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How a “funding” company and business coaching outfits joined forces to deceive consumers

Lesley Fair
For people who were looking to run their own businesses, the lesson of the FTC’s proposed $2.1 million proposed settlement with Las Vegas-based Seed Consulting, LLC, is that neither their future nor their fortune was in the cards – credit cards, that is. The defendants’ modus operandi was to file falsified credit card applications in consumers’ names – a service for which they charged a hefty fee – so that consumers could use those lines of...

FTC’s first BOTS Act cases: Just the ticket to help protect consumers from ticket bots

Lesley Fair
Remember live music? Remember the thrill of enjoying a performance or sporting event with a packed house of fans? As we look forward to a return to in-person entertainment, it’s easy to forget the frustration of trying to buy tickets as soon as online sales opened only to be shut out by companies that used tricks to grab them up and sell them at much higher prices. That’s the conduct Congress intended to stop with the passage of the Better Online...

Business owners: Latest COVID scam is directed at you

Lesley Fair
Fraudsters have concocted a new COVID-related scam and this time they have businesses in their sights. According to reports, business owners are getting emails that appear to be about government-sponsored loan programs. But they’re really phishing messages trying to trick people into turning over personal information. The FTC has tips on how to spot the latest scam and how to defend your company’s good credit – and your good name – against other...

Health app broke its privacy promises by disclosing intimate details about users

Lesley Fair
Flo Health pitched its Flo Period & Ovulation Tracker as a way for millions of women to “take full control of [their] health.” But according to the FTC , despite express privacy claims, the company took control of users’ sensitive fertility data and shared it with third parties – a broken promise that left consumers feeling “outraged,” “victimized,” and “violated.” Read on for details, including a notable feature in the proposed settlement...

Facing the facts about facial recognition

Lesley Fair
Aside from obligatory shots of the Grand Canyon or the Leaning Tower of Pisa, many photos that consumers want to keep feature the faces of friends and family. Using a service like Everalbum’s Ever app to store photos and videos in the cloud is one way to free up space on consumers’ devices. But what was Everalbum doing behind the scenes after consumers entrusted the company with those images? A proposed FTC settlement suggests that Everalbum’s...

2020: Remote work with real results

Ian Conner, Bureau of Competition
Sometime in the future, when we look back on the year that was 2020, it is likely that we will want to remember the good things that happened. And in the world of FTC antitrust enforcement, a lot of good things happened last year. In fact, any attempt to compile a list of the top 10 couldn’t do justice to the incredible work of Bureau of Competition staff and their unprecedented set of accomplishments in this 12-month span, which I’ve highlighted...

Nursing homes: Stimulus payments are for residents

Lois Greisman, Elder Justice Coordinator, FTC
If you have clients who operate assisted living facilities or nursing homes, read on. The second round of Economic Impact Payments (EIPs) is in the works and the money is already being sent to people. But like last time, the payment is meant for the person , not the place where they live. In the first round – let’s call EIP 1.0 – we know that some nursing facilities tried to take the stimulus payments intended for their residents, particularly...

New toolkit for retailers to help stop gift card scams

Lesley Fair
In many ways, gift cards ushered in a win-win era. Better gift-giving (and getting) for consumers and increased sales for retailers. But leave it to scammers to try to mess up a good thing. According to an FTC Data Spotlight , gift cards are now the top method of payment favored by many fraudsters. For years, the FTC has warned consumers about gift card grifters. Now there’s a new Stop Gift Card Scams Toolkit to help retailers do their part to...

Gift cards top scammers’ wish lists

Emma Fletcher
Gift cards make great holiday gifts. But reports to FTC show that scammers like getting them, too. Scammers don’t ask nicely, though. They use trickery to insist on gift cards, and they ask for specific brands. Scammers prefer gift cards because they can get quick cash while staying a nonymous . In fact, giving a scammer the PIN numbers off the back of a gift card is the number one way people report losing money on many of the top frauds reported...

Seeking your feedback about the Amplifier Rule

Lesley Fair
At the Monterey Pop Festival, the legendary Jimi Hendrix reportedly one-upped The Who by setting fire to his guitar and his amplifier. The legendary – but fictional – Nigel Tufnel of Spinal Tap boasted of having an amp that “goes to 11.” Of course, those aren’t the kind of amps covered by the FTC’s Amplifier Rule . But industry members and home audiophiles will want to take note as the FTC’s ongoing regulatory review process tunes in to the...