The Federal Trade Commission (FTC) has reached its largest administrative settlement to date: US$245 million. The proposed settlement is with Epic Games, Inc. (Epic Games), the company that developed and offers the multiplayer, online game Fortnite, and stems from Epic Games’ unlawful collection of personal information and illegal use of digital dark patterns to bill Fortnite users for unintentional in-game purchases. In total, Epic Games will be responsible for US$520 million, which includes a US$275 million penalty.Read More
In order for the FTC to issue an administrative complaint: (1) the FTC must have “reason to believe” that the law has been or is being violated; and (2) it must appear to the FTC that instituting a proceeding is in the public interest.
On March 11, 2022, the Federal Trade Commission (“FTC”) issued a Complaint against HomeAdvisor, Inc., also doing business as Angi Leads, also doing business as HomeAdvisor Powered by Angi (collectively, “HomeAdvisor”) (In the Matter of HomeAdvisor, Inc., a corporation, d/b/a Angi Leads, d/b/a HomeAdvisor Powered by Angi, FTC Docket No. 9407). The Complaint alleges that HomeAdvisor used deceptive business practices in relation to its members, many of whom are small business, by misleading them about the quality and source of, as well as general information about, the leads HomeAdvisor provided.Read More
Summary: The FTC has sent letters to many major consumer brands, warning them about the proper and lawful use of endorsers and testimonials. This blog post provides an overview into the warning letters and how companies can proactively protect themselves.
Key Takeaways: The FTC is on heightened alert as to compliance with the Act as it concerns endorsers and testimonials; how to protect an organization proactively.Read More