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The FTC has long stressed the importance of good incident response and breach disclosure as part of a reasonable information security program, both through cases and business guidance resources. [1] In some instances, the FTC Act creates a de facto breach disclosure requirement because the failure to disclose will, for example, increase the likelihood that affected parties will suffer harm. Both security breach detection and response are vital to...

Whether your company is in the educational technology business or you have kids in schools where ed tech is used, you’ll want to read the FTC’s Policy Statement on Education Technology and the Children’s Online Privacy Protection Act. The key takeaway: Kids shouldn’t have to surrender their privacy rights to do their schoolwork or attend class remotely. That’s why companies can’t require parents and schools to agree to the comprehensive...

Mark your calendar for October 19, 2022. That’s when the FTC will convene Protecting Kids from Stealth Advertising in Digital Media. Among the developments the virtual event will consider are the use of marketing tactics that make it difficult for children to distinguish between entertainment and advertising, and the rise of “kid influencers” whose videos often blur the line between paid promotions and unsponsored creative content. Researchers...

In making the major decision to seek professional help, people battling addiction – and their families, friends, and colleagues – are looking for accurate information about the treatment best suited to the individual. But according to a proposed FTC settlement, R360 LLC, a company that provided marketing services to addiction treatment centers, and its principal, Steven Doumar, ran national ads that used false claims to promote their clients’...

“BEST DAMN AMERICAN MADE GEAR ON THE PLANET” So roared a Utah-based company called Lions Not Sheep in promoting its apparel and accessories online. But according to an FTC complaint, the company was pulling the wool over consumers’ eyes. Lions Not Sheep just signed a proposed settlement with the FTC over the company’s allegedly false Made in USA claims. Lions Not Sheep sells merchandise through social media, on Amazon, and on Etsy. It has...

Scammers often target job seekers and prospective entrepreneurs with bogus employment and money-making offers. We know that because the FTC has investigated and stopped many of them. But scammers are a relentless breed and continue to make deceptive pitches in online ads, on job websites, and on social media platforms. Knowing some of the red flags can help you spot these scams. Job scams come in a variety of guises. Some fraudsters falsely claim...

The FTC’s latest credit repair case alleges that the creators of The Credit Game falsely promised to help people quickly boost their credit scores and misled them to think they could make millions by running their own credit repair companies. The defendants even went so far as to urge people to invest their COVID-19 government benefits in this supposed money-making opportunity. The lawsuit charges Michael Rando, his wife, Valerie Rando, and seven...

The FTC is returning more than $149 million to people who lost money to AdvoCare International, a former multi-level marketer that the FTC says operated a pyramid scheme disguised as a business opportunity and swindled hundreds of thousands of people who signed up to be distributors of its health-and-wellness products. The FTC sued Texas-based AdvoCare, its former CEO, and its top promoters in 2019, alleging the defendants deceived people into...

T he FTC has proposed some changes to the T elemarketing Sales Rule and would like your feedback. But that’s not all. Commenters raised a number of other issues about TSR compliance and enforcement. So the FTC is publishing a separate Advance Notice of Proposed Rulemaking seeking your input on whether additional changes are warranted to strengthen the protections of the Rule. Both Notices merit your attention, especially proposals that...

For people looking to gain a financial foothold, promises of $100,000 or more in “verified profits” in “under 45 days” are understandably alluring. But all too often what begins as a Siren’s Song ends in a Swan Song as people lose their life savings to the promoters of bogus schemes. The FTC has announced a $3 million settlement with an outfit known as Warrior Trading and its CEO Ross Cameron for using allegedly misleading investment claims to...