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If there’s one theme that runs through decades of FTC law, it’s that companies need consumers’ informed consent to bill their accounts. That was true in the early days of mail order. It carried through to online shopping. And it remains the law for mobile devices, including in-app purchases. The FTC’s lawsuit against Amazon alleges the company didn’t honor that elementary principle. As a result, the FTC says thousands of parents were billed for...

It was an all-too-common occurrence. People’s mobile phone bills included unexplained – and unauthorized – monthly charges. It’s called cramming and the FTC has brought a series of cases against companies that had fees for ringtones, horoscopes, “love tips,” etc., placed on cell phone bills without consumers’ consent. The crammers took a chunk of the cash, but you might be surprised to learn who the FTC says pocketed a 35-40% piece of the action...

When ads for beauty products convey subjective claims – for example, L’Oréal’s long-standing “Because I’m worth it” tagline – it’s unlikely consumers would think statements like that are supported by science. (It’s hard to imagine a testing protocol that could establish whether or not we’re worth it.) But flip through a magazine and it’s apparent that test tubes are overtaking powder puffs in how some cosmetics are marketed. When companies tout...

The headline read ZIP. ZERO. NADA. In big print, the ads also said 0 money down* and 0 for paid closing costs*. Heritage Homes didn’t include ZILCH, BUPKES, or (for “Buffy the Vampire Slayer” fans) THE BIG GOOSE EGG, but the FTC says the meaning to prospective buyers was clear. So how much truth was in that across-the-board “zero” claim? According to the FTC’s complaint: Zip. Zero. Nada. Through newspaper ads, flyers, and direct mail, the...

If it hasn’t happened yet, it’s only a matter of time. You walk into a room – say, to get your sunglasses – and then can’t remember why you’re there. So it’s no wonder that claims for BrainStrong Adult, a dietary supplement advertised on TV, online, and through an active social media presence, caught consumers’ eye. Ads said that Brain Strong Adult “helps protect against normal cognitive decline as we age” and is “clinically shown to improve...

Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges. (Shemp doesn’t count.) But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers. But there’s relief on the way in the form of a...

Dare us to describe the legal ramifications of a recent advertising settlement involving health claims in the style of a cringeworthy rap from 1990? Cue up the bass line ‘cause here we go. Yo, FTC, let’s kick it. Lice, Lice, Baby. Lice, Lice, Baby. Advertisers, stop! Support your claims with back-up Or face an enforcement crack-up. You need proof. There’s no exception. The law bans every kind of deception. To say your products prevent infestation...

A mobile app that lets users send photo and video messages that recipients can look at for a moment before the content is, in effect, gone with the wind? Scarlett O’Hara could have declared her love for Rhett Butler (or Ashley Wilkes), confident that the message was ephemeral. Of course, residents of Tara didn’t have access to the popular app Snapchat, which claimed to do just that. But according to an FTC settlement, the company’s promise that...