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.
Five Ad Claim Substantiation Mistakes Made by Digital Marketers
The Federal Trade Commission requires advertisers to possess a “reasonable basis” for express and implied claims. The failure to do so constitutes an unfair and deceptive act or practice in violation of Section 5 of the FTC Act. Substantiation is a key FTC enforcement priority. Advertisers should be intimately familiar with FTC substantiation investigation and…
Read Article...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 Commission to force those that engage in deceptive business practices to return ill-gotten gains obtained from consumers. The unanimous ruling was written by Justice Stephen Breyer and is a victory of…
Read Article...FTC Announces New Rulemaking Group
On March 25, 2021, the Federal Trade Commission announced the creation of a new rulemaking group within the agency’s Office of the General Counsel. According to the FTC, the new structure will allow it to take a “strategic and harmonized approach to rulemaking across its different authorities and mission areas.” With this new group in…
Read Article...Virginia Passes Broad Consumer Data Protection Law
Much like other states that have followed California in passing data privacy legislation, Virginia has passed and signed into law the Virginia Consumer Data Protection Act. Similar to California’s CCPA, Virginia’s law builds upon fair information privacy principles. The law is intended to provide consumers with increased control over how their personal data is used.…
Read Article...New York’s New Automatic Renewal Law
On February 9, 2021, SB 1475 – New York’s new automatic renewal law – became effective. New York has now joined numerous states that have enacted similar law related to automatic renewal plans and continuity services, including California. Prior to enactment of SB 1745, New York’s ARL – N.Y. Gen. Oblig. Law § 5-903 –…
Read Article...Supreme Court References Plain Language of FTC Act Section 13(b) During Oral Argument
As previously blogged about here, here and here, the FTC’s remedial authority is under attack. Recently, the Supreme Court has heard long-awaited oral arguments in the AMG Capital Management, LLC v. Federal Trade Commission matter. The issue in AMG is whether the FTC is statutorily entitled to use Section 13(b) of the FTC Act to…
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