FTC Offers Tips to Help Consumers Avoid Cell Phone Radiation Scams

Amid concerns about possible health risks associated with cell phones, the Federal Trade Commission advises consumers to avoid products that supposedly “shield” users from cell phone emissions.

According to the FTC, the nation’s consumer protection agency, there is no scientific proof that so-called shields significantly reduce exposure from cell phone emissions. In fact, products that block only part of the phone, such as the earpiece, are totally ineffective because the entire phone emits electromagnetic waves. By interfering with the phone’s signal, phony shields may cause it to draw even more power and possibly emit more radiation.

Health studies about any relationship between the emissions from cell phones and health problems are ongoing. But for those consumers who want to limit their exposure to cell phone emissions, the FTC offers these tips:

  • Use an earpiece or the speakerphone feature.
  • Consider texting more, and keep calls brief.
  • Wait for a good signal. When you have a weak signal, your phone works harder and emits more radiation. Phones emit more radiation when transmitting than when receiving, so tilt the phone away from your head when you’re talking.
  • Before you buy a phone, research its specific absorption rate (SAR), which tells how much radiation the body absorbs while using the phone. Different phones emit different amounts of radiation. In the U.S., a phone’s SAR cannot exceed 1.6 watts per kilogram. The Federal Communications Commission has more information at Specific Absorption Rate (SAR) For Cell Phones: What It Means For You.

For more information on cell phone use and health issues, see the National Cancer Institute’s fact sheet, Cell Phones and Cancer Risk. To avoid scams, read the FTC’s consumer alert, Listen Up: Tips to Help Avoid Cell Phone Radiation Scams.

(Cell Phone Radiation Scams)

Court Bans Defendants from Selling Work-at-Home and Grant Scams, and Orders Them to Pay $10.4 Million

A federal judge has ruled in favor of the Federal Trade Commission and ordered Real Wealth, Inc. and its owner, Lance Murkin, to pay $10.4 million, the full amount of harm caused to thousands of consumers nationwide who were victimized by the Defendants’ work-at-home and grant scams.  The Court also banned Real Wealth and Murkin from marketing or selling work-at-home or grant-related products, and from assisting others in doing so.

The judgment against Real Wealth and Murkin is part of an ongoing FTC crackdown on scams that are aimed at unemployed Americans.  Defendants Real Wealth and Murkin conned thousands of consumers nationwide with a direct-mail campaign that sometimes targeted the elderly and disabled.  They deceptively marketed and sold booklets that supposedly explained how to earn money by working from home or applying for government grants.

The defendants lured consumers with deceptive sales pitches, such as “Collect up to $9,250 with my simple 3 minute form” or “All I do is mail 30 postcards everyday and I make an extra $350 a week!”  The defendants also claimed that consumers could “rake in up to $1,500+ per week or more in solid cash” by learning “secrets” about the “$700 billion banking industry bailout.”

The Court agreed with the FTC that these claims were false or unsubstantiated, in violation of the FTC Act, and it granted the FTC’s motion for summary judgment against the defendants.  Few, if any, consumers made substantial income with the defendants’ products.

The FTC filed its complaint against Real Wealth and Murkin as part of the “Operation Bottom Dollar” law enforcement sweep announced in February 2010 that included seven FTC cases against the operators of deceptive and illegal job and money-making scams, as well as dozens of other actions filed by the U.S. Department of Justice and state attorneys general.

The FTC thanks the U.S. Postal Inspection Service for its work in connection with this case, and thanks AARP Legal Counsel for the Elderly, which referred this case to the FTC.  The FTC filed the complaint in the U.S. District Court for the Western District of Missouri.  The court issued the judgment on May 17, 2011.

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 and follow us on Twitter.

(FTC File No.0923207)
(RealWealth)

FTC Approves Final Orders Settling Charges that Companies Failed to Protect Consumers Personal Information

Following a public comment period, the Federal Trade Commission finalized the orders in two cases settling charges that Ceridian Corporation and Lookout Services, Inc. claimed they would take reasonable measures to secure the consumer data they maintained, but failed to do so. The final orders require the companies to implement a comprehensive information security program and obtain independent, third-party security audits every other year for 20 years.

The Commission votes approving the final Order were 5-0. (File No. 1023160 and 1023076; the staff contacts for Ceridian are Tiffany George or Jamie Hine, Bureau of Consumer Protection, 202-326-3040 or -2188; the staff contacts for Lookout are Kristin Cohen or Kandi Parsons, Bureau of Consumer Protection, 202-326-2276 or -2369)

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 and follow us on Twitter in English and Spanish.

