FTC Staff Submits Comment to the Commission on Dental Accreditation Regarding its Proposed Standards for Dental Therapy Education Programs

Federal Trade Commission staff submitted a comment to the American Dental Association’s Commission on Dental Accreditation (CODA) regarding CODA’s proposed Accreditation Standards for Dental Therapy Education Programs. The FTC staff comment states that the proposed accreditation standards may encourage the development of a nationwide dental therapy profession that could improve access to, and enhance competition for, dental care services, but unnecessary language on supervision and scope of practice could undermine that goal. The comment suggests that CODA consider omitting such language. The staff comment also encourages CODA to consider developing more expansive accreditation standards that would reach master’s or graduate level programs, as well as the baccalaureate programs currently addressed.  CODA is recognized by the U.S. Department of Education as the sole body to accredit dental and dental-related education programs at the post-secondary level. 

Dental therapists are a relatively new type of provider that offers some of the same basic dental services offered by dentists. They differ from other allied dental health professionals, such as dental hygienists, in that they are trained and licensed to provide some, but not all, services traditionally carried out only by licensed dentists.

Expanding the supply of dental therapists by facilitating the creation of new dental therapy training programs is likely to increase the availability of basic dental services, enhance competition, reduce costs, and expand access to dental care, especially for underserved populations, the comment states.

Recognizing this potential, a number of state legislatures have considered enacting legislation providing for the licensure of dental therapists, and at least one state, Minnesota, has enacted such legislation and created dental therapy educational and training programs. The FTC staff comment recognizes that patient health and safety concerns are of critical importance when states regulate health care professionals, and that each state will need to determine its own supervision and scope of practice limitations for dental therapists.

The staff comment notes, however, that the proposed CODA accreditation standards include language that may unnecessarily constrain the discretion of states to determine dental therapists’ scope of practice and authority. In addition, the comment explains that the language may deter innovation in dental care education.

Therefore, to preserve state-level flexibility and promote innovation in dental care education and delivery models, the staff comment encourages CODA to consider:

  • omitting categorical statements regarding a supervising dentist’s responsibility for diagnosis and treatment planning, topics that are typically addressed by individual states in their licensure and scope of practice laws; and
  • developing accreditation standards for master’s or graduate level programs that train dental therapists to conduct oral evaluations and develop treatment plans without requirements for an on-site supervising dentist or at other supervisory levels that have been adopted by states.

The Commission vote approving the comment was 4-0. (FTC File No. V140000; the staff contact is Karen A. Goldman, 202-326-2574.)

Copies of the documents mentioned in this release are available from the FTC’s website and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

FTC Announces Agenda for Workshop Examining Competition Issues Surrounding Biologic and Follow-on Biologic Medicines: Biosimilars and Interchangeables

The Federal Trade Commission has announced the agenda for the upcoming public roundtable on “Follow-on Biologics: Impact of Recent Legislative and Regulatory Naming Proposals on Competition.” The workshop will be held in the FTC Conference Center at 601 New Jersey Ave., N.W., in Washington, DC, on December 10, 2013.

FTC Chairwoman Edith Ramirez will provide welcoming remarks at 8:30 a.m. to open the workshop. Her remarks will be followed by presentations from a wide range of experts in the research, development, commercialization and sale of biosimilar and interchangeable follow-on biologic medicines. Biologic medicines comprise the fastest-growing sector of pharmaceuticals and target such difficult-to-treat diseases as cancer, diabetes, and multiple sclerosis.

Follow-on biologics include both biosimilars and interchangeable biologic products. Recent federal legislation created an abbreviated licensure pathway for two kinds of follow-on biologics: 1) biosimilars, and 2) interchangeable biologic products. As discussed in more detail in the Federal Register notice for the workshop, the federal law establishes that interchangeable biologics “may be substituted for the reference biologic without the intervention of the health care provider who prescribed the reference product.”  The federal law does not address substitution of non-interchangeable biosimilars.

The FTC will conduct the workshop as a moderated roundtable discussion organized into two panels that will discuss: 1) how state regulations may impact competition of follow-on biologics; and 2) how naming conventions may impact competition of follow-on biologics.

