Markets Wired - Page 1005 of 1422 - Global Financial Market News and Press Releases

Federal Trade Commission Appoints Ashkan Soltani as Chief Technologist

Federal Trade Commission Chairwoman Edith Ramirez has appointed Ashkan Soltani as the agency’s Chief Technologist, succeeding Dr. Latanya Sweeney, who is returning to Harvard University, where she founded and directs Harvard’s Data Privacy Lab.

Soltani will join the FTC in November and advise the Commission on evolving technology and policy issues. He is a technology consultant and researcher whose work has focused on privacy and security issues for more than 20 years. Soltani has previously served as a technical expert for the Commission, and worked at the FTC between 2010 and 2011 as a staff technologist.

“Technology and online and mobile platforms are continuing to evolve at a rapid pace and will remain a key focus for the FTC as more and more consumers adopt mobile devices and tablets,” said FTC Chairwoman Edith Ramirez. “I am pleased to welcome Ashkan to our talented team where he will play a vital role in continuing our important work on behalf of American consumers.”

“I am very grateful to Latanya Sweeney for her outstanding work and public service on behalf of consumers, and particularly for her leadership in strengthening the Commission’s efforts to better protect sensitive consumer information,” Ramirez said.

Soltani has worked as a technical expert for multiple state attorneys general. He has also worked as an investigative reporter for The Washington Post, sharing with his co-authors in a 2014 Pulitzer Prize for Public Service, and The Wall Street Journal, and as a researcher for The New York Times. Earlier in his career, Soltani was employed as a manager and consultant for two security technology companies including Sophos.

Soltani earned a master’s degree in Information Management and Systems from the University of California, Berkeley, and a bachelor’s degree in Cognitive Science from the University of California, San Diego.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Staff Warns Plastic Waste Bag Marketers That Their “Oxodegradable” Claims May Be Deceptive

Staff of the Federal Trade Commission has sent letters warning 15 marketers of “oxodegradable” plastic waste bags that their oxodegradable, oxo biodegradable, or biodegradable claims may be deceptive.

Oxodegradable plastic is made with an additive intended to cause it to degrade in the presence of oxygen. Most waste bags are intended to be deposited in landfills, however, where not enough oxygen likely exists for oxodegradable bags to completely degrade in the time consumers expect. Contrary to the marketing, therefore, these bags may be no more biodegradable than ordinary plastic waste bags when used as intended.

“If marketers don’t have reliable scientific evidence for their claims, they shouldn’t make them,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Claims that products are environmentally friendly influence buyers, so it’s important they be accurate.”

The staff notified 15 marketers that they may be deceiving consumers based on the agency’s 2012 revisions to its Guides For the Use of Environmental Marketing Claims (the Green Guides). Based on studies about how consumers understand biodegradable claims, the Green Guides advise that unqualified “degradable” or “biodegradable” claims for items that are customarily disposed in landfills, incinerators, and recycling facilities are deceptive because these locations do not present conditions in which complete decomposition will occur within one year.

The FTC advised marketers that consumers understand the terms “oxodegradable” or “oxo biodegradable” claims to mean the same thing as “biodegradable.” Staff identified the 15 marketers as part of its ongoing review of green claims in the marketplace. It has given them until October 21, 2014, to respond to the warning letters and tell the staff if they will remove their oxodegradable claims from their marketing or if they have competent and reliable scientific evidence proving that their bags will biodegrade as advertised.

The staff notes that marketers who did not receive a letter should not assume that their claims are fine. Staff is not disclosing the recipients of the letters at this time.

FTC Approves SCI’s Applications to Divest Assets in California, Florida, and Tennessee

Following a public comment period, the Federal Trade Commission has approved three applications by Service Corporation International (SCI) to divest certain funeral and cemetery assets, as required under the FTC’s May 2014 order settling charges that SCI’s acquisition of Stewart Enterprises, Inc. would be anticompetitive. In total, the proposed order requires the combined SCI/Stewart to divest 53 funeral homes and 38 cemeteries to ensure competition is maintained in 59 communities throughout the United States.

Through this action, the FTC has approved the divestitures of three mortuaries in Southern California to Guerra & Gutierrez, LLC; five funeral homes and cemeteries in the Miami, Florida area to Miami Memorial, LLC; and two cemeteries in Knoxville, Tennessee to Alliance Funeral Group.

