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FTC Actions Posts
Temporary relief from compliance obligations under the Corporate Transparency Act
Dec 5, 2024
Temporary relief from compliance obligations under the Corporate Transparency Act
On December 3, 2024, a U.S. District Court[1] issued a nationwide preliminary injunction that enjoins the federal government from enforcing the Corporate Transparency Act (the CTA). The CTA requires “reporting companies” in the United States to disclose basic identifying information about their beneficial owners — the individuals who ultimately own or control a company —…
FTC’s Operation AI Comply Generated in Part by Fear of Scale
Oct 24, 2024
FTC’s Operation AI Comply Generated in Part by Fear of Scale
With the increased visibility of Artificial Intelligence (“AI”) in our daily lives—in search engines, PDF readers, social media feeds—AI is starting to become commonplace and its use normalized. In its recent crackdown against five businesses advertising AI services to consumers, the FTC put its enforcement authority behind its belief that AI can “turbocharge deception” (“Operation…
FTC Adds COPPA Violations to the Growing List of Privacy Concerns While TikTok is on the Clock
Aug 13, 2024
FTC Adds COPPA Violations to the Growing List of Privacy Concerns While TikTok is on the Clock
For years now, TikTok has seemed to be the center of attention. From viral baking content to true crime to dancing videos to family-influencer content, everyone seems to be on it or talking about it. And the FTC has said that’s part of the problem. On August 2, the Department of Justice (“DOJ”) brought a suit…
The FTC Kills Noncompetes
Apr 30, 2024
The FTC Kills Noncompetes
In a groundbreaking move that will reshape the workplace and many litigation practices nationwide, the FTC has issued a final rule that effectively bans all employee non-compete clauses. Approximately 30 million Americans currently work under a non-compete clause. All but a few applicable to senior executives will be void upon the effective date of the…
Got Endorsers? Federal Trade Commission Issues Updated Advertising Guides
Jul 10, 2023
Got Endorsers? Federal Trade Commission Issues Updated Advertising Guides
The Federal Trade Commission (“FTC”) recently issued updated “Endorsement Guides.” Guides, last revised in 2009, give businesses guidance on what endorsement practices may be considered “unfair” or “deceptive” under the FTC Act. They also provide the general principles the FTC will use in evaluating endorsements and testimonials. As social media has evolved, the FTC has…
A Review of Top-Rated AI Tech Companies Undermines the FTC’s Warning of Deception
Mar 22, 2023
A Review of Top-Rated AI Tech Companies Undermines the FTC’s Warning of Deception
Artificial intelligence (“AI”) was once thought of as science fiction – something we could only see on a movie screen or read about in a comic book. But in recent years, the technology has become both accessible and popular, proliferating nearly every sector of society. From healthcare to…
The FTC Weighs In: Online Services Must Be Diligent When Kids’ Privacy At Stake
Mar 9, 2022
The FTC Weighs In: Online Services Must Be Diligent When Kids’ Privacy At Stake
WW International (f/k/a Weight Watchers) seems to be doing children a service: the company developed an online program tailored to address childhood weight issues. The program, offered by WW subsidiary Kurbo, has an app, youthful professional coaches, and many features that look promising both to attract and to retain program young subscribers. Plus, the program…
FTC Tells Advertisers – Fake Reviews and Endorsements Are Going to Cost You
Oct 14, 2021
FTC Tells Advertisers – Fake Reviews and Endorsements Are Going to Cost You
Does your company or its affiliate advertisers use celebrities or influencers to market your services? Do you use customer reviews to promote your offerings? The Federal Trade Commission (“FTC”), energized by new Chairperson Lina Khan, just sent out notices to over 700 companies – including many household names (https://www.ftc.gov/system/files/attachments/penalty-offenses-concerning-endorsements/list-recipients-endorsement-notice.pdf) warning them about using fake reviews…
Supreme Court rules that FTC cannot seek disgorgement under Section 13(b) of the FTC Act
Jul 12, 2021
Supreme Court rules that FTC cannot seek disgorgement under Section 13(b) of the FTC Act
Last October, we reported on the Third Circuit Court of Appeals’ decision in Federal Trade Commission v. AbbVie, Inc., in which the appeals court overturned a trial court’s decision ordering $448 million in disgorgement pursuant to Section 13(b) of the Federal Trade Commission (“FTC”) Act against a group of businesses accused of trying to monopolize…
Plot thickens in FTC disgorgement debate, as $448 million award is reversed
Oct 2, 2020
Plot thickens in FTC disgorgement debate, as $448 million award is reversed
As previously reported in this space, the Supreme Court is scheduled to hear argument in its upcoming term regarding whether the Federal Trade Commission was authorized to seek monetary relief such as disgorgement or restitution under Section 13(b) of the FTC Act. These cases do not just call into question the availability of a certain…
