Federal Trade Commission (FTC)
The U.S. Federal Trade Commission (FTC) enforces and investigates (Civil Investigative Demands) fraudulent, unfair and deceptive practices, as well as anticompetitive marketplace conduct. It possesses investigative authority pursuant to Sections 6, 9 and 20 of the FTC Act. Following an investigation, the FTC may initiate a consumer protection or antitrust enforcement action. The basic consumer protection statute enforced by the FTC is Section 5(a) of the FTC Act. Consumer protection laws are enforced by the Bureau of Consumer Protection. Antitrust laws are enforced by the Bureau of Competition.
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Hat Company Settles FTC Charges of Deceptive “Made in USA” Claims
On January 23, 2018, the Federal Trade Commission announced that a Pennsylvania-based company has agreed to cease making allegedly false claims that the hats and other products it sells are all or virtually all made in the United States, and to stop its alleged deceptive use of its “American Made Matters” certification and marketing materials. See the settlement…
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FTC Penalizes Telemarketer for Deceptive Charitable Solicitation Calls
The Federal Trade Commission recently announced that an Ohio-based company that allegedly made millions of calls to consumers nationwide on behalf of charitable organizations has agreed to pay a $250,000 civil penalty to settle FTC charges that its telemarketers deceived consumers by falsely stating that they were not calling to solicit contributions. The proposed order…
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FTC “Informational Injury” Workshop
The Federal Trade Commission continues to aggressively initiate investigations and enforcement actions against companies for the alleged failure to implement reasonable privacy and data security measures. For quite some time, the agency has done so pursuant to the theory that such practices are “unfair,” as proscribed by Section 5 of the FTC Act. However, the…
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Second Circuit Nixes Attempt to “Pick Off” Lead Plaintiff
Earlier this month in the TCPA litigation matter of Lary v. Rexall Sundown, Inc., the Second Circuit Court of Appeals rejected attempts to “pick off” the lead plaintiff, intended to effectively moot class action litigation. The matter involves a nutritional supplement maker and the marketing company that allegedly sent an unauthorized fax on its behalf.…
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FTC Signs MOU with RCMP to Strengthen Cross-Border Consumer Protection
The Federal Trade Commission has signed a memorandum of understanding with the Royal Canadian Mounted Police in an effort to enhance enforcement cooperation on cross-border consumer fraud matters. The MOU, signed by Acting FTC Chairman Maureen K. Ohlhausen, facilitates the sharing of information and the ability to engage in joint investigations. Cooperation between the FTC and RCMP is nothing…
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