In addition to announcing a new COPPA policy statement and related “crackdown” on children’s privacy issues (discussed here) in its most recent open meeting, the FTC also proposed changes to the FTC’s Endorsement Guides. The changes would build on and expand previous guidance, including by expressly extending liability to endorsers, intermediaries, and platforms
Update: Chair Cantwell Introduces S. 4145, A One-Sided 13(b) Fix
On Wednesday, we described draft legislation circulating in the Senate Commerce Committee that would have given the Federal Trade Commission almost unfettered authority to enjoin permanently any act, practice or method of competition that did not meet its approval. https://www.adlawaccess.com/2022/05/articles/senate-commerce-committee-chair-pushes-one-sided-13b-fix/ All the Commission would need to do is show that a reasonable person had fair
FTC Uses AMG Anniversary to Push for a Bipartisan 13(b) Legislative Fix in an Increasingly Partisan Environment
During the Federal Trade Commission’s April 28 open meeting, Commissioners utilized the one-year anniversary of the Supreme Court’s decision in AMG Capital Management, LLC v. FTC to highlight the implications of the ruling that gutted their enforcement authority under Section 13(b) of the FTC Act. Commissioners called yet again for a legislative fix and
FTC to Intuit: “Free” Not Free for Most Taxpayers
If you follow the FTC, you likely saw its widely-covered filing this week alleging that Intuit, the marketer of TurboTax, has deceptively claimed for years that its online tax preparation services are “free,” when they’re free for only a subset of taxpayers. The FTC’s case parallels two class actions already underway; some state AGs are
Lina Khan’s Privacy Priorities – Time for a Recap
Rumors suggest that Senator Schumer is maneuvering to confirm Alvaro Bedoya as FTC Commissioner sooner rather than later, which would give FTC Chair Khan the majority she needs to move forward on multiple fronts. One of those fronts is consumer privacy, for which Khan has announced ambitious plans (discussed here and here) that have stalled for lack of Commissioner votes. With Bedoya potentially on deck, now seems like a good time to recap those plans, as they might provide clues about what’s in the pipeline awaiting Bedoya’s vote. We focus here on three priorities Khan has emphasized in statements and interviews since becoming Chair.
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Webinar Replay: Privacy Priorities for 2022 – FTC
The replay for our May 19, 2022 Privacy Priorities for 2022 webinar is available here.
Under Chair Lina Khan, the Federal Trade Commission has announced an aggressive privacy agenda, which is unfolding on the enforcement, regulatory, and policy fronts. In recent enforcement actions, the FTC has sought stringent remedies, including data deletion, bans on
The FTC Seeks Comments and Signals Changes to Come in New Rulemaking on Earnings Claims
Senate Spars with FTC BCP Director Sam Levine over FTC Enforcement, Surprisingly from Both Sides
Yesterday, the Senate Commerce Committee’s Subcommittee on Consumer Protection, Product Safety and Data Security held its second hearing in less than a year on COVID-19 fraud, price gouging, and related enforcement efforts. Groundhog Day Eve was a fitting date for the hearing, as the Federal Trade Commission – this time through Bureau of Consumer Protection
Once Upon a Time in Federal Court
On January 14, so called Pharma Bro Martin Shkreli was found personally liable for antitrust claims brought by the FTC and 7 State AGs. His company Vyera raised the price of medication Daraprim by 4000% after it purchased the drug. The parasitic brain infection the drug treats is especially deadly and according to doctors could only be treated with Daraprim. Shkreli then worked to prevent manufacturers from successfully competing in the generic drug market.
Although Shkreli’s prison sentence began in 2017, the court said he continued to exert his influence over the company, which in December agreed to pay $40 million for its part. The former CEO is now banned from the pharmaceutical industry for life. While a lifetime ban may seem like an extreme remedy, be mindful that State AGs don’t reserve this punishment for those in prison, and have imposed industry bans in other actions and industries. Shkreli has also been ordered to pay disgorgement to the states in $64.6 million. As part of his criminal judgment, he had already lost several assets including his prized Wu-Tang Clan album, a source inspiration for General James’ words of condemnation in her victory press release. Another executive Kevin Mulleady also settled, paying $10 million.
State AGs have been extremely active in the pharmaceutical antitrust space in recent years, including when it comes to generic drug pricing. Specifically, State AGs have alleged that generic drug manufacturers of topical products conspired to inflate prices and reduce competition. Most of the State AGs have been investigating the practice since 2016, with defendants now numbering in the dozens in their 3rd Amended Complaint. The states are caught up in an MDL, but their bellwether trial on dermatology treatments will be the first up.
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Credential Stuffing: Cyber Best Practices from NY Attorney General’s Latest Report
In guidance released last week, the New York State Office of the Attorney General urged businesses to incorporate safeguards to detect and prevent credential-stuffing attacks in their data security programs. The guidance stemmed from the AG’s finding that 1.1 million customer accounts at “well-known” companies appeared to have been compromised in credential-stuffing attacks.
Credential stuffing