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Anonymous messaging app targeting teens: Read the disturbing allegations in FTC and Los Angeles DA action against NGL

Lesley Fair
An anonymous messaging app marketed to kids and teens: What could possibly go wrong? A lot, allege the FTC and the Los Angeles District Attorney’s Office. A complaint against NGL Labs and founders Raj Vir and Joao Figueiredo alleges violations of the FTC Act, the Children’s Online Privacy Protection Rule (COPPA), the Restore Online Shoppers’ Confidence Act (ROSCA), and the California Business and Professions Code. The company also made AI-related claims the complaint challenges as deceptive. The $5 million financial settlement merits your attention, but it’s the permanent ban on marketing anonymous messaging apps to kids or teens that’s particularly notable.

Avoid fireworks: Look to the FTC for help with your Made in USA claims

Julia Solomon Ensor
Regular readers know that when it comes to false “Made in USA” claims, the FTC means business. Lying about product origin hurts consumers, honest businesses, and American workers. That’s why we keep suing companies that don’t play by the rules, assessing penalties where appropriate, and returning money to consumers when we can.

The specs on specs: What eye doctors need to know about the FTC’s revised Eyeglass Rule

Lesley Fair
After a careful review process inviting feedback from consumers and industry members, the FTC has announced final updates to its Ophthalmic Practice Rules, also known as the Eyeglass Rule. The primary focus of the revised Rule is to increase compliance with the longstanding requirement that ophthalmologists and optometrists provide patients with a free copy of their prescription immediately following a refractive eye exam.

Global Perspectives from the International Competition Network Tech Forum

Staff in the Office of Technology
In March, the Federal Trade Commission hosted the first-ever Technology Forum by the International Competition Network (ICN) members in Washington, D.C. The forum brought together 21 competition agencies spanning the globe from Brazil and Japan to South Africa and Sweden. During the two-day event, representatives from these agencies engaged in discussions about tech- related topics including artificial intelligence (AI), commercial surveillance...

Who’s who in scams: a spring roundup

Emma Fletcher
Scammers are all about spinning lies, but they still operate in the real world. Many scammers pretend to be well-known businesses to gain trust and make their stories seem more believable. [1] , [2]And scammers use real-world methods to contact people and to get paid. Reports to the FTC’s Consumer Sentinel Network point to some of their favorites. Let’s start with the most-impersonated companies. According to 2023 reports, Best Buy’s Geek Squad...

Slow the Roll-up: Help Shine a Light on Serial Acquisitions

Henry Liu, Director of the Bureau of Competition
Most of the talk about dealmaking and antitrust enforcement focuses on large deals involving large companies. That’s because every year, the antitrust agencies get notice of larger deals—those currently valued at over $119.5 million—under the Hart-Scott-Rodino Act. But roll-up schemes, popular with private equity companies and other corporate actors, can be executed through a series of smaller acquisitions that individually fall below the...

P = NP? Not exactly, but here are some research questions from the Office of Technology.

Staff in the Office of Technology
The scientific community has a history of creating and sharing lists of important or interesting questions. The mathematician Paul Erdős, for example, famously doled out his questions to students and colleagues, some of which are unsolved to this day. [1] The Clay Mathematics Institute has its list of seven Millenium Problems, [2] six of which remain unsolved. Among these is the P = NP problem, [3] a fundamental question in computational...

Safeguards Rule notification requirement now in effect

Lesley Fair
If your business is covered by the FTC’s Gramm-Leach Bliley Safeguards Rule, an amendment to the Rule that requires covered companies to report certain data breaches and other security events to the FTC is now in effect – and we’ve made it easy for you to report.

Cars & Consumer Data: On Unlawful Collection & Use

Staff in the Office of Technology and The Division of Privacy and Identity Protection
Some say the car a person drives can say a lot about them. As cars get “connected,” this turns out to be truer than many people might have realized. While connectivity can let drivers do things like play their favorite internet radio stations or unlock their car with an app, connected cars can also collect a lot of data about people. This data could be sensitive—such as biometric information or location—and its collection, use, and disclosure can...

Updated FTC Health Breach Notification Rule puts new provisions in place to protect users of health apps and devices

Lesley Fair
It was Shakespeare who said, “Once more unto the breach.” The FTC’s goal is never more unto the breach, but until companies keep health data secure and private, we’ll continue to update and enforce the Health Breach Notification Rule to protect consumers and keep up with the digital revolution in health information. Benefited by insights from researchers, industry members, legislators, and consumers who responded to our call for public comments, the FTC just finished a head-to-toe HBNR check-up. The just-announced Final Rule makes it clear that health apps and similar technologies are covered and expands what covered entities must tell consumers if there’s been a breach of their data. How will the new rule affect your business?