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The Fair Credit Reporting Act isn’t just about credit. If your company uses background checks in making personnel decisions, the FTC reminds you of your obligations under the FCRA. In honor of Throwback Thursday, here’s an unconventional old-school summary of key requirements under federal law. Spin the mirrored disco ball and join us on the dance floor for “F-C-R-A.” Employers, There’s a law that applies When a prospect’s Background you...

You don’t need to go to a water park to see performing seals. You can spot them on websites where they perform the function of conveying information about the purported environmental benefits of products. But do the groups offering those seals – and the companies that display them – have appropriate proof for the claims consumers take from them? If your clients use environmental seals or certifications, you’ll want to see the latest from the FTC...

If there’s a material connection between a marketer and an endorser, disclose it. That’s been the FTC standard for decades and it didn't change when marketing moved to social media. The FTC’s proposed settlement with online entertainment network Machinima illustrates missteps that could land advertisers, ad agencies, and PR firms in testimonial turmoil. But what about endorsers, affiliates, influencers, brand ambassadors, etc.? It’s time to...

Does your company use background checks in evaluating job applicants? If so, are you complying with the Fair Credit Reporting Act’s notice, consent, and disclosure requirements? A closing letter the FTC staff sent to California Health & Wellness elaborates on the applicability – or, in this instance, the inapplicability – of a narrow FCRA exception. When it comes to background checks, the FCRA put a premium on notice, consent, and disclosure...

It’s one thing to create buzz about a product. But fail to disclose a material connection between an endorser and an advertiser and that buzz can wind up stinging you. That’s the message of an FTC lawsuit against Machinima, a top entertainment network on YouTube that specializes in videogame culture and generates more than 3 billion (with a b) views each month. The FTC says Machinima made undisclosed payments to influential gamers in exchange for...

FTC watchers and data security mavens, it’s the decision you’ve been waiting for. The United States Court of Appeals for the Third Circuit has issued a ruling in the Commission’s favor in FTC v. Wyndham Worldwide Corporation. The FTC sued the hospitality company and three subsidiaries, alleging that data security failures led to three data breaches at Wyndham hotels in less than two years. According to the complaint, those failures resulted in...

Today, the Commission (with the help of our friends at the Justice Department) filed a proposed settlement in federal court to settle charges that three funds managed by Third Point violated the Hart-Scott-Rodino Act by failing to make the necessary premerger notification filings when they acquired shares of Yahoo! Inc. The complaint alleges that Third Point improperly relied on the investment-only exemption to the HSR requirements, and contains...

It doesn’t take much to convince us we need something new for the shoe closet – and our vintage high-tops and periwinkle platforms stand as a silent testament to that. But an ultraviolet light contraption advertised to kill germs, fungus, and bacteria, including MRSA, inside shoes? An FTC settlement with the marketers of shUVee gives the boot to those misleading claims. A second settlement turns the lights out on representations by other...

The classic 40s movie An Email to Three Wives, the R&B hit Take an Email, Maria, and C.S. Lewis’ The Screwtape Emails. The titles would have been different if they had been written recently. Email is an essential part of most companies’ marketing strategy. If you send commercial email – or have others send it for you – are you complying with the CAN-SPAM Act and the FTC's CAN-SPAM Rule? FTC attorney Christopher Brown answers some of the CAN-SPAM...

Businesses are understandably concerned about the threat that hackers pose to the security of sensitive data on their networks. But a closing letter the FTC staff sent to Morgan Stanley Smith Barney LLC warns of another danger lurking closer to home. The FTC staff investigated the allegation that a Morgan Stanley employee had misappropriated information about the company’s wealth management clients. How did the person do it? By allegedly...