FTC Denies Dow Chemical’s Application to Modify its 2009 Consent Order Requiring Sale of Chemicals Facility in California

Following a public comment period, the Federal Trade Commission has denied an application by The Dow Chemical Company to modify the terms of a settlement it reached with the agency in 2009. The FTC’s consent order resolved the agency’s concerns about how Dow’s acquisition of Rohm and Haas Company would affect competition in the markets for acrylic acid monomers and other industrial chemicals used to make coated paper products, paints, and adhesive.

The final order settling the case includes a requirement that Dow sell its property in Torrance, California that includes a latex polymers plant. According to Dow’s application, however, Arkema Inc., the FTC-approved buyer of the acrylic acid business and the latex polymers business, did not want to buy either the plant or the land in Torrance. Instead, Arkema agreed to a long-term lease of the plant with an option to buy only the portion of the property where the plant is located. The FTC approved that lease to Arkema in 2010 and granted Dow a one-year extension to sell the remaining property.

In its current application, Dow stated that it has tried unsuccessfully to sell the whole site, as required by the FTC order, and that it has not yet obtained the municipal approval it needs to subdivide the site so it can sell the portion of the land where the latex polymers plant is located to Arkema. Accordingly, Dow requested that the FTC either modify its final order to eliminate altogether Dow’s obligation to sell the entire site, or that the FTC grant Dow a further, three-year extension of time to complete the sale of the Torrance site. The FTC has now denied both of Dow’s requests.

After reviewing the application, the FTC found that Dow failed to make the required showing that the final order should be reopened, that modifying the order would be in the public interest, or that the FTC should grant the time extension. Further, competitive risks remain if Dow retains control of the Torrance Facility, the FTC found, and there is a strong public interest in Dow’s full compliance with the terms of the final order.

The Commission vote denying Dow’s application was 5-0. (FTC File No. 081-0214, Docket No. C-4243; the staff contact is Roberta S. Baruch, Bureau of Competition, 202-326-2861; see press release on Dow’s application dated February 28, 2011.)

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, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook and follow us on Twitter.

FTC Testifies on Data Security

The Federal Trade Commission told Congress today that to minimize the risk of identity theft or other harm, companies should employ reasonable safeguards to protect consumer information, collect only information for which they have a legitimate business need, and retain data only as long as necessary to fulfill the business purposes for which it was collected. The FTC also reiterated its recommendation that Congress pass legislation that would require companies to implement reasonable security practices and to notify consumers when there is a data security breach.

“If companies do not protect the personal information they collect and store, that information could fall into the wrong hands, resulting in fraud and other harm, and consumers could lose confidence in the marketplace,” FTC Commissioner Edith Ramirez said in delivering the Commission’s testimony before the House Committee on Energy and Commerce, Subcommittee on Commerce, Manufacturing, and Trade.

The Commission expressed its support for federal legislation that would require companies to put reasonable data security policies and procedures in place, and to notify consumers when there has been a data security breach that affects them. The testimony notes that the Committee’s “Discussion Draft” of data security legislation accomplishes these key goals. The testimony highlights several other elements of the Discussion Draft, which gives the Commission authority to use the standard APA notice and comment procedures for rulemaking in connection with the legislation, provides for civil penalties for violations, and requires non-profit entities to adhere to the same data security and breach notification standards as for-profit entities. The Commission also noted that the December 2010 preliminary FTC staff report on privacy takes the same position as the Discussion Draft that data minimization is an important component of data security.

The FTC promotes data security through law enforcement, consumer and business education, and policy initiatives. Since 2001, the agency has brought 34 cases charging businesses with failing to protect consumers’ personal information.

Ramirez noted that the FTC is today announcing finalized settlements resolving two data security law enforcement actions. The first involves Ceridian Corporation, a human resource services and payroll processing company that allegedly failed to protect highly sensitive payroll information, compromising the personal data of approximately 28,000 employees of Ceridian’s small business customers. The second settlement resolves charges against Lookout Services, Inc., which sells products that help employers comply with immigration laws. The FTC alleged that Lookout failed to protect its customer database of Social Security numbers, passport numbers, military identification numbers, and dates of birth, leaving it vulnerable to unauthorized access. Both companies are barred from future misrepresentations, must implement comprehensive information security programs, and must obtain independent security audits every other year for 20 years.

The testimony also discussed how the FTC promotes better data security practices through extensive consumer and business education. The agency sponsors OnGuard Online and its Spanish-language counterpart Alerta en Linea, which educate consumers about basic computer security. It also provides print and online publications such as FTC’s Identity Theft Primer, a Victim Recovery Guide, and a business guide on data security for businesses.

Finally, the FTC advances data security through substantial policy work. For example, FTC staff held a series of public roundtables that explored consumer privacy, and issued a preliminary staff report in December 2010 that endorsed key data security principles, based on the roundtables and public comments.

