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FTC challenges claims for smartphone breathalyzer pitched on “Shark Tank”

Lesley Fair
Fans of “Shark Tank” will remember it as one of the show’s most dramatic bidding wars. Charles Yim, CEO of Breathometer, pitched his smartphone-enabled breathalyzer as a way to “help people make smarter and safer decisions” about drinking and driving. All five sharks went for the product hook, line, and sinker. But according to the FTC , the defendants’ deceptive claims about the accuracy of the devices’ readings left consumers floundering. The...

Have a plan to comply with the bar on horizontal interlocks

Debbie Feinstein, Bureau of Competition
With some exceptions, Section 8 of the Clayton Act prohibits the same individual from serving as an officer or director of two competing corporations. Like other portions of the forward-looking Clayton Act (including Section 7 with its proscription on mergers that are likely to harm competition), Section 8 was designed to “nip in the bud incipient violations of the antitrust laws by removing the opportunity or temptation to such violations...

$20 million FTC settlement requires Uber to have proof for earnings, auto financing claims

Lesley Fair
In promotional materials to attract prospective drivers, ride-hailing company Uber Technologies touted how much money drivers would earn and the favorable terms they could get by financing a car through Uber’s Vehicle Solutions Program. But according to an FTC complaint , Uber exaggerated those earnings claims and misrepresented the terms of its Vehicle Solutions Program. A $20 million settlement stands for the proposition that established truth...

$586 million Western Union settlement: Be careful about the company your company keeps

Lesley Fair
“For many years, Western Union’s money transfer system has been used by fraudsters around the world to obtain money from their victims.” That’s how the FTC’s complaint against Western Union opens – and it tells a compelling story of a corporation the FTC says knew that massive fraud was afoot and had the ability to address it, but chose to look the other way. It didn’t end there because according to the lawsuit, even in the face of obvious...

Redress checks and compliance checks: Lessons from the FTC’s Herbalife and Vemma cases

Lesley Fair
As part of the FTC’s historic $200 million settlement with Herbalife , about 350,000 Herbalife distributors should be watching their mail for a partial refund check. The FTC has more information about the refunds and advice for people thinking about investing in a multilevel marketing opportunity. But it’s also a good time for some straight talk with members of the MLM industry. The FTC has a more than 40-year history challenging unfair and...

Prevagen complaint suggests mindfulness about memory claims

Lesley Fair
Ads for Prevagen claimed that the purported memory improvement supplement is “The Name to Remember,” but according to a lawsuit filed by the FTC and the New York Attorney General , it’s a product consumers might be better off forgetting. Ever “walk into a room and forget why,” “spend extra time looking for car keys or purse,” or have “trouble remembering names or faces”? The defendants pitched Prevagen, a supplement containing a protein found in...

Edge of ‘17

Lesley Fair
“ Just like the white winged dove sings a song ,” you can count on the BCP Business Blog to celebrate the “Edge of Seventeen” – 2017, of course – with a recap of in-case-you-missed-it developments from 2016. (Sorry, Stevie Nicks. That was a stretch.) In no particular order, here is our take on ten noteworthy consumer protection actions from the year gone by. Green claims. Any recap has to highlight the historic $10 billion partial settlement with...

Collection Protection reflection

Lesley Fair
Before we start making New Year’s resolutions for 2017, let’s assess last year’s pledges. In announcing Operation Collection Protection , a coordinated federal-state-local initiative to take on illegal debt collection practices, we made two promises: 1) to continue our commitment in the courtroom, if necessary; and 2) to foster close working relationships with law enforcement partners across the country. Here’s what we have to report. On the law...

FTC case against DeVry yields $100 million settlement

Lesley Fair
Claims about employment prospects and income levels are like any other objective advertising representation – and Job #1 for advertisers is to support those promises with solid evidence. DeVry University and its parent company have entered into a $100 million settlement to resolve the FTC’s allegations that the defendants’ claims didn’t make the grade. According to the FTC, DeVry violated the law by deceptively claiming that 90% of its grads...

Ashley Madison settles with FTC over data security

Lisa Weintraub Schifferle
If you care about data security and privacy, you’ll want to read about the FTC’s settlement with ruby Corporation, ruby Life Inc., and ADL Media Inc. – the companies that operate AshleyMadison.com . AshleyMadison.com advertised a dating website that’s “100% secure and anonymous.” It bolstered those claims by including an icon of a “Trusted Security Award” and an image indicating that the website was a “100% discreet service.” The website lured...