FTC Issues Warning Letters to Data Brokers

Judging from the ten warning letters mailed to data brokers this week and the six we detailed last month, it is clear that the Federal Trade Commission (FTC) is taking violations of the Fair Credit Reporting Act (FCRA) very seriously.  These warning letters come on the heels of the FTC’s decision in December of last year to […]

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Multilevel Marketing: How to Avoid Building the Pyramid

The most popular multilevel marketing (“MLM”) companies and brands have attained near-cultural icon status: Amway, Herbalife, Mary Kay, and Shaklee.  Many Americans are familiar with these brands, as well as some of the lesser-known variations that might have been introduced by an overzealous acquaintance, through an infomercial, or via the Internet.  The popularity of the

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Service Providers May Not Be Liable for Some TCPA Violations

Class action complaints alleging violations of the Telephone Consumer Protection Act (“TCPA”) are on the rise.  This is particularly true with respect to short message service (“SMS”) or text message marketing.  The TCPA is a “strict liability” statute.  This means that a violation of the TCPA imposes liability on the offender regardless of intent.  Many

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FTC Settles Case Against Prepaid Phone Cards

A case the Federal Trade Commission (“FTC”) has been investigating for more than two (2) years was settled last month.  For several years, the FTC received numerous complaints that prepaid phone cards sold by DR Phone Communications, Inc., also doing business as drphonecom.com (“DR Phone”), contained far fewer long distance phone minutes than were advertised. 

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Recent Lawsuits Over Personally Identifiable Information

Lawsuits concerning alleged misuse of personally identifiable information (“PII”) are on the rise.  According to the United States General Services Administration, PII “refers to information that can be used to distinguish or trace an individual’s identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific

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deceptive marketing

Recent T-Mobile Deceptive Marketing Case

Deceptive Marketing Allegations Washington State Attorney General Bob Ferguson has entered into a voluntary court-ordered agreement with T-Mobile addressing alleged deceptive marketing associated with T-Mobile’s campaign promoting “no restrictions,” “no annual contract” wireless service plans.  According to Ferguson, the “no contract” claim is deceptive because there are, potentially, hidden costs and penalties. For example, if

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