On March 22, 2022 the CFPB issued a policy statement on contractual “gag” clauses and fake review fraud. While the bulleting indicates that financial companies will face consequences for illegally manipulating or suppressing consumer reviews, the message is one with broader implications for all digital marketers. The policy guidance regarding potentially illegal practices … [Read more...]
FTC Rules With Civil Monetary Penalties for Deceptive Earnings Claims and Targeted Marketing May Be Forthcoming
Accountable Tech has recently filed a petition for an FTC rulemaking that would ban “surveillance advertising” as an “unfair method of competition.” The group cites the ad practices of surveillance ad giants like Facebook, Google and Amazon. The petition notes that President Biden’s Executive Order encourages the FTC to use its rulemaking authority to address “unfair data … [Read more...]
House Passes Bill Aimed at Restoring FTC Enforcement Authority
On July 20, the U.S. House of Representatives passed the Consumer Protection and Recovery Act (H.R. 2668). Authored by Representative Tony Cárdenas (D-CA), the Act is intended to restore the Federal Trade Commission’s section 13(b) consumer protection enforcement powers and would authorize the FTC to seek permanent injunctions and other equitable relief, including restitution … [Read more...]
FTC and U.S. Chamber of Commerce Fight About Section 13(b) of the FTC Act
Following a hearing in the Senate Committee on Commerce, Science, and Transportation last month, Federal Trade Commission Acting Chairwoman Rebecca Kelly Slaughter wrote to the Committee regarding the FTC’s position that the ability of the agency to return money unlawfully taken from consumers should be restored. The aforementioned Congressional Committee is currently working … [Read more...]
FTC Warns Marketers and Social Media Platforms About COVID-19 Claims
In April 2021, the Federal Trade Commission announced that it forwarded a tenth set of warning letters to marketers, directing them to stop making unsubstantiated express and implied claims that their products and therapies can prevent or treat COVID-19. According to the FTC, all of the marketers that the FTC contacted complied with the agency’s demand to stop making such … [Read more...]
The Highly Anticipated Supreme Court Decision in AMG Capital Management, LLC v. Federal Trade Commission is Drawing Near
And Those in Favor of a Legislative Fix to the FTC’s Embattled Enforcement Authority Under 13(b) Are Acting With a Greater Sense of Purpose Breaking news this morning: U.S. Supreme Court Halts FTC’s Ability to Obtain Ill-Gotten Gains On April 21, 2020 in the matter of AMG Capital Management, the U.S. Supreme Court effectively made it more difficult for the Federal Trade … [Read more...]
Advertiser’s Responsibilities for What Others Say in Social Media
As outlined by the FTC Endorsement Guides, advertisers are required to have “reasonable programs” in place to train and monitor members of their network. The scope of the program may depend upon the risk that deceptive practices by network participants could cause consumer harm. Some Elements Every Program Should Include Given an advertiser’s responsibility for … [Read more...]
FTC Obtains Court Order Banning Alleged Work-From-Home Scammer from Selling Business Opportunities and Using Robocalls
The Federal Trade Commission has announced that it has permanently banned an alleged work-from-home scammer from selling or promoting business opportunities and from using robocalls under the terms of a settlement. The FTC alleged that an individual and a number of companies he allegedly controlled initiated millions of robocalls nationwide to promote purported sham … [Read more...]
Court Holds Professional TCPA Litigant Can Face Fraud-Based Counterclaim
In the matter of Cunningham v. USA Auto Protection, LLC, the professional litigant plaintiff alleged that USA Auto Protection made more than twenty telemarketing calls to his mobile telephone number without consent. The defendant argued that the plaintiff - or someone acting on his behalf - completed an opt-in form on its website whereby he consented to receive telemarketing … [Read more...]
Defendant Behind Alleged Bogus Health Insurance Scheme Agrees to Settle FTC Charges
One of the defendants behind an alleged sham health insurance scheme has been permanently banned from the health care business as part of a settlement with the Federal Trade Commission. The FTC’s proposed settlement with the individual defendant stems from an ongoing lawsuit against the Florida-based Simple Health enterprise. The FTC alleges that the Simple Health … [Read more...]
Court Holds No TCPA Standing With Ringless Voice Mail Message
The Eleventh Circuit recently held that a plaintiff does not suffer concrete injury through receipt of a single ringless voice mail message. Grigorian v. FCA US LLC, No. 19-15026, 2020 WL 7238392 (11th Cir. Dec. 9, 2020). The Eleventh Circuit previously ruled that receipt of a single, unsolicited text message does not constitute the harm necessary to achieve Article III … [Read more...]
DoJ Announces Historic Civil Penalty in a Telemarketing Enforcement Action
The Department of Justice has announced a settlement in which DISH Network LLC will pay $126 million in civil penalties to the United States for placing millions of telemarketing calls in violation of the Federal Trade Commission's Telemarketing Sales Rule. This settlement represents the largest civil penalty ever paid to resolve telemarketing violations under the FTC Act, … [Read more...]
Supreme Court Brief Filed in Favor of Broad Interpretation of ATDS Definition
The Plaintiff in Facebook, Inc. v. Duguid has recently filed its merits brief on this issue of whether the Telephone Consumer Protection Act’s definition of “automatic telephone dialing system,” 47 U.S.C. § 227(a)(1), encompasses a device that can store and automatically dial telephone numbers without using a random or sequential number generator. The Supreme Court case … [Read more...]
FTC Settles Charges Against Online Investment Training Program Providers While Doubts About the Scope of FTC Enforcement Authority Loom
As previously blogged about here, providers of online training and business coaching programs have increasingly found themselves on the receiving end of unwanted Federal Trade Commission scrutiny. A recently announced settlement with Online Training Academy requiring its principals to turn over millions of dollars in cash and assets further illustrates the dangers of operating … [Read more...]
Advertiser and Network Responsibilities for What Others Say in Social Media
As previously blogged about here, the FTC actively continues its assault on paid-for rankings, ratings and review websites. The FTC’s Endorsement Guides provide that if there is a “material connection” between an endorser and an advertiser – in other words, a connection that might affect the weight or credibility that consumers give the endorsement – that connection should … [Read more...]