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$10 million ABCmouse settlement: Avoiding auto-renewal traps

Andrew Smith, Director, FTC Bureau of Consumer Protection
Online subscription services can be a convenience for consumers and a boon for business – especially now that so many people are shopping from home. But under the law, companies have an obligation to explain the details of the deal up front, clearly disclose any automatic renewal terms, get consumers’ express consent before billing, and offer simple ways to cancel. The FTC just announced a $10 million settlement with online learning company...

BCP Business Center and Blog: Marking 10 years with something new

Lesley Fair
Tenth anniversaries are traditionally for tin. So we’re commemorating the tenth anniversary of the FTC’s Bureau of Consumer Protection Business Center and Business Blog by doing some tin-kering that regular readers may have noticed. (Sorry. After a decade, the wordplay is second nature.) Take a quick look at the BCP Business Center and you’ll see it’s undergone some renovations. Front and center now are direct links to our primary topics...

School’s in session: 7 considerations to secure your system

Jennifer Leach, Associate Director, Division of Consumer & Business Education, FTC
If you have kids in school, there’s a good chance they’re kicking off their school year . . . in your living room. All the while, you’re connecting with clients, taking meetings, and making sales from a carved out corner at home. The start of a new school year is a good time to double-check your online set-up to make sure the kids can take their classes while you take care of business. Here are a few things to check or consider. Secure your...

COVID-19 report data “on the daily”

Karen Hobbs, Assistant Director, Division of Consumer & Business Education, FTC
Every day, the FTC is collecting data, watching the numbers, and spotting the trends. We’re also spreading the word about COVID-19-related scams that target consumers and businesses. Because the more you know about what’s happening, the easier it will be to protect yourself and others from these scams. So far, we have gotten more than 175,000 COVID-19-related reports about fraud, identity theft, Do Not Call, and other consumer protection problems...

Navigating the world of kids’ marketing: Best Practice Principles from ICPEN

Stacy Feuer, Assistant Director for International Consumer Protection, FTC
As parents know, kids spend a huge amount of time online, especially now with COVID-19 school and camp closures. They get ideas from influencers on social media and video platforms, make purchases on their smartphones, and influence a lot of family spending. This phenomenon is not limited to the U.S. alone. Recent data from the Organization for Economic Co-operation and Development shows that, on average, kids around the world spend at least...

Loot boxes: What’s in play?

Lesley Fair
If you’re unfamiliar with loot boxes, you probably don’t have clients in the video game industry, aren’t a gamer yourself, or aren’t the parent of one. But for the millions of people who have been following the national – and international – conversation on the subject, the FTC just issued a Staff Perspective on its workshop, Inside the Game: Unlocking the Consumer Issues Surrounding Loot Boxes. The workshop gathered consumer advocates, industry...

20 more warning letters tell companies to cut out unproven COVID-19 claims

Lesley Fair
Coronavirus claims for zappers, virus-busting cards, sage, oregano, and bay leaves are among the representations called into question in the latest round of warning letters sent by FTC staff. With the total closing in on 300, the letters make it clear that companies need to clean up their claims about preventing or curing COVID-19. Here are the products and promises that have raised the most recent concerns. The1VirusBuster. Citing statistics on...

The hearing may be virtual, but the rules are the same

Daniel Francis, Bureau of Competition
It is generally a serious violation of our rules for counsel to pass private notes to a witness in an investigational hearing or deposition, or otherwise coach or consult with a witness, while a question is pending. 16 CFR 2.9(b)(1). Happily, violations of this rule are very rare. But, with the recent shift to remote depositions and hearings, we want to remind the bar that neither this rule nor our vigilance in enforcing it have been relaxed...

Real deadlines and real consequences

Maribeth Petrizzi, Bureau of Competition
Recently, Alimentation Couche-Tard and CrossAmerica Partners (collectively ACT) agreed to pay a $3.5 million civil penalty to settle allegations that they violated a Commission divestiture order that was designed to prevent their merger from harming consumers. A close read of the Commisson’s action in this case yields some timely advice for any company that is subject to a divestiture order. Any deadline in a Commission order is a “real” deadline...

Selling COVID-19 protective equipment? Honor your shipping promises.

Lesley Fair
Consumers and small businesses want personal protective equipment now. So when companies advertise those items online with promises of in-stock merchandise and fast shipping, those claims may be the difference between a big sale and no sale. The FTC just filed three cases alleging that marketers violated the Mail, Internet, and Telephone Order Rule and the FTC Act by – among other things – failing to have a reasonable basis to support their...