FTC Offers Tips to Help People Avoid Being Scammed By Door-to-Door Sales Agents Pitching Home Security Systems

The Federal Trade Commission is offering information to help homeowners avoid unscrupulous sales agents who go door-to-door during the summer months. These scammers use deceptive, high-pressure tactics to get people to buy expensive, and sometimes substandard, home security systems they often don’t need.

The FTC advises consumers to ask for identification before allowing a salesperson to enter their home – some states require door-to-door salespeople to state up-front their name, the company’s name, and what they’re selling; others require them to show a sales license and photo ID. The agency also advises consumers to watch for these signs of a scam:

  • Pressure to act now to take advantage of a limited time offer.
  • Offers of “free” equipment to get you to sign a contract. Translation: you may have to sign a long-term and expensive system monitoring contract.
  • Scare tactics – “Burglaries have occurred in your neighborhood.”
  • Phony upgrades – They say they have come to replace your security system, but they really want to install a new system with a costly contract for a monitoring service.
  • “Your security company is out of business.” – If they say this, call your company to confirm.

The FTC also advises that, whether sellers come to your door or you seek them out, ask for the contractor’s name, address, and phone and license numbers; what state issued the license; and the name the license is filed under. Check out the company online and with your state Attorney General, local consumer protection agency, Better Business Bureau, and state licensing officials. The FTC also advises:

  • Get references and find out how the equipment and services have performed for others.
  • Get written estimates from several companies and ask questions about who will install the system and how it will function. Be sure you know who will monitor the system, how much it will cost, and how often you will be billed.
  • Read the fine print. Make sure the written contract includes all oral promises made by the salesperson.
  • Ask your police and fire departments if you need to register your system, and if there are fines for responding to false alarms.
  • You can cancel the deal. The FTC’s Cooling-Off Rule gives you three business days to cancel if you sign a contract in your home or anywhere that is not the seller’s permanent place of business – even if the system has already been installed. You don’t have to give a reason for canceling.

For more information, see the FTC’s Knock, Knock. Who’s There?Want to Buy a Home Security System? Beware of home alarm sales scams.

FTC Seeks Public Comment on Simon Property Groups Request to Divest Prime Outlets in Jeffersonville, Ohio, to Tanger Properties Limited Partnership

Simon Property Group, Inc. has filed an application with the Federal Trade Commission seeking approval to divest its Prime Outlets outlet center located in Jeffersonville, Ohio, to Tanger Properties Limited Partnership. Simon is required to divest one of its two outlet centers located in Southwest Ohio under the FTC’s January 13, 2011 Decision and Order. The FTC required a divestiture in this geographic market as part of a settlement to remedy the lessening of competition in retail space at outlet centers resulting from Simon’s acquisition of Prime Outlets Acquisition Company LLC, which occurred in August 2010.

Simon proposes to sell the Jeffersonville Prime Outlets outlet center to Tanger under a purchase and sale agreement dated March 4, 2011, “in a manner that fully complies with the terms of the Decision and Order.” Simon has requested a decision on the application by June 24, 2011.

The Commission is accepting public comments on Simon’s application until May 30, 2011. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. To file a comment, please click here, and follow the instructions at that site. Copies of the application also can be found on the FTC’s website and as a link to this press release. (FTC File No. 101-0061, Docket No. C-4307; the staff contact is Elizabeth A. Piotrowski, Bureau of Competition, 202-326-2623; see press release dated November 10, 2010.)

Copies of the document mentioned in this release are available from the FTC’s website at http://www.ftc.gov 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.

(FYI 21.2011.wpd)

Interagency Working Group Seeks Input on Proposed Voluntary Principles for Marketing Food to Children

In an effort to combat childhood obesity – the most serious health crisis facing today’s youth – a working group of four federal agencies today released for public comment a set of proposed voluntary principles that can be used by industry as a guide for marketing food to children.

