As fall approaches, the FTC continues to enforce actions on the consumer protection front against deceptive practices in the cash advance, e-commerce, and telemarketing sectors.  All this, and more, after the jump.

Tuesday, September 17, 2024

Bureau of Consumer Protection, Deceptive/Misleading Conduct

  • At the request of the FTC, a federal court approved settlements that will require the forfeiture of assets valued at about $40 million from a group of defendants who allegedly defrauded consumers nationwide by enrolling them, without their knowledge, into continuity plans for CBD and keto-related products. In addition to imposing monetary judgments that will be suspended if defendants relinquish claims to bank accounts and assets, the orders permanently ban all the defendants from the alleged illegal conduct, as well as from debiting money from consumers’ accounts without prior authorization and from credit card laundering.  The defendants are also required to turn over substantial assets, as set forth in the orders, which will be used to provide refunds to consumers.  The complaint charged the defendants with violating Section 5 of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Electronic Funds Transfer Act (EFTA).

Wednesday, September 18, 2024

Bureau of Consumer Protection, Privacy, Security

  • The FTC is sending payments totaling more than $370,000 to consumers who were harmed by the data security failures of online merchandise platform CafePress. The payments stem from a March 2022 settlement that resolved FTC allegations that CafePress failed to implement reasonable security measures to protect the sensitive information stored on its network. As a result of its shoddy security practices, CafePress’ network was breached multiple times allowing hackers to access sensitive user data including Social Security numbers. The company also failed to adequately inform consumers about these breaches.  The FTC is sending checks and PayPal payments to over 20,000 consumers who filed a valid claim.

Bureau of Consumer Protection, Technology

  • As a result of an FTC lawsuit, an individual and his company who operated a sprawling business opportunity scheme known as Blueprint to Wealth have agreed to a settlement that permanently bans them from the telemarketing industry. The Blueprint to Wealth scheme targeted consumers looking to build their own businesses with a program that offers essentially no value, other than commissions that come from encouraging others to join the scheme. This scheme deceived consumers by charging them at least $3,000 and as much as $21,000, plus hundreds of dollars in additional “administrative fees,” for membership in the scheme, which nominally promised its members turnkey online businesses that would be operated on the members’ behalf, according to the FTC’s complaint.  Those businesses, however, existed only to sell more supposed businesses to more consumers.

The stipulated final order settling the case against Garis and BRG permanently bans them from telemarketing, as well as from any role in selling or marketing money-making or investment opportunities.  In addition, they are required to pay $100,000 to the FTC and turn over the contents of numerous bank accounts and funds, which could be used to provide refunds to consumers.

Bureau of Competition, Manufacturing

WillScot Holdings Corporation (WillScot) announced that it is abandoning its proposed acquisition of McGrath RentCorp (McGrath). Under the merger agreement, which the companies publicly disclosed on January 29, 2024, WillScot agreed to acquire McGrath, a leading business-to-business rental company based in Livermore, California, for $3.8 billion.  WillScot and McGrath are two of the largest modular and portable storage rental companies nationally and in many local markets throughout the United States.

On February 22, 2024, McGrath announced that both it and WillScot had received second requests for additional information from the FTC in connection with the agency’s review of the proposed acquisition.

Tuesday, September 24, 2024

Bureau of Consumer Protection: Advertising and Marketing Practices

  • The FTC announced a proposed settlement against Invitation Homes, one of the country’s largest landlords of single-family homes, resolving allegations that the company deceived renters about lease costs, charged undisclosed junk fees, failed to inspect homes before residents moved in, and unfairly withheld tenants’ security deposits. According to the complaint, Invitation Homes violated Section 5(a) of the FTC Act and the Gramm-Leach-Bliley Act. The proposed settlement provides for an array of injunctive relief and requires Invitation Homes to pay $48 million to the FTC which will be used to refund consumers impacted by the company’s actions.

Wednesday, September 25, 2024

Bureau of Consumer Protection: Artificial Intelligence

  • The FTC announced actions against several companies that allegedly utilized AI in deceptive manners, such as creating fake reviews and claiming that AI could help consumers make money through online storefronts. The FTC has secured settlements or temporary injunctive relief against five companies: DoNotPay, Ascend Ecom, Ecommerce Empire Builders, Rytr, FBA Machine. These lawsuits are part of the FTC’s new law enforcement sweep called Operation AI Comply.

Bureau of Consumer Protection: International Consumer Protection and Enforcement Network (ICPEN)

  • The FTC announced that the consumer protection agencies of Costa Rica, the Dominican Republic, and Panama joined the 2023 Multilateral Memorandum of Understanding (MMOU), which the FTC first signed in 2023 along with other Latin American consumer protection authorities (Chile, Colombia, Mexico, and Peru). The agreement is aimed at combatting consumer protection fraud, deception, and other illegal practices inside and outside of the U.S. The agreement provides a framework and mechanism for consumers to report suspicious activity, information-sharing between agencies, investigative assistance, and other types of cooperation on consumer protection enforcement. 

Thursday, September 26, 2024

Bureau of Consumer Protection: Technology and Children’s Internet Usage

  • The Federal Trade Commission will hold a virtual workshop on February 25, 2025, to examine the use of design features on digital platforms aimed at keeping kids, including teens, online longer and coming back more frequently. Researchers and industry professionals will discuss design features that keep kids engaged on digital platforms, including websites, applications, and interactive online services. Additional information, including a list of speakers and the agenda, will be posted on theevent page in advance of the workshop.

Friday, September 27, 2024

Bureau of Competition: Labor Issues in Merger Acquisitions

  • The FTC announced that it will withdraw from a Memorandum of Understanding with federal labor agencies related to merger investigations. The agency explained that it will continue to closely scrutinize all issues related to mergers, including potential impacts on labor, in accordance with its merger guidelines.