The CFPB announced today a policy statement outlining three new principles that it intends to apply when evaluating whether practices are “abusive” under the Dodd-Frank Act. The Dodd-Frank Act marked the first time that a federal or state regulator was granted the authority to regulate broadly “abusive” acts and practices. While Dodd-Frank provided a general
FTC Launches Two More Actions under the Consumer Review Fairness Act, Requires Companies to Stop Restricting Reviews through Form Contracts
The FTC today announced two new actions under the Consumer Review Fairness Act against companies (CRFA) that allegedly used non-disparagement provisions in consumer form contracts in connection with selling their respective services to help rent properties. The two actions follow three CRFA actions last month, which we discussed here.
In the complaint against Shore
CFPB Long-Awaited Proposed Rule on Debt Collection Would Address Call Frequency, Texting, and More
The CFPB released its proposed rule governing debt collection, which would impose new requirements for debt collectors related to when and how a consumer can be contacted, what can and must be said when a consumer is reached, and the procedures to validate and verify a debt. Industry and other stakeholders have long anticipated the
FDA Tightening Oversight of Dietary Supplement Industry
This morning, the FDA announced its intention to engage in greater oversight of the dietary supplement industry. The announcement also conveyed that the Agency had sent 12 warning letters and five advisory letters to companies over the prior two weeks. Some of these letters were jointly issued by FDA and the Federal Trade Commission, focusing
NAD Referrals To FTC: How Big Is That Stick?
The Federal Trade Commission has long supported advertising industry self-regulation as a means of promoting truthfulness and accuracy in advertising. One of the key aspects of this success has been threat of referral to the FTC: Advertisers that refuse to participate in the self-regulatory process or refuse to comply with recommendations after participating are referred
How the Government Shutdown Is Affecting Federal Agencies
While many today returned to work after the Holiday season, things remained quieter than usual here in the nation’s capital – with many federal workers furloughed until further notice as the federal government continues to be in a partial shutdown. President Trump is reportedly meeting with congressional leaders today ahead of Thursday’s start to a
What The FTC Said About Direct Selling In 2018
Earlier this year, the Federal Trade Commission released new business guidance for direct sellers and multilevel marketers describing the legal principles that it will apply when evaluating practices under the FTC Act. Law360 published the article “What The FTC Said About Direct Selling In 2018,” co-authored by partner John Villafranco and senior associate Donnelly McDowell.
Senate Confirms Kathleen Kraninger as CFPB Director
The Senate today confirmed Kathleen Kraninger as CFPB Director by a party-line, 50-49 vote, with Sen. Tillis abstaining. Kraninger will replace current Acting Director Mick Mulvaney, who also currently oversees Kraninger at the Office of Management Budget (OMB) where she is associate director of general government and Mulvaney is Director. Kraninger is expected to continue
Jury Awards $16M in Damages to Dyson in Lanham Act Case Against SharkNinja
A federal jury in Illinois recently awarded Dyson, Inc. over $16 million in damages after finding that SharkNinja falsely advertised that its Rotator Powered Lift-Away vacuum was better than Dyson’s best-performing vacuum, the DC65. SharkNinja ran ads that claimed that independent testing showed that the Rotator Powered Lift Away vacuum was proven to have “more
FTC Examining How Consumer Protection and Privacy May Be Affecting Innovation and Competition; Seeking Input and Will Hold Policy Hearings to Address
The FTC announced yesterday that it will accept comments and hold a series of public hearings on consumer protection, privacy, and competition policy and enforcement. The hearings will take place during fall and winter of this year and will evaluate whether recent changes in the economy, technology, or international landscape require adjustments to how the Commission approaches consumer protection, privacy, and competition issues.
The hearings are modeled off of hearings held in 1995 under then-Chair Robert Pitofsky. Those hearings took place amidst the early growth of the internet and e-commerce, featuring panels such as, “The Newest Medium for Marketing: Cyberspace,” “Privacy in Cyberspace,” and “The Changing Role of the Telephone in Marketing.” The 1995 hearings featured panelists from large companies including Walt Disney, General Electric, and Coca-Cola, along with consumer group representatives, regulators, academics, and attorneys from private law firms. The hearings culminated in a two volume report on the state of consumer protection and competition policy.
In announcing the 2018 hearings, FTC Chair Joe Simons noted that “the FTC has always been committed to self-examination and critical thinking, to ensure that our enforcement and policy efforts keep pace with changes in the economy.” Simons served as Director of the Bureau of Competition immediately after Pitofsky’s tenure as Chair under then-Chair Tim Muris – and alluded to Pitofsky, Muris and former Chair Kovacic in his statement announcing the hearings. Simons’ statement also expressed his view that “[t]his project reflects the spirit, style, and, most importantly, broad scope of that effort,” and characterized the efforts as an “all-agency” project that will entail significant efforts from the Bureaus of Consumer Protection, Competition, and Economics, the Office of the General Counsel, the Office of International Affairs, as well as the Office of Policy Planning.
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