Led by former Sen. Sam Brownback and Sen. Tom Harkin, Congress directed the Federal Trade Commission, together with the Food and Drug Administration, the Centers for Disease Control and Prevention, and the U.S. Department of Agriculture, to establish an Interagency Working Group of federal nutrition, health, and marketing experts to develop recommendations for the nutritional quality of food marketed to children and adolescents, ages 2 to 17. The working group seeks public comment on the proposed voluntary nutrition and marketing principles it has developed. After public comment, the working group will make final recommendations in a report to Congress. This is not a proposed government regulation.

The proposed voluntary principles are designed to encourage stronger and more meaningful self-regulation by the food industry and to support parents’ efforts to get their kids to eat healthier foods. While the goals they would set for food marketers are ambitious and would take time to put into place, the public health stakes could not be higher. One in three children is overweight or obese, and the rates are even higher among some racial and ethnic groups.

“Children are strongly influenced by the foods they see advertised on television and elsewhere. Creating a food marketing environment that supports, rather than undermines, the efforts of parents to encourage healthy eating among children will have a significant impact on reducing the nation’s childhood obesity epidemic,” said Health and Human Services Secretary Kathleen Sebelius. “These new Principles will help food and beverage companies use their creativity and resources to strengthen parents’ efforts to encourage their children to make healthy choices.”

“As a parent and grandparent, I know the power advertising and marketing can have on kids, and my hope is that the food industry will embrace these voluntary principles and apply them so parents can make informed decisions about the foods they feed their children,” said Agriculture Secretary Tom Vilsack.

“To their credit, some of the leading companies are already reformulating products and rethinking marketing strategies to promote healthier foods to kids. But we all have more work to do before we can tip the scales to a healthier generation of children,” said FTC Chairman Jon Leibowitz. “This proposal encourages all food marketers to expand voluntary efforts to reduce kids’ waistlines.”

The FTC has posted a request for comments on the proposed principles to its website. Interested parties will have 45 days to comment, during which time the working group will hold a half-day forum to provide stakeholders with a chance to comment in person. The forum will take place on Tuesday, May 24 in Washington, D.C. Additional details about the forum will be provided soon. Public comments will be considered by the agencies before the final report is submitted to Congress.

The working group proposal sets out two basic nutrition principles for foods marketed to children. Advertising and marketing should encourage children to choose foods that make meaningful contributions to a healthful diet from food groups including vegetables, fruit, whole grains, fat-free or low-fat milk products, fish, extra lean meat and poultry, eggs, nuts or seeds, and beans. In addition, the saturated fat, trans fat, added sugars, and sodium in foods marketed to children should be limited to minimize the negative impact on children’s health and weight. The working group proposes that industry strive to market foods by the year 2016 that meet the proposed nutritional principles and marketing criteria. For sodium, the proposal includes interim targets for 2016 and final targets for 2021.

The proposed principles are voluntary and do not call for government regulation of food marketing. They are an opportunity for food and beverage manufacturers, public health advocates, the entertainment industry, academics, and other stakeholders to provide comments that will inform the working group’s final recommendations to Congress.

Members of the Interagency Working Group will share responsibility for reviewing the comments on the proposed principles. Comments pertaining to the proposed nutrition principles, including those about the food categories identified in the principles, will be reviewed primarily by the CDC, FDA, and USDA. Comments relating to the marketing aspects of the recommended principles, as well as general comments, will be reviewed primarily by the FTC.

The Federal Trade Commission vote approving publication on the FTC website of the request for comments on the proposed principles was 5-0. The proposal was also cleared for public comment by the U.S. Department of Agriculture and by the Department of Health and Human Services on behalf of CDC and FDA.

Copies of the document mentioned in this release are available from the FTC’s website at http://www.ftc.gov 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.

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 1,800 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.

