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Growing wave of Social Security imposters overtakes IRS scam

Emma Fletcher
Claiming to be a government authority is a tried and true way that scammers trick people into sending money. Among the most common government imposters have been scammers pretending to be the IRS – until now. In the past few months, the FTC’s Consumer Sentinel Network database has seen Social Security Administration (SSA) imposter reports skyrocket while reports of IRS imposters have declined sharply. In the shady world of government imposters...

Bogus celebrity testimonials and phony formats: DON’TS for advertisers and affiliates

Lesley Fair
“Viagra for the brain.” It’s a slogan designed to attract the attention of consumers concerned about cognition. Then there was a massive online ad campaign of “news” websites featuring supposed testimonials from people like Bill Gates and the now-late Dr. Stephen Hawking. It’s no wonder people forked over millions for supplements that went by names like Geniux, Xcel, EVO, and Ion-Z. But according to proposed FTC settlements, the entire promotion...

FTC’s Approach to Consumer Privacy: Watch the webcast live

Lesley Fair
We do our best to keep the puffery in check. So when we say an event features a star-studded line-up of panelists, we think we can substantiate that claim. The FTC’s ongoing Hearings on Competition and Consumer Protection in the 21st Century have brought luminaries together to discuss the impact on the FTC’s mission of broad-based changes in the economy, evolving business practices, and tech developments. The April 9th and 10th hearing s on The...

FTC workshop looks into loot boxes

Lesley Fair
Gamers call them loot boxes – in-game rewards players can buy that contain a random assortment of virtual items. The loot may help players advance in an online game or allow them to customize their avatars. The rewards may be virtual, but they’ve become a very real revenue stream for game developers. Do loot boxes raise consumer protection concerns, especially for younger players? That’s the topic of an upcoming FTC workshop, Inside the Game...

It’s unwise to incentivize positive skewed reviews

Lesley Fair
Is there anything you can’t get delivered to your front door? (And yes, home renovators will attest you can even get a front door delivered to your front door.) The burgeoning subscription model can offer convenience to customers, but only if companies honor established consumer protection principles. The FTC’s proposed settlement with snack seller UrthBox, Inc., serves as a compliance reminder to industry members about consumer reviews and the...

Warning letters re-”mined” diamond sellers to describe products accurately

Lesley Fair
Remember the old Superman movie where the Man of Steel squeezed carbon in his hand to create a diamond? That’s not how it’s done, but these days not everything sparkly comes from a mine. In addition to mined diamonds, consumers can choose simulated diamonds or diamonds created in a laboratory. What matters to consumers – and the FTC – is that companies accurately describe what they’re selling. In July 2018, the FTC issued updated its Guides for...

From hero to zero: “Charities” claimed to help police and vets, but pocketed proceeds

Lesley Fair
To many Americans, the phrase “We support our troops” is more than just a bumper sticker. They put their money where their heart is and contribute to organizations that benefit members of the military – or police officers, first responders, or others who serve. Their generous intent shouldn’t be undermined by sham charities that allocate the lion’s share of donations not to promised services, but to telemarketing, salaries, and other overhead...

Office Depot and Support.com to pay $35 million for falsely claiming scan detected signs of malware on consumers’ computers

Lesley Fair
It’s an illegal practice the FTC has challenged for decades: companies convincing consumers to pay for “repairs” on products that don’t really need fixing. The FTC alleges that Office Depot and service vendor Support.com engaged in a 21st century version of that misleading tactic. According to the complaint, the defendants tricked customers into spending millions on repairs by deceptively claiming they had found malware symptoms or infections on...

Annual Highlights: A quick run-down of 2018

Carol Kando-Pineda
The FTC focuses most of its time and attention on protecting consumers and promoting competition. Every so often, we stop and take stock. For example, check out our just-released Annual Highlights for a detailed round-up of some of the FTC’s 2018 consumer protection accomplishments. Giving back. One of the most noteworthy gains for consumers is the FTC’s settlement with MoneyGram. The complaint charged that MoneyGram didn’t live up to its...

4 reasons why the latest FTC robocall cases should matter to your business

Lesley Fair
The FTC just announced developments in the ongoing fight against illegal robocalls. “But my company would never place illegal robocalls,” you say. Glad to hear it, but there are four reasons why reputable businesses should still take note when the FTC brings actions against robocallers. Reason #1 – Robocallers have small businesses in their sights. Case in point: the FTC’s action against Point Break Media and a host of affiliated companies and...