Category Archives: Federal Trade Commission

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FTC Announces Settlement with Uber over Allegedly Deceptive Earnings Claims; Commissioner Ohlhausen Dissents

In its latest action involving allegedly deceptive earnings claims, the FTC announced yesterday that Uber had agreed to settle charges that it misled potential drivers with inflated earnings claims.  The complaint also alleges that Uber misrepresented benefits of its Vehicle Solutions Program, which connects potential drivers with auto companies to buy or lease a vehicle … Continue Reading

Announcing the Advertising and Privacy Law Webinar Series

Webinar SeriesPlease join Kelley Drye in 2017 for the Advertising and Privacy Law Webinar Series. Like our annual in-person event, this series will provide engaging speakers with extensive experience and knowledge in the fields of advertising, privacy, and consumer protection. These webinars will give key updates and provide practical tips to address issues faced by counsel. … Continue Reading

FTC Chairwoman Ramirez Announces Resignation Effective February 10

Federal Trade Commission Chairwoman Edith Ramirez announced today that she will resign her position effective February 10, leaving the Commission with three vacancies and just two remaining commissioners.  Chairwoman Ramirez has been a commissioner since April 5, 2010 and became Chairwoman on March 4, 2013. In announcing her resignation, she remarked: “It has been the … Continue Reading

FTC Files Lawsuit Against Taiwanese Manufacturer for Alleged Lax Security in Wireless Routers and Cameras and Related Marketing Claims

150px-US-FederalTradeCommission-Seal_svgThe Federal Trade Commission has filed a lawsuit in federal court claiming that a networking equipment manufacturer engaged in unfair and deceptive acts, exposing thousands of consumers to the risk of cyberattack from vulnerable wireless routers and internet cameras. The complaint against Taiwan-based networking equipment manufacturer D-Link Corporation and its U.S. subsidiary D-Link Systems alleges … Continue Reading

One Less (Regulator) Affair for AshleyMadison.com: Site Operators Agree to Settle U.S. Charges Stemming from 2015 Breach

Remember the 2015 AshleyMadison.com data breach, where hackers gained access to the personal information of about 36 million users from over 46 countries, and threatened and carried through on their promise to release the information to the public? This highly publicized incident has resulted in a $1.6 million settlement between operators of the dating website … Continue Reading

FTC Settles with Turn Over Alleged Privacy Policy Misrepresentations

On Wednesday, the FTC announced that Turn, a California-based ad-tech firm, agreed to settle charges that it misrepresented its consumer tracking practices to Verizon Wireless customers. According to the FTC, such customers could not delete or turn off advertising identifiers because Turn synced multiple identifiers without reconciling user preferences or express user requests to delete … Continue Reading

Better Online Ticket Sales Act of 2016

On December 14, 2016, President Obama signed into law the Better Online Ticket Sales Act of 2016.  The BOTS Act prohibits circumventing a website’s security measures to acquire event tickets.  It also restricts the reselling of tickets when the seller knows or should have known they were acquired through circumvention.  Importantly, it empowers the Federal … Continue Reading

Vemma Settles Ongoing Litigation with FTC over Pyramid Charges

The FTC announced today that it had settled charges with multi-level marketer and seller of health and wellness drinks Vemma over allegations that it operated a pyramid scheme.  The FTC initially filed the action in August 2015 in federal court in Arizona, alleging that Vemma encouraged participants to buy products to qualify for bonuses and … Continue Reading

Groups Renew Call for FTC to Act on Influencer Campaigns

In September, we noted that four groups – Public Citizen, Commercial Alert, the Campaign for a Commercial Free Childhood, and the Center for Digital Democracy – had sent a joint letter to FTC encouraging the agency to investigate and bring enforcement actions related to the use of influencers on Instagram. The letter included examples of … Continue Reading

Do You Venmo? FTC Spotlight on Peer-to-Peer Payments and Crowdfunding

The FTC recently examined peer-to-peer (P2P) payment systems and crowdfunding in the second forum of its FinTech series.  P2P payment systems are online services that allow consumers to share money electronically.  These platforms enable the immediate transfer of money between consumers, typically for free or for a small fee.  In the panel discussion of P2P … Continue Reading

What to Expect from the FTC

MacLeodOur colleague Bill MacLeod, chair of the Antitrust Section of the American Bar Association, and former director of the FTC’s Bureau of Consumer Protection, penned the following blog post on what we might expect at the FTC under the new administration.  The post focuses on antitrust issues, but the anticipated short term outlook and transitions … Continue Reading

What Covered Entities Should Know About the FTC Act and Their Obligations Beyond HIPAA

The Federal Trade Commission and Department of Health and Human Services Office for Civil Rights (OCR) recently announced the release of new guidance for businesses on the Health Insurance Portability and Accountability Act (HIPAA) and the FTC Act. The resource reminds businesses that their obligations to protect consumer health data do not end with HIPAA, … Continue Reading