The FTC’s Workshop on Follow-on Biologics is free and open to the public. No pre-registration is required, but all attendees must present a valid photo ID for admission to the event. The FTC has moved the venue from its Headquarters to the FTC Conference Center, to accommodate additional attendees. The Conference Center is at 601 New Jersey Ave., NW, Washington, DC.

Further details are available in the Federal Register notice and on the workshop’s webpage. It will also be webcast on the FTC’s site. In addition, any interested person may submit written comments to any of the topics addressed during the workshops. The FTC is accepting public comments on the topics addressed in workshop through March 1, 2014. FTC staff will live-tweet the workshop. Follow @FTC and tweet your questions with #FTCfob.

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., 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 Issues FY 2013 National Do Not Call Registry Data Book

The Federal Trade Commission today issued the National Do Not Call Registry Data Book for Fiscal Year 2013. The FTC’s National Do Not Call Registry lets consumers choose not to receive telemarketing calls. In its fifth year of publication, the Data Book contains a wealth of information about the Registry for FY 2013 (from October 1, 2012 to September 30, 2013), including:

  • The number of active registrations and consumer complaints since the Registry began in 2003;
  • FY 2013 complaint figures by month and type;
  • FY 2013 registration and complaint figures for all 50 states and the District of Columbia by population;
  • Rankings of the number of Do Not Call registrations by state population;
  • The number of entities accessing the Registry by fiscal year; and
  • An appendix on registration and complaint figures by state and area code.

According to the Data Book, at the end of FY 2013, the Do Not Call Registry contained 223,429,112 actively registered phone numbers, up from 217,568,284 at the end of FY 2012. In addition, the number of consumer complaints about unwanted telemarketing calls received decreased from 3,840,569 during FY 2012 to 3,748,655 during FY 2013.

This year’s Data Book also reveals trends in complaint data. In addition to providing information on the total number of consumer complaints per month, it also contains data on the number of monthly complaints specifically related to pre-recorded telemarketing “robocalls,” and requests for a telemarketer to stop calling.

During the past year, the FTC has continued to receive large numbers of consumer complaints about robocalls. At the beginning of the fiscal year, in October 2012, the FTC received 234,871 robocall-related complaints. This number varied by month, ranging between a low of 146,845 complaints in June 2013 and a high of 234,871 in October 2012.

Most telemarketing robocalls have been illegal since September 2009. As part of its effort to stop deceptive, misleading, and otherwise unlawful robocalls, the FTC will take action against entities violating the agency’s Telemarketing Sales Rule.

The FTC Robocall Summit and Robocall Challenge

The FTC hosted a summit on October 18, 2012, in Washington, DC, to examine the issues surrounding the robocall problem. Open to the public, the summit included members of law enforcement, the telemarketing and telecommunications industry, consumer groups, and other stakeholders. It focused on exploring innovations that could potentially be used to trace robocalls, prevent wrongdoers from faking caller ID data, and stop illegal calls.

The FTC also held a Robocall Challenge, announced at the summit, which led to several awards for proposed products and/or technologies designed to stop consumers from receiving unwanted robocalls. Finally, the Commission announced an enforcement sweep in November 2012, cracking down on illegal “Rachel” robocallers and those from “Card Services.”

Information for Consumers

Information for consumers about the Do Not Call Registry, company-specific do not call requests, and telemarketer Caller ID requirements can be found on the FTC’s website, and consumers can sign up for the National Registry for free. Other information about robocalls and what consumers can do about them also is available.

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 Do Not Call complaint in English or Spanish, visit the National Do Not Call Registry online or call 1-888-382-1222. 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 Testifies Before House Subcommittee on Satellite Office Consolidation

The Federal Trade Commission provided Congress with an update on the agency’s work to consolidate FTC staff currently housed in its two leased Washington D.C. satellite office locations into the Constitution Center building at 7th and D Streets SW.

Testifying on behalf of the Commission before the Committee on Oversight and Government Reform Subcommittee on Government Operations, FTC Executive Director David Robbins told lawmakers that the agency has been working very closely with the General Services Administration (GSA) to secure and build out space at Constitution Center, which is designed to house 905 employees currently located in office space at 601 New Jersey Avenue and 1800 M Street NW.

