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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Use of Certain Technologies to Track Web Session Data May Violate Law
Attention Lead Generators. The Ninth Circuit Court of Appeals recently held that use of certain technologies on a websites in order to track and record web session data before obtaining affirmative consent may be a violation of California’s wiretap statute. In the case of Javier v. Assurance IQ, LLC and ActiveProspect Inc. (*not precedent except as…
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FTC Rules With Monetary Penalties for Deceptive Earnings Claims and Targeted Marketing May Be On The Way
On February 10, 2022 the Federal Trade Commission announced that it intends to vote whether to issue an Advance Notice of Proposed Rulemaking on “deceptive earnings claims for business ventures, gig or other work opportunities, or educational, coaching or training offerings.” The vote is set to take place on February 17, 2022 at an open…
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The FTC, Lead Generation and Telemarketing Sales Rule Do Not Call Enforcement
The Federal Trade Commission continues to investigate and enforce violations of the Telemarketing Sales within the lead generation industry, including lead generators that “assist and facilitate” sellers or telemarketers that violate the TSR. Recent FTC Civil Investigative Demands to lead generators illustrate that the FTC may now be resurrecting the issue of the application of…
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Five Ad Claim Substantiation Mistakes Made by Digital Marketers
The Federal Trade Commission requires advertisers to possess a “reasonable basis” for express and implied claims. The failure to do so constitutes an unfair and deceptive act or practice in violation of Section 5 of the FTC Act. Substantiation is a key FTC enforcement priority. Advertisers should be intimately familiar with FTC substantiation investigation and…
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U.S. Supreme Court Halts FTC’s Ability to Obtain Ill-Gotten Gains
On April 21, 2020 in the matter of AMG Capital Management, the U.S. Supreme Court effectively made it more difficult for the Federal Trade Commission to force those that engage in deceptive business practices to return ill-gotten gains obtained from consumers. The unanimous ruling was written by Justice Stephen Breyer and is a victory of…
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