Recent FTC Matters Targeting Unfair and Deceptive Practices
Protections for Small Businesses Under the Telemarketing Sales Rule
The FTC has reinterated that agency rules need to reflect the realities of the marketplace, which is why – after substantial input from businesses and consumers – FTC attorneys amended the Telemarketing Sales Rule to expand prohibitions against misrepresentations to include B2B telemarketing.
Predatory Financing That Allegedly Cheated Small Businesses
According to the FTC, some shady operators take advantage of difficulties accessing loan capital by luring business owners in with false claims. The FTC sued RCG (also known as Richmond Capital Group) for allegedly misrepresenting the terms of merchant cash advances and then threatening violence to compel people to pay up. Some of the defendants settled, but owner Jonathan Braun purportedly said “See you in court” – and the FTC took him up on that. The FTC announced a $20.3 million judgment, and an order that permanently bans him from the merchant cash advance and debt collection industries.
Fighting Against Government and Business Imposters
If the IRS, Social Security Administration, FTC or some other agency demands money by the end of the day, or perhaps if a customer claims to have paid a business invoices that was never sent, there is a chance that it is an imposter scam intended to bilk consumers and businesses out of what amounts to millions of dollars each year, according to the FTC.
To protect businesses, the FTC has finalized the Trade Regulation Rule on Impersonation of Government and Businesses, which provides powerful tools in the fight against imposters. The agency has also proposed new protections to combat the impersonation of individuals, especially when scammers use technology like AI-enabled deep fakes.
reports in multiple languages about suspicious conduct targeting consumers or businesses. Call us at (877) 382-4357 and press 3 to speak to an interpreter between 9AM and 5PM Eastern Time.
Richard B. Newman is an FTC investigation and defense attorney at Hinch Newman LLP. Follow FTC CID Lawyer on X.
Informational purposes only. Not legal advice. This article is not intended to and should be construed as a complete summary or discussion of the Rule and all of its obligations and restrictions. May be considered attorney advertising.
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Hinch Newman LLP’s advertising and marketing practice includes successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. The firm possesses superior knowledge and deep legal experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. Through these advertising and marketing law updates, Hinch Newman provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/judicial process. This blog is sponsored by Hinch Newman LLP.