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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

Navigating the virtual marketplace has become an integral part of the consumer experience in the digital age. Lurking behind the convenience and accessibility of e-commerce websites, however, lies a subtle yet pervasive tactic known as “dark patterns.”

Dark patterns are generally understood to mean practices that mislead or manipulate consumers into taking actions that do not reflect their true intent, choices or consent.… Continue Reading

The Fifth Circuit Court of Appeals has set oral arguments for Oct. 7 in the challenge of the Federal Trade Commission’s Combating Auto Retail Scams Rule (“CARS Rule”). The petition, filed on January 5, 2024 by the National Automobile Dealers Association and Texas Automobile Dealers Association asks the court to vacate or modify the rule and stay its enforcement pending resolution of the petition.… Continue Reading

Vroom, the former used car sales website which halted vehicle sales in January 2024, has agreed to a proposed settlement with the FTC over allegations the company misrepresented that it had examined all vehicles before listing them for sale, failed to obtain customers’ consent to shipment delays and failed to provide prompt refunds when cars were not delivered on time.… Continue Reading

As we previously reported, here, the Federal Trade Commission (FTC) issued a Final Rule on April 23, 2024 that would prevent most employers from enforcing non-compete agreements against workers, effective September 4, 2024 (the “Rule”). As a result of a preliminary injunction entered against the Rule by a Texas federal court, employers are in limbo as to whether the Rule will impact their businesses.… Continue Reading

On May 20, 2004, the Federal Trade Commission (“FTC”) sent its annual report to the Consumer Financial Protection Bureau (“CFPB”) highlighting its enforcement actions and initiatives in 2023 under the Truth in Lending Act (“TILA”), Consumer Leasing Act (“CLA”), and Electronic Fund Transfer Act (“EFTA”).

While the Dodd-Frank Act (“Dodd-Frank”) provided the CFPB with rulemaking and enforcement authority over the major consumer financial services laws and regulations, the FTC retained authority to enforce TILA and Regulation Z, CLA and Regulation M, EFTA and Regulation E, and CFPB rules applicable to entities within the FTC’s jurisdiction.… Continue Reading

On May 14, 2024, the Federal Trade Commission’s (“FTC”) filed its brief in opposition to Petitioners’ Brief in the legal challenge to the Combating Auto Retail Scams Rule (“CARS Rule”). The petitioners are the National Automobile Dealers Association and Texas Automobile Dealers Association (collectively, “NADA”). In its opposition, the FTC addresses NADA’s three main arguments, namely that the FTC: (1) unlawfully issued the CARS Rule without the required advance notice of proposed rulemaking (“ANPR”), (2) failed to articulate a rational connection between its factual findings and its decision to impose a far-reaching, industry-wide rule, and (3) unreasonably and arbitrarily evaluated the benefits and costs of the CARS Rule.… Continue Reading

As we previously reported, here, the Federal Trade Commission (FTC) voted to issue a final rule (the “Rule”) that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior executives and noncompetes made in connection with the bona fide sale of a business. … Continue Reading

The Federal Trade Commission (FTC) voted last week to issue a final rule that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior executives and noncompetes made in connection with the bona fide sale of a business.

As we previously reported, on January 5, 2023, the FTC issued a Notice of Proposed Rulemaking aimed at categorically banning noncompete agreements nationwide. … Continue Reading

On April 17th, the CFPB issued a consent order to a for-profit training school alleging numerous violations of law related to its use if income share agreements (“ISAs”). According to the Bureau, BloomTech, Inc. (“BloomTech”) and the company’s founder and CEO engaged in deceptive and abusive acts or practices, violated the Truth in Lending Act (“TILA”) and Regulation Z, and violated the Federal Trade Commission’s (“FTC”) Holder Rule.… Continue Reading