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FTC and states challenge “charity” telefunders responsible for 1.3 billion robocalls

Lesley Fair
You know those friendly calls from people contacting you on behalf of charities whose missions are close to your heart? According to the FTC and 46 agencies from 38 states and the District of Columbia, many of the 1.3 billion calls that telemarketer Associated Community Services (ACS) and related defendants placed to 67 million different phone numbers weren’t so friendly, weren’t from live operators, and didn’t result in consumers’ contributions...

Community Advocate Center: Listening to what consumers have to say

Daniel Kaufman, Acting Director, FTC Bureau of Consumer Protection
Wondering what you can do to help protect consumers in your area? The FTC just launched an initiative aimed at partnering with legal aid organizations to expand outreach to lower-income members of the community . The goal: to connect people who have experienced fraud and other consumer problems with an easy way to report it and with advice to help them recover. The Community Advocate Center initiative provides a new way for groups that provide...

Bringing Dark Patterns to Light

Lesley Fair
It’s like a scene from an Indiana Jones movie. Our hero enters a cave in search of treasure and every labyrinthine turn poses another unexpected hazard – trip-wired blades, runaway boulders, and snakes (“I hate snakes”). But we’re not talking about a rollicking adventure flick. We’re describing the experience of many online shoppers as they navigate some companies’ websites to avoid digital danger – for example, extra items showing up in a...

HSR threshold adjustments and reportability for 2021

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...

Is it amour – or scam-more?

Lesley Fair
Online romance may begin with Panic! At The Disco’s High Hopes , but according to a new FTC Data Spotlight , all too often it ends with the conclusion that – to quote the J. Geils Band – Love Stinks . Far be it from us to put a damper on Valentine’s Day, but reports to the Consumer Sentinel Network suggest that the injury inflicted by romance scams is on the rise. According to the new Data Spotlight , “For three years running, people have...

Romance scams take record dollars in 2020

Emma Fletcher
They say love hurts. With romance scams that’s doubly true – hearts are broken and wallets are emptied. For three years running, people have reported losing more money on romance scams than on any other fraud type identified in Sentinel. 1 In 2020, reported losses to romance scams reached a record $304 million, up about 50% from 2019. For an individual, that meant a median dollar loss of $2,500. From 2016 to 2020, reported total dollar losses...

Scammers, your ways are numbered

Lesley Fair
How many reports did the Consumer Sentinel Network receive in 2020? What percentage of those related to fraud? And what was the most common scam that people reported? The answers: 4.7 million, 46%, and imposter scams. The FTC just released the annual Consumer Sentinel Network Data Book and it’s filled with charts, graphs, and state-by-state numbers about those whom consumers say didn’t play it by the numbers in 2020. In addition to statistics...

Amazon to pay $61 million for tapping into tips promised to drivers

Lesley Fair
A lot has been said about changes to the marketplace spurred by the gig economy, but some things remain constant, including established truth-in-advertising principles. Amazon told delivery drivers in its Amazon Flex program – as well as customers who placed orders through services like Prime Now and AmazonFresh – that 100% of tips would go directly to the drivers. But according to an FTC lawsuit, for a period of more than two years, Amazon...

Identity Theft Awareness Week starts today

Seena Gressin
Among the challenges that COVID-19 has brought, add a higher risk of identity theft to the mix. In the past year, we had about 1.4 million reports of identity theft, double the number from 2019. Repeatedly, identity thieves targeted government funds earmarked to help individuals and small businesses hard hit financially by the pandemic. Find out about identity theft in the age of COVID-19. Join us for Identity Theft Awareness Week, February 1-5...

Multi-party liability

Andrew Smith, Director, FTC Bureau of Consumer Protection
Today we are announcing another enforcement action seeking to hold companies responsible for consumer injury caused by others or in which they directly participated in the misconduct. In this action against Seed Consulting , we allege, among other things, that Seed assisted and facilitated several deceptive schemes that cheated consumers out of thousands of dollars. For example, Seed arranged credit card financing for victims of an alleged real...