The FTC focused its week on consumer protection. The Commission announced a tentative agenda for its upcoming open meeting, sent warning letters to adoption intermediaries for purportedly misleading consumers, and issued refunds to consumers deceived by 1Health.io about its privacy and security practices. More on these stories after the jump.
Bureau of Consumer Protection: Consumer Privacy
- The FTC announced that it is sending refunds to over 2,400 consumers who were deceived by 1Health.io, formerly known as Vitagene, regarding its privacy and security policies. In total, the Commission is sending consumers over $49,500 in refunds. We first reported on the Commission's litigation against 1Health.io in a post from June 2023. Since that post, 1Health.io agreed to a settlement with the FTC which prohibits it from misrepresenting its security or privacy policies, requires it to obtain express consent before disclosing health information to third parties, and mandates that it implement a comprehensive information security program. Additionally, the settlement requires that 1Health.io pay the Commission $75,000 in monetary relief, which is now being used to send refunds to thousands of consumers. The Commission advised that most consumers will receive a check in the mail, which should be cashed within 90 days as indicated on the check. Other consumers will receive a PayPal payment, which should be redeemed within 30 days. The FTC explained that any consumers with questions regarding the refund should contact the refund administrator, Simpluris.
Tuesday, September 10, 2024
Bureau of Consumer Protection: Advertising and Marketing
- The Commission staff issued thirty-one warning letters to various adoption intermediaries advising them that their statements about their placement rates and place times, suppression of negative reviews, and failure to disclose certain important information may violate the FTC Act or the Consumer Review Fairness Act (CRFA). Samuel Levine, Director of the FTC's Bureau of Consumer Protection, commented that "[t]rying to adopt a child or place a child for adoption can be one of the most difficult and emotionally stressful experiences a parent can ever go through. It is essential that adoption intermediaries are truthful and not deceptive about the services they provide, how long the process may take, and how often they are able to facilitate a successful adoption." The template warning letter explains that under the FTC Act it is unlawful both (1) to issue deceptive advertisements that are likely to mislead consumers acting reasonably regarding material information; and (2) to omit information that would be a material factor in a consumer's decision to purchase a product. Additionally, the template warning letter explains that under the CRFA companies may not include a standardized contract provision that prohibits or otherwise penalizes consumers for posting honest reviews.
Thursday, September 12, 2024
Bureau of Consumer Protection: Advertising and Marketing
- Commission Chair Lina Khan announced that the FTC will hold a virtual open meeting for members of the public to address the Commission on Thursday, September 19, 2024. The FTC also issued a tentative agenda for the September 19 meeting stating that the meeting will include a presentation from the staff of the Bureau of Consumer Protection's Division of Privacy and Identity Protection, where the staff will present on their findings from the Commission's 2020 FTC Act Section 6(b) orders to study how social media and video streaming services' data practices affect consumers. Additionally, the meeting will feature a presentation from the staff of the Bureau of Consumer Protection's Division of Advertising Practices on the FTC's final rule on the use of consumer reviews and testimonials. Chair Khan is scheduled to speak at the start of the meeting and then will invite members of the public to give feedback on the agency's work. Members of the public must sign up on the FTC's website in advance of the meeting for an opportunity to address the Commission and each member will be given two minutes for their comments.
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