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Lesson of BLU: Make the right privacy, security calls when working with service providers

Lesley Fair
Keep a watchful eye on your service providers. For conscientious companies, that’s Privacy & Data Security 101. It’s also a key compliance tip from the FTC’s proposed settlement with mobile device manufacturer BLU . Florida-based BLU sells mobile devices – according to the company, more than 50 million of them – through big-name national and global retailers. It outsources production to manufacturers who built the devices to BLU’s specifications...

Where in the world? Warning letters address geolocation and COPPA coverage

Lesley Fair
Remember that public service announcement: “It’s 8:00. Do you know where your children are?” Technology has given parents tools for answering that question. But under the Children’s Online Privacy Protection Rule, online services touted as ways to keep kids connected need to comply with key parental notice and consent provisions of COPPA – especially when they’re collecting children’s geolocation. That’s the message of two warning letters just...

FTC challenges Lending Club’s “No Hidden Fees” claims

Lesley Fair
It’s a given that companies shouldn’t charge consumers hidden fees. But it raises a particular concern when an online lender makes “No Hidden Fees” claims a centerpiece of its marketing – and then deducts from those loans hundreds or even thousands of dollars in hidden up-front fees. According to a lawsuit filed by the FTC , Lending Club, which bills itself as “the world’s largest online marketplace connecting borrowers and investors,” attracts...

The FTC announces new cybersecurity education for small business

Rosario Méndez
Last year, we heard from small business owners about their cybersecurity challenges at a series of roundtable discussions the FTC hosted with some of its partners. What we learned is that small business owners need and want information on how to keep their computer systems and business data safe. So we’re planning to provide that to them. Later this year, the FTC will launch a small business education campaign on cybersecurity, in partnership...

FTC addresses Uber’s undisclosed data breach in new proposed order

Lesley Fair
In its August 2017 proposed consent agreement with Uber, the FTC alleged, among other things, that the company’s unreasonable security practices resulted in a May 2014 data breach. But there’s more to the story now. According to the FTC, Uber experienced another breach in the fall of 2016 – right in the middle of the FTC’s nonpublic investigation – but didn’t disclose it to the FTC until November 2017. To address that issue, the FTC has withdrawn...

A Lesson from Uber: Secure Your Non-Production Software Environments

Neil Chilson, Acting Chief Technologist
Earlier today, the FTC announced a revised settlement with Uber regarding the company’s privacy and data security promises . The case involved multiple breaches of Uber’s cloud storage infrastructure where the company stored full and partial backups of databases containing information about Uber users and drivers. The complaint alleges that Uber failed to reasonably secure this cloud storage. According to the complaint, Uber software engineers...

A recap of 2017: FTC’s Annual Highlights

Carol Kando-Pineda
No matter what you call it – facts and figures, the boxscore, or a report from the stat-o-sphere – a recap is a great way to get the lay of the land. Which brings me to the FTC’s Annual Highlights , a short but detailed summary of the Commission’s 2017 efforts to promote competition and protect consumers. In her statement introducing the Highlights , Acting Chair Maureen Ohlhausen cited the agency’s “robust consumer protection agenda” and the...

FTC staff sends warranty warnings

Lesley Fair
When the screen goes blue And the car breaks down And the smartphone keeps rebooting eternally Consumers won ’ t be afraid No, they won ’ t be afraid Just as long as you stand by your warranty. With apologies to R&B legend Ben E. King, when consumers buy a product with a warranty, it’s with the expectation that businesses will stand by what they sell. But standing by your warranty won’t do customers much good if you disregard the Magnuson-Moss...

Report tax identity theft with IdentityTheft.gov

Seena Gressin
If you’re a tax professional, business owner, or in a human resources department, the FTC and IRS can help you help clients, employees, or other people who discover they’re victims of tax-related identity theft. Tax-related identity theft happens when someone uses your stolen Social Security number (SSN) to file a tax return and claim your refund. You might find out about it when you try to e-file — only to find that someone else already has...

Mattress sellers stick buyers with misleading “USA” claim

Lesley Fair
Here’s the thing about nectar. It can be sweet, but sticky. People who paid Palo Alto-based Nectar Brand LLC for mattresses labeled “Designed and Assembled in the USA” thought they were getting a sweet deal. In fact, buyers were stuck with mattresses imported from China, already completed. The company, which also uses the names Nectar Sleep and DreamCloud, performed no assembly operations in the United States. Thus, the FTC’s complaint alleges...