Last week, the FTC sent warning letters to ten multi-level marketing companies alleging that the companies failed to stop their participants from making deceptive product and earnings claims related to COVID-19. The letters request that the companies report within 48 hours what actions they have taken to stop their distributors from claiming their products can
Ad Law Access Podcast: Price Gouging
As COVID-19 continues to dominant the news and the effects sweep across the country and globe, one of the important issues that directly affects companies and consumers alike is price gouging. In fact, the AGs in 32 states sent a letter to online retail platforms (Amazon, eBay, Craigslist and others) urging them to do more
States Place New Restrictions on Collection Efforts and Outbound Calls Amidst COVID-19 Pandemic
The COVID-19 pandemic continues to have far-reaching effects on businesses and consumers everywhere. While many states are taking broadly consistent approaches on certain issues (e.g., price gouging, non-essential business closures), one area where we’ve seen significant divergence involves regulation of collection efforts – both by first party creditors and debt collectors. In
Retailers Should Keep Price Gouging Laws in Mind
If you’ve been shopping lately, it’s likely that you’ve encountered empty shelves and shortages of items, such as (for inexplicable reasons) toilet paper. This tends to happen whenever a disaster – whether that’s a hurricane or COVID-19 – strikes. In some cases, retailers respond to these shortages by increasing prices. Although there may be legitimate
Trust in Trustworthiness Ratings? Privacy Group EPIC Lodges Complaint with FTC Regarding Airbnb Ratings
The Electronic Privacy Information Center (EPIC) has filed a complaint with the Federal Trade Commission (FTC) alleging that Airbnb is violating the FTC Act and the Fair Credit Reporting Act (FCRA) by assigning “secret ratings to prospective renters, based on behavior traits using an opaque, proprietary algorithm.” EPIC is a non-profit that seeks to advance
CFPB Clarifies Standard for Determining “Abusive” Practices
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