On July 13, the Federal Trade Commission published a notice of proposed rulemaking regarding the Motor Vehicle Dealers Trade Regulation Rule. The Motor Vehicle Dealers Trade Regulation Rule is aimed at combating certain unfair and deceptive trade practices by dealers and promoting pricing transparency. Comments to the proposed rule are due on or before September
Federal Trade Commission
NTIA Seeks Comment on Competition in the Mobile App Marketplace
On Friday, April 22, 2022, the National Telecommunications and Information Administration (NTIA), which is part of the Department of Commerce, issued a request for comment (RFC) on the state of competition in the mobile app marketplace. According to the RFC, the record developed will be used to inform the Biden Administration’s competition agenda, including a report on competition in the mobile app ecosystem. Comments are due on May 23, 2022.
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Covington IoT Update: Mobile Phone Manufacturer Settles with FTC Over Allegations that Its Vendor Collected Personal Data without Consent
Mobile phone manufacturer BLU Products, Inc. entered into a settlement agreement with the FTC last week to resolve allegations that one of BLU’s China-based vendors collected personal information about its consumers without proper consent.
The settlement agreement, which took the form of a consent order, applies not only to BLU but also to its CEO and any other companies he owns and controls. It requires that the company clarify its disclosures regarding customer …
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FTC Settles Deception, COPPA Charges Against Social Networking App Path
Path, a social networking mobile app, has agreed to enter into a settlement with the Federal Trade Commission (“FTC”) regarding charges that the company deceived consumers by collecting contact information from users’ mobile address books without notice and consent. The agreement also resolves charges that the company violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting personal information from children under 13 years old without parental notice and consent. Path did not admit any liability by entering into the consent decree, which is for settlement purposes only.
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The Federal Trade Commission Keeps a Watchful Eye on Internet Affiliate Marketers
The Federal Trade Commission (“FTC”) announced settlement yesterday with an online marketer accused of using fake news sites to entice customers to buy acai berry weight-loss products and colon cleansers. The settlement was the latest in a string of FTC actions aimed at Internet affiliate marketers using fake web sites to make weight-loss claims.…
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Telemarketing Recap: Recent Key Developments at the FCC, FTC and in the Courts
A number of key developments affecting telemarketing emerged over the past week:
1. The distinction between informational and telemarketing calls was further defined. The 9th Circuit held that calls intended to impart information about a customer rewards program could be construed as “dual purpose” calls subject to federal and state telemarketing restrictions. See Chesbro v. Best Buy Co., Inc.
2. Effective dates were announced for the new requirements on autodialed and prerecorded calls that were adopted by the FCC in February 2012.
- Effective immediately: all prerecorded “heath care” messages subject to HIPAA transmitted to residential lines are exempt from the FCC’s consent, identification, time-of-day, opt-out, and call abandonment requirements.
- Effective November 15, 2012: the FCC’s three percent call abandonment rate must be calculated on a 30-day basis for every telemarketing calling campaign. (It is possible that the FCC will consider delaying this effective date to January 14, 2013, to align it with the interactive opt-out requirement discussed below.)
- Effective January 14, 2013: all prerecorded telemarketing calls must include an automated, interactive opt-out mechanism throughout the duration of the call, as well as a toll-free telephone number that can be contacted to opt out when a prerecorded telemarketing message is left on voicemail or an answering machine.
- Effective October 16, 2013: prior express written consent is required to transmit prerecorded or autodialed telemarketing calls to wireless numbers, and the established business relationship exception no longer applies to prerecorded telemarketing calls to residential lines.
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FTC Publishes Guide For App Developers on Advertising and Privacy Issues
Last week, the Federal Trade Commission (“FTC”) published a short guide for mobile app developers and entrepreneurs with suggestions on how to comply with basic truth-in-advertising and privacy principles. The guide is entitled “Marketing Your Mobile App: Get It Right From the Start” and includes many useful tips.
For advertising, the FTC advises that app…