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Lice, Lice, Baby

Lesley Fair
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...

From the antitrust mailbag: refusals to deal

Alan Friedman, Bureau of Competition
Here’s a very common question, and the writer is usually a retailer who sells products from different manufacturers. Q: I received notice from my supplier that the company will no longer provide its products for me to sell. Is it a violation of the antitrust laws for my supplier to cut me off? Typically, the answer is no, it is not a violation of antitrust law for a supplier to refuse to sell to a dealer. In our free market economy, a seller...

Gone with the wind?

Lesley Fair
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...

Antitrust by association(s)

Geoffrey Green, Bureau of Competition
Antitrust enforcers have always been concerned about the potential for harm arising from the activities of trade groups made up of competitors. From its earliest days, the FTC has examined the conduct of trade associations. For example, here’s a passage from the FTC’s first annual report circa 1916: One of the most important questions of trade policy at the present time relates to the practice of trade associations. Their activities are of a...

Checking up on consumer generated health information

Kristen Anderson
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...

Cram doesn't pay

Lesley Fair
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...

FTC staff to Facebook and WhatsApp: Privacy promises prevail

Lesley Fair
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...

Keep FCRA in the foreground when the subject is background screening

Lesley Fair
When the talk turns to Big Data, part of the conversation is about all the public information available about people's lives – and how companies market it to prospective employers, landlords, etc. Two cases just announced by the FTC serve as a cautionary reminder to members of the industry that what they do may be subject to the long-standing consumer protections of the Fair Credit Reporting Act (FCRA). InfoTrack, an Illinois company, and San Diego-based Instant Checkmate will be paying civil penalties to settle FTC lawsuits that they violated the FCRA. Is it time for an FCRA refresher at your business?

Default lines: How the FTC says Credit Karma and Fandango SSLighted security settings

Lesley Fair
Imagine a burly doorman at an exclusive party. When someone claims to be a guest, the doorman checks their invitation and runs it against the names on the list. If it doesn’t match up, the person won’t make it through the velvet rope. But what happens if the doorman isn’t doing his job? His lapse could allow a ringer into the party to scarf up the hors d’oeuvres and steal the valuables. It’s not a perfect analogy, of course, but the FTC’s...

A license that is more than a license

Susan Huber and Cathlin Tully, Bureau of Competition
Today, the Commission accepted for public comment a proposed order designed to preserve competition after the merger of CoreLogic and DataQuick, two of only three firms that license national assessor and recorder bulk data. The proposed order does this by facilitating the entry of RealtyTrac to replace the loss of DataQuick as an independent competitor. To establish RealtyTrac as a viable entrant, CoreLogic is required to supply the company with...
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