This week the FTC released updates related to the Negative Option Rule and the proposed Business and Government Impersonation Rule. The FTC, along with three other federal agencies, issued a joint statement describing their commitment to enforce their respective laws and regulations to promote responsible innovation in automated systems, such as artificial intelligence. The Agency also requested over $500 million from the House Appropriations Subcommittee on Financial Services and General Governmentfor FY 2024, which would enable it to fund over 300 additional full-time employees. In addition, the agency announced that it would be sending over 41,000 refund checks to consumers that fell victim to alleged dark pattern practices for dental products. These stories and more after the jump.Continue Reading FTC Updates (April 24 – April 28, 2023)
Tiffany Aguiar Brennan
FTC Updates (February 27 – March 3, 2023)
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.Continue Reading FTC Updates (February 27 – March 3, 2023)
FTC Updates (Jan 2 – 13, 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. Continue Reading FTC Updates (Jan 2 – 13, 2023)
How Much Could Violating a FTC Rule Cost You? $50,120 Per Violation?
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?
FTC Updates (October 31 – November 4, 2022)
The FTC hosted an online privacy seminar that brought together researchers, academics, and industry representatives to discuss trends related to consumer privacy and data security. The agency announced a lawsuit against an education technology provider for allegedly lax data security practices that exposed sensitive information about millions of customers and employees. The agency also announced a settlement with a major telecommunications company over alleged junk fees and dark pattern practices. These stories and more after the jump.Continue Reading FTC Updates (October 31 – November 4, 2022)
FTC Updates (September 12–16, 2022)
The FTC had an active week and addressed numerous topics, including ways to protect older adults and gig economy workers. Notably, the FTC released a report showing the rise in sophisticated dark pattern practices and the Commission’s commitment to combatting them. The Commission also announced a proposed rule targeting government and business impersonation scams. This story and more after the jump. Continue Reading FTC Updates (September 12–16, 2022)
FTC Updates (August 15-19, 2022)
The FTC released its policy paper and fact sheet urging state legislatures to avoid using Certificate of Public Advantage (“COPA”) laws and instead invited state lawmakers to work collaboratively with competition policy experts to minimize the potentially harmful effects of further hospital consolidation. This follows that Agency’s recent blocking of a number of healthcare provider mergers, emphasizing the Commission’s focus on preventing what it considers anticompetitive hospital mergers. The Agency also announced that it will be sending out checks totaling more than $822,000 to borrowers that lost money to a student loan debt-relief scheme. These stories after the jump.Continue Reading FTC Updates (August 15-19, 2022)
FTC Updates (July 18-22, 2022)
The FTC joined with the National Labor Relations Board in order to bolster efforts to protect workers against anticompetitive and unfair practices. It also announced a $25 million refund to U.S. and international consumers that were allegedly defrauded by a sweepstakes scheme. And for the first time in FTC history, the Commission brought an action under the Military Lending Act against a Jewelry company that allegedly mislead military families. These stories and more after the jump.Continue Reading FTC Updates (July 18-22, 2022)
FTC Updates (June 21-24, 2022)
This week, the Commission issued more than 30,000 checks, totaling more than $11 million, to consumers and small businesses for cases settled pre-AMG. The FTC also issued a Notice of Proposed Rule Making for the Motor Vehicle Dealers Trade Regulation Rule that could have a significant impact on car marketing and sales tactics. The Commission also finalized orders against a mattress and bedding retailer making “Made in USA” claims and an online retailer of customizable goods for consumer data and privacy concerns. These stories and more after the jump. Continue Reading FTC Updates (June 21-24, 2022)
FTC Updates (May 23–27, 2022)
The FTC has placed Twitter in the hot seat again for privacy related practices that it alleges impacted over 140 million users. The Commission has also resolved actions pertaining to alleged magazine subscription scams and credit card laundering. In addition, the FTC is turning to the public to gather information regarding the recent infant formula shortage. These stories and more after the jump. Continue Reading FTC Updates (May 23–27, 2022)