Since passage of the “Farm Bill” which legalized hemp-derived CBD containing less than 0.3% THC, the Federal Trade Commission has twice issued warning letters to marketers of CBD products. In March 2019, the FTC and U.S. Food and Drug Administration issued warning letters to companies that allegedly made false and unsubstantiated “disease treatment” claims for CBD products. … [Read more...]
Court Addresses Unconstitutional TCPA Damages and Who Can be Held Liable
A company that managed the ownership rights of a film hired a company to promote and market the film. There were approximately 3.2 million telephone calls made over a short period of time that delivered a prerecorded audio message from former Arkansas Governor Mike Huckabee. The two plaintiffs received two voice messages and subsequently initiated class action … [Read more...]
Online Advertising and “Enhanced Notice”
A recent BBB opinion appears to be another harbinger of the direction that data privacy law is going. Specifically, a decision by the Online Interest-Based Advertising Accountability Program (the “Program”) illustrates the importance of providing consumers with “enhanced notice” when data is collected for interest-based advertising. In response to a consumer complaint, the … [Read more...]
Individualized Issues of Consent Result in TCPA Class Action Certification Denial
Class actions are designed to promote the efficiency of litigation by allowing the claims of a group of individuals with the same claims to be decided in the same proceeding. They are commonly utilized by plaintiffs’ attorneys in Telephone Consumer Protection Act matters. In the matter of Tomeo v. CitiGroup, Inc., No. 13-C-4046, 2018 U.S. Dist. LEXIS 166117 (N.D. Ill. Sept. … [Read more...]
FTC Reiterates Privacy and Data Security Priorities
The Federal Trade Commission recently testified before the House Energy and Commerce Subcommittee about its work to protect consumers, promote competition, privacy and data security, and IoT. In doing so, according to FTC defense lawyer Richard B. Newman, the FTC reiterated its commitment to maximizing its resources in light of marketplace changes. FTC Chairman Joe Simons … [Read more...]
Senators Propose Internet Privacy Bill That Threatens Digital Advertising
Earlier this month, Senators Richard Blumenthal and Ed Markey (D-MA) introduced new privacy legislation entitled the Customer Online Notification for Stopping Edge-provider Network Transgressions (“CONSENT”) Act. Senator Markey has referred to the legislation as a “privacy bill of rights” and believes that recent privacy violations have necessitated consent-based … [Read more...]
FTC Investigation and Enforcement Trends
Privacy and data security-related issues remain a hot-button subject and the parameters are still being defined by the FTC, as well as courts. Recently, the FTC has challenged alleged inadequate data security measures on the basis that they constitute “unfair business practices.” The FTC Act defines unfair business practices as practices that cause or are likely to … [Read more...]
The Story Behind $O FTC Settlements and Suspended Judgments
It is a phrase you see or hear attorneys make when describing FTC settlements: “The order includes a suspended judgment.” The Federal Trade Commission refers to allowing settling defendants to avoid paying a judgment in full as a suspended judgment. Often misunderstood, partially or totally suspended judgments are based upon a defendant’s inability to pay the full amount of … [Read more...]