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Bamboo snafu

Lesley Fair
Bamboo: It’s not just for tiki huts anymore. Consumers are seeing more items, especially clothing and textiles, labeled or advertised as “bamboo.†But according to FTC lawsuits, Amazon.com, Leon Max, Macy’s, and Sears claimed that products were made of bamboo when they were really made of rayon. In addition, some bamboo wannabes were promoted as environmentally friendly. But manufacturing rayon — even when it’s made from bamboo — is far from a...

FTC's settlement with Google: In brief

Lesley Fair
Not too long ago, talking on the phone, listening to music, and playing games required three clunky pieces of equipment. Manage that wirelessly? Fuhgeddaboutit. But now we can do all that — and more — with a device smaller than a chocolate bar. That took phenomenal feats of technology. But it also took some ground rules to make sure companies had incentives to innovate and consumers could be assured what they bought would work glitch-free with...

Sporting goods companies: Guard against deception

Lesley Fair
Some sports fans spend Saturdays on the field. For the rest of us, raising a Big Foam Finger is exertion enough. But we’ve all read stories about the dangers that head injuries pose to participants in contact sports. That’s why the FTC is continuing to raise concerns about possibly unsubstantiated claims for products advertised to reduce the risk of sports concussions. The FTC just finalized a settlement first announced in August against...

Down in the dumps(ter)

Lesley Fair
Every business generates paper destined for the circular file. But if documents contain sensitive information, don’t toss them out in a way that could invite unauthorized access. According to the FTC’s lawsuit against PLS Financial Services, PLS Group, and The Payday Loan Store of Illinois, loan applications, credit reports, and other confidential paperwork found their way into dumpsters near the defendants’ locations. The settlement applies just...

Cracking down on contrepreneurs

Lesley Fair
Call them contrepreneurs — marketers who use hyped-up promises to sell business opportunities to people eager to be their own boss. As part of a federal-state blitz on bogus bizopps, the FTC announced seven law enforcement actions and developments in five other cases against outfits the agency says used illegal tactics to take more than half a billion dollars from two million Americans trying to make ends meet in a challenging economy. The...

Trash Talking

Lesley Fair
Some things you’d expect to find in a trash can: last night’s potato peelings, the casserole that looked so promising in the cookbook photo, and Oscar the Grouch. But if you run a business, the one thing you don’t want in the dumpster behind your office is paperwork containing sensitive information about your customers. Just ask PLS Financial Services, PLS Group, and the Payday Loan Store of Illinois. PLS Group owns about two dozen companies...

Painting the town green

Lesley Fair
The biggest decision facing a DIYer in the paint store used to be whether Dusting of Snow or Wistful Beige was right for the dining room. But nowadays more businesses are making express claims about their products, including purported environmental benefits. Two of the nation’s leading paint companies — The Sherwin-Williams Company and PPG Architectural Finishes, Inc. — advertised that some of their paints were free of volatile organic compounds...

Justin, Demi, Selena, Rihanna - and COPPA

Lesley Fair
It's not likely we'll succumb to Bieber Fever. We're of a generation more susceptible to the Rockin' Pneumonia and the Boogie Woogie Flu. But a company that ran official fan websites for pop stars may be feeling the effects of an FTC law enforcement action alleging violations of the Children's Online Privacy Protection Act and COPPA Rule. The defendant, Artist Arena, operated authorized sites for Justin Bieber, Demi Lovato, Selena Gomez, and the...

Private eyes: Lessons from the rent-to-own webcam cases

Lesley Fair
The charges outlined in the FTC’s lawsuits against a software business and seven rent-to-own companies are surprising — and OK, some might say a little creepy. Software on rented computers gave the companies the ability to hit the kill switch if people were behind on their payments. But according to the complaints, it also let them collect sensitive personal information, grab screen shots, and take webcam photos of people in their homes. We hope...

"I always feel like somebody's watching me"

Lesley Fair
Paranoid delusion from 80s R&B artist Rockwell? Not necessarily, if he had used a computer from a rent-to-own store. Because according to lawsuits filed by the FTC, many stores — including franchisees of Aaron’s, ColorTyme, and Premier Rental Purchase — spied on their customers through secret software that logged key strokes, captured screen shots, and in some cases, remotely activated the computer’s webcam to take pictures of people in their...