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FTC and FDA warn marketers about fertility-related products

Lesley Fair
People facing infertility have a lot to think about in exploring the options available to them. But one thing that shouldn’t be on that list are unapproved products that make questionable claims to “treat” infertility. That’s the warning the FTC and the FDA have sent to companies that have pitched products to consumers searching for answers to what can be a complex medical condition. The agencies sent joint warning letters to five companies...

Updating you on FTC privacy and data security initiatives

Lesley Fair
When it comes to consumer privacy and data security, your clients and colleagues want the word on what’s been happening at the FTC – and they want it in an accessible, to-the-point format. The agency’s 2020 Privacy and Data Security Update is ready for you to read, post, and share. Enforcement Building on decades of experience in consumer privacy and data security enforcement, the FTC announced a number of notable cases in 2020. Here are a few...

An open statement about BCP closing letters

Lesley Fair
The FTC takes a practical approach to its mission of protecting America’s consumers. That typically means law enforcement actions to challenge companies’ unfair or deceptive acts or practices. But depending on the facts, we may supplement law enforcement with other methods, including consumer education, business guidance, warning letters, national workshops, reports, and – in limited circumstances – staff closing letters. Closing letters from the...

FTC and states challenge ISP Frontier’s speed claims

Lesley Fair
Like the fighter pilots in the 80s action flick “Top Gun,” consumers selecting among internet service providers “feel the need – the need for speed.” In a just-filed lawsuit, the FTC and seven law enforcement partners allege that ISP Frontier Communications Corporation has made misleading representations that it would provide consumers with certain internet service speeds. The complaint also alleges that in many instances, Frontier has subscribed...

FTC and CBD: Latest case challenges unproven health claims

Lesley Fair
It’s not like the FTC to dive in to a major law enforcement initiative, make a splash, and then leave the pool. If industry members thought December’s Operation CBDeceit was the end of the agency’s interest in deceptive health-related representations for CBD products, they were mistaken. Today’s proposed settlement with Kushly , a company alleged to have made serious – and seriously false and unsubstantiated – health claims for CBD products...

Cryptocurrency investment scam reports at record level: 5 facts suggest caution

Lesley Fair
Thinking about adding cryptocurrency to your investment portfolio? The number of Americans investing in cryptocurrency has increased. But as a new FTC Consumer Protection Data Spotlight suggests, the number who report getting stung by cryptocurrency investment scams has skyrocketed. You’ll want to read the Data Spotlight in detail, but here are five facts that suggests caution before sinking your savings into cryptocurrency. Consumers report...

Cryptocurrency buzz drives record investment scam losses

Emma Fletcher
Investing in cryptocurrency means taking on risks, but getting scammed shouldn’t be one of them. Reports to the FTC’s Consumer Sentinel 1 suggest scammers are cashing in on the buzz around cryptocurrency and luring people into bogus investment opportunities in record numbers. Since October 2020, reports have skyrocketed, with nearly 7,000 people reporting losses of more than $80 million on these scams. 2 Their reported median loss? $1,900...

Nixing the Fix report explores consumer repair issues

Lesley Fair
Consumers looking to get their products repaired at independent repair shops or with some DIY often find themselves in a fix. Nixing the Fix: An FTC Report to Congress on Repair Restrictions examines restrictions some manufacturers place on repairs and what can be done to expand consumers’ options. The Report to Congress is a must-read for businesses. FTC staff explored the issues at Nixing the Fix: A Workshop on Repair Restrictions and have...

$20 million settlement with smart home company Vivint shuts the door on a different form of identity deception

Lesley Fair
There’s a certain irony in the FTC’s record-setting $20 million settlement with Vivint Smart Home , a national seller of smart home technology platforms, including security devices and monitoring services. One purpose of the company’s products is to help residents ensure that people at their front door are who they say they are. But according to the FTC, Vivint engaged in some identity deception of its own. For example, when a prospective...

Advertisers: Stop unproven COVID claims or face penalties under new law

Lesley Fair
FTC staff sent 30 warning letters to companies, raising concerns about their COVID-related advertising claims . In two notable ways, some of these letters differ from letters we’ve sent to other marketers pitching products advertised to prevent, treat, or cure COVID-19. First, letters sent after the effective date of the COVID-19 Consumer Protection Act warn marketers that anyone who makes deceptive claims about the treatment, cure, prevention...