News & Analysis as of

Civil Monetary Penalty Enforcement Actions FTC Act

Troutman Pepper

FTC Permanently Bans Entities Behind Credit Repair Pyramid Scheme

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The Federal Trade Commission (FTC) recently announced that it has filed proposed orders against the owners and operators of Financial Education Services (FES), a credit repair operation accused of running a pyramid scheme and...more

Wyrick Robbins Yates & Ponton LLP

A Million Here, A Million There: Avast Sets the Record for the Highest Monetary Remedy for FTC Act Privacy Violations

According to Chair Lina Khan, the Federal Trade Commission (“FTC”) recent action against Avast Limited and its subsidiaries for $16.5 million is the “highest monetary remedy in a de novo privacy violation case” and the first...more

BakerHostetler

Rise in Penalty Amounts to Kick Off the New Year

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Much like our grocery bills these days, the Federal Trade Commission (FTC or the Commission) maximum civil penalty amount just got pricier. The FTC announced its annual increase of its civil penalty amounts....more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Enforcement Trends in Consumer Protection Under the Biden Administration

The Federal Trade Commission (FTC or the Commission) has continued aggressive regulation in the consumer protection space under the Biden administration. This persistent approach has occurred even in the face of recent...more

Troutman Pepper

FTC Fines Bankrupt Crypto Services Provider Celsius $4.7B for Misrepresentations; Regulatory Agency Remains in Search for Civil...

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Deceptive advertisements, market manipulation, misappropriation of customer funds, and “Ask Me Anything (AMA)” sessions served as the catalysts of a civil enforcement action the Federal Trade Commission (FTC) recently filed...more

Ballard Spahr LLP

FTC settles lawsuit against Publishers Clearing House involving alleged use of “dark patterns”

Ballard Spahr LLP on

Less than a week after announcing that it had filed a civil case against Amazon alleging that the company used “dark patterns” to enroll people in its Prime program, the FTC announced that it has entered into a settlement...more

Venable LLP

In AWAREmed Settlement FTC Says Opioid and Chronic Disease Ad Claims Must Be Backed by Science

Venable LLP on

The Federal Trade Commission’s recent settlement with Dalal A. Akoury and AWAREmed Health & Wellness Resource Center provides a good overview of how today’s FTC approaches medical claims it believes are unsubstantiated. The...more

Patterson Belknap Webb & Tyler LLP

The FTC Fires Its First Shot Under the HBNR

Last month, the Federal Trade Commission (“FTC”) announced its first-ever enforcement action under the Health Breach Notification Rule (“HBNR” or “the Rule”).  In a complaint filed in February, the agency alleged that GoodRx...more

DarrowEverett LLP

Born in the USA? Product Origin Claims Nothing to Mess With

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The interconnectedness of the global economy has resulted in consumers being faced with a wide selection of substitute products from many different countries. A ”Made in the United States” claim could be, and often is, a...more

Perkins Coie

FTC Claims Sharing User Health Data With Advertising Platforms Is a “Security Breach”

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For the first time, the Federal Trade Commission has brought an enforcement action under its 2009 Health Breach Notification Rule (HBNR). The case was brought against a digital health company, GoodRx Holdings, Inc., for...more

Orrick, Herrington & Sutcliffe LLP

FTC takes action against investment advisor, cites violations of Notice of Penalty Offenses

On January 13, the FTC announced an action against an investment advisor and its owners concerning allegations that the defendants made deceptive claims when selling their services to consumers. ...more

Orrick, Herrington & Sutcliffe LLP

FDIC issues November enforcement actions

On December 30, the FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in November. The FDIC made public nine orders consisting of “two consent orders; two orders...more

Hinch Newman LLP

FTC Lawyer on What Marketers Should Know About Endorsement Guide Penalty Offense Notices and CIDs

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The FTC continues to issue Notices of Penalty Offenses concerning FTC Endorsement Guide violations to digital advertisers and marketers, both alone and in conjunction with the issuance of FTC Civil Investigative Demands. ...more

