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)
Consumer Protection
CPSC Chair Hoehn-Saric Addresses Annual Product Safety Conference
Greetings from Orlando, FL! The Crowell product safety team is currently attending the annual meeting and training symposium of the International Consumer Product Health and Safety Organization (ICPHSO). We just heard keynote remarks from the Chair of the U.S. Consumer Product Safety Commission (CPSC), Alexander Hoehn-Saric, and wish to share some highlights. As he did in October 2023 at the ICPHSO International Conference in Sweden, Chair Hoehn-Saric focused his remarks on addressing products sold on or through online marketplaces.
Chair Hoehn-Saric first set the stage by sharing some important data points. In 2023, the CPSC announced more than 300 product recalls; levied more than $52 million in civil penalties; engaged in 14 new mandatory safety standard rulemakings; screened more than 60,000 harmful products at the ports; and participated in numerous safety education campaigns. He also noted the budget uncertainty at the CPSC and the need to “do more with less” and stated that the CPSC will always “put consumers first” as they prioritize their work should the CPSC budget decrease.Continue Reading CPSC Chair Hoehn-Saric Addresses Annual Product Safety Conference
I Can’t Say What? New Wave of Class Actions Target Consumer Review Terms & Conditions
Since the Federal Trade Commission (“FTC”) published its updated 2023 Guides Concerning the Use of Endorsements and Testimonials in Advertising earlier this year, consumer reviews have been front of mind. This guidance covers, in part, the treatment of consumer reviews, and companies have been (or should be) preparing for an uptick in FTC enforcement. But it’s not just the FTC to watch out for. A recent wave of class actions arising under California Civil Code § 1670.8 related to a customer’s right to make statements about their experience with a seller has raised the bar for retailers to another level.Continue Reading I Can’t Say What? New Wave of Class Actions Target Consumer Review Terms & Conditions
Another Wave of California Privacy Suits—Deanonymization as “Doxing”
In March 2023, the White House published its National Strategy to Advance Privacy-Preserving Data Sharing and Analytics. Buried in the report was a quiet, but notable, concern related to the possibility of deanonymizing a consumer due to “insufficient disassociability”. See Report, pg. 6. A new wave of class action lawsuits in California—already over three dozen at the time of writing—now seeks to turn a spotlight on these practices, claiming that companies are using “grey market” data to match user patterns with personal identifiable information (PII).Continue Reading Another Wave of California Privacy Suits—Deanonymization as “Doxing”
Attorneys General Consider Consumer Protection Issues Related to Artificial Intelligence in Consumer-Facing Healthcare Technology
Advances in artificial intelligence have become front and center in the minds of many, including attorneys general focused on consumer protection. Although concerns exist for consumer protection, the advancement of artificial intelligence has the opportunity to add value to consumers. This is especially true in healthcare. Recently, attorneys general gathered to discuss these issues at the Attorney General Alliance Annual Meeting, during a panel that discussed The Value of Disruptive Healthcare. In the last few years, the growth of telemedicine has dramatically changed the delivery of healthcare. While these changes were already afoot, the pandemic highlighted the need for virtual access to healthcare and wellness tools. That disruption has added value in many ways to consumers and health care providers managing care for their patients. Similarly, in the coming years, we can expect artificial intelligence to drive even more changes in treatment, therapies, and standards of care in the healthcare sector. During these periods of major technological advancements attorneys general should consider consumers’ safety, privacy, security and consumers’ overall livelihood and health. Dramatic changes in healthcare business and technology are already challenging existing laws in unexpected ways, often creating gaps between the law and what consumers and producers need or want the law to say. This gap period, or regulatory lag, will require producers to assume some regulatory risk and for attorneys general to monitor business activities that they believe create too much risk for consumers.Continue Reading Attorneys General Consider Consumer Protection Issues Related to Artificial Intelligence in Consumer-Facing Healthcare Technology
Consumer Protection Law Taking Effect This Month Could Subject Online Marketplaces to Civil Penalties of up to $50,120 Per Violation
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
CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference
On Wednesday afternoon, CPSC Chairman Alexander Hoehn-Saric addressed the annual conference of the International Consumer Product Health and Safety Organization (ICPHSO) for the second time as chairman. In his remarks, Hoehn-Saric looked back on his first year as chairman, including the recent controversy over gas stoves, and shared some of the agency’s priorities moving forward. But the central theme of Hoehn-Saric’s remarks could not have been clearer— consumers are first in everything the agency does. Continue Reading CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference
FTC Updates (November 14-23, 2022)
The week and a half proceeding the Thanksgiving federal holiday was busy for the Federal Trade Commission. Not only did the Commission release yearly updates such as its Fiscal Year 2022 Agency Financial Report and National Do Not Call Registry Data Book for Fiscal Year 2022, it also filed three complaints, an amicus brief and announced an advanced notice of proposed rulemaking. The Bureau of Consumer Protection has been busy in November and focused on many false advertising and deceptive business practice issues. These stories, plus more, after the jump.Continue Reading FTC Updates (November 14-23, 2022)
FTC Updates (September 19-23, 2022)
The FTC has been pounding the pavement this week, giving testimony, statements, and remarks to multiple types of audiences, including the U.S. Senate. More on these talks, as well as an update on a forthcoming event on protecting children from digital advertising, after the jump.Continue Reading FTC Updates (September 19-23, 2022)
FTC Updates (August 22-26, 2022)
With the end of the fiscal year approaching, the FTC has been busy issuing multiple reports, plans, and resolutions related to its various powers and obligations, including a report to Congress on the Children’s Online Privacy Protection Act (“COPPA”). This story and more after the jump. Continue Reading FTC Updates (August 22-26, 2022)