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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 with...

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...

FTC says Dun & Bradstreet deceived small businesses about services and pricing

Lesley Fair
Small businesses, the FTC is on your side. According to a proposed FTC settlement with Dun & Bradstreet, D&B took big bucks from small businesses with the promise to improve their credit reports, but the primary business that benefited from D&B’s pricey services was Dun & Bradstreet itself. The FTC alleges that Dun & Bradstreet deceived companies about the purported benefits of its CreditBuilder line of products; used deceptive automatic renewal...

FTC warns companies to remediate Log4j security vulnerability

This blog is a collaboration between CTO and DPIP staff and the AI Strategy team
Log4j is a ubiquitous piece of software used to record activities in a wide range of systems found in consumer-facing products and services. Recently, a serious vulnerability in the popular Java logging package, Log4j (CVE-2021-44228) was disclosed, posing a severe risk to millions of consumer products to enterprise software and web applications. This vulnerability is being widely exploited by a growing set of attackers. When vulnerabilities are...

Where in the world is…? FTC challenges stealthy geolocation tracking and COPPA violations

Lesley Fair
As a certain elusive children’s videogame character will attest, precise geolocation can be highly sensitive information. According to a settlement the FTC just announced with OpenX Technologies, Inc. – a real-time bidding platform that enables targeted advertising on websites and apps – OpenX deceived people about their right to opt out of the collection of precise location data. What’s more, OpenX collected personal information from kids under...

Gift card scams: Out of the shadows and into the FTC Data Spotlight

Maria Mayo, Acting Associate Director, FTC Division of Consumer Response and Operations
Gift cards may be at the top of your holiday gift giving list. But there’s another list that gift cards top , and it’s decidedly less festive. According to the FTC’s latest Consumer Protection Data Spotlight, reports received in the Consumer Sentinel database reveal that gift cards are the #1 payment method of choice for scammers, leading to a reported $148 million stolen from consumers. Is your business taking steps to protect customers from...

Scammers prefer gift cards, but not just any card will do

Emma Fletcher
Gift cards are an easy way to give. Reports to the FTC’s Consumer Sentinel show they’re also an easy way to take. About one in four people who report losing money to fraud say it happened when a scammer tricked them into giving the numbers on the back of a gift card. 1 Gift cards are far more frequently reported than any other payment method for fraud, 2 and the numbers have reached staggering new highs compared to past years. 3 In the first nine...

How small businesses can up the impact of their charitable donations

Lesley Fair
As the holidays – and the end of the tax year – draw near, people are likely to approach small business owners with requests for charitable contributions. But scammers are hard at work with their own holiday rush. To protect your business from fraud and to amplify the impact of your donations on the charities that matter to you, these simple steps can help ensure that Giving Tuesday isn’t followed by Regretful Wednesday. A standard list of...