For general questions and those related to marketing:

For questions relating to the proposed nutrition principles:

(FTC File No. P094513)
(Food Marketing to Children NR) 

FTC Requires Hikma to Sell Two Drugs as Condition of Baxter Healthcare Acquisition

The Federal Trade Commission will require Hikma Pharmaceuticals PLC (Hikma) to divest two generic injectable pharmaceuticals – phenytoin and promethazine – as part of a settlement allowing it to acquire certain assets from Baxter Healthcare Corporation, Inc. (Baxter). Hikma proposes to acquire Baxter’s entire generic injectable pharmaceutical business for $111.5 million, including Baxter’s Cherry Hill, New Jersey, manufacturing facility and a warehouse and distribution center in Memphis, Tennessee.

According to the FTC, without the relief the divestiture provides, the acquisition would be anticompetitive and likely would result in higher prices for the two drugs. The proposed settlement is the latest example of the FTC’s ongoing efforts to preserve competition in U.S. pharmaceutical markets.

Phenytoin is an anti-convulsant drug used to control and prevent seizures during or after surgery. In 2009, sales of injectable phenytoin totaled $1.5 million. Promethazine is used to prevent some types of allergies or allergic reactions, to prevent or control motion sickness, nausea, vomiting, and dizziness, and to help patients go to sleep and control their pain or anxiety before or after surgery. U.S. sales of generic injectable promethazine totaled $17 million in 2009.

According to the FTC’s complaint, Hikma’s acquisition of Baxter’s generic injectable phenytoin and promethazine businesses would be anticompetitive and in violation of federal law. As originally proposed, the acquisition would eliminate competition between Hikma and Baxter, which likely would harm consumers by increasing prices for both products. Specifically, the complaint alleges that the U.S. markets for both products are already highly concentrated, with only Hikma, Baxter, and Hospira, Inc. currently competing to provide phenytoin and promethazine. Accordingly, the proposed acquisition would reduce the number of suppliers in each market from three to two.

The proposed settlement order resolves the agency’s competitive concerns related to the deal. It requires Hikma, within 10 days of the acquisition, to divest certain rights and assets related to generic injectable phenytoin and promethazine to X-Gen Pharmaceuticals Inc. (X-Gen), which is based in New York. According to the FTC, X-Gen, a pharmaceutical firm with 40 products and an active product development pipeline, will be able to replace the competition that the acquisition otherwise would have eliminated, protecting customers for the two drugs.

The Commission vote approving the complaint and proposed consent order was 5-0. The order will be published in the Federal Register subject to public comment for 30 days, until May 27, 2011, after which the Commission will decide whether to make it final. Comments can be submitted electronically here.

NOTE: The Commission issues 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 issuance of a complaint is not a finding or ruling that the respondent has violated the law. A consent order is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

Copies of the complaint, consent order, and an analysis to aid public comment are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 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 File No. 111-0051)

FTC Staff: Proposed Alabama Law Would Give Veterinarians More Choices in Providing Spaying, Neutering Services

Federal Trade Commission staff, in response to a request from Alabama Representative Patricia Todd, stated that a bill proposed in the Alabama legislature would give veterinarians more choices in serving consumers.

Alabama House Bill 156 would allow veterinarians to be employed by a limited services 501(c) (3) nonprofit facility that performs only spaying and neutering and vaccinations at the time of surgery, designates a licensed veterinarian to supervise veterinary medical practice, and has an approved premises permit from the Board of Veterinary Medical Examiners. Alabama law currently bars veterinarians from being employed by non-veterinarians, unless covered by an exemption in the law.

“The Bill provides a number of safeguards to ensure that the quality of spaying or neutering services is the same, regardless of whether a facility is owned by a veterinarian or a 501(c) (3) nonprofit,” the FTC staff comment stated. “FTC staff support the Bill’s goal of allowing Alabama veterinarians to choose different, and potentially more efficient, business arrangements to provide spaying and neutering services to consumers.”

