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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FTC Turns its Attention to the Business of Deceptively Using Purchased Search Terms
Section 5 of the Federal Trade Commission Act prohibits ‘‘unfair or deceptive acts or practices in or affecting commerce.” Traditionally, the Commission has focused upon direct advertising claims, both express and implied. However, two recent matters place online marketers on notice that the Commission is now closely scrutinizing indirect advertising through the use of purchased…
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FTC Announces Workshop to Examine Online Lead Generation
The Federal Trade Commission will hold a workshop on October 30, 2015, to explore the growing use of online lead generation in various industries, including consumer lending and education. The workshop, “Follow the Lead: An FTC Workshop About Online Lead Generation,” will gather a variety of stakeholders, including industry representatives, consumer advocates, and government regulators,…
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No Immunity for Affiliate Network with Ability to Control Advertising Process
In 2011, the Federal Trade Commission filed a series of lawsuits against affiliate publishers who used “fake news” websites to advertise weight loss products and other merchant offerings. In one of those lawsuits, the Commission joined with the State of Connecticut to include an affiliate network as a defendant. The complaint alleged, in part, that affiliate…
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FTC Alleges “Free” Credit Report Marketers Violated Restore Online Shoppers’ Confidence Act
The Federal Trade Commission has stopped an online scheme that allegedly lured consumers with “free” access to their credit scores and then billed them a recurring fee of $29.95 per month for a credit monitoring program they never ordered. The three companies have agreed to pay $22 million for consumer refunds under a settlement with the…
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Rockefeller Introduces Data Broker Bill
Late last year, Sen. Jay Rockefeller (D-W. Va.) – chairman of the Senate Commerce Committee – released a report warning about the purported harms of data brokers and encouraging oversight from lawmakers. Now, as long expected, Rockefeller has introduced legislation aimed at overseeing and regulating the data broker industry. He and Sen. Ed Markey (D-Mass.) have filed the Data Broker Accountability and…
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FTC Staff Updates Advertising Disclosure Guidelines
On March 12, 2013, the Federal Trade Commission released guidance that updates its 2000 guidance for online advertising disclosures entitled “Dot Com Disclosures.” The new guidance accounts for new developments in the digital marketplace, including advertising on social media, the use of voiceovers and video, as well as disclosures presented through hardware with smaller screens such as tablets and mobile…
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