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FTC alleges deceptive “free” offers teed off golfers and left home chefs feeling burned

Lesley Fair
When websites prominently advertised “FREE!” golf balls and other gear, duffers and low-handicappers alike swung for the deal. But according to the FTC , 10 related defendants drove consumers into the rough with poorly disclosed terms and conditions, deceptive negative options, and misleading upsells, in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act. On their sites, the defendants pitched golf equipment, kitchen gadgets...

Pulleys pushed with deceptive Made in USA claims

Lesley Fair
According to a settlement announced by the FTC , a Texas-based company used misleading Made in USA claims to push its pulleys. Read on for an ironic object lesson related to a specific pulley component engraved with the phrase “Made in USA.” Among other things, Block Division, Inc., sells metal pulleys for industrial use – for example, to lift boats, operate overhead doors, or move theatrical scenery. The company advertises its products online...

Protecting consumers by promoting competition

Abbott B. Lipsky, Jr., Bureau of Competition
This is National Consumer Protection Week , a week set aside every year to help consumers know their rights and make well-informed choices in the marketplace. Here at the FTC, we’re all about protecting consumers. One way we do this is by enforcing the antitrust laws. Competition is the fuel that drives America’s free-market system. But competition can only thrive if firms respect the antitrust laws, which are the rules of the free market. When...

Has a phishing scam hooked your company’s good name?

Allison Lefrak
When internet fraudsters mimic a legitimate business to trick consumers into giving out their personal information, it’s called phishing. It’s not just a problem for consumers, but for the companies the scammers are impersonating too. The FTC has long provided advice to consumers about steps they can take to avoid phishing scams. But what should you do if customers contact your company upset that they responded to a phishing email from a scammer...

Trial and error

Lesley Fair
Imagine a series of promotions that involve pain relief promises, cognition claims, endorsements, 30-minute radio ads, “risk-free” money-back guarantees, “free” trial offers, negative options, telemarketing, and upsells of buying club memberships. What could possibly go wrong for consumers? Where would you like to start? The FTC and the Maine Attorney General announced settlements with six defendants and complaints against three others involved...

It’s illegal to ban honest reviews

Annette Soberats
Congress unanimously passed the Consumer Review Fairness Act to protect people’s ability to share in any forum their honest opinions about a business’ products, services, or conduct. Some companies had been using contract provisions – including their online terms and conditions – to threaten to sue consumers or penalize them financially for posting negative reviews or complaints. The new law makes that illegal. FTC staff just issued Consumer...

Background checks? Don’t double-dip.

Tiffany George
Need to verify an applicant's employment or income history? Checking to see if a candidate has a criminal history or civil judgments? If you get information from a company that compiles it so you can make eligibility determinations, you must comply with the Fair Credit Reporting Act (FCRA) . That means no double-dipping. If you get a consumer report for one purpose, don’t use it for a different purpose. The FCRA applies when you use consumer...

What Vizio was doing behind the TV screen

Lesley Fair
Consumers have bought more than 11 million internet-connected Vizio televisions since 2010. But according to a complaint filed by the FTC and the New Jersey Attorney General , consumers didn’t know that while they were watching their TVs, Vizio was watching them. The lawsuit challenges the company’s tracking practices and offers insights into how established consumer protection principles apply to smart technology. Starting in 2014, Vizio made...

Looking back (again) at FTC merger remedies

Dan Ducore and Naomi Licker, Bureau of Competition
The newly released Remedy Study is the culmination of nearly two years of effort by FTC staff to look back at Commission merger orders from 2006 through 2012. We looked at 89 merger orders affecting 400 markets, with 79 divestitures to 121 buyers. We evaluated 50 of those orders using a case study method, interviewing nearly 200 businesses in a wide range of industries and collecting sales data from almost that many. The report synthesizes that...

Second FTC settlement with VW challenges green claims for 3.0 liter diesels

Lesley Fair
Sometimes a sequel can be just as compelling as the original and we think a just-announced settlement that makes owners of 3.0 liter VW, Audi, and Porsche diesels eligible for more than $1 billion in payments fits that description. In June 2016, the FTC’s record-setting $10 billion settlement with VW alleged that the company pitched its 2.0 liter “clean diesel” vehicles as an attractive option for environmentally conscious consumers. But...