“Like white-winged doves singing”, you can count on the BCP Business Blog to celebrate the “Edge of Seventeen” – in 2017, of course – and to look back at developments in 2016, in case you missed it. (Sorry, Stevie Nicks. That one Yes) (In no particular order) Here are our thoughts on ten noteworthy consumer protection actions from the past year.
Green claims. Any review must highlight the historic $10 billion partial settlement with Volkswagen Group of America over false “clean diesel” claims. The FTC also settled four cases that challenged the “all-natural” claims of personal care products made with materials such as polydimethylsiloxane and phenoxyethanol. The fifth complaint resulted in the Commission’s opinion finding that California Naturel falsely promoted its sunscreen as “all natural.”
Business opportunity. The FTC’s settlement with multi-level distributor Herbalife will return $200 million to distributors harmed by the company’s alleged deceptive practices. What’s more, the orders against Herbalife and Vemma require top-down changes to the company’s structure.
Debt collection. We ended 2016 with 139 individuals and companies on the debarred debt collector list, a series of cases stemming from groundbreaking debt collection protection operations, and revitalized relationships with federal, state and local law enforcement partners, united to combat Debt collectors. Illegal debt collection practices.
car. The U.S. Federal Trade Commission filed a lawsuit against Sage Auto Group and its affiliates, accusing the company of engaging in yo-yo financing activities and using deception or other illegal high-pressure means to coerce consumers who have signed contracts and driven away vehicles to accept “yo-yo” financing. Different transactions. The FTC reached a settlement with CarMax, General Motors and four large dealers, accusing the companies of advertising how rigorously they inspected used cars but failing to clearly disclose that some of the cars were subject to unrepaired safety recalls.
Health Claims. The settlement with Learning Rx is the latest action against deceptive cognitive claims. Does using a tanning bed ‘reduce the risk of cancer’? This is a statement challenged by the Federal Trade Commission on Mercola.com. Mars Petcare has found itself in hot water over claims that Eukanuba dog food can extend life. An action against Aura Labs has raised questions about misrepresentations the company made about its instant blood pressure app. (If you have clients in the health app space, tell them about the two new compliance tools.) Members of the homeopathic products industry will want to read the Enforcement Policy Statement for Marketing Claims of Over-the-Counter Homeopathic Medications.
financial problem. A federal court in Nevada issued a record $1.3 billion verdict against Scott Tucker and AMG, alleging a series of illegal practices in their online payday lending business. A Seattle judge has found that Amazon is liable for charging parents in-app fees from children without their authorization. The FTC is suing NetSpend, challenging the company’s claims that users of its reloadable prepaid cards can “instantly access” their funds. 2016 was the year the behind-the-scenes lead generation industry came to light. Case studies like Gigats, KFJ, and Vacation Station are just a few of the ways lead generation can impact people. Read the FTC Staff Viewpoint for insights into the impact on consumers.
Consumer Privacy. The enforcement actions against Turn and InMobi underscore the importance of respecting consumers’ privacy preferences. (InMobi also alleged violations of the Children’s Online Privacy Protection Rule.) The Practice Fusion settlement focuses on the intersection of health privacy and user privacy. We held our first Privacy Conference and are scheduled to hold our second Privacy Conference on January 12, 2017. The Federal Trade Commission has also studied the impact of new technologies such as drones and smart TVs on consumer privacy.
Data security. The FTC alleged that Ashley Madison’s “100% secure and anonymous” claims were deceptive and questioned the company’s security practices as unfair. The FTC’s action against Henry Schein Practice Solutions alleges that the dental office software provider promised to encrypt patient data but failed to adhere to established standards. The intersection of data security and the Internet of Things is the subject of a settlement with Asus that raised questions about security flaws in the company’s home routers. Looking for compliance advice? We updated Protecting Personal Information: A Guide for Business, published a manual on data breach response, and continued our “Start with Safety” work. The FTC also launched Identitytheft.gov, where victims can report identity theft and receive a personal recovery plan.
Social media and recognition. The settlement comes after the Federal Trade Commission (FTC) issued an Enforcement Policy Statement on Deceptive Format Advertising in 2015, challenging Lord & Taylor’s native advertising campaign. nylon Magazine. Additionally, the complaint alleges that Lord & Taylor allowed fashion influencers to post on Instagram wearing Lord & Taylor dresses without disclosing that the department store had paid them. The FTC action against Warner Bros. Home Entertainment also involves an allegedly undisclosed influencer campaign — this time paying to promote the Shadow of Mordor game, which Warner Bros. deceptively claimed was an independent review.
Claims by Educational Companies. In 2016, DeVry announced a $100 million settlement with DeVry to address misleading claims about graduate employment prospects and earnings levels. The Federal Trade Commission’s complaint against Stratford Career College is pending in federal court, challenging claims that its online high school “diploma” program is deceptive.
These are just some of the topics of interest. We don’t have time to discuss the American Made Chemicals settlement, the Fair Credit Reporting Act case against the Credit Protection Association, or the $10 million settlement with Inbound Call Experts over a telemarketing technology support program. Please also note that revisions to the “User Car Rules” and “Telemarketing Sales Rules” came into effect in 2016.
from Tech Empire Solutions https://techempiresolutions.com/the-edge-of-17-federal-trade-commission/
via https://techempiresolutions.com/
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