FTC Regulation
FTC Proposes “Click to Cancel” Rule Provision for Recurring Subscriptions and Memberships
The FTC recently proposed that its “Negative Option Rule” be updated to reflect a new “Click to Cancel” provision, which would protect consumers from being forced to pay for unwanted subscriptions and memberships. A copy of the FTC notice of proposal is linked here. What is the FTC’s Negative Option Rule? The Negative Option Rule…
Read MoreFTC Files Lawsuit Against Adobe over Annual Paid Monthly Subscription Software Model
Consumer-facing SaaS and software companies are on notice by the FTC that their subscription billing practices are under scrutiny. The FTC has just filed a lawsuit against Adobe over its “Annual Paid Monthly” subscription model, which the FTC says in its consumer alert “put subscribers on the hook for a whole year of payments, paid…
Read MoreFTC Announces Settlement with Twitter Over Deceptive Use of Account Security Data
The Federal and Trade Commission (“FTC”) announced today a settlement with Twitter, Inc. (“Twitter”) in which Twitter agreed to pay $150 million for its alleged misuse of user account security data, specifically email addresses and phone numbers, for advertising purposes. The government alleged that the misuse of account data was in violation of a 2011…
Read MoreFacebook Agrees to Record $5 Billion Settlement with FTC on Privacy Practices
Multiple media outlets are reporting today that the Federal Trade Commission has agreed to settle its case against Facebook on its privacy practices for $5 Billion. The Wall Street Journal reports that the vote by FTC commissioners was 3-2 in favor of accepting the agreement and split along party lines with the Republican majority favoring…
Read MoreFTC Puts Software Companies and Service Providers on Notice of Broad Enforcement Powers Under Gramm-Leach-Bliley Act Safeguards Rule
The Federal Trade Commission (“FTC”) has put software companies and software service providers on notice it intends to interpret the Gramm-Leach-Bliley Act’s Safeguards Rule broadly to apply to businesses which make available software or services that serve financial, payroll, and accounting purposes and collect sensitive data on consumers and their employees. The FTC recently announced…
Read MoreFTC Sends Warning to IoT Companies on the Importance of Secure Software Development with Enforcement Action Against D-Link
Internet of Things (“IoT”) companies are on notice: the FTC is concerned about the the security of software installed to IoT and smart home products and is prepared to take enforcement action against companies to ensure that consumers are protected. The FTC has just announced the proposed settlement of its case against D-Link filed in…
Read MoreDevelopers File Suit Against Apple for App Store Practices Following Recent Decision by U.S. Supreme Court
Two app developers have filed suit against Apple, Inc. over its App Store practices, following the recent decision by the U.S. Supreme Court in favor of consumers allowing a class action suit on similar issues to proceed. The case was filed in the U.S. District Court for the Northern District of California (San Jose). According…
Read MoreRecent FTC Enforcement Action Should Serve as Warning to Other Software Companies Claiming Privacy Shield Compliance
If your company has either pursued Privacy Shield certification, or publicly claimed to be in pursuit of Privacy Shield certification, recent enforcement action by the Federal Trade Commission (“FTC”) should put your company on notice that failure to maintain your certification may render you subject to FTC enforcement activity if you continue to make representations…
Read MoreRecent FTC Enforcement Actions Should Serve as Warning to Software Industry about Privacy Practices
If your software company is like most, you have probably spent little or no time contemplating what needs to be in your company’s privacy policy. In fact, what your company is currently calling its privacy policy was likely copied from a third party website years ago and never given much thought since. Meanwhile, your company…
Read MoreFTC Announces Approval of Final Order in Deceptive App Case Against Vulcan
The Federal Trade Commission has today announced the approval of its final order resolving its complaint against the San Francisco-based software company Vulcan on deceptive and misleading conduct allegations that Vulcan had purchased a browser extension game and replaced it with a program that caused the automatic installation of applications on the game users’ mobile…
Read MoreLumos Labs Case Signals to Health Software Industry an Intention by the FTC to Police Industry’s Advertising Claims
The Federal Trade Commission’s pursuit of Lumos Labs over advertising claims made about its Luminosity brain training software programs has sent a clear cautionary signal to the health software industry that the FTC intends to exercise regulatory authority over advertising in the space to monitor companies’ health-related advertising claims for deceptive advertising issues. The FTC…
Read MoreFTC Settlement with Google to Require Refund of Unauthorized In-App Charges
The Federal Trade Commission has announced that Google has agreed to refund customers’ unauthorized in-app purchases made by their children in the Google Play Store pursuant to a settlement over a complaint filed by the Commission alleging violations of Section 5(a) of the FTC Act, 15 U.S.C. Section 45(a) prohibiting unfair or defective acts or…
Read MoreFederal Court Awards $163 Million Judgment Against “Scareware” Software Company and Founders
The U.S. District Court for the District of Maryland has awarded damages in excess of $163 million in a FTC case against a “scareware” software company, Innovative Marketing, Inc. and its founders. The FTC alleged violations of Sections 5(a) and 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a) and 53(b)…
Read MoreFTC Proposing New Rules to Protect Children’s Online Privacy
Updated 6.25.24 The FTC has just announced proposed changes to its existing rules protecting children’s online privacy and is currently accepting public comment to the proposed rules through September 10, 2012. The proposed changes would amend the Children’s Online Privacy Protection Rule (“COPPA”). Proposed COPPA Amendments In particular, the FTC is seeking to make modifications…
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