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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...

Whether it’s a website where people diagnosed with the same medical condition can share their stories or an app to find out how long it will take in the gym to burn off a Macadamia Mania Ripple sundae, consumers are taking their health in their own hands – and generating a massive amount of digital data in the process. If you or your clients have jumped into this burgeoning market, here’s a development you’ll want to follow. Consumers are...

Cramming unauthorized charges onto phone bills violates the FTC Act, of course. But depending on the circumstances, cases like that also can result in criminal prosecution. Two brothers who bilked consumers out of millions as part of a cramming scam are now behind bars – giving a whole new meaning to the term “cell phone.” And the prosecutors who brought the case, Assistant United States Attorneys Hallie Mitchell Hoffman and Kyle F. Waldinger...

When one company acquires another, there’s usually a lot of discussion about how to harmonize divergent procedures – everything from personnel policies to buying paper clips. But a letter to executives at Facebook and WhatsApp from Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, should remind businesses there's one thing that doesn’t change: privacy promises made to customers. The letter focuses on Facebook’s proposed...