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December 20, 2016

Turn Inc., a Redwood City, California company that enables sellers to target digital advertisements to consumers, has agreed to settle FTC charges that it deceived consumers by tracking them online and through their mobile applications, even after consumers took steps to opt out of such tracking. According to the FTC鈥檚 administrative complaint, Turn鈥檚 privacy policy represented that consumers could block targeted advertising by using their web browser鈥檚 settings to block or limit cookies. In fact, the complaint alleges that Turn used unique identifiers to track millions of Verizon Wireless customers, even after they blocked or deleted cookies from websites.

December 16, 2016

CarMax Inc. and two other major used auto retailers have agreed to settle FTC charges that they touted how rigorously they inspect their used cars, yet failed to adequately disclose that some of the cars were subject to unrepaired safety recalls. The proposed consent orders will prohibit them from making unqualified inspection or safety-related claims about their used vehicles if any are subject to open, or unrepaired, safety recalls. Also, following a public comment period, the Commission has approved final consent orders in similar cases against General Motors Company, Jim Koons Management, and Lithia Motors Inc. that were settled earlier this year. Despite highlighting their inspections, the FTC alleges that CarMax failed to adequately disclose that some of the cars had open recalls. These recalls included defects that could cause serious injury, including the GM key ignition switch defect, as well as the Takata airbag defect.

December 15, 2016

DeVry University and its parent company have agreed to a $100 million settlement of a FTC lawsuit alleging that they misled prospective students with ads that touted high employment success rates and income levels upon graduation. The FTC settlement secures significant financial redress for tens of thousands of students harmed by DeVry鈥檚 conduct. Under the settlement resolving the FTC charges, DeVry will pay $49.4 million in cash to be distributed to qualifying students who were harmed by the deceptive ads, as well as $50.6 million in debt relief. The debt being forgiven includes the full balance owed鈥�$30.35 million鈥攐n all private unpaid student loans that DeVry issued to undergraduates between September 2008 and September 2015, and $20.25 million in student debts for items such as tuition, books and lab fees.

December 14, 2016

The operators of the Toronto-based AshleyMadison.com dating site have agreed to settle FTC and state charges that they deceived consumers and failed to protect 36 million users鈥� account and profile information in relation to a massive July 2015 data breach of their network. The settlement requires the defendants to implement a comprehensive data-security program, including third-party assessments. In addition, the operators will pay a total of $1.6 million to settle FTC and state actions.

December 12, 2016

The FTC has granted summary decision against California Naturel, Inc., for falsely advertising its sunscreen product as 鈥渁ll natural鈥� in violation of Sections 5 and 12 of the FTC Act. In its opinion, written by Chairwoman Edith Ramirez, the Commission states that the company promotes its 鈥渁ll natural鈥� sunscreen on its website as containing 鈥渙nly the purest, most luxurious and effective ingredients found in nature.鈥� But California Naturel admitted that eight percent of its sunscreen formula is in fact dimethicone, a synthetic ingredient. The Commission鈥檚 final order prohibits California Naturel from misrepresenting the ingredients or composition of its products; whether a product is 鈥渁ll natural鈥� or 鈥�100% natural;鈥� the extent to which a product contains any natural or synthetic ingredient or component; or the environmental or health benefits of such a product. It also requires the company to have competent and reliable evidence to support any of the four foregoing claims it makes about any of its products.

December 12, 2016

The marketers of a mobile app designed to measure blood pressure have agreed to settle FTC charges that they deceived consumers with claims that their Instant Blood Pressure app was as accurate as a traditional blood pressure cuff. In addition, the Commission alleged that the owner provided a positive review of the app, rating it 鈥渇ive stars鈥� in the app stores, without disclosing his connection to the company. Under the terms of the FTC settlement, Aura Labs, Inc., doing business as AuraLife and AuraWare, and its founder and co-owner, Ryan Archdeacon, are barred from making such unsupported claims in the future and must disclose any material connections between Aura and people who endorse its products.

December 8, 2016

The FTC is providing over $88 million in refunds to more than 2.7 million AT&T customers who had third-party charges added to their mobile bills without their consent, a tactic known as 鈥渕obile cramming.鈥� The refunds to consumers relate to 2014 settlements with AT&T, and the companies behind two of the cramming schemes, Tatto and Acquinity. According to the FTC鈥檚 complaint, AT&T placed unauthorized third-party charges on its customers鈥� phone bills, usually in amounts of $9.99 per month, for ringtones and text message subscriptions containing love tips, horoscopes, and 鈥渇un facts.鈥� The FTC alleged that AT&T kept at least 35 percent of the charges it imposed on its customers.

November 30, 2016

The FTC has closed the book on a data broker operation that the agency alleges got personal information from people who thought they were applying for payday loans online, and sold it to a scam that tapped consumers鈥� bank accounts and credit cards without their consent. A stipulated order against Jason A. Kotzker resolves charges the FTC brought in August 2015, alleging that he and his co-defendants, instead of passing the information to legitimate payday lenders, sold it to companies like Ideal Financial Solutions Inc., which raided consumers鈥� accounts for at least $7.1 million. The order prohibits Kotzker from selling or disclosing consumers鈥� sensitive personal information, making misrepresentations about any financial or other product or service, and profiting from consumers鈥� personal information and failing to dispose of it properly.

November 21, 2016

Following a public comment period, the FTC has approved a final consent order with Warner Bros. Home Entertainment Inc., settling charges that the company failed to adequately disclose that it paid online influencers to post gameplay videos. According to the FTC鈥檚 complaint, Warner Bros. deceived consumers during a marketing campaign for the video game Middle Earth: Shadow of Mordor, by failing to adequately disclose that it paid online 鈥渋nfluencers鈥� thousands of dollars to post positive gameplay videos on YouTube and social media. Over the course of the campaign, the sponsored videos were viewed more than 5.5 million times. The FTC also alleged Warner Bros. gave influencers a free advance-release version of the game and told them how to promote it. Warner Bros. also allegedly required the influencers to promote the game in a positive way and not to disclose any bugs or glitches they found. Under the final order, Warner Bros. is barred from failing to make such disclosures in the future and cannot misrepresent that sponsored content, including gameplay videos, are the objective, independent opinions of video game enthusiasts or influencers.

November 15, 2016

The Federal Trade Commission today announced a new 鈥�Enforcement Policy Statement on Marketing Claims for Over-the-Counter (OTC) Homeopathic Drugs.鈥� The policy statement was informed by an FTC workshop held last year to examine how such drugs are marketed to consumers. The FTC also released its staff report on the workshop, which summarizes the panel presentations and related public comments in addition to describing consumer research commissioned by the FTC. The policy statement explains that the FTC will hold efficacy and safety claims for OTC homeopathic drugs to the same standard as other products making similar claims. That is, companies must have competent and reliable scientific evidence for health-related claims, including claims that a product can treat specific conditions.