The Commission votes to approve the applications were 5-0. (FTC File No. 131-0163, Docket No. 4423; the staff contact is Elizabeth A. Piotrowski, Bureau of Competition, 202-326-2623)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Requests Public Comment on Community Health Systems’ Application to Approve Sale of Carolina Pines Regional Medical Center to Capella Healthcare, Inc.

The Federal Trade Commission is currently accepting public comments on an application by Community Health Systems to sell certain health care assets, as required under the FTC’s April 2014 final order settling charges that CHS’s acquisition of rival health system Health Management Associates, Inc. would likely be anticompetitive.

Community Health Systems is a Tennessee-based for-profit company, operating hospitals nationwide. The order requires CHS to sell Riverview Regional Medical Center and its associated assets in Alabama, and the Carolina Pines Regional Medical Center and its associated assets in South Carolina.

CHS has petitioned the FTC to approve the divestiture of the Carolina Pines assets to hospital operator Capella Healthcare, Inc. According to the application, Capella is well-positioned and financially capable of operating the Carolina Pines assets.

The Commission will decide whether to approve the proposed divestiture after expiration of a 30-day public comment period. Public comments may be submitted until November 20, 2014. Comments can also be filed electronically. Copies of the application can be found on the FTC’s website and as a link to this press release. (FTC File No. 131 0202, Docket No. C-4427; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave., NW, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

At FTC’s Request, Court Stops Supplement Marketers From Deceptive Advertising and Illegally Debiting Consumers’ Accounts

At the Federal Trade Commission’s request, a U.S. district court has temporarily stopped a group of marketers in Nevada and California from conducting business using “free” trial offers and health claims that the agency charges are deceptive and illegal to pitch green coffee bean extract and another dietary supplements. The FTC is seeking to permanently stop their allegedly deceptive conduct.

This is the first FTC action alleging violations of the Restore Online Shoppers’ Confidence Act (ROSCA), which prohibits marketers from charging consumers in an Internet transaction, unless the marketer has clearly disclosed all material terms of the transaction and obtained the consumers’ express informed consent.

“The defendants behind Simple Pure used nearly every trick in the book to deceive consumers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They not only deceived consumers about the effectiveness of their products, but also repeatedly debited consumers’ accounts without their approval.”

According to the FTC’s complaint, Health Formulas, LLC, its related entities, and principals (Simple Pure) use telemarketing, the Internet, print, radio, and television advertisements to pitch a variety of dietary supplements and other weight-loss, virility, muscle-building, or skin cream products. Examples of Simple Pure’s advertising claims include: 1) “Burn fat without diet or exercise”; 2) “Shed pounds fast!” and 3) “Extreme weight loss!” The FTC alleges that the defendants have no basis for the weight-loss claims they make about their products.

In addition, the defendants allegedly trick consumers into disclosing their credit and debit card information, and then enroll them without authorization in a negative option program in which defendants continually charge consumers’ accounts. The charge for Simple Pure’s weight-loss supplements, with names like Pure Green Coffee Bean Plus and RKG Extreme, typically ranges from $60 to $210 per month. Some consumers were sold additional products that cost between $7.95 and $60.

The FTC charges that the defendants failed to provide the disclosures required for a negative-option program, failed to provide a way for consumers to stop the automatic charges, and also failed to disclose material facts about their refund and cancellation policy.

The complaint charges the defendants with violating the FTC Act, the ROSCA, and the Commission’s Telemarketing Sales Rule (TSR). It also charges the defendants with violating the TSR’s Do Not Call provisions by calling consumers who had asked them to stop calling. Finally, the complaint charges the defendants with violating the Electronic Funds Transfer Act by debiting consumers’ accounts on a recurring basis without their prior written authorization.

Defendants in the case include: 1) Health Formulas, LLC, also doing business as (d/b/a) Simple Pure Nutrition; 2) Pure Vitamins, LLC; 3) Longhorn Marketing, LLC also d/b/a Men’s Health Formulas, LLC, Life Vitamins, and Unleash the Thunder; 4) Method Direct, LLC, also d/b/a Extamax, LLC, Vitaman Labs, Inc., Vitafit, and Playboy Offer/DVD Entertainment; 5) Weight Loss Dojo, LLC, also d/b/a Fitness DVDs; 6) VIP Savings, LLC, also d/b/a VIP Saving Center; 7) DJD Distribution, LLC; 8) MDCC, LLC, also d/b/a Method Direct Calling Center; 9) Chapnick, Smukler & Chapnick, Inc.; and 10) Brandon Chapnick, Keith Smukler, Danelle Miller (also known as Danelle Folta and Danelle Kenealy), and Jason Miller, individually and as members of the corporate defendants.

