MilConsumer Blog Feed

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...

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...

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 customer...

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, or...

What’s that illumination you see just ahead? It’s the FTC’s virtual workshop Bringing Dark Patterns to Light, beginning this morning at 10:30 Eastern Time. You can watch the webcast from a link on the event page, which will go live minutes before the start. Bringing Dark Patterns to Light will focus on interface designs used on websites and apps that can have the effect – intentionally or unintentionally – of obscuring, subverting, or impairing...

For businesses in the middle of a global pandemic, there’s no such thing as “business as usual.” The percentage of Americans working remotely has grown substantially, now reportedly up to 33% of the U.S. workforce. Accompanying that seismic shift have been increased security threats to data, with one analysis reporting that over 36 billion online records were exposed in the first half of 2020 alone. Consumers whose lives have been upended by...

Yellowstone – the majestic national park – is known for Old Faithful, roaming bison, and vistas to take your breath away. According to a 2020 FTC complaint, Yellowstone – the merchant cash advance provider – was unfaithful to its promises, buffaloed small business owners, and made illegal withdrawals that took their cash away. A settlement will return more than $9.8 million to customers and includes injunctive provisions to change how Yellowstone...

Advances in artificial intelligence (AI) technology promise to revolutionize our approach to medicine, finance, business operations, media, and more. But research has highlighted how apparently “neutral” technology can produce troubling outcomes – including discrimination by race or other legally protected classes. For example, COVID-19 prediction models can help health systems combat the virus through efficient allocation of ICU beds...

Congress passed a law in December 2020 – the COVID-19 Consumer Protection Act – that imposes monetary penalties on violators. The Department of Justice and the FTC just brought their first action under the statute, alleging that a Missouri chiropractor and his company violated both the new law and the FTC Act by deceptively marketing vitamin D and zinc products to treat or prevent COVID-19. You’ll want to review the provisions of the statute (it...

The FTC’s long-standing Holder Rule requires businesses to include a special notice in credit contracts that gives consumers certain protections. Today, a Staff Note reiterates the Commission’s determination that the Rule applies regardless of the size of the transaction – and corrects some staff guidelines published in 1976. The Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses – the Holder Rule – protects consumers...