The FTC announced last week that it has entered into a settlement with ITMedia Solutions LLC, a lead generation company, and a group of affiliated companies (collectively, ITMedia), and several individuals who served as officers of ITMedia, to resolve a complaint filed by the FTC in a California federal district court alleging that the defendants’
FTC
FTC enters into settlement with two defendants in lawsuit alleging merchant cash advance providers engaged in unfair and deceptive practices
By Mark J. Furletti & John Sadler on
The FTC’s recent announcement that it has entered into a settlement with two of the defendants (RAM Capital Funding LLC and Tzvi Reich) in a lawsuit filed by the FTC against two merchant cash advance providers and three of their officers for alleged violations of the FTC Act serves as a reminder of the FTC’s…
FTC bans phantom debt collectors from industry
By Rene T. McNulty on
On December 13, 2021, the Federal Trade Commission (FTC) announced that, under the terms of a settlement, a group of phantom debt collectors were permanently banned from the debt collection industry. The term “phantom debt” is generally used to refer to debt that doesn’t exist or has already been paid.
In its related complaint…
CFPB/ FTC/DOJ/Federal Reserve Board file joint amicus brief arguing consumers not applying for credit are “applicants” under ECOA
By John L. Culhane, Jr. on
The CFPB, FTC, DOJ, and Federal Reserve Board have filed a joint amicus brief in the U.S. Court of Appeals for the Seventh Circuit urging the court to reverse a district court ruling that an individual who had already received credit from the defendant and who was not currently applying to the defendant for credit…
FTC announces ambitious rulemaking agenda that includes UDAP rules
By Christopher J. Willis & Kim Phan on
The FTC has announced that it plans to move forward on an ambitious rulemaking agenda. In contrast to the CFPB’s Fall 2021 rulemaking agenda which offered no meaningful insights into the Bureau’s rulemaking plans in many key areas, the FTC has provided a clear indication of the direction it intends to take in 2022.…
This week’s podcast: The Federal Trade Commission’s updated Gramm-Leach-Bliley Act Safeguards Rule – What you need to know
By Barbara S. Mishkin on
The FTC’s recently updated rule implementing GLB standards for safeguarding customer information replaces the flexibility previously given to financial institutions in developing an information security program with new prescriptive requirements. Our discussion topics include what these new requirements mean for specific aspects of such programs, assigning employee responsibility, conducting risk assessments, installing access controls, using…
Banking trade groups file amicus brief with CA Supreme Court in case involving whether FTC Holder Rule’s recovery limit includes attorney’s fees
By John L. Culhane, Jr. on
Posted in FTC, Regulatory and Enforcement
The American Bankers Association, American Financial Services Association, California Financial Services Association, and Consumer Bankers Association have filed a joint amicus brief with the California Supreme Court in Pulliam v. HNL Automotive Inc., a case with significant implications for the amount of money a plaintiff can recover when proceeding against a dealer/seller under the…
FTC issues guidance on negative option programs and warns of increased enforcement
By Kim Phan & Jill K. Dolan on
Posted in FTC Enforcement, Regulatory and Enforcement
On October 22, the Federal Trade Commission (“FTC”) issued a policy statement providing further guidance on its enforcement of federal law with regard to negative option marketing. The FTC noted in an associated press release that they are “ramping up” enforcement efforts against companies that “trap consumers into subscriptions.” The policy statement is intended to…
CFPB/FTC/North Carolina DOJ file amicus brief with Fourth Circuit in support of reversal of district court decision giving FCRA immunity to consumer reporting agency under the Communications Decency Act
By Christopher J. Willis on
The CFPB, FTC, and the North Carolina Department of Justice filed an amicus brief with the U.S. Court of Appeals for the Fourth Circuit urging it to reverse a district court decision that found Section 230 of the Communications Decency Act made a consumer reporting agency immune from FCRA claims.
In Henderson v. The Source…
FTC looks to Section 5 penalty offense authority in sending notices to for-profit schools that outline practices found to be unfair or deceptive
By John L. Culhane, Jr. & Heather S. Klein on
Posted in FTC, Regulatory and Enforcement
The FTC announced yesterday that it has sent a “Notice of Penalty Offenses” to 70 for-profit higher education institutions that outlines a number of practices that the FTC has previously found to be unfair or deceptive.
The seven practices outlined in the Notice generally relate to claims made by schools about their graduates’…