Information for Consumers

Consumers should carefully evaluate advertising claims for weight-loss products. For more information, see the FTC’s guidance for consumers of products and services advertised for Weight Loss & Fitness. The FTC also has information about understanding free trial offers, including “Free” Trial Offers?, which includes a video on potential risks of such offers, and a short online audio tip on free trials.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the District of Nevada on October 7, 2014, and the court entered a temporary restraining order against the defendants on October 9, 2014.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.

Statement of FTC Chairwoman Edith Ramirez Regarding White House Initiative on Safeguarding Consumers’ Financial Security

Federal Trade Commission Chairwoman Edith Ramirez issued the following statement regarding the initiative to safeguard consumers’ financial security announced today by President Obama:

“Identity theft has been American consumers’ number one complaint for more than a decade, and it affects people in every community across the nation. I welcome the opportunity for the Federal Trade Commission to participate in this new initiative advancing efforts to address this insidious problem on behalf of consumers.”

Please read the FTC’s Tax-Related Identity Theft to learn more about how to uncover and deal with this issue and for contact information for the IRS. For additional resources, visit the FTC’s identity theft website.

FTC Approves Final Order Preserving Competition in the Market for Over-the-Counter Motion Sickness Drugs

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that the $750 million proposed acquisition of Insight Pharmaceuticals Corporation by Dramamine maker Prestige Brands Holdings, Inc. would likely be anticompetitive.

Under the order, Prestige agrees to divest assets and marketing rights for the over-the-counter motion sickness drug Bonine to Wellspring Pharmaceuticals within 10 days of its acquisition of Insight.

According to the FTC’s complaint, first announced in August 2014, Prestige’s Dramamine – the best-selling branded product in the market for over-the-counter motion-sickness drugs – and Insight’s Bonine are the only two branded OTC products with significant sales. Absent a remedy, the acquisition would have eliminated the close competition between Dramamine and Bonine, and likely led to higher prices for consumers.

The Commission vote approving the final order was 5-0. (FTC File No. 141 0159; the staff contact is Christina R. Perez, Bureau of Competition, 202-326-2048)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Settlement Bans Bogus Trade Association from Selling Healthcare-Related Products

A group of marketers who allegedly tricked consumers into buying phony health insurance are permanently banned from selling healthcare-related products under a settlement with the Federal Trade Commission.

The settlement resolves claims that the defendants, who operated as the bogus trade association Independent Association of Businesses (IAB), preyed on consumers who sought health insurance. Consumers submitted their contact information to websites purportedly offering quotes from health insurance companies. They paid an initial fee ranging from $50 to several hundred dollars, and a monthly fee ranging from $40 to $1,000 purportedly for comprehensive health insurance coverage, but instead they were enrolled in an IAB membership. The program included purported discounts on services such as identify-theft protection, travel, and roadside assistance, as well as certain purported healthcare related benefits, including limited discounts and reimbursements on visits to certain doctors or hospitals, subject to broad exclusions and limitations.

In 2012, the FTC charged the IAB defendants and those who ran IAB’s largest telemarketing operation with violating the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). A federal court halted the operation until the case was resolved. A settlement order announced in 2013 bans the telemarketing defendants from selling healthcare-related products.

The settlement order announced today permanently bans the remaining defendants from selling healthcare-related products. They are IAB Marketing Associates LP, Independent Association of Businesses, HealthCorp International Inc., JW Marketing Designs LLC, International Marketing Agencies LP, International Marketing Management LLC, Wood LLC, James C. Wood, his sons, James J. Wood and Michael J. Wood, and his brother, Gary D. Wood. It also resolves the FTC’s claims against relief defendant Tressa K. Wood, James C. Wood’s wife, who benefitted from but did not participate in the alleged scheme.

The order also prohibits the defendants from violating the TSR, misrepresenting material facts about any goods or services, and selling or otherwise benefitting from consumers’ personal information.

The order imposes a $125 million judgment that will be partially suspended once the defendants surrender assets valued at almost $2 million, including $502,000 in IRA funds and personal property that includes five luxury cars (a Lamborghini, two Mercedes, a Porsche, and an MG Roadster). A separate settlement order requires relief defendant Avis. K. Wood to pay $60,000 from an IRA account that was funded by the defendants’ allegedly unlawful activities.