The Commission vote approving the staff comment was 5-0. It was sent to Alabama Representative Patricia Todd on April 26, 2012. A copy of the letter can be found on the FTC’s website and as a link to this press release. (FTC File No.V120005; the staff contact is Patricia Schultheiss, Office of Policy Planning, 202-326-2877)

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, 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 Releases Agenda for Telephone Bill Cramming Forum

The Federal Trade Commission has announced the agenda for its day-long public forum in Washington, D.C., on May 11, 2011, to examine telephone bill cramming and explore possible solutions to reduce unauthorized third-party billing on telephone bills. The forum will focus on how the government, businesses, and organizations can work together to reduce cramming through business practices, law enforcement, and possible legislation.

The event is free and open to the public. Registration is not required, but is strongly encouraged. Interested parties are invited to submit written comments to [email protected] by May 2, 2011.

The forum will be videotaped and will be available for viewing on the FTC website beginning May 13. The agenda for the forum is below.

Examining Phone Bill Cramming:
A Discussion

Wednesday, May 11, 2011

 

8:30

Registration begins

9:00 – 9:30

Welcome

Introductory Remarks

9:30 – 10:30

Session 1: Cramming – How Does It Happen and What Is the Injury? 
This panel will describe the nature of landline telephone-bill cramming that law enforcers have investigated and prosecuted. This panel will discuss the ways in which unauthorized charges are placed on the landline telephone bills of consumers and small businesses, the kinds of goods and services that are being billed, and the resulting injury

10:30 – 10:45

Break

10:45 – 11:55

Session 2: What Steps Does the Telephone Billing Industry Take to Detect, Monitor, and Prevent Cramming?
This session will examine the steps that industry currently takes to prevent, detect, and halt telephone bill cramming. The discussion will address the steps taken to keep crammers from accessing the billing platform, to monitor billing data and complaints to detect ongoing cramming, and to take action to expel crammers from the billing platform and ensure that they do not return. The panel will discuss how effective these steps have been in identifying and preventing cramming.

 

Break for Lunch

1:30 – 2:30

Session 3: Approaches to Cramming Prevention: How Are the Mobile and Landline Billing Platforms Different?
This session will examine the different approaches to third-party billing and cramming prevention between the mobile and landline telephone billing platforms. Do the two platforms differ in procedures for screening third-party billers, monitoring cramming activity, and taking action against billers who submit unauthorized charges? Are the mechanisms used to ensure customer authorization different? What cramming prevention mechanisms and best practices could translate from one platform to the other? What cramming prevention mechanisms and best practices would be difficult or impossible to adopt due to technological or other differences between the platforms?

2:30 – 2:45

Break

2:45 – 4:00

Session 4: Potential Solutions to the Cramming Problem
This session will discuss potential solutions to enable industry, consumers, and law enforcers to better prevent, detect, and reduce telephone bill cramming. Panelists will discuss specific ideas such as allowing consumers to request a block on all third-party billing, requiring third parties to get written approval from consumers before placing charges on their phone bills, improving disclosure of third-party charges to consumers, and creation of a registry of telephone numbers of consumers who do not want any third party billing. This panel also will address how to implement these potential solutions to the cramming problem.

4:00 – 4:15 Closing Remarks

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 1,800 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 Returns $1.5 Million to Consumers from Mortgage Lender Charged With Illegally Discriminating Against Hispanic Borrowers

On April 22, 2011, an administrator working for the Federal Trade Commission mailed 3,162 refund checks to borrowers allegedly harmed by Golden Empire Mortgage, Inc. and Howard D. Kootstra. The refund checks stem from a lawsuit the FTC filed against Golden Empire and Kootstra, alleging that they illegally charged Hispanic consumers higher prices for mortgage loans than non-Hispanic white consumers – price disparities that could not be explained by the applicants’ credit characteristics or underwriting risk. A settlement order imposed a $5.5 million judgment that was suspended when the defendants paid $1.5 million for consumer redress. The settlement order bars the defendants from discriminating on the basis of national origin in credit transactions and requires Golden Empire to establish and maintain a policy that restricts loan originators’ pricing discretion, a fair lending monitoring program, a program to ensure the accuracy and completeness of their data, and employee training programs.

