Federal Trade Commission

Proposed New Law Targets Online Terms of Service

A bipartisan bill recently introduced by Congresswoman Lori Trahan (D-MA-3) and Senators Bill Cassidy (R-LA) and Ben Ray Luján (D-NM) requires companies conducting business online to fully explain certain business practices to consumers on their website. Among other items, the Terms of Service Labeling, Design and Readability (TLDR) Act authorizes the Federal Trade Commission (FTC) …

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Professional Plaintiff’s History of Deception Results in Summary Judgment for Defendant

A TCPA lawsuit in the Western District of Washington recently came to an ignominious end for professional plaintiff Kenneth Johansen. Background In Johansen v. Efinancial LLC, Johansen filed a class action complaint, alleging that Efinancial violated the TCPA by calling his phone number, which was listed on the National Do-Not-Call Registry.  The Defendant filed a Motion for Summary …

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New Colorado Auto Renewal Law Covers Monthly Subscription Programs

State auto-renewal laws require businesses to notify subscribers about upcoming renewals of annual subscriptions, but not month-to-month arrangements. In Colorado, that's about to change. Colorado recently enacted a new law governing automatically renewing consumer contracts, which will take effect on January 1, 2022. For the most part, the new law mimics the requirements and prohibitions found in ROSCA …

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Why Your Calls Get Blocked: How STIR/SHAKEN Works in a Call Path

Congress drafted the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act to address the problems of robocalling and illegal phone number spoofing.  The TRACED Act was signed into law on December 30, 2019.  The FCC’s implementation of this law includes requirements for telecommunications service providers to implement robocall mitigation solutions within 18 months of …

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Why do Class Actions Need to be Certified?

Before a class action lawsuit can proceed, a class must be certified. The certification process ensures that the plaintiffs have enough similarities to proceed with litigation against the named defendant as part of one larger case. About Class Actions A typical civil damages lawsuit involves a single plaintiff who has been injured by one or …

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Court Approves $14 Million TCPA Class Action Settlement

On October 15, 2021, the U.S. District Court for the District of Massachusetts entered a final order approving a $14 million class action settlement resolving claims against Grocery Delivery E-Services USA, Inc. d/b/a Hello Fresh for alleged TCPA violations. According to Plaintiff's attorney Anthony Paronich, the Hello Fresh settlement is the largest TCPA class action …

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Indiana Attorney General Sues Three Companies for Millions of Illegal Robocalls

On Thursday, October 14, Indiana Attorney General Todd Rokita filed suit against three companies and two individuals who together allegedly helped initiate millions of illegal robocalls throughout the US. The Complaint was filed in the US District Court for the Southern District of Indiana against Startell Communications LLC, VoIP Essential, and Piratel LLC, and alleges …

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FTC Puts Hundreds of Businesses on Notice about Fake Reviews and Other Misleading Endorsements

The Federal Trade Commission is a blanketing industry with a clear message that, if they use endorsements to deceive consumers, the FTC will be ready to hold them responsible with every tool at its disposal. The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive …

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FTC Blankets Companies With Warning Letters Over Endorsements and Reviews

As we have noted in earlier posts, in the wake of the Supreme Court’s holding that Section 13(b) of the FTC Act does not allow for monetary restitution, the Federal Trade Commission has been attempting to creatively utilize other provisions of the Act in order to obtain money from the companies and individuals it prosecutes. …

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FTC Warns Companies Against Using Deceptive Website Tactics

In response to a rising number of complaints, on October 28th, the Federal Trade Commission issued a new enforcement policy statement warning companies against the use of deceptive website tactics that trick consumers into signing up for recurring payment subscriptions that are difficult if not impossible to cancel. The policy statement builds on the many enforcement actions …

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