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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 TVs...

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...

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...