Brian Turetsky

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On October 16, the FTC issued its final amendments to the Negative Option Rule, which now applies to all negative option programs and includes a “click to cancel” provision intended to make it easier for consumers to cancel their enrollment in order to halt continued charges.

“Negative option” is a term used to describe commercial transactions in which an underlying condition or term will continue unless the consumer takes an affirmative action to either cancel the agreement or reject the good or service. … Continue Reading

One of the country’s largest automotive retailers filed suit against the Federal Trade Commission (“FTC”) on October 4, arguing that the Supreme Court’s recent landmark decision in Securities and Exchange Commission v. Jarkesy requires that complaints such as the one filed against it be filed in court, and not considered in an administrative proceeding.… Continue Reading

On October 7, the CFPB released the Fall edition of its Supervisory Highlights, “Special Edition Auto Finance,” focusing on the auto finance market. The report highlights various supervisory observations and enforcement actions taken to address issues the CFPB asserts it has seen in the auto finance sector, including deceptive marketing practices, wrongful repossessions, and failures in servicing and add-on product administration.… Continue Reading

The Consumer Financial Protection Bureau’s (“CFPB”) Office of Servicemember Affairs Annual Report was released on September 24, 2024, highlighting areas of concern regarding student lending and noting that the number of complaints that servicemembers filed with the CFPB increased in 2023.

The report identifies trends in complaints, highlights financial services issues impacting servicemembers and veterans, and offers recommendations to improve financial protections for the military community.… Continue Reading

On August 28, 2024, the CFPB issued a consumer advisory warning that many video games and “virtual worlds” increasingly resemble traditional banking and payment systems that allow the storage and exchange of billions of dollars in assets, including virtual currencies.

The advisory emphasizes that these “non-traditional” markets have many of the risks associated with real-world transactions, as well as their own unique risks, but without gaming companies providing protection against such risks.… Continue Reading

In February 2023, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) announced an auto finance data pilot, where it ordered nine large auto lenders to provide information about their auto lending portfolios. These lenders consisted of banks, finance companies, and captive lenders (manufacturer-owned finance companies that generally provide below-market interest rate auto financing to consumers).… Continue Reading

On August 15, 2024, the Federal Trade Commission (“FTC”) and Arizona Attorney General announced a proposed settlement with an Arizona-based vehicle dealership to resolve allegations that the dealership misrepresented prices in online advertisements, engaged in unfair and deceptive practices related to the sale of add-on products, and discriminated against Latino consumers by charging higher interest rates and more expensive add-on charges.… Continue Reading

The Federal Trade Commission on August 14 announced a final trade regulation rule intended to fight fake reviews and testimonials by prohibiting their purchase or sale and by allowing the agency to seek civil penalties against violators.

The final rule, 16 CFR Part 465: Trade Regulation on the Use of Consumer Reviews and Testimonials, follows a proposed rule issued in June 2023 and an informal hearing on the proposal that was held in February.… Continue Reading

Career Step LLC, an online career training company has been ordered to pay $43.5 million in cash and debt cancellation to resolve FTC charges that the company “lured consumers, specifically servicemembers and their families, with deceptive ads that falsely touted inflated employment outcomes, job placement, and partnerships with prominent companies.”

The company will cancel $27.8 million in debt and pay $15.7 million to provide redress to consumers harmed by its deceptive advertising.… Continue Reading

CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31.

The money will be used to provide refunds to consumers who were defrauded.

The stipulated complaint filed by the FTC stated that American Auto Shield (AAS) has designed, provided and administered VSCs through CarSheld; it said that between September 2019 and November 2022, CarShield sold VSCs solely on behalf of AAS and has earned commissions of about $600 million.… Continue Reading