The FTC also will hold a Child Identity Theft Forum on July 12, 2011, in conjunction with the Office for Victims of Crime, Office for Justice Programs, U.S. Department of Justice. “The goal of this forum is to develop ways to effectively advise parents on how to avoid child identity theft, how to protect children’s personal data, and how to help parents and young adults who are victimized as children recover from the crime,” the testimony states.

The Commission vote to issue the testimony was 5-0.

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 and follow us on Twitter..

FTC Offers Consumer Protection Tips for Father’s Day

Tips for Consumers

Want to let Dad know you really care this Father’s Day? Why not show him what a smart, responsible adult you’ve become.

Start by sharing the financial savvy you picked up at ftc.gov/moneyMatters, where you learned to protect yourself from different financial scams.

Then show him you know all about getting your free credit report from all three credit bureaus at annualcreditreport.com every year. And while you may not always have kept your room clean, don’t forget to mention that after visiting OnGuardOnline.gov, you’ve learned to keep your computer virus- and spyware-free.

Even better, let Dad know you’ve really been listening all these years. To help, the Federal Trade Commission, the nation’s consumer protection agency, has compiled some of Dad’s favorite bits of wisdom and posted them at ftc.gov/dad.

(Fathers Day)

Contact Information

MEDIA CONTACT:
Office of Public Affairs
202-326-2180

FTC Materials Will Help Shoppers Understand New Light Bulb Labels Coming in 2012

The Federal Trade Commission is making two new resources available to consumers to help them shop for light bulbs in a market with increasingly more efficient options, including compact fluorescent bulbs (CFLs) and light-emitting diodes (LEDs), and new incandescent halogen bulbs. Beginning in 2012, consumers will see new packaging and labeling on most household bulbs that will help them save money by selecting the most efficient bulbs that fit their lighting needs.

At ftc.gov/lightbulbs, a video and flyer explain how understanding lumens and the new Lighting Facts label will help shoppers compare bulbs. For example, lumens, not watts, tell you how bright a light bulb is, no matter the type of bulb. The more lumens, the brighter the light. Beginning in 2012, labels on the front of light bulb packages will emphasize a bulb’s brightness in lumens, instead of the bulb’s energy usage in watts.

The website also previews the new Lighting Facts label that will appear on most light bulb packages by the beginning of 2012, listing a bulb’s brightness (in lumens), its estimated energy cost and life span, whether the bulb provides “warm” or “cool” light, the wattage, and whether the bulb contains mercury. The Energy Independence and Security Act of 2007 will phase out low-efficiency incandescent bulbs beginning in 2012, and directed the FTC’s new bulb packaging and label initiative, which will make it easier to compare bulbs as traditional incandescents are eliminated from the market.

For lighting manufacturers, the FTC also offers Labeling Your Light Bulbs with “Lighting Facts”: Questions and Answers for Manufacturers at business.ftc.gov.

(Light Bulbs)

FTC Staff Extends Deadline for Public Comments on Businesses Education Publication About Online Disclosures

The staff of the Federal Trade Commission will extend the public comment period for “Dot Com Disclosures: Information About Online Advertising,” the business education publication that discusses how federal advertising law applies to advertising and sales on the Internet.  Last month, the FTC staff announced that it was seeking public comment to assist it in updating the business education.  [Read May 26, 2011 news release here.]  At the request of a stakeholder, the comment deadline has now been extended for 30 days until August 10, 2011.

Interested parties can submit written comments electronically or in paper form.  [Submit comment electronically by clicking here.]  Hard-copy comments should be mailed or delivered to:  Federal Trade Commission, Office of the Secretary, Room H-113 (Annex I), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.  The FTC requests that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.

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 and follow us on Twitter.

(Dot Com Disclosures NR)

FTC Approves Final Order Settling Charges that Firm Used Misleading Online Reviews

Following a public comment period, the Federal Trade Commission finalized the Order settling charges that Legacy Learning Systems Inc. and its owner, Lester Gabriel Smith, deceptively advertised the “Learn and Master Guitar” program through online affiliate marketers who falsely posed as ordinary consumers or independent reviewers without clearly disclosing they were paid substantial commissions for every sale they generated.  Under the final order, Smith and Legacy Learning will pay $250,000, and maintain a system to review and monitor their affiliate marketers’ representations and disclosures.

The Commission vote approving the final Order was 5-0.  (File No. 1023055; the staff contacts are Stacey Ferguson or Victor DeFrancis, Bureau of Consumer Protection,  202-326-2361 or 202-326-3495.)

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 and follow us on Twitter.

