businesses on the ropes, so it’s unfortunate we have to warn them about another threat. According to a lawsuit just filed by the FTC, a Rhode Island company that goes by the name “SBA Loan Program” has been soliciting applications from small businesses, but has no affiliation with the U.S. Small Business Administration and the loan programs that agency is currently running. Under the CARES Act, eligible small...

“Oh, my achin’ . . . .” It’s a common refrain for many older Americans and others who experience chronic pain. Some businesses respond with ads heavy on puffed-up promises, but light on the scientific evidence necessary to support serious health claims. That’s the FTC’s allegation against a company that sold a pill called Isoprex. The complaint also challenges the undisclosed use of compensated friends and family as purported consumer endorsers....

Between social distancing and COVID-19 stay-at-home orders, companies are turning to video conferencing services to get down to business. While these services help you connect, they also pose new privacy and data security risks. Here are some tips to keep in mind before hosting or joining a video conference online: Take steps to ensure only invited participants are able to join your meeting. People may call it “zoombombing,” but it’s a...

For small businesses, there’s never been a time when “business as usual” has been so unusual. With many companies facing coronavirus-related challenges, the FTC has tips for business owners – and for those offering small business financing – about navigating today’s uncharted financial waters. For small business owners Keep your lender in the loop. If you have existing financing and are struggling to make payments, maintain open lines of...