Blog

The phrase is only nine letters long, but for many consumers, it makes the difference between a product in the shopping basket and one left on the shelf. It’s “Made in USA” and the FTC just announced a settlement of its lawsuit against Chemence, Inc., for misleading Made in USA claims. If your company makes similar representations, is it time for a compliance check? Georgia-based Chemence manufactures Kwik Fix, Hammer Tite, and Krylex Glues –...

Do you ever hear from customers or employees who want you to know that they’ve been affected by identity theft? If so, you’ll probably start seeing them use the new FTC Identity Theft Report. It tells you that someone important to your business is a crime victim, has alerted law enforcement, and is working to resolve the financial and emotional disruption that identity theft causes. The new Identity Theft Report is a product of IdentityTheft.gov...

The Premerger Notification Office is often asked to give guidance on how to determine the value of a proposed merger or acquisition in light of the size of transaction test. The size of transaction test excludes transactions from the reporting requirements of the Hart-Scott-Rodino Act if they are valued below the annually adjusted dollar threshold. The current size of transaction threshold is $78.2 million. Questions often arise when determining...

Not many kids play with yo-yos these days, but an FTC complaint against nine related Los Angeles-area car dealers charges that the companies engaged in (among other things) illegal yo-yo financing practices – and for affected consumers, it was no game. Even if you don’t have clients in the auto industry, this case merits your attention. Additional allegations regarding phony online reviews, misleading add-ons, and deceptive advertising illustrate...

There’s no such thing as a free lunch. That’s what consumers who signed up for NutraClick’s “free” samples learned. But what can your business take away from the FTC’s settlement with NutraClick? If your company is considering offering a negative option program, and wants it to be a positive experience, you’ll want to read on. Maybe you’ve heard of NutraClick. They sell nutritional supplements and beauty products including Force Factor, Peak Life...

Researchers report that 72% of American adults now own a smartphone and when they’re on their phones, 89% of their time is spent on apps. An analysis of how app developers generate revenue raises some interesting issues that touch on consumer privacy. How do app developers make money? Some sell their apps directly to users. Others offer in-app purchases. A third business model is to generate revenue from ads. To facilitate that, app developers...

We often get the question, “If I comply with the NIST Cybersecurity Framework, am I complying with what the FTC requires?” From the perspective of the staff of the Federal Trade Commission, NIST’s Cybersecurity Framework is consistent with the process-based approach that the FTC has followed since the late 1990s, the 60+ law enforcement actions the FTC has brought to date, and the agency’s educational messages to companies, including its recent...

“It’s a dog’s life,” they say – and according to Mars Petcare, its Eukanuba brand of dog food could extend dogs’ lives by 30%. But the FTC alleges that Mars made misleading representations about the products’ life-extending benefits and falsely claimed that scientific tests supported what the company said. Mars Petcare US, a wholly-owned subsidiary of Mars, Inc., sells some of the biggest brands in the dog food business. Eukanuba’s ads featured...

Multi-level marketer Herbalife will pay $200 million back to people who were taken in by what the FTC alleges were misleading moneymaking claims. But when it comes to protecting consumers, that may not be the most important part of the just-announced settlement. What could matter more than $200 million? An order that requires Herbalife to restructure its business from top to bottom – and to start complying with the law. Advertising in English and...

The Internet of Things refers to consumer products that connect to the Internet to send and receive data – everything from fitness devices, wearables, and smart cars to connected smoke detectors, light bulbs, and refrigerators. These new products bring enormous benefits to consumers – including the ability to track and share their vital signs with care providers without having to go to a doctor’s office, turn off the burglar alarm and turn on the...