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The FTC has announced that it is seeking public input on ways to modernize its 2013 guide titled “.com Disclosures:  How to Make Effective Disclosures in Digital Advertising,” which provides guidance to businesses on digital advertising and marketing.  In an attempt to modernize the guidance, the FTC is seeking comments on the following issues:

  • the use of sponsored and promoted advertising on social media;
  • advertising embedded in games and virtual reality and microtargeted advertisements;
  • the ubiquitous use of dark patterns, manipulative user interface designs used on websites and mobile apps, and in digital advertising that pose unique risks to consumers;
  • whether the current guidance adequately addresses advertising on mobile devices;
  • whether additional guidance is needed to reflect the multi-party selling arrangements involved in online commerce and affiliate marketing arrangements;
  • how the guidance on the use of hyperlinks can be strengthened to better protect consumers; and
  • the adequacy of online disclosures when consumers must navigate multiple webpages;

The FTC is accepting comments through August 2, 2022.… Continue Reading

The Federal Trade Commission provided its annual report to the Consumer Financial Protection Bureau on its enforcement and related activities in 2021 regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA) (collectively, the “Financial Acts”).

Under Dodd-Frank, the FTC retained its authority to enforce these regulations with respect to entities subject to its jurisdiction. … Continue Reading

Breaking in

The Federal Trade Commission (FTC) recently issued a blog post stating that a failure to disclose a data breach may be a violation of Section 5 of the FTC Act.  The May 20 blog post, titled Security Beyond Prevention: The Importance of Effective Breach Disclosures, explained that in some instances, the FTC Act may create a de facto breach disclosure requirement because the failure to disclose will increase the likelihood that affected parties will suffer harm. … Continue Reading

The California Supreme Court has ruled in Pulliam v. HNL Automotive Inc. that the FTC Holder Rule’s limit on a consumer’s “recovery” to the “amounts paid by the debtor” under the contract does include the consumer’s attorney’s fees where a buyer seeks fees from a holder under a state prevailing party statute. … Continue Reading

Yesterday, the U.S. Senate confirmed Alvaro Bedoya to serve as an FTC Commissioner  

Mr. Bedoya fills the seat on the Commission previously held by CFPB Director Rohit Chopra.  He joins the two other Democratic FTC Commissioners, Lina Khan, Chair of the Commission, and Rebecca Slaughter, thereby ending a 2-2 split and restoring a 3-2 Democratic majority. … Continue Reading

The CFPB and the FTC recently filed an amicus brief in an appeal to the Second Circuit, arguing that the Court should reject the District Court’s “unduly narrow” interpretation of the FCRA requirement that consumer reporting agencies (CRAs) follow reasonable procedures to assure accuracy of information included in consumer reports.

In Sessa v.… Continue Reading

The Federal Trade Commission issued two notices this week concerning the Telemarketing Sales Rule (TSR)—an advance notice of proposed rulemaking (ANPR) and a notice of proposed rulemaking (NPR).  Both notices address the TSR’s exemption of business-to-business (B2B) telemarketing calls.  The FTC issued the new notices following its review of comments received in response to the regulatory review of the TSR it initiated in 2014. … Continue Reading

We discuss the industries and practices that have been the subject of recent FTC enforcement focus, including: marketing, servicing, and collection practices involving small business financing such as merchant cash advances; auto add-on product sales practices; product endorsements and reviews; dark patterns; marketing practices of for-profit schools; lead generation; and COVID-related fraud. … Continue Reading

The FTC has announced a stipulated order of judgment in a lawsuit that it recently filed against Saint James School of Medicine, a for-profit medical school located in the Caribbean, together with its operator and financiers.  The $1.2 million judgment will be used toward refunds and debt cancellation for students who financed their education within the past five years.… Continue Reading

The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021.  The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2021 activities in the debt collection market, including information about the FTC’s enforcement actions involving collection practices directed at small businesses.… Continue Reading