The Federal Trade Commission has stopped a pair of student loan debt relief schemes that it says bilked students out of approximately $12 million by using deceptive claims about repayment programs and loan forgiveness that did not exist. The agency also says the companies falsely claimed to be or be affiliated with the Department of […]
Category Archives: Federal Trade Commission
In 2021, in the case of AMG Capital Management, LLC v. FTC, the Supreme Court held that section 13(b) of the FTCA does not, contrary to a decades-long practice, allow the FTC to obtain equitable monetary judgments via court proceedings without first going through administrative proceedings as required to obtain such relief under section 19. […]
In November 2022, the FTC brought a lawsuit against the operators of a telemarketing debt relief scheme based in Tennessee. Operating under a variety of trade names, the network had tricked consumers to part with tens of millions of dollars based on false promises to eliminate or substantially reduce credit card debt. This week, the […]
As automated systems spread throughout the economy, federal agencies announce that they will use existing authorities to ensure compliance with the law. “We take seriously our responsibility to ensure that these rapidly evolving automated systems are developed and used in a manner consistent with federal laws,” said the heads of the Consumer Financial Protection Bureau, […]
Politico reports: “As demand for sustainable products has skyrocketed, so have concerns about greenwashing. Public comments were due yesterday on the FTC’s first update in 11 years of its “Green Guides,” which are essentially advice for how companies can make environmental marketing claims. The nearly 60,000 comments shed light on what companies, industry trade groups […]
The Federal Trade Commission has approved a final consent order against The Bountiful Company for abusing a feature of Amazon.com to deceive consumers into thinking that its newly introduced supplements had more product ratings and reviews, higher average ratings, and “#1 Best Seller” and “Amazon’s Choice” badges. Details, including a link to the complaint, are […]
Gregory M. Dickinson of St. Thomas has written Privately Policing Dark Patterns, 57 Ga. L. Rev. (2023 Forthcoming). Here is the abstract: Lawmakers around the country are crafting new laws to target “dark patterns”—user interface designs that trick or coerce users into enabling cell phone location tracking, sharing browsing data, initiating automatic billing, or making […]
The Regulatory Review blog reports that “With 77 percent of online shoppers using reviews to inform their purchase decisions, customer reviews play a crucial role in shaping international commerce. Fake reviews, which include manufactured and deceptive reviews, constitute about 4 percent of all reviews online. This 4 percent translates to a cost to consumers of […]
As a result of a Federal Trade Commission lawsuit, the operators of a telemarketing scam that called hundreds of thousands of consumers nationwide to pitch them expensive “extended automobile warranties” will face a lifetime ban from the extended automobile warranty industry and from all outbound telemarketing. The FTC’s press release is here.
Allison posted a couple days ago on the FTC’s proposed rule on “click to cancel” subscriptions and memberships. Relatedly, Michele Singletary at the Washington Post has this useful piece on the topic. Here’s a little excerpt that describes the practices targeted by the FTC proposal and why those practices can be bad: With a negative-option membership […]