The Commission vote approving the proposed stipulated final order was 5-0. The order was entered by the U.S. District Court for the Northern District of Texas, Dallas Division on October 10, 2014. The Commission vote approving the proposed stipulated final order against Avis S. Wood was 5-0, and it was entered by the U.S. District Court for the Northern District of Texas on August 8, 2014.

To learn more about these kinds of scams, read the FTC’s Discount Plan or Health Insurance?.

FTC Approves Final Orders Requiring Two Professional Associations to Eliminate Rules that Restrict Competition among Their Members

Following a public comment period, the Federal Trade Commission has approved final orders settling charges that the National Association of Residential Property Managers, Inc. (NARPM) and the National Association of Teachers of Singing, Inc. (NATS) restrained competition among their respective members through their codes of ethics.

Under the FTC orders, the National Association of Residential Property Managers must stop restraining members from soliciting competitors’ clients or engaging in comparative advertising that is not false or deceptive and the National Association of Teachers of Singing cannot prohibit its members from soliciting students from other members. The NATS order also requires it to obtain a certification from each of its chapters that the chapter is not engaged in any prohibited practices and both associations must implement compliance programs.

The Commission votes approving the final orders were both 5-0. (NARPM: FTC File No 141 0031; the staff contact is Armando Irizarry, Bureau of Competition, 202-326-2964; NATS: FTC File No 131 0127; the staff contact is Karen A. Mills, Bureau of Competition, 202-326-2052.)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Staff Comment: Proposed Dental Services Rules in Texas Would Likely Reduce the Benefits of Competition for Consumers

Federal Trade Commission staff, in response to a notice requesting public comments, urged the Texas State Board of Dental Examiners to reject two proposed rules that impose new restrictions on the ability of Texas dentists to enter into contracts with non-dentists, such as dental service organizations (DSOs), for the provision of nonclinical, administrative services. The comment explains that such restrictions may reduce competition, likely resulting in higher prices and reduced access to dental services, especially for underserved populations.

The comment is part of the FTC’s ongoing efforts to promote competition in the health care sector, which benefits consumers through lower costs, better care, and more innovation.

The comment, submitted by staff of the FTC’s Office of Policy Planning, Bureau of Competition, and Bureau of Economics, states that the rules (proposed 22 Tex. Admin. Code § 108.70 and § 108.74) seem likely to discourage dentists from affiliating with DSOs by mandating that dentists assume responsibility for the types of functions that DSOs typically provide, and by expanding the Board’s authority to take disciplinary action against dentists who enter into these prohibited agreements. By contrast, under the current regulations, such service agreements for many business functions such as accounting and bookkeeping are presumed not to violate the Texas Dental Practice Act.

The comment states that the proposed rules, if adopted, may deny consumers the benefits of competition spurred by the efficiencies that DSOs can offer. By restricting dentists’ choices when deciding upon the most efficient way to organize the nonclinical aspects of their practices, the rules could deny dentists potentially significant cost savings and the ability to focus on providing dental care, rather than on the business management aspects of running a dental practice. These savings may lead to lower prices, improved service, and increased access to care.

The staff urged the Board to consider whether reliable evidence indicates that the rules will serve any important public purpose, such as addressing substantiated health and safety concerns or concerns about fraud; and if so, whether the proposed restrictions may be broader than necessary to address such concerns; and whether less restrictive alternatives might be available. Because the sweeping restrictions appear unnecessary to address any concerns about the independent judgment of dental professionals or fraud, but can be expected to inhibit competition, increase prices, and decrease access to dental services, the comment urges the Board to reject the proposed rules.

The Commission vote to issue the staff comment was 5-0. It was sent to Simone Salloum, Assistant General Counsel, Texas State Board of Dental Examiners, on October 6, 2014. (FTC File No. V140013; the staff contact is Karen Goldman, Office of Policy Planning, 202-326-2574).

The FTC’s Office of Policy Planning works with the Commission and its staff to develop long-range competition and consumer policy initiatives, consistent with the FTC’s unique mission to conduct research and engage in advocacy on issues that affect competition, consumers, and the U.S. economy. The Office of Policy Planning submits advocacy filings; conducts research and studies; organizes public workshops; issues reports; and advises staff on cases raising new or complex policy and legal issues. To reach the Office of Policy Planning, send an e-mail to [email protected]. Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

Related posts:

Related posts:

Related posts:

Related posts:

Related posts:

Related posts:

Related posts:

Related posts:

Related posts:

Related posts: