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Posts tagged as “FTC”

FTC: Businesses of All Types Subject to Safeguards Rule

Determining whether your business engages in activities that can trigger coverage is discussed by the Federal Trade Commission in just released guidance entitled “FTC Safeguards Rule: What Your Business Needs to Know.” The Rule applies to many businesses beyond the scope of what are commonly understood to be “financial institutions” and has implications for service providers to covered entities.

Amendments to the GLBA Safeguards Rule: What’s New, What’s Not, and What’s Hot for Non-Banking Financial Institutions

The Federal Trade Commission recently amended the Safeguards Rule, 16 C.F.R. § 314.1, et seq., with significant changes to how an information security program should be designed, what it must include, and who needs to be in charge.

SCOTUS Limits FTC’s Ability to Obtain Equitable Monetary Relief

The Supreme Court of the United States recently held that the Federal Trade Commission Act allows permanent injunctions to prevent future violations but does not authorize the Federal Trade Commission to seek, or a court to award, equitable monetary relief such as restitution or disgorgement, except that the FTC may obtain monetary relief by first invoking its administrative procedures and then Section 19’s redress provisions (which includes limitations).

FTC Seeks Comments on FCRA Rules Impacting Motor Vehicle Dealers

The FTC will soon propose changes it says are designed to align several existing rules under the federal Fair Credit Reporting Act with the Dodd-Frank Act. The impacted rules cover only “motor vehicle dealers” being persons “predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.”

Calif. App. Court (1st Dist) Rules FTC’s Holder Rule Preempts State Fee Shifting Laws

The Court of Appeals of California, First District, recently held that the Federal Trade Commission's "Holder Rule" limitation on recovery applies to attorney fees, such that a plaintiff’s total recovery on a Holder Rule claim — including attorney fees — cannot exceed the amount paid by the plaintiff under the contract.

FTC Announces Consumer Protection Law Enforcement Action, Settlement

The Federal Trade Commission on Wednesday announced a major consumer protection law enforcement action and settlement against a Texas-based company for engaging in an unlawful pyramid scheme. The company, its former CEO, and two top promoters are banned from engaging in any multi-level marketing business. In addition, the company and CEO have agreed to pay $150 million. During Wednesday’s press conference, Andrew Smith, director of the FTC’s Bureau of Consumer Protection, noted that “multi-level marketing is not inherently illegal.” An illegal pyramid scheme encourages new business opportunities involving without looking at whether participants have a meaningful opportunity for selling products.…

9th Cir. Upholds Judgment for Deceptive Disclosures Against Online Lender

The U.S. Court of Appeals for the Ninth Circuit held that an online payday lender’s “loan note” violated § 5 of the Federal Trade Commission Act because, although it was “technically accurate,” the lender’s online loan portal made it difficult to discern the loan terms and therefore likely to mislead consumers about the terms of the loan. Accordingly, the Ninth Circuit affirmed the trial court’s summary judgment and relief order in favor of the FTC. A copy of the opinion in Federal Trade Commission v. AMG Capital Management, LLC is available at:  Link to Opinion. The defendant owner controlled a series…

FTC’s Big Data Report Provides Recommendations, Raises Compliance Issues

The Federal Trade Commission has released a report examining the benefits, potential risks, and legality of the use of big data in business. Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues focuses on how big data is used after it is collected and how that information could result in discrimination against consumers. The primary goal of the report is to provide businesses with important information on the relevant laws to big data analytics, as well as guidelines on how to use big data effectively while remaining compliant and non-discriminatory, according to the FTC. “Big data’s role is…