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Contract Terms That Impede Competition Investigations

John Newman & Amy Ritchie, Bureau of Competition
Every company knows it’s usually best to “get it in writing,” and a lot of time is spent negotiating contracts in the ordinary course of business. But some of those contracts contain provisions that can impede the Bureau’s law enforcement investigations of potentially harmful mergers and conduct. Our staff are hearing troubling reports about certain types of contract terms that can get in the way of open, candid conversations with the FTC...

Scammers impersonate funeral home staff to prey on mourning families. Can it get any lower?

Alvaro Puig
There’s a new scheme that involves imposters preying on people who are grieving the loss of a loved one. The imposters pretend to be from the funeral home and say that, unless the family pays more money immediately, the funeral will be canceled. Can you imagine anything more despicable? That’s why we want to alert members of the funeral industry about the scam and hope other businesses will warn their employees and people in their community. If...

Hey, Alexa! What are you doing with my data?

Elisa Jillson
What you say in your home, what you do in your home. It doesn’t get more private than that. But, according to two recent FTC complaints, Amazon and Ring used this highly private data – voice recordings collected by Amazon’s Alexa voice assistant and videos collected by Ring’s internet-connected home security cameras – to train their algorithms while giving short shrift to customers’ privacy. These matters, the first announced since the FTC’s new...

Can your staff spot the five most common text message scams?

Lesley Fair
According to reports in the FTC’s Consumer Sentinel database, text message scams took consumers for $330 million in 2022. The latest Consumer Protection Data Spotlight focuses on this form of fraud. With reported losses more than doubling in 2021 and nearly five times what people reported in 2019, would you be able to spot the five most common text message scams? What about your employees? First, some background about what may be behind the...

$20 million FTC settlement addresses Microsoft Xbox illegal collection of kids’ data: A game changer for COPPA compliance

Lesley Fair
Care About COPPA Compliance may not be the coolest Xbox gamertag, but an FTC action against Microsoft for alleged violations of the Children’s Online Privacy Protection Act Rule suggests it might be a good choice nonetheless. Filed by the Department of Justice on the FTC’s behalf, the $20 million proposed settlement will require Microsoft to bolster privacy protections for kids who use its Xbox gaming system. The order also makes it clear that...

Out of the mouths of babes? FTC says Amazon kept kids’ Alexa voice data forever – even after parents ordered deletion

Lesley Fair
“Stop it!” Moms and Dads may have to repeat that instruction to their kids, but when parents said it to Amazon in an effort to get the company to delete children’s voice data obtained through its Alexa voice assistant, Amazon should have honored those requests immediately. But according to a complaint filed by the Department of Justice on the FTC’s behalf, Amazon responded by deleting files in some databases while maintaining them elsewhere –...

Franchise Fundamentals: Taking a deep dive into the Franchise Disclosure Document

Lesley Fair
Love at first sight may (or may not) be a real thing, but when it comes to investing your money, it’s unwise to fall for a franchise without first subjecting it to tough-minded scrutiny. The third in the FTC’s Franchise Fundamentals blog series walks through an essential part of that evaluation: an in-depth review of the Financial Disclosure Document (FDD) required by the FTC’s Franchise Rule . You must receive the Franchise Disclosure Document...

Oh no, you don’t, Edmodo: FTC sues ed tech company for violating school kids’ privacy

Lesley Fair
Educational technology hasn’t totally overtaken chalk dust and penmanship, but ed tech certainly has found its way into schools. A proposed settlement with Edmodo, LLC, alleges the ed tech company violated the Children’s Online Privacy Protection Act Rule and the FTC Act by collecting personal information from school kids without their parents’ consent, using that data for advertising purposes, and unfairly requiring schools and teachers to...

IYKYK: The top text scams of 2022

Emma Fletcher
Texting is cheap and easy, and scammers are counting on the ding of an incoming text being hard to ignore. [1] In 2022, they were right to the tune of $330 million in losses to text scams, as reported to the FTC’s Consumer Sentinel Network, with a median reported loss of $1,000. That’s more than double the 2021 reported losses and nearly five times what people reported in 2019. [2] In fact, reports about text scams spiked in the first six months...

Franchise Fundamentals: Researching franchise opportunities

Lesley Fair
No one would try to run a marathon with just a few days of preparation. It takes months of rigorous training before you can step up to the starting line with confidence. Of course, the process of studying, selecting, opening, and operating a franchise can make a marathon feel like a stroll in the park. In the second of our Franchise Fundamentals blog series, we take a closer look at the extensive research “road work” prospective franchisees...