FTC Updates (December 15–19, 2025)

In both the competition and consumer protection spaces, the FTC was active this past week announcing several new settlements the agency has reached regarding data security, tipping practices, and the use of no-hire agreements that limited worker mobility. The FTC also announced a new date for its workshop on noncompete agreements to further explore their impact on labor markets. These stories and more after the jump.

Tuesday, December 16, 2025

Bureau Of Consumer Protection; Consumer Protection; Privacy and Security; Data Security

• The FTC finalized a consent order against Illusory Systems Inc. d/b/a Nomad, a provider of customer relationship management software, following allegations that the company failed to implement basic security measures, which ultimately allowed hackers to access and siphon $186 million in customer funds. According to the FTC's press release, the Commission's complaint alleges violations of Section 5 of the FTC Act based on deceptive and unfair practices related to the company's data security representations. In addition to requiring Illusory Systems to return money stolen by hackers, the order mandates that the company establish a comprehensive information security program and submit to regular third-party assessments.

Bureau of Competition; Competition; Nonmerger; Noncompete

• The FTC has announced a new date for its public workshop on noncompete agreements, now set for January 27, 2026, at the FTC's Headquarters. According to the FTC's press release, the workshop will explore the use of noncompete clauses in employment contracts and examine their effects on worker mobility and competition in labor markets. The event will feature perspectives from researchers, industry representatives, employee advocates, and other stakeholders as the Commission continues to study potential enforcement and policy actions under Section 5 of the FTC Act.

Thursday, December 18, 2025

Bureau of Consumer Protection; Consumer Protection; Free Trials; Advertising and Marketing

• The FTC has reached a settlement with Instacart to resolve allegations that the company misled consumers regarding its tipping practices for delivery workers. According to the FTC's press release, the Commission alleged that Instacart's representations led consumers to believe their entire tip would go to workers, when in fact Instacart retained a portion for itself, in violation of Section 5 of the FTC Act. Under the terms of the settlement, Instacart will provide $60 million in refunds to affected consumers and is required to change its disclosures about how tips are distributed. Beyond the refund, the settlement order prohibits Instacart from making misrepresentations about the costs of its delivery services and satisfaction guarantees. Additionally, Instacart is instructed to clearly and conspicuously disclose the terms, and obtain express informed consent from consumers, for any subscription transactions that involve automatic charges unless the consumer actively opts out.

Friday, December 19, 2025

Bureau of Competition; Competition; Nonmerger; Noncompete

• The FTC took enforcement action against Adamas Amenity Services LLC, a building services contractor, and its affiliated businesses for allegedly participating in unlawful no-hire agreements that restricted the recruitment and hiring of certain employees. As described in the FTC's press release, the Commission alleges that the companies entered into no-hire agreements to restrict other building owners and management companies across New Jersey and New York City to hire Adamas employees—mainly workers performing janitorial, front desk, security, and other services—without incurring a large penalty. According to the complaint, these arrangements diminished competition in labor markets, limited employment opportunities, and potentially suppressed wages—conduct that purportedly violates Section 5 of the FTC Act. As part of the order, Adamas is barred from the use of these no-hire agreements, must notify employees affected by past no-hire agreements, and must post clear and conspicuous notice that employees are no longer subject to no-hire agreements. This action underscores the Commission's ongoing focus on labor market competition and worker mobility.

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