Third-party service providers are vital to many companies and they handle a wide range of business activities essential for companies to deliver their own offerings. But a company is not adequately protecting consumers if it fails to perform proper due diligence on service providers and contractually require them to employ appropriate security measures to protect
Privacy
FTC Finalizes Settlement with Service Provider over Alleged Privacy Shield Misrepresentations


The EU-U.S. Privacy Shield Framework, which provided a mechanism to legally transfer personal information from the EU to the United States, was invalidated on July 16, 2020, but the Federal Trade Commission (FTC) has made it clear that companies that claimed to be participants must still make good on their word. A case in point…
FTC Staff Perspective Paper Offers Key Takeaways on Loot Box Workshop


More than 160 million Americans play video games. Originally designed as single-use purchases for consoles or computers, video games are now downloadable, making them more accessible to consumers than ever. One important development for the video game industry has been the creation of “micro purchases” – in-game transactions such as “loot boxes” that players can…
FTC Targets False Energy Performance Claims


Marketing products as environmentally friendly can induce customers to pay higher prices than they would for other goods. But when promises of lower emissions or higher insultation ratings prove false, that hurts consumers, and the Federal Trade Commission (FTC) steps in. The FTC recently concluded its four-year long false advertising case against Volkswagen and Porsche…
Washington State AG Settles with Online Platform Over Alleged COPPA Violations


Protecting the online privacy of children by enforcing the Children’s Online Privacy Protection Act (COPPA) continues to be of paramount importance to federal and state regulators. In addition to the Federal Trade Commission (FTC), several state attorneys general (AGs) have brought COPPA actions recently, including the New Mexico and California AGs, and, most notably, the…
FTC Issues Proposed Rulemaking on Made in USA Labeling Rule

The Federal Trade Commission (FTC) has for some years targeted deceptive Made in USA claims as an enforcement priority, as we have previously discussed (see our most recent blog post on Made in USA here). Since 1999, the FTC has brought 28 enforcement actions against companies falsely claiming their products were American made. The…
FTC COPPA Settlement with App Developer Highlights Penalty Policy Considerations


A recent Federal Trade Commission (FTC) settlement with an online game company that allegedly tracked children illegally highlights some important questions, namely, how should the FTC assess the penalties it imposes for privacy violations, and what is the most effective way to both deter and punish companies for such violations?
The complaint in question was…
California AG Releases Long-Awaited CCPA Final Regulations


On June 1, 2020, California Attorney General Xavier Becerra submitted the final package of regulations implementing the California Consumer Privacy Act (CCPA) to the California Office of Administrative Law (OAL) for approval. The regulations reflect key CCPA compliance obligations for businesses, including specific actions that must be taken to allow consumers to exercise their rights…
FTC Settles with Digital Game Company Over Allegedly False COPPA Safe Harbor Claims


One of the first formal privacy safe harbor programs was created under the Children’s Online Privacy Protection Act (COPPA). Put simply, businesses are deemed in compliance with COPPA if they belong to an FTC-approved COPPA safe harbor program and follow the safe harbor program’s guidelines. But the FTC takes seriously any false claim about participation…
Federal Agencies Continue Crackdown on Bogus COVID-19 Claims


The COVID-19 pandemic has prompted regulatory agencies to take swift action against companies that falsely advertise their products as treatments for the virus. As we previously reported, the Federal Trade Commission (FTC) and Food and Drug Administration (FDA) issued joint warning letters to seven companies in March for advertising and selling products or services…