The FTC focused its week on consumer protection. The Commission announced a tentative agenda for its upcoming open meeting, sent warning letters to adoption intermediaries for purportedly misleading consumers, and issued refunds to consumers deceived by 1Health.io about its privacy and security practices. More on these stories after the jump.Continue Reading FTC Updates (September 9 – 13, 2024)
The FTC’s activity this week centers around data analysis. The agency released reports analyzing Bitcoin ATM scam data, followed by a report compiling issues with income disclosure statements from multi-level marketing (“MLM”) businesses. The Commission also sent a report to the Consumer Financial Protection Bureau on its activity related to fighting debt collection-related fraud against consumers. More information on these stories after the jump.Continue Reading FTC Updates (September 2-6, 2024)
The FTC stayed busy during the beginning of August. The agency announced a host of proposed settlements with companies and individuals engaged in deceptive and fraudulent business schemes. All this and more after the jump:Continue Reading FTC Updates (August 5-9, 2024)
Call it the summer of junk fees and drip pricing. In July, California’s new drip pricing law went into effect and in August the federal government announced further proposed rules into junk fees and subscription services. Regulators say these proposed price transparency laws and regulations are consumer protection tools that will save consumers money, help them avoid hidden fees and enable them to cancel recurring charges and subscriptions.
As we’ve previously reported, FTC practitioners and businesses alike have been anxiously awaiting details about the rule that will prohibit purportedly deceptive practices in connection with reviews and testimonials. Our readers likely recall the FTC’s advance notice of proposed rulemaking from November 2022, the notice of proposed rulemaking from June 2023, and the informal hearing on the proposed rule which occurred in February 2024. The wait is finally over: just yesterday, August 14, 2024, the agency announced the “Rule on the Use of Consumer Reviews and Testimonials” (the “Rule”). The final Rule, which the Commissioners unanimously approved, is a formal step to address alleged ongoing non-compliance with Section 5 of the FTC Act and the agency’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”), particularly in the consumer review space.Continue Reading Final Rule Announced: The FTC Strengthens Its Enforcement Capacity Against “Deceptive” Reviews and Testimonials
Gone are the days of hidden fees and tacked on surcharges in California. Starting July 1, 2024, SB478 prohibits businesses in California from adding automatic service charges onto consumer bills. The law applies to the sale or lease of most consumer goods, including hotel and restaurant fees.
Significantly, the laws requires transparency in the advertised price. This means that businesses must disclose all costs and fees upfront – no more surprises in your shopping cart before checkout, or that mandatory “large group” fee at restaurants. It’s not even enough to disclose all the fees before the consumer finalizes the transaction or hits “buy”. The total cost must be the advertised price, disclosed at the top of the funnel. Some exceptions apply, but they are limited to items such as mandatory sales tax, shipping and voluntary tips. Penalties are stiff: consumers can bring claims against businesses, with a max of $1,000 per violation, and consumers can recover attorneys’ fees.Continue Reading California Is Tightening the Pipes on Drip Pricing
As we proceed through July, the FTC continues to bring the summer heat in cracking down on the advertising practices of cannabis manufacturers, and on the possible anti-competitive effects of serial acquisitions and roll-up strategies. All this, and more, after the jump.Continue Reading FTC Updates (July 15-19, 2024)
The FTC has kept a steady march through the summer, announcing developments in existing cases, submitting testimony to Congress, and revising existing regulatory exemptions. Also, the FTC finalized reports on dark patterns, challenged a merger, and issued warning letters on the right to repair. This, and more, after the jump.Continue Reading FTC Updates (July 1-12, 2024)
The first week of June brought two votes on final rules from the FTC, including the Amplifier Rule and Racetrack Safety Rule. Further, the FTC finalized a proposed settlement and consumer redress regarding Lurn, Inc.’s deceptive advertisings. All this and more after the jump:Continue Reading FTC Updates (June 3-7, 2024)
The FTC rounded out May by providing its annual report to the Consumer Financial Protection Bureau, highlighting the Commission’s efforts related to the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA).Continue Reading FTC Updates (May 27-31, 2024)