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The Federal Trade Commission is taking action against education technology provider Chegg Inc. for its lax data security practices that exposed sensitive information about millions of its customers and employees, including Social Security numbers, email addresses and passwords. Chegg allegedly failed to fix problems with its data security despite experiencing four security breaches since 2017. The FTC’s proposed order requires the company to bolster its data security, limit the data the company can collect and retain, offer users multifactor authentication to secure their accounts, and allow users to access and delete their data. “Chegg took shortcuts with millions of students’ sensitive information,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s order requires the company to strengthen security safeguards, offer consumers an easy way to delete their data, and limit information collection on the front end. The Commission will continue to act agg

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Following a public comment period, the Federal Trade Commission has finalized a consent order  against Electrowarmth Products, LLC and its owner, Daniel W. Grindle, barring them from deceptively claiming the heated fabric mattress pads they sell for truck bunks are made in the USA. The final order prohibits Grindle and Electrowarmth from making any country-of-origin claim about a product or service unless the claim is not misleading and they have a reasonable basis that substantiates their claim. It also requires the respondents to make certain disclosures about the country of origin of any product subject to the Textile Fiber Products Identification Act, and to provide compliance reports. The order also imposes a suspended $815,809 monetary judgment. Based in Ohio, Grindle and Electrowarmth sell mattress pads of varying sizes, with wires and thermostats that provide heat. According to the FTC’s complaint , before 2019, Electrowarmth used U.S.-made textiles for mattress pads inte

After a public comment period, the Federal Trade Commission has approved final orders against motorcycle manufacturer Harley-Davidson Motor Company Group, grill maker Weber-Stephen Products, and the manufacturer of Westinghouse outdoor power equipment, MWE Investments, for illegally restricting customers’ right to repair their purchased products. In cases announced in June, the FTC alleged that Harley-Davidson and MWE Investments included terms in their warranties that claimed that the warranty would be void if customers used independent repairers or third-party parts, in violation of the Magnuson-Moss Warranty Act and the FTC Act. In addition, Harley-Davidson allegedly failed to properly disclose all warranty terms in a single document, and instead directed consumers to visit a local dealership to fully understand the warranty. In July, the FTC announced a similar case alleging that Weber’s warranty illegally claimed that the use of aftermarket parts would void the company’s warrant

The Federal Trade Commission released the final agenda   for its annual PrivacyCon event, which will take place online on November 1, 2022. This year’s event will feature research presentations on commercial surveillance, automated decision making and a range of other topics. FTC Chair Lina M. Khan will provide opening remarks to kick off the event. Her remarks will be followed by seven panel discussions on research on such topics as: Commercial surveillance Automated decision-making systems Children’s privacy Devices that listen to users Augmented reality and virtual reality Interfaces and dark patterns, and Advertising technology Information about the panelists and PrivacyCon can be found on the event page . The event will begin at 9 a.m. ET and be live streamed on the FTC’s website, FTC.gov. A link to watch the event will be posted the day of the event. Follow the conversation on Twitter using the hashtag: #PrivacyCon22 . https://www.ftc.gov/news-events/news/press-r

The Federal Trade Commission is taking action against the online alcohol marketplace Drizly and its CEO James Cory Rellas over allegations that the company’s security failures led to a data breach exposing the personal information of about 2.5 million consumers. Drizly and Rellas were alerted to security problems two years prior to the breach yet failed to take steps to protect consumers’ data from hackers. The FTC’s proposed order requires the company to destroy unnecessary data, restricts the data that the company can collect and retain, and binds Rellas to specific data security requirements for his role in presiding over unlawful business practices. “Our proposed order against Drizly not only restricts what the company can retain and collect going forward but also ensures the CEO faces consequences for the company’s carelessness,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “CEOs who take shortcuts on security should take note.” Boston-based Drizly,

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The Federal Trade Commission announced today it is exploring a potential rule to combat deceptive or unfair review and endorsement practices, such as using fake reviews, suppressing negative reviews, and paying for positive reviews. Deceptive and manipulated reviews and endorsements cheat consumers looking for real feedback on a product or service and undercut honest businesses.The FTC’s Advance Notice of Proposed Rulemaking (ANPR) seeks public comment on potential harms stemming from deceptive or unfair review and endorsement practices and whether a rule would help consumers and level the playing field for honest marketers. “Companies should know by now that fake reviews are illegal, but this scourge persists,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We’re exploring whether a rule that would trigger stiff civil penalties for violators would make the market fairer for consumers and honest businesses." Research shows that many consumers

The Federal Trade Commission announced today that it is exploring a rule to crack down on junk fees proliferating throughout the economy. Junk fees are unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value. Consumers can get hit with junk fees at any stage of the purchase or payment process. Companies often harvest junk fees by imposing them on captive consumers or by deploying digital dark patterns and other tricks to hide or mask them. The agency is seeking public comment on the harms caused by junk fees and the unfair or deceptive tactics companies use to impose them. “It’s beyond frustrating to end up spending more than you budgeted because of random, arbitrary fees,” said FTC Chair Lina M. Khan. “No one has ever felt that a ‘convenience fee’ was convenient. Companies should compete to provide the best quality at the best price, not to see who can squeeze the most added expenses out of consumers. That’s especially true at a time when fam

