Consumer Protection Connection

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Tag Archives: FTC

The Scrutiny Continues: Social Media Activities Continue to Draw Consumers and Consumer Protection Enforcement Alike

Posted in Advertising, Enforcement
Since we last wrote about how marketers can craft social media policies to offer engaging promotions while meeting the scrutiny of regulators, social media has continued to be a popular venue for marketers to reach consumers. The Federal Trade Commission (FTC) has also kept the spotlight on compliance with the FTC Guides Concerning Use of… Continue Reading

Children’s Confection Advertising Initiative Launched

Posted in Advertising
The newly launched Children’s Confection Advertising Initiative (CCAI), modeled on the Children’s Food and Beverage Advertising Initiative (CFBAI) and its Core Principles, is the latest food industry self-regulatory announcement under which participants agree to limit advertising to children under 12 or in elementary schools (from pre-kindergarten through sixth grade). The Council of Better Business Bureaus… Continue Reading

Brain-Training App Maker to Pay $2 Million to Settle FTC False Ad Claims

Posted in Advertising, Litigation
Lumosity, an online site and smartphone app, is supposed to help its users train their brains so they can achieve their “full potential in every aspect of life.” Unfortunately, the company was unenlightened when it came to avoiding false advertising claims. According to the Federal Trade Commission (FTC), the company claimed that using its products… Continue Reading

FTC Issues Enforcement Policy Statement and Guidance on “Native Advertising”

Posted in Advertising
“Native Advertising” has been on the radar screen for several years, with consumer groups, businesses and regulators alike considering what the rules of the game should be to avoid deception as the nature of publishing and advertising continue to evolve at a dizzying pace. Those rules became clearer on December 22, 2015, when the Federal… Continue Reading

Two App Developers Agree on COPPA Settlement with FTC

Posted in Advertising, Privacy
Two app developers have settled complaints from the Federal Trade Commission (FTC) that they allowed third parties to collect information, including persistent identifiers, through their apps, and allowed third parties to serve advertising to children, in violation of the Children’s Online Privacy Protection Act (COPPA). The FTC’s announcement was released the same day it announced… Continue Reading

False Advertising Contempt Suit Costs LifeLock $100 Million

Posted in Data Security, Litigation, Privacy
On December 17, 2015, the Federal Trade Commission (FTC) announced that Lifelock, Inc. (LifeLock), agreed to pay a record-breaking $100 million to settle charges that it violated an earlier consent agreement related to flawed data security practices issued in March 2010. The LifeLock settlements implicate both the “fairness” of the company’s data security practices and… Continue Reading

In Commission Win, Appeals Court Agrees that FTC Can Regulate Business Data Security Practices Under Unfairness Authority

Posted in Cybersecurity, Data Security, Privacy
In a closely watched case where the Federal Trade Commission (FTC) pursued Wyndham Worldwide Corporation for several data breaches that led to millions of dollars in fraudulent charges on customers’ payment cards, the U.S. Court of Appeals for the Third Circuit on Monday agreed with the Commission’s broad interpretation of its “unfairness” authority (opinion here).… Continue Reading

FTC Issues Antitrust Enforcement Policy Statement

Posted in Antitrust, Regulations
In a 4–1 vote, the Federal Trade Commission (FTC) has issued its long-awaited Statement of Enforcement Principles outlining the Commission’s approach to “unfair methods of competition” prohibited by Section 5 of the Federal Trade Commission Act (FTCA) but not necessarily by the Sherman or Clayton Act. The statement is brief, and those awaiting the type… Continue Reading

Is Your Device ID “Personal”? Federal Appeals Court to Decide Under VPPA

Posted in Litigation, Privacy
A federal appellate court will consider early next month whether the Video Privacy Protection Act (VPPA) makes an “Android ID” – a device identifier used in Google’s smartphones –personally identifiable information (PII). The Eleventh Circuit has scheduled oral argument in the case, Ellis v. Cartoon Network, Inc., for June 3, 2015. The plaintiff in the… Continue Reading

FTC Brings First Action Against Retail Tracking Company

Posted in Privacy, Regulations
On April 23, 2015, the Federal Trade Commission (FTC) announced that retail tracking company Nomi Technologies has agreed to settle FTC charges that it misled consumers. The FTC alleged that the company, which develops technology to allow retailers to track consumers’ movements through their stores, misled consumers by failing to uphold promises to provide a mechanism… Continue Reading

FTC Diagnosis: App Health Claims Need Life Support

Posted in Privacy
Technology is advancing fast, but would you use an app to figure out if you had cancer? According the Federal Trade Commission (FTC), that’s just what two app developers were recommending, but the FTC said they lacked the evidence to back their claims up. The FTC entered into consent agreements with two companies, MelApp and… Continue Reading

FTC Proposes Updates to Fair Packaging and Labeling Rule

Posted in Labeling
The Federal Trade Commission (FTC) is proposing updates to its labeling and packaging requirements under the Fair Packaging and Labeling Act (FPLA), including deleting specific requirements for commodities advertised using terms such as “introductory offer,” “cents off,” and “economy size.” The proposed changes would also modernize place-of-business requirements, allowing businesses to omit addresses if their street addresses is… Continue Reading

POM-eled: POM Wonderful, The FTC and Competitor Challenges (Hint – It’s All About Consumer Deception)

Posted in Labeling
The name of POM Wonderful, LLC (“POM”) will now forever be linked to some important advertising rulings that are not only of central significance to the food industry, but have broader advertising significance as well.  We are reminded of those actions today because POM’s advertising claims touting health benefits of pomegranate juice resulted in a… Continue Reading

FTC Says #Gameover for Sony’s #Gamechanger Claims

Posted in Advertising
The Federal Trade Commission (FTC) applies a couple of cardinal rules for advertisers playing in the social media space: tell the truth and disclose endorsement arrangements.  Sony Computer Entertainment America LLC and its advertising agency Deutsch LA, Inc. apparently broke those rules in advertisements launching Sony’s PlayStation Vita (PS Vita) in 2012.  Each agreed to… Continue Reading

COPPA Year In Review: Winners and Losers

Posted in Privacy
Since new requirements under the updated Children’s Online Privacy and Protection Act (COPPA) entered into force in July, 2013, the Federal Trade Commission (FTC) has moved into an active enforcement phase, while also fielding requests to recognize new parental consent methods and safe harbor programs.  Those interested in children’s online activities can draw some important… Continue Reading
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