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TracFone’s limits on “unlimited” data lead to $40 million in consumer refunds

Lesley Fair
Certain advertising terms are bound to attract consumer attention: “free,” “no diet or exercise required” – and for people in the market for mobile data plans, “unlimited.” The FTC’s settlement with TracFone Wireless will return $40 million to consumers whose unlimited service was throttled or cut off. What can your company take from the case? TracFone is the country’s largest prepaid mobile phone service provider with approximately 25 million...

Spilling the beans: The anatomy of a diet craze

Lesley Fair
Some people call it the “Oz Effect” – the bump in consumer demand after a product or ingredient is featured on the The Dr. Oz Show. In a just-announced settlement, the FTC says defendants Lindsey Duncan, Pure Health LLC, and Genesis Today, Inc., took advantage of that phenomenon by deceptively touting the purported weight loss benefits of green coffee bean extract. The complaint recounts how defendant Duncan fueled a diet craze. The story has it...

Testing, testing: A review session on COPPA and schools

Lesley Fair
We often get questions about how the Children’s Online Privacy Protection Act applies in the school setting. The COPPA Rule gives parents control over what information “an operator of a Web site or online service” – yes, that includes apps – can collect from their kids under 13. Among other things, COPPA requires entities covered by the law to notify parents and get their approval before they collect, use, or disclose personal information from...

Unflattering resemblance

Geoffrey Green, Bureau of Competition
As discussed in a previous blog post, trade association members are subject to the same antitrust rules of the road as other companies or individuals who happen to be competitors. That means no price fixing, bid rigging, customer allocation or market division allowed, because these types of agreements are so plainly harmful that courts have condemned them as per se violations of the antitrust laws. Outside of the per se illegal category, other...

When silence isn't golden

Lesley Fair
Silence may be golden, but not for the parents of kids with speech disorders. Illinois-based NourishLife marketed two dietary supplements, Speak and Speak Smooth, advertised as the answer for kids with a broad range of speech disorders, including those associated with autism. But the FTC says the company’s claims were long on talk and short on scientific substantiation. According to the FTC, NourishLife and owner Mark Nottoli claimed their...

How to avoid common HSR filing mistakes with Item 4(c) and 4(d) documents

Premerger Notification Staff, Bureau of Competition
The PNO handles Hart-Scott-Rodino Premerger Notification Filings for well over a thousand transactions each year. When you submit an HSR Form with all of the required information, the PNO can quickly review the filing, and if necessary, forward it to the investigative staff who will focus on determining whether the acquisition presents competitive issues that warrant further review. But when filings contain mistakes, the PNO review process can...

Top 10 blog topics of 2014

Lesley Fair
Years ago, a TV network repackaged the summer rerun season with the brilliant tagline, “If you haven't seen it, it's new to you!” Going through this year’s Business Blog posts, we spotted the 10 most-read topics of 2014. Others in your industry are up on the latest. Are you? Listed alphabetically, here's what business people were reading. Advertising disclosures. If the disclosure of information is necessary to prevent deception, it has to be...

Advertise auto promotions car-fully

Lesley Fair
“$1 gets you out of your current loan or lease!” According to Trophy Nissan in the Dallas area, consumers could end their loan or lease for a buck – less than the cost of one of those air fresheners hanging from the rearview mirror. Trophy also promised to “match your tax refund so you can use it for a down payment!” Those are just two of the claims the FTC challenged as deceptive in a proposed settlement with the dealership. If you have clients...

Spotting the signs of a crampage: Lessons from the FTC’s proposed settlement with T-Mobile

Lesley Fair
Flashes at a railroad crossing. That chirp from a smoke detector. The “check engine” light on the dashboard. Those are just a few warnings that merit your attention. The FTC’s proposed settlement with T-Mobile – which imposes at least $90 million in financial remedies, including full consumer refunds – highlights another warning that businesses should heed: clear indications that consumers are getting billed without consent. The FTC sued T-Mobile...

FTC Milestones: Cold War chills report on International Petroleum Cartel

Kelly Signs, Bureau of Competition
The FTC’s status as an independent agency, secured in an early constitutional challenge to the FTC Act, was tested during the early years of the Cold War when the agency’s international work provoked a national security debate at the highest levels. Students of constitutional history may recall that the Supreme Court in Humphrey’s Executor v. United States, 295 U.S. 602 (1935), determined that the President does not have the authority to fire...
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