WHAT: The Federal Trade Commission is hosting a virtual public event to explore the risks and harms associated with a growing array of marketing practices that make it difficult or impossible for children to distinguish ads from entertainment in digital media and how to protect children in this advertising landscape. WHEN: Wednesday, October 19, 9 a.m. – 4 p.m. ET WHERE: The event will be held online. A link to view the event will be posted to ftc.gov the day of the event. WHO: The event will feature remarks by FTC Chair Lina M. Khan, as well as a presentation and three panel discussions. TWITTER: Follow the discussion on Twitter using the hashtag #KidsAdsFTC. https://www.ftc.gov/news-events/news/press-releases/2022/10/ftc-host-virtual-event-digital-advertising-kids-october-19

The Federal Trade Commission is seeking public comments on whether it should propose updates to its Energy Labeling Rule to modernize and expand the Rule’s coverage to reduce energy costs for consumers and require manufacturers to provide consumers with repair instructions. “We look forward to hearing from the public on our initiative to reduce energy costs, promote competition, and strengthen repairability,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “As prices rise, the Commission will continue to take aggressive action to protect consumers’ pocketbooks and strengthen their right to repair their own products.” The FTC’s Energy Labeling Rule requires manufacturers to attach labels to major home appliances and other consumer products to help consumers compare the energy usage and costs of competing models. The Rule prohibits retailers from removing or altering these labels, which help consumers anticipate their energy usage and avoid costly surpr

Following a public comment period, the Federal Trade Commission has approved a petition by Gilbarco, Inc. a fuel dispenser pump manufacturer. In June 2022, the company requested a partial exemption from the FTC’s Fuel Rating Rule , which, among other things, requires retailers of automotive fuel to post the automotive fuel rating of all automotive fuel sold to consumers. The partial exemption approved today will allow Gilbarco to make small reductions in the type and size of fuel labels to allow room for an additional fuel grade button on its pumps. The FTC has published a Federal Register notice containing the petition. The FTC implemented the Fuel Rating Rule under the Petroleum Marketing Practices Act in 1979. The law establishes uniform automotive fuel ratings and labeling standards, including octane content information, which provide consumers with the information they need to make informed choices at the gas pump. The Rule also defines how ethanol content should be displaye

Today, Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Thursday, October 20, 2022. The open meeting will commence at 1pm ET and will begin with time for members of the public to address the Commission. The following items will be on the tentative agenda for the October 20th Commission meeting: Business Before the Commission: Advance Notice of Proposed Rulemaking on Junk Fees: The Commission will vote on whether to issue an Advance Notice of Proposed Rulemaking to initiate a rulemaking proceeding addressing junk fees that are charged for goods or services that have little or no added value to the consumer. The ANPR seeks comment on the prevalence of junk fees and the consumer harms arising from junk fee practices, among other questions. Advance Notice of Proposed Rulemaking on Fake Reviews and Endorsements: The Commission will vote on whether to issue an Advance Notice of Proposed Rulemaking to initiat

The Federal Trade Commission won a court order against F & G International Group Holdings, LLC, FG International, LLC, (FGI) and their principal J. Glenn Davis after suing the company and its CEO for deceptively claiming their paint insulates, when it does not. The order from the U.S. Court for the Southern District of Georgia permanently bans FGI from making deceptive claims and prohibits them from supporting similar deception from other companies. “At a time of high energy prices and deep concern about inflation, today’s ruling shows the impact FTC cases are having on issues of vital economic importance to American consumers,” said Sam Levine, Director of the FTC’s Bureau of Consumer Protection. Georgia-based FGI sells paint products for buildings and other structures. In advertising its insulating paint, FGI played to consumers’ concerns about rising energy costs, stating that their product “provides excellent insulation” at an “extreme insulation value.” In reality, FGI’s

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Following a public comment period , the Federal Trade Commission has updated its Energy Labeling Rule in order to allow consumers to more accurately compare the estimated annual energy consumption of appliances before they buy them. The FTC’s Energy Labeling Rule, issued in 1979 under the Energy Policy and Conservation Act, requires that manufacturers attach labels to major home appliances and other consumer products that help consumers compare the energy usage and costs of competing models. The labels contain three primary disclosures for most covered products: 1) estimated annual operating cost, 2) a “comparability range” showing the highest and lowest energy consumption or efficiencies for all similar models, and 3) the product’s energy consumption or energy efficiency rating. These labels help consumers anticipate their energy costs and avoid costly surprises after a product has already been purchased. The FTC’s May 2022 notice of proposed rulemaking sought comments on schedule