Â鶹´«Ã½

Skip to main content

What companies – and platforms – can do to help stop fake post-for-pay reviews

Samuel Levine, Director, FTC Bureau of Consumer Protection
Most people now rely on online reviews of products and services to help decide what to buy or where to buy it, and many companies rely on reviews to attract customers. People should be able to trust that these reviews reflect the honest opinions of actual customers. But several FTC cases, including a pending complaint against Roomster, show that some companies abuse that trust by posting fake or deceptive reviews. Such reviews are used to tout a...

FTC forum on commercial surveillance and data security convenes soon

Lesley Fair
Clear your calendar this afternoon – Thursday, September 8, 2022 – and watch the live webcast of the FTC’s virtual public forum regarding its Advance Notice of Proposed Rulemaking on commercial surveillance and data security practices. Chair Kahn will convene the event at 2:00 ET. Following remarks from Commis sioner Slaughter and FTC staff, the first panel will discuss industry perspectives on commercial surveillance and data security. The...

$3 million FTC settlement disapproves of Credit Karma’s deceptive “pre-approved†claims

Lesley Fair
In the annals of marketing, “pre-approved†ranks right up there with “free†and “low-calorie†as a term guaranteed to attract people’s attention. The FTC just announced a $3 million proposed settlement with Credit Karma for allegedly luring consumers in with deceptive promises they had been “pre-approved†for financial products, including major credit cards. The truth? For many of these offers, almost a third of the people who received a “pre...

FTC says Made in USA claims about mattress pads for truck bunks were, well, bunk

Lesley Fair
Are we the only ones who remember C.W. McCall’s novelty song, “Convoy� To paraphrase the lyrics of one of the few #1 hits about truckers, “Mercy sakes alive,†the FTC is “puttin’ the hammer down†on false claims that imported products are American-made. The agency just announced a proposed settlement with Electrowarmth Products, LLC, and owner Daniel W. Grindle, alleging their Made in USA claims for heated truck bunk mattress pads were, well...

FTC and States take on “testi-phony-als†in action against housing platform Roomster and operation that posted bogus reviews on its behalf

Lesley Fair
Reviews and endorsements can be highly influential when consumers are shopping for widgets and gadgets. But when they’re looking for the right platform to use in a rental search, the personal experience of other people takes on even more significance. A complaint filed by the FTC and six States alleges that room finder platform Roomster and its owners used thousands of fake reviews – we call them “testi- phony-als†– to lure consumers to its site...

FTC says data broker sold consumers’ precise geolocation, including presence at sensitive healthcare facilities

Lesley Fair
When people seek medical care or visit other sensitive locations, they may think their presence is confidential. Little do most consumers know that if they have their phones with them, their location – for example, at a women’s health clinic, a therapist’s office, an addiction treatment center, or a place of worship – may be collected by tech companies. From there, that uniquely personal data becomes yet another commodity bought and sold in the...

FTC undertakes inquiry into commercial surveillance practices and wants your insights

Lesley Fair
Commercial surveillance refers to the pervasive collection, tracking, and monetization of personal data. It’s an enterprise that has proven astonishingly lucrative for platforms and other businesses, but often thrives in the shadows without the knowledge of the consumers whose personal information is their stock-in-trade. The FTC has announced an Advance Notice of Proposed Rulemaking – and a September 8, 2022, virtual public forum – to take a...

Deceptive duo: Made in USA falsity and misleading COVID claims

Lesley Fair
Like peanut butter and jelly, some things just go together. Then there are things that are bad on their own and even worse when combined. A proposed FTC settlement adds a new duo to that category: false Made in USA representations and deceptive COVID claims. The case was filed by the Department of Justice on the FTC’s behalf against Adam J. Harmon and two companies he controls. The action also sends a loud-and-clear warning to the many businesses...

Healthcare “plans†and “products†didn’t deliver as promised, says the FTC

Lesley Fair
It’s a discussion taking place around kitchen tables at this very moment: “What healthcare coverage is best for us – and how can we afford it?†Even with glossaries, tables, and charts ‘n’ graphs, it can be a complicated decision. Now factor in the companies that trick people into buying insurance “plans†or healthcare products that make impressive claims, but deliver less than promised – or businesses that add on fees without consumers’ express...

Holding franchisors accountable for illegal practices

Samuel Levine, Director, FTC Bureau of Consumer Protection
We often talk about homes, cars, and education as the largest purchases people will ever make. But for many consumers, the cost of buying a franchise is the financial commitment of a lifetime. Some prospective franchisees may be sophisticated entrepreneurs. But many others are hard-working people who sink their life savings – or take on substantial debt – to buy a franchise. The FTC’s Franchise Rule requires franchisors to make key disclosures...