 “The Commission believes that the new space is properly configured to sustain its mission in a cost effective manner, consistent with space utilization regulations and the Administration’s initiative to make more efficient use of the government’s real estate assets (known as “Freeze the Footprint”),” the testimony states.

The testimony notes that FTC staff moving to Constitution Center will have significantly smaller offices and less overall space than they have now. The agency is using an aggressive space utilization rate of 119 square feet per person, according to the testimony.

In addition to the consolidation of satellite office space, the Commission is aware that there is interest in housing all of the FTC’s employees at the Constitution Center so that the FTC Headquarters Building can be given to the National Gallery of Art, the testimony states. However, as both GSA and the FTC have explained, this is neither physically nor financially feasible. 

“Even if all of the FTC’s D.C. operations could be fit in the SW quadrant of Constitution Center, the costs to the American taxpayer would be prohibitive,” the testimony states.  These costs include:  the long-term cost of moving the FTC out of a federally owned building and into leased space; the immediate cost of moving the FTC out of its headquarters building and replicating the building’s mission-critical functions elsewhere; and the cost to American taxpayers of giving away federally owned property.

The FTC’s historic headquarters building was designed and built for the FTC in 1938. The building is in good condition and needs no significant renovation, repair, or maintenance. The 76-year old building has up-to-date electrical, plumbing, and HVAC systems, which are in excellent working order.

 “We will continue to work with Congress, GSA, and the Office of Management and Budget to complete construction of the Constitution Center space in a manner that maintains FTC’s effectiveness and efficiency,” the testimony states.

The Commission vote approving the testimony and its inclusion in the formal record was 4-0.

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 Testifies on Its Work to Protect Consumers and Promote Competition As the Agency Approaches Its 100th Anniversary

The Federal Trade Commission testified before Congress on the agency’s long track record of protecting consumers and promoting competition in the U.S. economy, as well as the agency’s ongoing work and future challenges as it approaches its 100th anniversary next year.

Testifying before the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade, FTC Chairwoman Edith Ramirez and Commissioners Julie Brill, Maureen K. Ohlhausen and Joshua D. Wright told lawmakers that the FTC is a highly productive and efficient, small independent agency with jurisdiction to protect consumers and maintain competition in broad sectors of the economy.

“Our agency structure, research capacity, continued commitment to bipartisanship and cooperation, and exceptional staff will allow the FTC to continue to adapt to external changes and successfully fulfill its mission of protecting consumers and competition into its next century,” the testimony states.

President Woodrow Wilson signed the Federal Trade Commission Act and the Clayton Act in 1914, and the FTC opened its doors on March 16, 1915. The Commission was given enforcement authority and was empowered to conduct investigations, gather information, and publish reports. Since then, Congress has expanded the FTC’s responsibilities through a number of other statutes, such as the Fair Credit Reporting Act; the Fair Debt Collection Practices Act; and the 1994 Telemarketing and Consumer Fraud and Abuse Prevention Act, which led to establishment of the popular National Do Not Call Registry.

The testimony outlines the FTC’s current work to protect consumers and promote competition. In recent years, the FTC has emphasized protecting financially distressed consumers from fraud, protecting consumer privacy and data security, prosecuting false or deceptive health claims, and safeguarding children in the marketplace.

In fiscal year 2013, the FTC filed 72 new consumer protection complaints in federal district court and obtained 100 permanent injunctions and orders (including two civil contempt orders) requiring defendants to pay approximately $198 million in consumer redress or disgorgement of ill-gotten gains.

The FTC’s efforts to maintain competition focus on stopping anticompetitive mergers and other anticompetitive business practices in a wide range of industries of critical importance to American consumers, the testimony states. These include health care, technology, energy, consumer goods and services, and manufacturing. This work is critical to protect and strengthen free and open markets – the cornerstone of a vibrant economy.

In fiscal year 2013, the agency pursued 27 new competition law enforcement actions (merger and nonmerger) and undertook several important workshops, reports, and advocacy opportunities to promote competition and educate its stakeholders about the importance of competition to consumers. Over the past three years, the agency estimated that it saved consumers approximately $3 billion in potential price increases by stopping illegal anticompetitive practices and mergers in the marketplace.

