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Tag Archives: FTC

Truly Organic? Not Really, Says FTC

By Sheila Millar on Posted in Labeling
Many consumers are drawn to products advertised as healthy and natural, and will often pay a premium for organic products, from foods to personal care items to clothing. But the Federal Trade Commission (FTC) takes a dim view of companies that don’t live up to their green promises. Case in point: Miami-based Truly Organic and… Continue Reading

What’s Next After Facebook’s Record $5 Billion Fine and Cambridge Analytica?

By Sheila Millar and Tracy Marshall on Posted in Advertising, Data Privacy
Facebook is facing some big changes after the Federal Trade Commission (FTC) settled with the social media giant over charges that it violated an earlier consent agreement. The company will pay a penalty of $5 billion, which is not only the biggest privacy fine in history, but also, according to FTC commissioner Noah Phillips, “almost… Continue Reading

FTC and D-Link Settle Data Security Dispute

By Sheila Millar and Tracy Marshall on Posted in Data Privacy
After protracted litigation, the Federal Trade Commission (FTC) entered into a proposed settlement with computer software manufacturer D-Link over charges that the company misrepresented the security of its wireless routers and Internet-connected cameras and failed to take reasonable software testing and remediation measures to protect the devices. As we previously reported, part of the FTC’s… Continue Reading

FTC Settles Lax Data Security Charges with Software Seller

By Sheila Millar and Tracy Marshall on Posted in Privacy
The Federal Trade Commission (FTC) entered into a proposed settlement with LightYear Dealer Technologies, LLC (aka DealerBuilt) on June 12, 2019, over allegations of lax consumer privacy protections. While no fines were levied, the order is remarkable for its detailed and extensive requirements governing the company’s future data privacy practices and the FTC’s role in… Continue Reading

FTC Continues Focus on “Made in America” Claims

By Sheila Millar on Posted in Advertising
Making the same false country-of-origin claims that initially resulted in a Federal Trade Commission (FTC) consent order is a good way to land a company with substantial civil penalties and corrective advertising obligations. iSpring Water Systems LLC found this out the hard way. Instead of complying with its earlier promise not to falsely advertise its… Continue Reading

FTC’s 2018 Data Privacy and Security Update Highlights Enforcement

By Sheila Millar and Tracy Marshall on Posted in Cybersecurity, Data Security, Enforcement
The Federal Trade Commission (FTC) recently released its annual report highlighting its work on privacy and data security during 2018. The FTC initiated five enforcement actions arising out of data breaches and nine data privacy enforcement actions in 2018, including cases against online payment system Venmo and mobile phone maker BLU for misrepresenting their privacy… Continue Reading

Significant Changes Ahead for COPPA?

By Sheila Millar and Tracy Marshall on Posted in Cybersecurity, Privacy
As expected, 2019 is shaping up to be the year for privacy reforms, including possible amendments to the 20-year old Children’s Online Privacy Protection Act (COPPA). Senators Edward Markey (D-Mass) and Josh Hawley (R-MO) have introduced legislation that would expand COPPA’s scope to offer new protections to minors age 13-15, establish new limitations on collecting… Continue Reading

Company Settles “Natural” Class Action Claims for $1.5 Million

By Sheila Millar on Posted in Advertising, Labeling
A recent class action lawsuit that claimed a manufacturer misrepresented its laundry detergent products as “all natural” when they, in fact, contained synthetic ingredients, has resulted in a $1.5 million settlement. A New York federal court gave preliminary approval to the settlement, which also requires the company to add qualifying language that states “contains naturally… Continue Reading

Agency Comings and Goings

By Sheila Millar, Tracy Marshall and Boaz Green on Posted in Data Security, Privacy, Product Safety
This week has seen several significant changes at the Commission level at both the Consumer Product Safety Commission (CPSC) and the Federal Trade Commission (FTC). CPSC After several months of stasis, the Senate voted to confirm Peter Feldman as a Commissioner on the CPSC, with a term expiring October 26, 2019. Feldman takes the place… Continue Reading

FTC Approves ESRB’s Updated COPPA Safe Harbor Program

By Sheila Millar and Tracy Marshall on Posted in Data Security, Privacy
The Federal Trade Commission (FTC) approved modifications to the video game industry’s Children’s Online Privacy Protection Act (COPPA) program. Earlier this year, the Entertainment Software Ratings Board (ESRB) proposed several substantive changes intended to take account of recent FTC COPPA rules and guidance. To receive FTC approval, COPPA safe harbor programs must “implement substantially similar… Continue Reading

23 California DAs Obtain $1.5 Million Settlement for Deceptive Biodegradable Claims

By Sheila Millar and JC Walker on Posted in Litigation
Environmentally conscious consumers often look for products advertised as “green.” But labeling plastic products as “biodegradable” may land you on the legal compost heap if you can’t meet federal and state regulations governing green marketing. Amazon was just the latest company to find itself in the crosshairs when 23 California district attorneys charged that it… Continue Reading

California Company Settles with FTC over Alleged Privacy Shield Misrepresentations

By Sheila Millar and Tracy Marshall on Posted in Data Security, Privacy
If a company claims to be certified under the EU-U.S. Privacy Shield framework when it hasn’t even completed the paperwork, the Federal Trade Commission (FTC) isn’t likely to let it slide. ReadyTech, a California-based online training services company, made such a claim on its website, in violation of the FTC Act’s prohibition against deceptive acts… Continue Reading

