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FTC’s Teami case: Spilling the tea about influencers and advertisers

Lesley Fair
The “what” of the FTC’s settlement with Teami, LLC, shouldn’t come as a surprise. The complaint alleges the defendants took in more than $15 million by deceptively claiming their array of teas could cause rapid and substantial weight loss, “fight against cancerous cells,” decrease migraines, unclog arteries, and prevent colds and flu. What’s different is the “how.” The defendants advertised primarily through a massive social media campaign. Also...

FTC challenges claims for Quell pain relief device

Lesley Fair
Real estate professionals say it’s all about “location, location, location.” For health-related claims, the FTC says it’s all about “substantiation, substantiation, substantiation.” Marketers of an electric device called Quell claimed their product could treat chronic and severe pain throughout the body caused by conditions as diverse as arthritis, nerve damage, sciatica, shingles, and fibromyalgia. And they said all that could be accomplished by...

May 13th workshop takes a closer look at the GLB Safeguards Rule

Lesley Fair
Turning eighteen was a momentous birthday for most of us and the same could be said for the Gramm-Leach-Bliley Act’s Safeguards Rule. Finalized in 2002 and in effect since 2003, the Safeguards Rule requires “financial institutions” to develop, implement, and maintain a comprehensive information security program for handling customer information. The FTC announced last year that it was putting the Safeguards Rule under the regulatory review...

Small business financing: Staff Perspective outlines issues

Lesley Fair
As an essential engine of the American economy, small business has a big impact. But where can small business owners turn for the capital they need to grow? Traditional lenders are one option, but the “It’s a Wonderful Life” image of George Bailey at the Building & Loan may not reflect reality. New online options may broaden the availability of credit, but they also raise some consumer protection concerns. That was the topic of Strictly Business...

FTC’s Privacy & Data Security Update for 2019 – and how you can use it

Lesley Fair
To review everything the FTC did in 2019 dealing with consumer privacy and data security – Enforcement, Advocacy, Rules, Workshops, Consumer Education, Business Guidance, and International Engagement – it could take days to compile all that information. The FTC has an easier way to share those developments with your company, clients, and colleagues. Our annual Privacy & Data Security Update offers a to-the-point take on what happened in 2019...

Text message package scam delivers more than your business bargained for

Lesley Fair
There’s a text message scam making the rounds that could target your mail room staff, receptionist, or other employees. The FTC has tips on how you can protect your business. Our Consumer Blog describes a text message people are receiving that claims to be a FedEx tracking notice. In variations on the scheme, fraudsters also are falsely invoking the names of UPS and the U.S. Postal Service. According to the text, there’s a “delivery” that needs...

Villainous valentines: A romance scam playlist

Lesley Fair
You're a heartbreaker. Dream faker. Trouble maker. Don't you mess around with me. With apologies to Pat Benatar, our version of her hit Heartbreaker could join Love Stinks, You’re No Good, and Lips are Movin’ on our slightly skewed Valentine’s Day playlist. Maybe it’s the decades of dealing with deception, but February 14th reminds us to remind others that sometimes hearts and flowers can give way to hurts and sours – and reports in the FTC...

FTC challenges Online Trading Academy’s money-making claims

Lesley Fair
Ads for health products often target Boomer Consumers, but those aren’t the only claims pitched to people looking toward retirement. An FTC action alleges a company called Online Trading Academy has taken in more than $370 million by gearing its deceptive representations to that demographic. In addition, the complaint alleges violations of the Consumer Review Fairness Act. According to the FTC, the California-based operation, related companies...

Endorsement Guides: The FTC wants your feedback

Lesley Fair
Does your company use endorsements in your advertising? Or perhaps you endorse other companies’ products. Then you’ll want to follow the FTC’s just-announced regulatory review of its Endorsement Guides. Every ten years or so, the FTC puts each of its rules and guides under the microscope. What’s the current state of the marketplace? What impact has the rule or guide had on consumers and businesses? Have there been changes in technology that...

Folder-in-due-course doctrine?

Lesley Fair
You’ve heard of the holder-in-due-course doctrine. An FTC settlement with two Oregon-based businesses introduces the folder-in-due-course doctrine: the principle that it’s illegal to make misleading claims to induce small businesses to buy advertising space in promotional folders. It’s the latest FTC action challenging deceptive practices that target smaller companies. Telemarketers for Production Media Group Corporation, The Ferraro Group, and...