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All about the tout: Takeaway tips from the FTC’s Sony-Deutsch settlements

Lesley Fair
Looking for PlayStation tips and tricks? We can’t tell you how ISA Vekta Special Forces Team Alpha can navigate the Akmir Snowdrift in Killzone 3. But for businesses – including ad agencies and PR firms – interested in keeping their practices out of the Pyrrhus Crater, the FTC’s proposed settlements with Sony Computer Entertainment America and ad agency Deutsch LA offer practical guidance. The lawsuits charge that the companies overhyped the...

Game over: FTC challenges Sony’s claims for PlayStation Vita and tweets by Deutsch LA

Lesley Fair
According to the ads, “It’s a problem as old as gaming itself. Stay home and just keep playing, or get to work on time so your coffee breath boss doesn’t ride you like a rented scooter.” For gamers who face that dilemma, Sony Computer Entertainment America marketed its PlayStation Vita as the solution. But according to a settlement announced by the FTC, Sony didn’t deliver on its promises. The lawsuit also charged that Sony’s ad agency, Deutsch...

Company to pay $22 million for offering "free" credit scores that turned out to be not so free

Lesley Fair
We’ve brought law enforcement actions – dozens of ‘em. We’ve held workshops, issued reports, and sent warning letters. If it takes sky writing, tap dancing, and a float in a Thanksgiving Day parade, we’ll do that, too. But here’s what’s not going to happen. The FTC is not giving up until businesses get the message that: 1) Free means free; and 2) Key terms and conditions have to be clearly and conspicuously disclosed. A $22 million settlement...

FTC Milestones: Making the case for reform of public utility holding company laws

Kelly Signs, Bureau of Competition
From its earliest days, the Commission has used its authority under Section 6 of the FTC Act to gain a deep understanding of competitive conditions in a variety of industries. In its first two decades alone, the FTC produced more than 100 studies or responses to general inquiries, most often pursuant to Congressional resolutions or Presidential orders. Information and insight gained in these inquiries generated policy recommendations to tackle...

The FTC's TRUSTe case: When seals help seal the deal

Lesley Fair
People who aren’t into marketing jargon might not know a “credence claim” from a Creedence Clearwater Revival, but experts tell us it’s a representation about a product that consumers aren’t in a position to evaluate for themselves. One example is what websites say about their privacy practices. Because consumers can’t test the accuracy of those claims, they often rely on third-party seals trusted for their expertise and independence. The FTC...

FTC Milestones: Shared beginnings in the Circle Cilk case

Lesley Fair, Bureau of Consumer Protection
In celebration of the FTC’s 100th anniversary, we’ve been examining the leaves on our family tree. The FTC’s founding is often associated with turn-of-the-century trust busting, but a closer look – including a study of the very first case published in Volume 1 of Federal Trade Commission Decisions – proves that the intertwined roots of consumer protection and competition run deep. That’s one of the themes of the FTC@100 Symposium on Friday...

FTC settlement challenges deceptive claims by patent assertion entity

Lesley Fair
Patent assertion entities have been the subject of much debate in antitrust and intellectual property circles. But there’s one proposition we hope that parties on all sides of the issue can agree on: It’s illegal to falsely threaten patent suits against small businesses or make unfounded claims that other companies have paid for patent licenses. That’s the misconduct alleged in a settlement the FTC just announced with patent assertion entity MPHJ...

Dating advice from the FTC? Not really, but read on.

Lesley Fair
How’s this for a profile on a dating site? “Enjoys travel, long walks on the beach, fake potential dates that really are subscription solicitations, and illegal negative option programs, in violation of the Restore Online Shoppers’ Confidence Act (ROSCA).” If that’s your idea of a dream date, have we got a site for you! No, the FTC isn’t playing matchmaker, but we are settling a law enforcement action against UK-based JDI Dating. JDI operates a...

From the antitrust mailbag: manufacturer-imposed requirements

Alan Friedman, Bureau of Competition
Here’s another common question we receive from retailers: A manufacturer is placing restrictions on the way I price its products. I think this is anticompetitive. Is it a violation of the antitrust laws for a manufacturer to tell me what price to charge? In most situations, a manufacturer’s requirements imposed on retailers are legal, so long as they are limited to the sale of that supplier’s products. Such requirements are usually legal because...

First FTC ROSCA case challenges bogus BOGO and "free" claims

Lesley Fair
It’s called ROSCA – the Restore Online Shoppers’ Confidence Act – and it prohibits marketers from charging consumers for an online transaction unless the marketer has clearly disclosed all material terms of the deal and received the consumer’s express informed consent. Your e-commerce clients will want to know about the FTC’s first ROSCA case, filed recently in Nevada. According to the lawsuit, Health Formulas, LLC and a tangle of related...
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