Approximately $1.5 million is being returned to consumers. Consumers who receive the checks should cash them on or before June 21, 2011. The FTC never requires consumers to pay money or provide information before redress checks may be cashed. Golden Empire customers with questions should call the redress administrator, Gilardi & Co. LLC, at 888-292-6875 or visit the FTC’s refund website.

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 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics. “Like” the FTC on Facebook and “follow” us on Twitter.

(Golden Empire)

FTC to Hold Workshop on Ways to Protect Consumers As Debt Collection Technologies Change

For Your Information

On Thursday, April 28, 2011, the Federal Trade Commission will host a workshop about the impact that technological advances are having on the nation’s consumer debt collection system.  The workshop will explore how changing technology affects the ways in which debt collectors communicate with consumers and obtain and process information about consumers and debts.  More information about the event, including the agenda, can be found here.  Members of the public and press who cannot attend in person may view the webcast of the event.

WHO: Free and open to the public. All attendees will be required to show a valid form of photo identification, such as a driver’s license
WHEN: Thursday, April 28, 2011
8:30 a.m. to 5:30 p.m. ET
Registration will begin at 7:30 a.m., and seats will be available on first come, first served basis.
WHERE: FTC’s Satellite Building Conference Center
601 New Jersey Avenue, N.W.
Washington, D.C.
WEBCAST: The event will be webcast live.
TWITTER: Follow #FTCdebt throughout the day for updates on Twitter about the workshop.

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 1,800 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.

Contact Information

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

FTC Dismisses Complaint in LabCorp

By a vote of 5-0, the Federal Trade Commission has issued an order dismissing its complaint in Laboratory Corporation of America’s acquisition of Westcliff Medical Laboratories, Inc., and closing the Commission’s investigation of the matter. A statement by Commissioners Jon Leibowitz, William Kovacic, and Edith Ramirez concluded, “While we continue to have reason to believe that LabCorp’s acquisition of Westcliff will result in anticompetitive effects, we are convinced that further adjudication of this case will not serve the public interest.”

A separate concurring statement by Commissioner Julie Brill stated, “I concur in the Commission’s decision to dismiss administrative proceedings against LabCorp. In my view, the Commission should have continued with its appeal of the district court’s decision denying a preliminary injunction in related federal courtlitigation. With the appeal now withdrawn, however, I reluctantly agree that given the particular facts and circumstances of this matter, the costs of continuing with administrative litigation outweigh the potential benefits of doing so.”

Docket Number 9345 is 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.

# # #

(Labcorp)

FTC Offers Facts to Help U.S. Diversity Visa Lottery Applicants Avoid Fraud

Tips for Consumers

The Federal Trade Commission is offering information to help prospective immigrants avoid fraud when seeking green cards – the right to live in the Unites States permanently.

Even though the U.S. State Department’s Diversity Immigrant Visa (DV) program is free and the agency does not authorize any other organization to notify applicants about the application process, some fraudulent businesses and lawyers charge substantial fees and misrepresent their “services.”

The “DV lottery” – sometimes also referred as the “Visa lottery” or “green card lottery” – offers up to 55,000 visas each year for people who want to immigrate to the U.S. Applicants who meet eligibility requirements are selected in a random drawing and notified by the State Department, which tells them about the next steps in the process for applying for an immigrant visa. Applicants should know the following:

  • The only website to use to enter the DV program random drawing is www.dvlottery.state.gov.
  • There is no charge to enter the DV program or submit an entry.
  • Submit only one entry – if you submit more than one you will be disqualified.
  • Selection of entries is random. There is no way to increase an applicant’s chance of selection.
  • The State Department does not notify selected applicants by mail or e-mail – starting with the DV-2012 program, entrants must check their application status online.

For detailed information, see the FTC’s consumer alert, Diversity Visa Lottery: Read the Rules, Avoid the Rip-Offs.

# # #

(Diversity Visa Program)

Contact Information

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