Venable LLP

Twitter Will Pay $150 Million to Settle Charges That It Misrepresented Its Privacy and Security Practices

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Last week, the United States Department of Justice, acting on behalf of the Federal Trade Commission, took action against Twitter, Inc. for allegedly using private account security data to sell targeted advertisements without...more

International Lawyers Network

Don’t Be Bamboozled by Environmental Benefit Claims

$5.5 Million FTC Settlements for Bamboo Textile and Environmental Benefit Claims Under Penalty Offense Authority - The FTC recently announced that it has reached a $2.5 million settlement with Kohl’s and a $3 million...more

BakerHostetler

Bamboozling Part II: The FTC Brings Back Retro Penalty Offense Letters like Bell Bottoms and Big Hair

BakerHostetler on

What do bamboo fabric and green claims have to do with toys, weight loss, car rentals and fur coats? Sounds like the start of a Dad joke, but unfortunately this is no laughing matter. It is the FTC reaching back to bygone...more

Farrell Fritz, P.C.

Herbal COVID Remedy Is Not The Government’s Cup of Tea

Farrell Fritz, P.C. on

Last week, the EDNY and the DOJ Consumer Protection Branch brought a civil enforcement action against defendants who manufacture and sell an herbal tea product called B4B Earth Tea Extra Strength (“Earth Tea”).  Earth Tea...more

BakerHostetler

Understanding the FTC Penalty Box

BakerHostetler on

Much like an artist looking for a muse, I keep up with consumer protection developments and ponder – is this blog-worthy? Well, the other day, the Federal Trade Commission (FTC) announced the annual updates to its civil...more

Sheppard Mullin Richter & Hampton LLP

FTC Cracks Down On Violations of Newly-Codified “Made in USA” Claims Rule

The Federal Trade Commission (“FTC”) recently settled an enforcement action against an advertiser for $753,000 for deceptive “Assembled in USA” product claims, the first such settlement following the FTC’s recent adoption of...more

Sheppard Mullin Richter & Hampton LLP

FTC Takes Novel Approach to Seek Civil Money Penalties in the Wake of AMG Capital Ruling

On June 10, the Federal Trade Commission (FTC) filed an amended complaint for civil money penalties and other relief under Section 5 of the FTC Act prohibiting “unfair or deceptive acts or practices” and Section 521 of the...more

Goodwin

FTC Reaches Settlement with Two Nevada Companies for Alleged Credit Card Scheme

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On January 29, 2021, the FTC announced that it filed a proposed settlement in the District of Nevada with two Nevada-based consulting companies, resolving claims ​that the companies violated the FTC Act, Telemarketing and...more

Goodwin

FTC Announces $30 Million Settlement with Operator of For-Profit Post-Secondary Schools

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On August 27, 2019, the Federal Trade Commission (FTC) announced it had reached a $30 million settlement with an Illinois-based operator of for-profit post-secondary schools and related subsidiaries resolving allegations that...more

Wiley Rein LLP

Third Circuit Sharply Limits FTC Authority to Obtain Monetary Relief as Supreme Court Prepares to Weigh In

Wiley Rein LLP on

Last week, in FTC v. AbbVie et al., the Third Circuit joined the Seventh Circuit in holding that the Federal Trade Commission (FTC) was not authorized to seek disgorgement as a remedy under Section 13(b) of the FTC Act –...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

MarkIt to Market® - July 2020: Made in the USA: The Federal Trade Commission Proposes a New Rule to Protect U.S. Manufacturers and...

On June 22, 2020, the Federal Trade Commission (FTC) announced a Notice of Proposed Rulemaking pertaining to “Made in USA” claims, which applies to labels and marketing that fraudulently asserts that products are made in the...more

Hudson Cook, LLP

Current Developments in Bank Deposits and Payment Systems (Spring 2020)

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This survey summarizes several recent developments affecting bank deposits and payment systems. These include payments-related consent orders and enforcement actions by the Consumer Financial Protection Bureau (“CFPB”) and...more

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