FTC Associate Director for Advertising Practices Elucidates the Commission’s Handling of Referrals From NAD

The advertising industry’s self-regulatory system may be “voluntary,” but ignoring NAD’s recommendations—or declining to participate when asked—buys advertisers a prompt referral to the Federal Trade Commission. NAD often touts its close working relationship with the FTC. But what becomes of these referrals from the self-regulatory system? At NAD’s annual conference last month, Mary Engle, the … Continue Reading

FTC Announces Settlement of “Made in USA” Litigation

Earlier this week, the FTC announced settlement of one of the few “Made in USA” cases the agency has litigated in recent years.  Earlier this year, we sent an update regarding the FTC’s lawsuit against Chemence, Inc., in which the FTC alleged that Chemence was deceiving consumers by claiming that their glues were “Made in … Continue Reading

Protected: 2016 Advertising and Privacy Law Summit Attendee Follow up

There is no excerpt because this is a protected post.

Senate Commerce Committee Members Air Laundry List of Pressing Issues Including Privacy, Data Security, and FTC Enforcement

On September 27th, the Senate Committee on Commerce, Science, and Transportation held a general oversight hearing of the FTC, which covered a multitude of major policy issues and included testimony from Chairwoman Edith Ramirez, Commissioner Maureen Ohlhausen, and Commissioner Terrell McSweeny.  Chairman John Thune (R-SD) convened the hearing, joined by Senator Richard Blumenthal (D-CT) who … Continue Reading

FTC Bureau Director Highlights Continuing Health-Related Enforcement, Homeopathic Guidance, and ROSCA at NAD Conference

Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, highlighted the agency’s enforcement priorities at the National Advertising Division’s annual conference earlier this week.  Key mentions included the following: Health Claims and Sensitive Populations – With health claims being a constant enforcement priority, Ms. Rich referenced cases involving cognition claims, alleged diabetes cures, and … Continue Reading

Citing an “Enforcement Gap,” FTC Seeks Rehearing En Banc of Dismissal of AT&T “Throttling” Case

On October 13, 2016, the Federal Trade Commission (FTC) filed a petition in the U.S. Court of Appeals for the Ninth Circuit requesting a rehearing en banc of the court’s decision in the FTC’s case against AT&T alleging that the company dramatically reduced – or “throttled” – data speeds for certain customers on unlimited data … Continue Reading

Caution with Hyperlinks and Info-Hovers: Court Denies DIRECTV’S Motion for Partial Summary Judgment

Are hyperlinked and hovering disclosures enough to adequately inform consumers about the terms of your offer? Is requiring consumers to click on a button to accept all terms and conditions enough to obtain their informed consent to each of your terms and conditions? A recent federal court decision demonstrates that the answers to those questions … Continue Reading

“Follow the Lead” Recap: FTC Summarizes Takeaways from Workshop on Lead Generation

The FTC released last week a paper summarizing and reflecting on its October 30, 2015 public workshop, “Follow the Lead,” which we previously discussed here and focused on lead generation practices and related privacy and consumer protection issues.  The paper expands upon many of the same principles addressed at the workshop, including how lead generation … Continue Reading

Beyond “Clear and Conspicuous”: FTC Workshop Highlights Issues Related to Testing of Consumer Disclosures

On advertisements, websites, and legal documents, disclosures are everywhere.  But how do consumers notice, understand, and use disclosures in their decision-making?  And how can businesses and advertisers effectively design and evaluate disclosures?  These were questions that the Federal Trade Commission explored during its September 15 public workshop, “Putting Disclosures to the Test.”  Throughout the one-day … Continue Reading

Health Claim Substantiation Has Not Gone to the Dogs

The FTC announced a settlement with Mars Petcare U.S. concerning allegations that the company did not have proper substantiation to support quantified health benefit claims for its Eukanuba brand dog food. The FTC’s complaint alleges that a 2015 ad campaign for Eukanuba expressly or impliedly claimed that the dog food could increase the lifespan of … Continue Reading

Connected Toys, Augmented Reality as the Next Big (Io)Thing

PokemonThere has been an uptick in congressional inquiries regarding privacy concerns in the IoT space.  And most recently in the gaming world of augmented reality.  On Tuesday, Senator Al Franken (D-Minn.) initiated a congressional investigation into Niantic, Inc., maker of the Pokémon Go app that has taken the world by storm.  The app uses a smartphone’s … Continue Reading

A Pound of Flesh Just Got Heavier

The Federal Trade Commission announced yesterday that it has approved final amendments to Commission Rule 1.98 that adjust the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation Adjustment Act of 2015 (“Adjustment Act”), which requires federal agencies to implement a … Continue Reading
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