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Three recent FTC enforcement actions reflect a heightened focus on pervasive extraction and mishandling of consumers’ sensitive personal data. Proposed Settlements with Avast [1] , X-Mode [2] , and InMarket [3] In mid February, the FTC announced a proposed settlement to resolve allegations that Avast, a security software company, unfairly sold consumers’ granular and re-identifiable browsing information—information that Avast amassed through its...

To turn the old adage on its head, imitation is the insincerest form of falsity. After years of fighting back against scammers who impersonate government agencies and companies, the FTC proposed a Trade Regulation Rule on Impersonation of Government and Businesses. The Rule would allow the FTC to recover consumer redress from impersonators or to seek civil penalties against those who violate the Rule. After a painstaking process of considering...

You may have heard that “data is the new oil”—in other words, data is the critical raw material that drives innovation in tech and business, and like oil, it must be collected at a massive scale and then refined in order to be useful. And there is perhaps no data refinery as large-capacity and as data-hungry as AI. Companies developing AI products, as we have noted , possess a continuous appetite for more and newer data, and they may find that...

"I've had the blues, the reds, and the pinks. One thing’s for sure: Love stinks." Far be it from us to criticize love on Valentine’s Day, but “Love Stinks” – the 80s hit by the J. Geils Band – describes what the FTC Consumer Sentinel Data Book tells us about the injury inflicted by romance scammers. And one statistic is particularly surprising.

The FTC just issued its 2023 Consumer Sentinel Network Data Book jam-packed with facts about the kind of scams consumers have reported to us. Has the reported dollar amount lost to fraud gone up or down this year? And what are the most frequently reported scams? At this point you may ask, “I run a lawful business. Why should it matter to me?” Two reasons. First, scammers have you, your company, and your community in their sights and the Data Book can help you defend against emerging fraud trends. Second, scammers often try to mask their illegal intent by hiding behind legitimate businesses. For companies that work hard to maintain their good reputation, it’s not enough not to be a scammer. You also don’t want to be “scam-adjacent.”

At the FTC’s Tech Summit on Artificial Intelligence, Chair Khan previewed how the FTC is using its experience and expertise to establish rules of the road for AI. In her remarks, she noted that “as we continue this work, a few key principles come to mind. "First, we are focused on scrutinizing any existing or emerging bottlenecks across the AI stack. History shows that firms that capture control over key inputs or distribution channels can use...

Each year, the Commission adjusts the minimum dollar jurisdictional thresholds that determine reportability under the Hart-Scott-Rodino Act based on the change in gross national product in the prior year. The 2023 Consolidated Appropriations Act created new filing fee tiers with new filing fees and the thresholds for these filing fees, as well as the fee amounts, are also adjusted annually along with the jurisdictional thresholds. The Commission...

A look into multi-party computation and oblivious proxies The landscape of digital privacy is constantly evolving as companies and researchers implement new methods to enhance user privacy. For example, browsers are removing third party cookie functionality and mobile operating systems are integrating more transparency and user controls over data collection. “Privacy enhancing technologies” (PETs), such as end-to-end encryption, are a broad set...

January 29th kicks off 2024’s Identity Theft Awareness Week, but consumer-conscious companies promote identity theft awareness – and prevention – 52 weeks a year. As the FTC, federal and state agencies, consumer groups, and others sponsor events across the country and online, here are three things your business can do to promote identity theft awareness to customers, employees, and members of your community.

When consumers have questions about a company’s services, they often pick up the phone and call. It’s no different when consumers must select a funeral home to handle a loved one’s final arrangements. Telephone inquiries are particularly important for people who are grieving a loss or making arrangements for a loved one in a different city. That’s why the Funeral Rule requires funeral homes to provide accurate price information over the phone. The results of an undercover FTC phone sweep suggests that some providers would benefit from a compliance refresher – especially when it comes to how they handle telephone inquiries.