Blog

The FTC applies a consistent approach to evaluating ad claims. Companies must have a reasonable basis for objective representations, including claims that a product can treat specific health conditions. Whether it’s an over-the-counter drug, dietary supplement, or food, the same established standards apply. And as an FTC Enforcement Policy Statement explains, that also holds true for OTC homeopathic drugs. Consumers can find a host of homeopathic...

From the perspective of consumers, the whole purpose of prepaid debit cards – their reason for living, if you will – is to give consumers immediate access to their money. Those cards are an especially important financial lifeline for people who don’t have traditional bank accounts. In pitching its reloadable prepaid cards, NetSpend Corporation promised consumers “immediate access” to their funds with “no holds, no waiting.” But according to an...

On Monday, the FTC accepted for public comment a proposed consent order involving a consummated merger in the eye care industry. According to the complaint, Valeant Pharmaceuticals’ 2015 acquisition of Paragon Holdings reduced competition for polymer discs (aka buttons) used to make three types of rigid gas permeable (hard) contact lenses. Under the proposed order, Valeant, the parent of Bausch + Lomb, must divest the entire hard contact lens...

Looking for a new job can be stressful, whether you are a new worker applying for your first job or a highly trained professional seeking to advance in your career. The last thing a job-seeker should have to worry about is a back-room deal among employers that keeps her from getting the job of her dreams or from being offered a fair salary. Today, the FTC and the U.S. Department of Justice issued guidance to explain how the antitrust laws apply...

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...