Online Talent Company Settles with FTC Over Alleged COPPA Violations

By Sheila Millar and Tracy Marshall on Posted in Data Security, Privacy
Online talent search company Explore Talent just landed in the spotlight of the Federal Trade Commission (FTC). The Vegas-based company was charged with violating the Children’s Online Privacy Protection Act (COPPA), which requires that companies collecting information online must obtain informed, verifiable parental consent before collecting any information from a child under 13. The company… Continue Reading

Senate Bill Would Give FTC Enforcement Power Over Credit Bureaus

By Sheila Millar and Tracy Marshall on Posted in Data Security
In response to the Equifax data breach last September, when hackers gained access to the personal information of 143 million consumers, Senators Elizabeth Warren (D-MA) and Mark Warner (D-VA) have introduced a bill, The Data Breach Prevention and Compensation Act of 2018, that would ultimately impose security obligations on credit reporting agencies (CRAs).  The bill… Continue Reading

FTC and FCC Enter into MOU For Broadband Enforcement

By Sheila Millar and Tracy Marshall on Posted in Uncategorized
In furtherance of the Restoring Internet Freedom Order that was adopted by the Federal Communications Commission (FCC) on December 14, 2017, the Federal Trade Commission (FTC) and FCC have entered into a Memorandum of Understanding (MOU) that lays out how the agencies will coordinate consumer protection efforts and manage enforcement actions. The MOU will take… Continue Reading

Sears Seeks to Modify FTC Order on Online Tracking

By Sheila Millar and Tracy Marshall on Posted in Cybersecurity
In 2009, Sears Holding Management settled with the Federal Trade Commission (FTC) over allegations that the company’s online tracking activity exceeded what they told consumers. Now, Sears has submitted a petition requesting that the FTC reopen and modify its settlement order, arguing that changing technology since 2009 has made the order’s definition of “tracking applications”… Continue Reading

FTC Streamlines its Fur, Textile and Wool Labeling Filing Process

By Sheila Millar on Posted in Labeling, Regulations
Continuing Acting Chair Maureen K. Ohlhausen’s regulatory reform agenda, the Federal Trade Commission (FTC) has updated its website at  RN.FTC.GOV to allow real-time electronic filings of requests to obtain, update, or cancel registered identification numbers (RN) under the Fur, Textile and Wool Labeling Rules. The new web-based process is intended to streamline applications from businesses… Continue Reading

First FTC Complaint Against Social Media Influencers Settles

By Sheila Millar and Tracy Marshall on Posted in Regulations
When two celebrity gamers endorsed an online lotto service, they didn’t gamble on the Federal Trade Commission’s (FTC) insistence they tell their fans they actually owned the business they were promoting. Now, Trevor Martin and Thomas Cassell, and their company, CSGO Lotto, Inc., have settled charges of deceptive advertising. This is the first case the… Continue Reading

Dietary Supplement Company and its Endorsers Settle with FTC Over Deceptive Marketing Claims

By Tracy Marshall and Sheila Millar on Posted in Advertising
Remember those ads from the 80s where an actor would start a medicine endorsement with the disclaimer: “I’m not a doctor, but I play one on TV”? A recent Federal Trade Commission (FTC) settlement order relating to the marketing of the dietary supplements CogniPrin and FlexiPrin is a good reminder about the importance of using… Continue Reading

FTC Green Lights TRUSTe’s Proposed Safe Harbor Program Modifications

By Sheila Millar on Posted in Data Security
The Federal Trade Commission (FTC) has approved changes TRUSTe proposed to its safe harbor program several months ago under the Children’s Online Privacy Protection Act (COPPA) Rule. The approved modifications include a new requirement that program participants conduct an annual internal assessment of third-parties’ collection of personal information from children on their websites or online… Continue Reading

Internal Reforms Announced for FTC’s Bureau of Consumer Protection

By Sheila Millar and Tracy Marshall on Posted in Privacy
The Federal Trade Commission’s Bureau of Consumer Protection is about to undergo reform, according to FTC Acting Chairman Maureen Ohlhausen. In a press release issued on July 17, the FTC stated that the changes are part of an ongoing initiative to simplify information requests and improve transparency that began last April, when Ohlhausen announced new… Continue Reading

Regulatory Reforms Afoot at the FTC: Now’s Your Chance to Weigh in

By Sheila Millar and Tracy Marshall on Posted in Regulations
As part of Acting Chair Maureen K. Ohlhausen’s regulatory reform initiative, the Federal Trade Commission (FTC) is asking for the public’s input on the Picture Tube, Textile, Energy Labeling, and CAN-SPAM Rules. The comments will inform the Commission’s decision on whether to update these rules. The Textile Rule obliges marketers of textiles to label their goods properly… Continue Reading

FTC Seeks Comments on Proposed Changes to TRUSTE’s COPPA Safe Harbor Program

By Sheila Millar and Tracy Marshall on Posted in Privacy
In a Federal Register notice, the FTC has asked for comments on intended changes to TRUSTe’s existing safe harbor program under the Children Online Privacy Protection Act (COPPA). TRUSTe proposed the changes following its settlement earlier this month with the New York Attorney General over allegations that the compliance and security company did not adequately… Continue Reading
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