On Tuesday, June 20, 2023, the Federal Trade Commission sent letters to 50 online marketplaces notifying them of their responsibility to fully comply with the new Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – as soon as the law takes effect on June 27, 2023.Continue Reading Consumer Protection Law Taking Effect This Month Could Subject Online Marketplaces to Civil Penalties of up to $50,120 Per Violation
On December 20, 2022, the FTC originally noticed its solicitation for public comments regarding potential updates and changes to the Green Guides (Guides for the Use of Environmental Marketing Claims) on the Federal Register. While the original deadline to submit comments was February 21, 2023, the Federal Trade Commission (“FTC”) extended the public comment period to April 24, 2023.Continue Reading Green Guides Update – Comments Closed, but the FTC Wanted to Hear More About Waste
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)
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)
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)
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?
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)
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)
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)
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)