Federal Trade Commission (FTC)
The U.S. Federal Trade Commission (FTC) enforces and investigates (Civil Investigative Demands) fraudulent, unfair and deceptive practices, as well as anticompetitive marketplace conduct. It possesses investigative authority pursuant to Sections 6, 9 and 20 of the FTC Act. Following an investigation, the FTC may initiate a consumer protection or antitrust enforcement action. The basic consumer protection statute enforced by the FTC is Section 5(a) of the FTC Act. Consumer protection laws are enforced by the Bureau of Consumer Protection. Antitrust laws are enforced by the Bureau of Competition.
Second Circuit Nixes Attempt to “Pick Off” Lead Plaintiff
Earlier this month in the TCPA litigation matter of Lary v. Rexall Sundown, Inc., the Second Circuit Court of Appeals rejected attempts to “pick off” the lead plaintiff, intended to effectively moot class action litigation. The matter involves a nutritional supplement maker and the marketing company that allegedly sent an unauthorized fax on its behalf.…
Read Article...FTC Signs MOU with RCMP to Strengthen Cross-Border Consumer Protection
The Federal Trade Commission has signed a memorandum of understanding with the Royal Canadian Mounted Police in an effort to enhance enforcement cooperation on cross-border consumer fraud matters. The MOU, signed by Acting FTC Chairman Maureen K. Ohlhausen, facilitates the sharing of information and the ability to engage in joint investigations. Cooperation between the FTC and RCMP is nothing…
Read Article...FTC Turns its Attention to the Business of Deceptively Using Purchased Search Terms
Section 5 of the Federal Trade Commission Act prohibits ‘‘unfair or deceptive acts or practices in or affecting commerce.” Traditionally, the Commission has focused upon direct advertising claims, both express and implied. However, two recent matters place online marketers on notice that the Commission is now closely scrutinizing indirect advertising through the use of purchased…
Read Article...FTC Announces Workshop to Examine Online Lead Generation
The Federal Trade Commission will hold a workshop on October 30, 2015, to explore the growing use of online lead generation in various industries, including consumer lending and education. The workshop, “Follow the Lead: An FTC Workshop About Online Lead Generation,” will gather a variety of stakeholders, including industry representatives, consumer advocates, and government regulators,…
Read Article...No Immunity for Affiliate Network with Ability to Control Advertising Process
In 2011, the Federal Trade Commission filed a series of lawsuits against affiliate publishers who used “fake news” websites to advertise weight loss products and other merchant offerings. In one of those lawsuits, the Commission joined with the State of Connecticut to include an affiliate network as a defendant. The complaint alleged, in part, that affiliate…
Read Article...FTC Alleges “Free” Credit Report Marketers Violated Restore Online Shoppers’ Confidence Act
The Federal Trade Commission has stopped an online scheme that allegedly lured consumers with “free” access to their credit scores and then billed them a recurring fee of $29.95 per month for a credit monitoring program they never ordered. The three companies have agreed to pay $22 million for consumer refunds under a settlement with the…
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