FTC updates – October 2021

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Tuesday 5th October 2021

Advertising and Marketing, and Privacy and Security

  • The FTC authorized a settlement with the operators of MoviePass over allegations that they took steps to prevent subscribers from using the service as advertised while failing to protect subscribers’ personal information. The FTC alleged that MoviePass Inc., along with CEO Mitchell Lowe and the MoviePass parent company and its CEO, fraudulently marketed its “one movie a day” service and then used fraudulent tactics to prevent subscribers from using the service as advertised the FTC violated both the FTC Act and the Restore Online Shoppers’ Confidence Act. The FTC also alleged that the operators of MoviePass had unencrypted and exposed a database of large amounts of subscribers’ personal information, which resulted in unauthorized access.

Friday 8th October 2021

Made in the USA

  • The FTC announced Mattress company Resident Home LLC and its owner Ran Reske will pay $ 753,000 to pay FTC fees that have made false, misleading, or unsupported promotional claims that their imported DreamCloud mattresses are made from 100% US-made materials were manufactured. According to the FTC, all DreamCloud mattresses are manufactured overseas and in some cases are fully imported or use significant imported materials.

Wednesday October 13, 2021

Recommendations, influencers and reviews

  • The FTC sent a clear message on 700 Companies state that the FTC is ready to use any means at its disposal to hold them accountable if they use endorsements to mislead consumers. The rise of social media has made it more difficult to determine what is and isn’t authentic content and advertising. As a result, the FTC is now using its law enforcement agency to remind advertisers of the law and deter them from breaking it. By sending a Notice of criminal offense More than 700 companies warned the agency that they could face significant civil penalties – up to $ 43,792 per violation – for using advocacy in a way contrary to previous FTC administrative cases. Companies receiving the announcement represent a range of large corporations, top advertisers, leading retailers, top consumer product companies, and major advertising agencies.

Thursday October 14, 2021

Fair Credit Reporting Act & Bureau of Consumer Protection

  • The Chairperson of the Federal Trade Commission, Lina M. Khan, issued a Joint announcement with Rohit Chopra, director of the Consumer Financial Protection Bureau, about a Amicus letter The two agencies and the North Carolina Department of Justice petitioned the US Fourth District Court of Appeals to overturn a lower court ruling in Henderson v. Public Data Source, LP In their statement, Chairman Khan and Director Chopra argued that the decision of the lower court in Henderson would undermine that Fair Credit Reporting Act (FCRA) by providing immunity to consumer registration offices under Section 230 of the Communications Decency Act. According to the joint declaration “Henderson includes a background check company that compiles publicly available information, including criminal records, into background check reports that it sells to employers and others. Companies like these have long been considered FCRA regulated consumer reporting agencies, and the fact that a company has their products on a website or provides data online doesn’t change that. “

FTC operations & data protection and security

  • The FTC Approved the following preliminary agenda item for the Commission meeting on October 21: Presentation on the data protection practices of six major Internet service providers. Staff will present some results from evidence gathered under the 6 (b) orders of 2019 to six internet service providers and three of their advertising partners. The public publication of the report is subject to the vote of the Commission. click here for information on ways to attend the meeting and submit comments.

Friday October 15, 2021

Consumer Protection Office

  • A new employee report “,Serving communities of color“, Approved The Federal Trade Commission highlights a number of key differences in the way fraud and other consumer issues affect color communities, from the types of issues reported to the ways scammers are paid. The study found that those living in black-majority and Latin American communities were more likely to have lost money if they had little or no fraud protection – such as cash or debit cards. By contrast, those who live in white-majority communities have submitted most of their reports on credit card payments, which offer more robust fraud protection. The study also found that people living in black-majority and Latin American communities were more likely to report problems with car buying, banking and lenders, credit problems, and collections than people in white-majority communities. The new report also highlights the FTC’s law enforcement and outreach work, which addresses consumer protection issues facing communities of color.


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