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Clearing out our IN box

Lesley Fair
We’re glad you’re visiting the BCP Business Center and thanks for your questions. Here are answers to some of your AQs . (Calling them FAQs on a site devoted to truth in advertising doesn’t seem quite right.) I’ve looked everywhere and can’t find the disclosure I’m supposed to add when companies send me products to write about on my blog. Can you tell me the magic words? No — and that’s because there are no magic words. Here’s how it works. Under...

Dollars to donuts

Lesley Fair
When consumers comparison shop, cost is crucial. That’s why it’s so important for companies to make sure what they say about their prices is accurate. If businesses need a timely reminder, the FTC’s proposed $5 million settlement with CVS Caremark drives that point home. CVS Caremark offers Medicare Part D prescription drug plans through subsidiaries like RxAmerica , which CVS Caremark acquired in October 2008. When choosing their Medicare Part D...

Collection and protection

Lesley Fair
The terms of an FTC settlement apply just to that business, of course. But clued-in companies know there’s a lot that can be learned from someone else’s alleged misstep. The FTC’s law enforcement action against Upromise is no exception. According to the complaint, the college savings membership program introduced a toolbar that collected users’ personal information without adequately disclosing the extent of what was going on. Under the terms of...

Using social media in your marketing? Staff closing letter is worth a read

Lesley Fair
When the FTC brings a law enforcement action, we hope companies take notice. But sometimes there’s a nugget or two that businesses can glean from a decision by the FTC staff to close an investigation. A recent letter from the staff of the Bureau of Consumer Protection to Hyundai Motor America ticks a lot of timely boxes — bloggers, the Super Bowl, and the FTC’s Endorsement Guides — and is worth a read if your company has added social media to...

Science, reliance, and compliance

Lesley Fair
The FTC v. Lane Labs story started with shark cartilage and the latest chapter involves a contempt ruling from a federal judge. If the FTC’s advertising substantiation doctrine is relevant to your company or your clients — and it should be — you’ll want to keep tabs on the case. The FTC’s original action challenged allegedly deceptive anti-cancer claims for two products: BeneFin , a shark cartilage supplement, and SkinAnswer , a skin cream. In...

FTC v. Kevin Trudeau: The Seventh Circuit Rules

Lesley Fair
As anyone who’s watched TV in the past decade knows, Kevin Trudeau is — to use the term coined by the United States Court of Appeals for the Seventh Circuit — an “infomercialist.” The Seventh Circuit’s recent opinion in FTC v. Trudeau offers interesting insights into order enforcement and upholds a multimillion dollar judgment for consumers. A little history: As the Court recapped, Mr. Trudeau violated the terms of a court-approved settlement...

Lessons from the Facebook settlement (even if you’re not Facebook)

Lesley Fair
The terms of the FTC’s proposed settlement apply only to Facebook. But to paraphrase noted legal scholar Bob Dylan, companies that want to stay off the law enforcement radar don’t need a weatherman to know which way the wind blows. What practical pointers can your business take from the Facebook case and other recent FTC actions dealing with consumer privacy ? 1) Promises, promises. Not making any privacy promises? Think again. Reread your...

Facebook’s future: What the FTC order means for consumer privacy

Lesley Fair
The FTC’s complaint against Facebook outlines eight separate areas where the FTC says Facebook’s privacy practices were deceptive or unfair. What provisions does the proposed order put in place to protect people in the future? One key provision is a broad ban on deception. Facebook can’t misrepresent the privacy or security protections that apply to any “covered information.” The order defines that as information “from or about” an individual...

The FTC’s settlement with Facebook: Where Facebook went wrong

Lesley Fair
When it comes to privacy promises, what you say you do with people’s personal information has to line up with your day-to-day practices. That’s the message of the FTC’s proposed settlement announced today with Facebook. Where did the company go wrong? The FTC’s 8-count complaint alleges a number of different violations, but they boil down to this: Facebook’s privacy practices often flew in the face of its stated policies and, as one count alleges...

COPPA: All skidding aside

Lesley Fair
It billed itself as “Facebook and Myspace for kids,” but according to a settlement with the FTC, the Skid-e-Kids website failed to meet critical compliance obligations under COPPA , the Children’s Online Privacy Protection Act. As a result, the FTC says the site collected personal information from about 5,600 kids without their parents’ consent. Under COPPA and the FTC’s COPPA Rule, website operators like Skid-e-Kids have to notify parents and...