Finally, the testimony describes the challenges facing the FTC as it nears its 100th anniversary. In light of resource constraints and a growing workload, the FTC will continue to leverage its resources through careful case selection, by partnering with public and private entities, and by improving its own technological infrastructure to allow its staff to work more effectively, among other things.

The FTC will continue to adapt as technology continues to evolve. The agency convenes public meetings, such as its recent workshop exploring the Internet of Things, that help the agency to identify the consumer protection and competition issues that may be raised by the use of new technology.

In addition, the testimony states, the FTC will seek to address challenges posed by increased globalization and an international marketplace, and will continue its longstanding initiative to review FTC rules and guides to ensure that they enhance consumer welfare without imposing undue burdens on business.

“As we approach our 100th anniversary, the FTC remains committed to finding ways to enhance its effectiveness in protecting consumers and promoting competition, to anticipate and respond to changes in the marketplace, and to meet current and future challenges,” the testimony states.

The Commission vote approving the testimony and its inclusion in the formal record was 4-0.

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 Announces Agenda, Panelists for Native Advertising Workshop

The Federal Trade Commission will host a workshop on December 4, 2013 in Washington, DC to examine the practice of blending advertisements with news, entertainment, and other editorial content in digital media, referred to as “native advertising” or “sponsored content.”

The workshop, “Blurred Lines:  Advertising or Content?” will bring together publishing and advertising industry representatives, consumer advocates, academics, and self-regulatory organizations to explore:  the ways in which sponsored content is presented to consumers online and in mobile apps; consumers’ recognition and understanding of it; the contexts in which it should be identifiable as advertising; and effective ways of differentiating it from editorial content.

The workshop will be free and open to the public.  It will be held at the FTC’s satellite building conference center, located at 601 New Jersey Avenue, N.W. in Washington, D.C.   
Updates to the agenda, and logistical information for those planning to attend can be found on the workshop website, which will also provide a link to the live webcast.

Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted to Lara Busby via email at [email protected] or by calling 202-326-3388.  Requests should be made in advance, and include a detailed description of the accommodations needed and contact information.

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 to Host Spring Seminars on Emerging Consumer Privacy Issues

This spring, the Federal Trade Commission will host a series of seminars to examine the privacy implications of three new areas of technology that have garnered considerable attention for both their potential benefits and the possible privacy concerns they raise for consumers.

As the tools available to track, market to and analyze consumers – often without their knowledge – grow, businesses are able to meet consumers’ demands more efficiently and effectively. But these tools may also carry significant risks to consumers’ privacy. The seminars, taking place over three months, will shine a light on new trends in Big Data and their impact on consumer privacy. The topics will include:

  • Mobile device tracking – tracking consumers in retail and other businesses using signals from their mobile devices.
  • Alternative scoring products – using predictive scoring to determine consumers’ access to products and offers.
  • Consumer-generated and controlled health data – information provided by consumers to non-HIPAA covered websites, health apps and devices.

The series will bring together academics, business and industry representatives, and consumer advocates for two-hour discussion sessions, which will take place in Washington, D.C. and will be open to the public. The FTC invites comment from the public on the proposed topics, and will issue staff reports following the sessions.

Mobile Device Tracking – 10 a.m. to noon, Feb. 19, 2014
FTC Conference Center, 601 New Jersey Ave., NW, Washington, DC

Recently, retailers and other businesses have begun tracking consumers’ movements throughout and around retail stores and other attractions using technologies that identify signals emitted by their mobile devices. While the technologies differ, many work by identifying and collecting the MAC address – which is unique to a particular device – broadcast when a mobile device searches for Wi-Fi networks. Companies can use these technologies to reveal information about consumers including the path taken throughout a location, length of time in one location, whether a visitor is new or returning, and the frequency of visits to a location. According to media reports, major retailers in the United States are using or have tested the technology in their stores in order to gain insights into the behavior of their customers.

In most cases, this tracking is invisible to consumers and occurs with no consumer interaction. As a result, the use of these technologies raises a number of potential privacy concerns and questions. The seminar will address questions such as:

  • What different types of mobile device tracking are companies currently implementing, how do they work, and where are they used?
  • What are potential future uses of these technologies?
  • What are the similarities or differences between mobile device tracking and online tracking technologies?
  • What types of information and benefits do retailers gain from these technologies?
  • What benefits do consumers derive from these technologies?
  • What are the privacy and security risks associated with these technologies?
  • How are companies addressing these risks?
  • What information and choices are provided to consumers about this type of tracking?
  • How anonymous is the tracking?
  • How can companies implement the principles of privacy by design, simplified consumer choice, and increased transparency when designing and using these technologies?

