This week, the FTC filed a brief as Amicus Curiae in the U.S. District Court for the District of Delaware, issued a request for information on the business practices of cloud computing providers, and proposed a “click to cancel” provision in an ongoing review of the 1973 Negative Option Rule. These stories and more after the jump.
This week, the FTC took action focused on deceptive advertising on social media platforms, for health treatments, and consumer goods. For the fourth time this year, the FTC opposed noncompete agreements imposed on workers and also introduced a proposed rule banning noncompetes. These stories and more, after the jump.
This week, the FTC extended the comment period for its proposed rule banning harmful noncompete agreements through April 19. As part of a trend in challenging this practice, the FTC struck down noncompetes that harmed low-wage security guard workers. The FTC also announced that it was sending nearly $2.4 million to consumers who were misled by a stock trading website. These stories and more after the jump.
On February 27, 2023, the Federal Trade Commission (“FTC”) Division of Advertising Practices updated their business guidance on the usage of Artificial Intelligence (“AI”) for 2023. In their post titled “Keep your AI claim in check”, the FTC guides marketers on how best to legally and efficiently utilize AI in advertising and avoid AI washing. Building upon the FTC’s previous AI guidance of 2020 and 2021, this year’s iteration emphasizes that false or unsubstantiated claims about a product’s efficacy—including those that involve promises about the ability of AI—runs afoul of the FTC Act. Specifically, the FTC reminds marketers of the following questions that they should consider with the increasing use of AI in products:
This week, the FTC partnered with the Consumer Financial Protection Bureau to explore background screening issues affecting individuals who seek rental housing in the United States. For the first time, the Commission returned funds to consumers whose health data was compromised. Lastly, the Commission announced a workshop to discuss “recyclable” advertising claims. These stories and more after the jump.
The FTC has continued its strong start to the new year with enforcement actions related to false advertising in the healthcare industry and misleading conduct in the “gig” economy as well as revising the merger reporting thresholds and filing fees. These stories and more after the jump.
Continue Reading FTC Updates (January 16 – January 27, 2023)
#ICYMI – The Federal Trade Commission (“FTC”) extended the public comment period on its solicitation for public comments regarding potential updates and changes to the Green Guides (Guides for the Use of Environmental Marketing Claims) by 60 days. On December 14, the FTC held an open meeting and voted to notice the public comment period. On December 20, the FTC noticed the public comment period on the Federal Register, which would have originally expired on February 21, 2023. All public comments must now be filed by April 24, 2023.
The FTC started the new year with a proposed new rule that would ban employers from imposing non-competes on their workers. It also announced increases to civil penalties connected to various federal provisions. These stories after the jump.
The FTC has not been quiet during the holidays. The agency is primarily tied up with its litigation against Meta, but it has also taken action in other industries, including finance and health products. These stories and more after the jump.
Continue Reading FTC Updates (December 19 – December 30, 2022)
The Federal Trade Commission (“FTC” or “Commission”) recently announced that it has adjusted the maximum civil penalty dollar amounts for violations of 16 provisions that the Commission enforces. The increase is required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and is intended to account for inflation. The act directs agencies to implement annual inflation adjustments based on a prescribed formula. Given the uptick in FTC enforcement actions, companies are likely to begin feeling the impact of the increased penalties in the coming year.
As our readers likely recall, the Supreme Court’s 2021 ruling in AMG Capital Management LLC v. Federal Trade Commission removed a powerful tool that the FTC had previously relied on to pursue monetary relief in federal court. The Supreme Court unanimously held that the Federal Trade Commission cannot obtain equitable monetary relief, such as disgorgement or restitution, when it pursues district court litigation directly under Section 13(b) of the Federal Trade Commission Act (“FTC Act” or “Act”). Rather, to obtain such relief, the FTC must first follow its administrative adjudication procedures under Section 5 of the Act.
Continue Reading How Much Could Violating a FTC Rule Cost You? $50,120 Per Violation?