The Federal Trade Commission (“FTC”) has announced its narrowed “Junk Fee” Rule that targets pricing practices in the short-term lodging and live-event ticketing industries.[1] The Rule results from the FTC’s efforts over the past year to ban so-called “bait-and-switch” pricing tactics to ensure that, “consumers searching for hotels or vacation rentals or seats at a show or sporting event will no longer be surprised
Read More The FTC Releases New “Junk Fee” RuleConsumer Protection
The FTC Has Significantly Expanded the Scope of Its Negative Option Rule
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On October 16, 2024, the Federal Trade Commission (“FTC”) released its Negative Option Rule. A “negative option” is an arrangement where goods or services are provided based on a consumer’s silence, a failure to take some affirmative action to reject or cancel. The most recognized type of negative option program is a subscription service with automatic renewal features.
The Rule, also known as the “Click-to-Cancel”…
Read More The FTC Has Significantly Expanded the Scope of Its Negative Option RuleBeware! The FTC Has Adopted A New Rule Regarding Fake Consumer Reviews and Testimonials
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On August 14, 2024, the Federal Trade Commission’s (“Commission”) new Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (the “Rule”) was finalized and went into effect. The Rule prohibits specified unfair or deceptive acts or practices involving consumer reviews or testimonials. Violations of the Rule can result in a business being assessed civil penalties up to $51,744 per violation. In addition, any…
Read More Beware! The FTC Has Adopted A New Rule Regarding Fake Consumer Reviews and TestimonialsFederal Trade Commission Issuing Non-Compete Clause Rule
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On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a rule prohibiting noncompete agreements with very few exceptions.[1] The issuance of the rule, which was expected, follows the FTC’s prior release of a draft of the proposed rule back in January 2023. Nevertheless, the rule will have a far-reaching effect once, and if, it is fully implemented 120 days after it…
Read More Federal Trade Commission Issuing Non-Compete Clause RuleFederal Trade Commission’s New Trade Regulation Rule
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On April 1, the Federal Trade Commission’s (“Commission”) new Trade Regulation Rule (“Rule”) to combat those that impersonate government entities went into effect. The Rule enables the Commission to directly pursue federal action against scammers who may face civil liability to return money stolen from consumers. This Rule is not simply advisory, but rather the Rule has the force and effect of law. If one…
Read More Federal Trade Commission’s New Trade Regulation RuleStaying in Commission: Guidance for Real Estate Companies Facing Potential Antitrust Litigation
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What began in 2019 as two antitrust lawsuits against the National Association of Realtors (NAR) and four national brokerages has turned into a flood of class action litigation against residential brokers and realtor associations. Following a Kansas City jury’s $1.78 billion award in October 2023 to a class of Missouri home sellers in Sitzer v. NAR, class action lawyers have raced to courthouses around…
Read More Staying in Commission: Guidance for Real Estate Companies Facing Potential Antitrust Litigation2019 Review of Consumer Protection Law Developments (Second Edition)
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Consumer Review Fairness Act Codified Consumers’ Right to Complain
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Introduction
Customer reviews are ubiquitous in today’s commercial environment. Whether the business is Amazon.com or the doctor’s office down the street, consumers are accustomed to rating and reviewing goods and services online and having access to reviews from other consumers to help inform their purchasing decisions. Ratings are important because consumers sometimes have limited opportunities to interact with sellers, prompting them to rely on accounts…
Read More Consumer Review Fairness Act Codified Consumers’ Right to ComplainConsumer Review Fairness Act Prevents Companies From Stifling Negative Consumer Reviews
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Introduction
Customer reviews are ubiquitous in today’s commercial environment. Whether the business is Amazon.com or the doctor’s office down the street, consumers are accustomed to rating and reviewing goods and services online and having access to reviews from other consumers to help inform their purchasing decisions. Ratings are important because consumers sometimes have limited opportunities to interact with sellers, prompting them to rely on accounts…
Read More Consumer Review Fairness Act Prevents Companies From Stifling Negative Consumer ReviewsCourt Rules CFPB Unconstitutional and Finds CFPB Improperly Applied Mortgage Lending and Reinsurance Laws
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In PHH Corporation v. Consumer Financial Protection Bureau, no. 15-1177 (D.C. Cir. Oct. 11, 2016), the Court of Appeals for the D.C. Circuit recently held that the organizational structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional. The appellate court concluded that the CFPB’s structure—as an independent agency with a single director—did not contain sufficient checks to satisfy basic separation of powers…
Read More Court Rules CFPB Unconstitutional and Finds CFPB Improperly Applied Mortgage Lending and Reinsurance Laws