Alternative Scoring Products – 10 a.m. to noon, March 19, 2014
FTC Conference Center, 601 New Jersey Ave., NW, Washington, DC

Many data brokers offer companies scores to predict trends and the behavior of their customers. Companies are using predictive scores for a variety of purposes, ranging from identity verification and fraud prevention to marketing and advertising.

For example, companies are using scores to predict the likelihood that a person has committed identity fraud; the likelihood that a certain transaction will result in fraud; the credit risk associated with certain mortgage loan applications; whether contacting a consumer by mail or phone will lead to successful debt collection; whether sending a catalog to a certain address will result in an in-store or online purchase; the likelihood that an individual is taking his or her medication; a person’s presence on the Internet and his or her influence over others; or whether a customer is pregnant, and if so, when the baby is due.

According to media reports, these scores are determining whether transactions trigger further scrutiny, the kind of special offers that companies make to certain individuals (and those they don’t), and even whether the customer should speak to a high-ranking customer service agent at a company.

Consumers are largely unaware of these scores, and have little to no access to the underlying data that comprises the scores. As a result, these predictive scores raise a variety of potential privacy concerns and questions. The panel will discuss questions such as:
 

  • What are the current types of predictive scores available to companies and what scores can we expect data brokers to offer in the future?
  • How are companies utilizing these predictive scores?
  • How accurate are these scores and the underlying data used to create them?
  • How can consumers benefit from the availability and use of these scores?
  • What are the privacy concerns surrounding the use of predictive scoring?
  • What legal protections currently exist for consumers regarding the use of predictive scoring, both in the United States and internationally?
  • What consumer protections should be provided; for example, should consumers have access to these scores and the underlying data used to create them? Should some of these scores be considered eligibility determinations that should be scrutinized under the Fair Credit Reporting Act?

Consumer Generated and Controlled Health Data – 10 a.m. to noon, May 7, 2014
FTC Conference Center, 601 New Jersey Ave., NW, Washington, DC

Increasingly, consumers are taking a more active role in managing and generating their own health data. For example, consumers are researching their health conditions and diagnosing themselves online. Consumers are also uploading their information into personal health records and apps that allow them to manage and analyze their data, and utilizing connected health and fitness devices that regularly collect information about them and transmit this information to other entities.

The movement of health data outside the traditional medical provider context has many potential benefits; however, it also raises potential privacy concerns. The seminar will address questions such as:

  • What types of websites, products, and services are consumers using to generate and control their health data, and how are consumers using them?
  • Who are the companies behind these websites, products, and services, what are their business models, and what does the current marketplace look like?
  • How can consumers benefit from these companies’ websites, products, and services?
  • What actions are these companies taking to protect consumers’ privacy and security?
  • What do consumers expect from these companies regarding privacy and security protections? Do consumers differentiate between these companies and those that offer traditional medical products and services that are covered by HIPAA?
  • What restrictions, if any, do advertising networks and others impose on tracking of health data?     

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.

At FTC’s Request, Telemarketer Ordered to Pay $5.1 Million to Reimburse Victims of Car-Buying Scam

At the Federal Trade Commission’s request, a federal court has ordered a Canadian telemarketer and four companies he owns to pay more than $5.1 million to American and Canadian consumers who were duped into paying hundreds of dollars based on false claims that the defendants had buyers lined up for their cars, and that refunds would be provided if the cars weren’t sold.  The court also permanently banned the defendants from telemarketing and payment processing.

According to the FTC’s complaint against Matthew J. Loewen  and his companies, the defendants called consumers who listed vehicles for sale on websites such as craigslist.org or ebay.com.  The defendants falsely claimed that, in exchange for a fee, typically $399, they would put the consumer in touch with a buyer, often telling consumers they had undervalued the vehicle and that the price the buyer was willing to pay would cover the defendants’ fee.  The defendants also offered $99 “refund insurance,” falsely promising consumers who purchased it a risk-free refund of their initial fee if the vehicle was not sold in 90 days.
           
