Key takeaways: The FTC has proposed a new rule that would ban hidden and bogus fees that can cost consumers an extra $80 billion every…
Posts tagged as “The Federal Trade Commission”
The Supreme Court heard arguments on Tuesday in a case challenging the Consumer Financial Protection Bureau's (CFPB) funding mechanism, which is provided directly by the Federal Reserve. The plaintiffs, two trade groups representing payday lenders, argue that this is unconstitutional. Both conservative and liberal justices seemed skeptical of the plaintiffs' theory, with Justice Stephen Breyer noting that the CFPB's funding structure is similar to other independent agencies. The outcome of the case will have a significant impact on the CFPB's ability to protect consumers from predatory lenders.
The FTC and 17 state attorneys general have filed an antitrust case against Amazon, alleging the company has used its market power to maintain higher prices and harm customers and rivals. FTC Chair Lina Khan noted the immediate harm of Amazon's alleged anti-competitive practices, and the lawsuit seeks to hold the company accountable and restore the competitive conditions that existed before its conduct. This case is the latest in a series of antitrust actions taken against tech giants and could have far-reaching implications for the industry.
Alexander Mashinsky, the former CEO of Celsius Network, was arrested on Thursday on federal fraud charges. The Federal Trade Commission (FTC) alleged that Mashinsky misled customers about key aspects of the business and illegally manipulated the price of Celsius’s proprietary crypto token. The company agreed to pay a $4.7 billion settlement with government regulators, one of the largest in the FTC’s history, and the settlement highlights repeated deceptions by Celsius and Mashinsky. The indictment against Mashinsky is a sign that the government is taking a hard line against crypto-related fraud.
The Federal Trade Commission has filed a lawsuit against Amazon, accusing the online retailer of using deceptive tactics to enroll consumers into its Prime program without their knowledge and making it difficult for them to cancel their subscription. FTC Chair Lina Khan said Amazon has been "tricking and trapping people into recurring subscriptions without their consent," and the FTC is seeking a court order to stop Amazon from using deceptive tactics and to provide refunds to those affected.
The FTC has proposed a rule change that would make it easier for consumers to cancel recurring subscriptions, requiring companies to simplify the cancellation process and providing consumers with annual reminders before automatically renewing them. This rule would affect millions of consumers in virtually every aspect of their lives, and the FTC is seeking public comment before the August 14th deadline.
The FTC has requested that the court impose sanctions on notorious "pharma bro" Martin Shkreli for forming a new drug company in violation of a judge's ban. This order stemmed from a ruling that Shkreli oversaw an illegal scheme to maintain a monopoly on the life-saving drug Daraprim, and the FTC has asked the court to find Shkreli in civil contempt and impose a fine or other penalties. If found in contempt, Shkreli could face additional penalties.