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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...

Zero sum game?

Lesley Fair
For people in the market for a car, an ad on YouTube for Massachusetts-based Courtesy Auto Group featured some eye-catching numbers: “Get behind the wheel of the new 2013 Kia Sorento, now lease priced for $239 a month with zero down, or sale priced at $20,980.” To emphasize the point, the visual on the screen highlighted in bold letters: $239/mo with $0 down But it’s what came later that led to an FTC lawsuit – and the tenth settlement with a...

Needle and threats

Lesley Fair
The Fair Debt Collection Practices Act lays out some pretty clear dos and don’ts for debt collectors. Do identify yourself as a debt collector. Do follow up within five days of your initial communication with a written notice setting out the amount of the debt, the creditor's name, and details about how consumers can proceed if they dispute the debt. Now for some don’ts: Don’t imply a government affiliation. Don’t accuse people of a crime or...

Do you sell health products? Court opinion offers truth-in-advertising recap

Lesley Fair
Advertisers that sell health products should know the legal standards by now, but to those resistant to the message, a federal judge in California spelled them out again in a $2.2 million judgment against the marketers of two diabetes products – Diabetic Pack and Insulin Resistance Pack. Wellness Support Network and co-owners Robert Held and Robyn Held marketed their products through their own website, on Amazon.com, and on eBay. According to the...

FTC settlement with ADT sounds alarm about deceptive use of paid endorsers

Lesley Fair
Consumers who tuned in to programs like the Today Show, Daybreak USA, and local newscasts may have caught interviews with guests billed as “The Safety Mom,” a home security expert, or a tech expert. Among the products they reviewed was ADT’s Pulse Home Monitoring System. Describing it as “amazing” or “incredible,” they offered glowing details about its capabilities, safety benefits, and cost. But according to the FTC, here's one material fact...

Are your green claims clean? Knock on wood.

Lesley Fair
Not every building project starts with an ax-wielding guy in a flannel shirt yelling “tim-berrrr!” Consumers have another choice these days: plastic lumber, which is often used in decking, fences, outdoor furniture, etc. Wisconsin-based N.E.W. Plastics Corporation (you may know them as Renew Plastics) manufactures two lines of plastic lumber – Evolve and Trimax – and touts their environmental benefits. But according to a settlement announced by...

A light bulb moment for marketers

Lesley Fair
When did a light bulb become the symbol of a good idea? We don’t know, but a ruling in the FTC’s lawsuit against Lights of America – including a $21 million order mandating refunds for consumers and some bookmark-worthy notable quotes from the Court – should serve as a light bulb moment for marketers. The FTC charged California-based Lights of America and its two owners with overstating the light output and life expectancy of their LED bulbs and...
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