On October 29, 2013, the U.S. District Court for the Western District of Washington found the FTC’s allegations to be true and ruled that the defendants’ telemarketing operation violated the FTC Act and the FTC’s Telemarketing Sales Rule.  According to the Court, the defendants’ promises to match consumers with car buyers was “simply false,” and the impression they conveyed of easily obtainable refunds was “decidedly deceptive.”

The Court also noted that, in order to evade detection, the defendants operated under a series of ever-changing corporate names (including Auto Marketing Group, Secure Auto Sales, and Vehicle Stars).  It also cited the defendants’ high rate of credit card chargebacks – in which consumers dispute charges and get them reversed — as further proof of the fraudulent nature of the defendants’ operation. 

In addition to the Order requiring Loewen and his co-defendants to pay $5.1 million, the Court permanently banned Loewen and his companies from telemarketing and payment processing.  The court order announced today also permanently prohibits the defendants from misrepresenting any material fact in selling used cars, including that they have identified potential buyers for a consumer’s vehicle and that, for a fee, they will put them in touch with the buyers.  The defendants are also barred from misrepresenting that those who buy their services are highly likely to sell their vehicle, and that some or all of the initial fee will be refunded if the consumer buys a refund insurance policy and the vehicle is not sold within some period of time.

The order also bars the defendants from misrepresenting material facts about any goods or services, selling or otherwise benefitting from consumers’ personal information, failing to properly dispose of customer information, and violating the Telemarketing Sales Rule.

The FTC acknowledges the assistance of Business Practices and Consumer Protection Authority, British Columbia, Canada.

To learn more about telemarketing scams, read Telemarketing Scams.

The Commission vote authorizing the staff to file the complaint was 5-0.  The complaint against Defendants Matthew J. Loewen and his companies 0803065 B.C. Ltd., 0881046 B.C. Ltd., ReadyPay Services, Inc., and Xavier Processing Services, LLC, was filed in the U.S. District Court for the Western District of Washington in Seattle.  The court entered summary judgment against the defendants on October 29, 2013.

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.

As Holiday Shopping Season Gets Underway, FTC Reminds Internet Retailers to Ensure Consumers Have Access to Warranty Information

Federal Trade Commission staff is asking top Internet retailers to review their websites to ensure that they provide complete and accurate information about product warranties before consumers make their online purchases, as required by the FTC’s Pre-Sale Availability Rule.

The Rule requires retailers to make warranties available at the time of purchase for all warranted consumer products that cost more than $15.  However, a recent staff survey found several instances of Internet sellers offering warranted consumer electronics and appliances for sale without disclosing complete warranty information.

“During the busy holiday shopping season, it’s especially important that consumers get the information they need to make informed buying decisions,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.  “Internet sellers can help by making sure their websites are providing complete and accurate warranty information.”

The letters also inform the Internet sellers that they can comply with these obligations easily online by, for example, using a clearly-labeled hyperlink, in close proximity to the description of the warranted product, such as ‘get warranty information here’ to lead to the full text of the warranty.”

The letters note that FTC staff plan to revisit the websites after 90 days to ensure compliance with the regulations.  The FTC cannot disclose the names of the warning letter recipients, as that is nonpublic information.

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 Approves Final Order Settling Charges that Honeywell’s Acquisition of Intermec was Anticompetitive in U.S. Market for Two-Dimensional Bar Code Scanners

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Honeywell International, Inc.’s acquisition of rival scan engine manufacturer Intermec Inc. was anticompetitive. The FTC’s complaint charged that the proposed acquisition would reduce competition in the U.S. market for two-dimensional (2D) bar code scanners. 2D scan engines are used in products such as retail store scanners to translate an image (often a UPC barcode) into a digital format that can be interpreted and analyzed by a computer.

First proposed in September, the FTC’s order preserves competition in the market for 2D scan engines by requiring Honeywell to license its and Intermec’s patents for 2D scan engines to Datalogic IPTECH s.r.l for the next 12 years. The Commission vote approving the final order was 4-0. (FTC File No. 131-0070; the staff contact is David Morris, Bureau of Competition, 202-326-3156)

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., 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.