Legal Library: Cases and Proceedings

Trueface.ai settled Federal Trade Commission allegations that the company falsely claimed certification under the EU-U.S. Privacy Shield framework. 

Former Cambridge Analytica, LLC CEO Alexander Nix and Aleksandr Kogan, an app developer who worked with the company, settled Federal Trade Commission allegations that they used deceptive tactics to collect personal information from tens of millions of Facebook users for voter profiling and targeting. 

Unrollme Inc. reached a settlement with the FTC over allegations that the company deceived some consumers about how it accesses and uses their personal emails.

According to the agency’s April 2019 complaint, UrthBox violated the FTC Act by misrepresenting that positive consumer reviews on the BBB’s and other websites reflected the independent experiences or opinions of impartial consumers, while the reviewers actually had a material connection to the company. The FTC alleged that UrthBox did not adequately disclose that some consumers received compensation, including free snack boxes, to post those positive reviews. The final order settling the FTC’s charges bars the respondents from engaging in similar conduct and requires them to pay $100,000 to the FTC. In December 2019, the FTC returned more than $84,000 to compensate consumers charged after signing up for the trial offer.

Chemical companies Quaker Chemical Corp and Houghton International Inc. have agreed to divest assets to a subsidiary of French multinational corporation Total S.A., to settle Federal Trade Commission charges that Quaker’s proposed $1.4 billion acquisition of Houghton would violate federal antitrust law. According to the complaint, the proposed acquisition would harm competition in the North American market for aluminum hot rolling oil and associated technical support services; and in the North American market for steel cold rolling oils, and associated technical support services. Steel cold rolling oils include sheet cold rolling oil, pickle oil, and tin plate rolling oil. Under the proposed settlement agreement, Quaker must divest Houghton’s North American aluminum hot rolling oil and steel cold rolling oil product lines and related assets to Total. On Sept. 12, 2019, the FTC announced that it has approved a final order in this matter.

LightYear Dealer Technologies, LLC settled Federal Trade Commission allegations that the auto dealer software provider failed to take reasonable steps to secure consumers' data, leading to a breach that exposed the personal information of millions of consumers. 

The Federal Trade Commission has imposed conditions on UnitedHealth Group’s proposed acquisition of DaVita Medical Group. In its complaint, the FTC alleged that the proposed $4.3 billion acquisition would harm competition in healthcare markets in two Nevada counties, Clark and Nye. Under the proposed settlement, the FTC required UnitedHealth Group to divest DaVita’s HealthCare Partners of Nevada to Intermountain Healthcare. The Commission announced on Aug. 22, 2019 that the settlement was made final.

The FTC alleged that while SecurTest initiated a Privacy Shield application in September 2017 with the U.S. Department of Commerce, the company did not complete the steps necessary to be certified as complying with the frameworks. Because it failed to complete certification, SecurTest was not a certified participant in the frameworks, despite representations to the contrary on its website. The settlement with the FTC prohibits SecurTest from misrepresenting its participation in any privacy or security program sponsored by a government, self-regulatory, or standard-setting organization, including the EU-U.S. Privacy Shield and Swiss-U.S. Privacy Shield frameworks. It also must comply with reporting and compliance requirements.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

James V. Grago, Jr. online rewards website ClixSense.com settled allegations from the Fewill be required to implement a comprehensive information security program before collecting personal information as part of a final settlement with the Federal Trade Commission related to allegations that he failed to take reasonable steps to protect personal data.

Following public comment periods, the Federal Trade Commission has approved final consent orders in two separate cases in which the agency alleged that companies falsely claimed their products were made in the United States. The companies were Sandpiper of California and Underground Sports Inc.

Following public comment periods, the Federal Trade Commission has approved final consent orders in two separate cases in which the agency alleged that companies falsely claimed their products were made in the United States. The companies were Sandpiper of California and Underground Sports Inc.

The FTC required healthcare companies Fresenius Medical Care AG & KGaA and NxStage Medical, Inc. to divest all rights and assets related to NxStage’s bloodline tubing set business to B. Braun Medical, Inc. as part of a settlement resolving charges that Fresenius’s proposed $2 billion acquisition of NxStage likely would be anticompetitive. The FTC’s complaint alleges that the proposed merger would harm competition in the U.S. market for bloodline tubing sets that are compatible with hemodialysis machines used in clinics that treat chronic renal failure. Bloodline tubing sets are single-use plastic tube sets used during hemodialysis treatments. Fresenius and NxStage are two of only three significant suppliers of bloodline tubing sets used in open architecture hemodialysis machines in the United States. Fresenius and NxStage together control 82 percent of the market for bloodlines.The settlement requires Fresenius and NxStage to divest to B. Braun all assets and rights to research, develop, manufacture, market, and sell NxStage’s bloodline tubing sets.

In October 2018, the FTC announced that online student loan refinancer SoFi Lending Corp. (SoFi) agreed to stop misrepresenting how much money student loan borrowers have saved, or will save, by refinancing their loans with the company. The Commission approved the final consent in February 2019. In its administrative complaint, announced concurrently with the proposed settlement, the FTC alleged that since April 2016 SoFi made prominent false statements about loan refinancing savings in television, print, and Internet advertisements.

Koninklijke Ahold and Delhaize Group, which together own and operate five well-known U.S. supermarket chains, have agreed to sell 81 stores to settle charges that their proposed $28 billion merger would likely be anticompetitive in 46 local markets in Delaware, Maryland, Massachusetts, New York, Pennsylvania, Virginia, and West Virginia. Ahold operated 760 supermarkets under the Stop & Shop, Giant, and Martin’s banners in ten Eastern states and the District of Columbia.Delhaize operated 1,291 supermarkets under the Food Lion and Hannaford banners in 14 Eastern and Southern states. Under the proposed consent agreement, Ahold and Delhaize will divest a total of 81 stores to seven divestiture buyers.

The FTC required casino operators Penn National Gaming, Inc. and Pinnacle Entertainment, Inc. to divest casino-related assets in three Midwestern cities to  resolves charges that Penn’s $2.8 billion agreement to acquire Pinnacle likely would be anticompetitive. The complaint alleges that the proposed acquisition would harm competition for casino services in metropolitan St. Louis, Missouri; Kansas City, Missouri; and Cincinnati, Ohio. Casino services include gaming services such as slots and table games, as well as related lodging, entertainment, and food and beverage services, according to the complaint. Typically, casino operators generate the vast majority of their revenues from gaming. Casinos are highly regulated, with a limited number of licenses granted in any given state, as well as age restrictions on who can gamble. According to the complaint, the acquisition, if consummated, likely would eliminate direct competition between Penn and Pinnacle, increasing the likelihood that Penn would unilaterally exercise market power, and lead to higher prices and reduced quality for consumers of casino services.