FTC Combats Immigration Services Scams

At the request of the Federal Trade Commission, a federal judge has shut down an operation in Baltimore, Maryland for allegedly misrepresenting that it was authorized to provide immigration services.  The judge ordered a halt to the allegedly deceptive tactics of Manuel Alban and his wife Lola Alban.  Under federal regulations, except for attorneys, only authorized providers may accept money in exchange for selecting, preparing, and filing immigration forms on someone else’s behalf.  According to the FTC’s complaint, the Albans – who also operated as Loma International Business Group, Inc. – targeted Spanish speakers from El Salvador and Honduras, charging them fees for consultations to prepare and file immigration forms.  Based on the Albans’ misrepresentations, consumers collectively paid them tens of thousands of dollars.  However, the Albans are not authorized to provide immigration services, and more than half the immigration applications they filed were rejected by the United States Citizenship and Immigration Services, according to the complaint.

The court immediately halted the defendants’ deceptive business practices, froze their assets, appointed a monitor, and granted immediate access to their business premises.  The monitor will ensure that the defendants stop providing unauthorized immigration services, preserve and return immigration documents to consumers, and refer any interested consumers to authorized immigration service providers.

The FTC’s law enforcement action will seek a permanent injunction against the defendants to prevent further deceptive practices, the return of consumers’ original documents and filings, and consumer refunds.

 “Scammers often try to take advantage of immigrants by claiming to be affiliated with government immigration agencies, posing as immigration lawyers, or pretending to provide legitimate immigration-related services,” said FTC Commissioner Edith Ramirez today in announcing the case along with another 15 federal, 49 state, and 9 local cases and additional local administrative actions.  “What’s even more appalling is that they target people who are among the most vulnerable.”  

In a separate action in January 2011, the FTC brought an immigration services case
Against Immigration Center, one of several associated companies allegedly participating in a large Internet scam in which they masqueraded as a U.S. government website.  According to the FTC’s complaint, the defendants in that case posed as agents of the U.S. government, then tricked consumers around the country into paying fees ranging from $200 to $2,500.  The defendants falsely claimed that these fees would cover processing fees charged by USCIS.  The FTC was joined by the Nevada Attorney General, who simultaneously filed a criminal suit against the defendants in the case who were operating in Nevada.

FTC Consumer Education

Navigating U.S. immigration laws can be complex.  Missing a deadline or choosing the wrong form can jeopardize a person’s immigration status, or make it harder to legally remain in the United States.  Unauthorized immigration services providers and scam artists look for ways to exploit immigrants, and often take their money while doing nothing for them.  The unauthorized providers may also lose important documents, provide substandard service, or encourage immigrants to make false statements to the government.  The result can be rejection or denial of benefits and, in some cases, criminal prosecution.

Because immigrants with limited English language proficiency often are targeted by scammers who call themselves “immigration consultants” or “notarios” – or falsely claim that they are attorneys – the FTC has developed education materials in English, Spanish, Chinese, and Korean.  These materials explain how to avoid and report immigration services fraud, and how to find legitimate no-cost or low-cost immigration advice from authorized providers.  As part of the campaign, the FTC also is rolling out six new radio public service announcements in English, Spanish, and Mandarin Chinese that warn about illegal notarios and immigration consultants, and direct consumers to the materials on the FTC’s website.

FTC Complaint Database Enables Collaboration among Federal and State Agencies

Federal immigration authorities have agreed to forward immigration-related consumer complaints to the FTC, making it possible for the first time for federal, state, and local authorities to access complaints that USCIS refers to Immigration and Customs Enforcement, and that ICE opts not to prosecute.  These complaints, together with those received from the American Immigration Lawyers Association (AILA), the American Bar Association (ABA), and directly from consumers, will be added to the FTC’s secure online complaint database, making it the centralized repository of choice for immigration services complaints in the United States.  These complaints will then be available to thousands of other law enforcement agencies worldwide.  The FTC database provides a powerful tool for federal, state, and local law enforcement agencies to identify scams, locate consumer witnesses, coordinate law enforcement activities, and ultimately bring additional enforcement actions against immigration services scams.

The Commission vote authorizing the staff to file the complaint against Manuel Alban,    Lola Alban, Loma International Business Group, Inc., and Servicios Latinoamericanos de Maryland, Inc. was 5-0.  The complaint and request for a temporary restraining order were filed in the U.S. District Court for the Northern District of Maryland, Baltimore Division.

The FTC would like to acknowledge the assistance of Catholic Charities; U.S. Citizenship and Immigration Services; U.S. Immigration and Customs Enforcement; and the U.S. Department of Justice, Executive Office for Immigration Review, in bringing this case. 

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.  The complaint is not a finding or ruling that the defendant has actually violated the law.  The case will be decided by the court.

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 and follow us on Twitter in English and Spanish.

(FTC File No: Manuel Alban 1123031)
(Immigration Initiative NR)