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FTC 2021 Data Book: Just the facts

Lesley Fair
In the old TV show Dragnet, Sergeant Joe Friday was famous for saying “Just the facts, ma’am.” But like “Play it again, Sam” in Casablanca, that quotable quote was never actually said by the lead character. But when we tell you that the FTC’s just-released 2021 Consumer Sentinel Data Book gives you “just the facts,” be assured that’s what you’ll get. And one of those facts – the most commonly reported forms of fraud in 2021 – should be of...

Deceptive earnings claims: Would a new Rule help protect prospective entrepreneurs?

Lesley Fair
For many money-making ventures, the only people who seem to make money are the promoters pitching the venture. That’s the lesson of decades of FTC litigation challenging unsubstantiated earnings claims. And yet despite an aggressive enforcement program, the marketplace remains rife with dubious representations. The FTC is considering a new rule to address deceptive or unfair earnings claims and has published an Advance Notice of Proposed...

Thinking about ignoring a CID? Think again.

Lesley Fair
Protecting consumers from illegal robocalls is a battle the FTC is waging on all fronts. Two recent actions to enforce Civil Investigative Demands (CIDs) issued to VoIP service providers demonstrate that commitment. But the message of those cases extends beyond the robocall arena. Voice over Internet Protocol – VoIP – service providers facilitate the transmission of phone calls over the Internet. As the FTC has learned from other investigations...

HSR threshold adjustments and reportability for 2022

the Premerger Notification Office Staff
When Congress passed the Hart-Scott-Rodino Antitrust Improvements Act of 1976, it created minimum dollar thresholds to limit the burden of premerger reporting. In 2000, it amended the HSR statute to require the annual adjustment of these thresholds based on the change in gross national product. As a result, reportability under the Act changes from year to year as the statutory thresholds adjust. The PNO fields many questions about the upcoming...

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 automatically...

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...