Markets Wired

For Your Information

December 4, 2009

Just in time for the holiday shopping season, the Federal Trade Commission has 12
tweets about watching your wallet, shopping wisely, and protecting your personal information.

If you tweet or update your status on a social networking page, the FTC hopes you’ll post
one of these short messages about keeping the grinch away from your celebrations.

1. Plan and pay. With layaway, you get the goods after paying in full. But what if you miss a
   payment or want your money back? Visit ftc.gov.
2. Save every receipt. Keep copies of the refund & return policies, your order number, shipping costs & warranties. Visit ftc.gov.
3. Many happy returns? Maybe not. Merchants have different refund & return policies for sales & clearance items. Visit ftc.gov.
4. All in the cards. Gift cards sold on online auction sites may be fake. Before you buy, get the expiration dates & fees. Visit ftc.gov.
5. Treat a gift card like cash. If it’s lost or stolen, you may be out the whole amount. Report it to the issuer right away. Visit ftc.gov.
6. Don’t get scrooged by emails seeking personal information. Don’t reply, click the link, or
   paste it into a browser. Visit ftc.gov.
7. Tis the season to be wary – of a charity that won’t provide information in writing: mission,
   costs & where the money goes. Visit ftc.gov.
8. Ho Ho NO? Sites promising easy credit – no matter what – are tempting for a shopping spree, but chances are they’re scams. Visit ftc.gov.
9. Wire beware. Despite the story, if a seller insists you wire money, you probably won’t get the item or your money back. Visit ftc.gov.
10. Jingle sells. Don’t take a check for more than your selling price; don’t wire back the extra.
    It’s a scam. Visit ftc.gov.
11. Make a list and check it twice. If it costs money – gifts, cards, wrapping paper, parking or
    snacks – add it to your budget. Visit ftc.gov.
12. No go on the BOGO? Is “Buy One, Get One Free” really a bargain? If you don’t want or need the extra item, it’s not a deal. Visit ftc.gov.

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, or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available for more than 1700 civil and criminal law enforcement agencies in the U.S. and abroad.

(FYI 2009 Holiday Tweet)

Contact Information

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

The Commission has approved an amended complaint in the matter currently pending against Grant Writers Institute, LLC and its related entities. The FTC’s original complaint, announced in October 2009, charged the defendants with falsely telling consumers that they were eligible for grants as part of the government’s recently announced economic stimulus package. The FTC filed the complaint jointly with the Attorneys General of Kansas, Minnesota, and North Carolina. The amended complaint adds Illinois as a fourth state co-plaintiff and also adds five new defendants – Justin Ely and his companies Wealth Power Systems, LLC; Aria Financial Services LLC; and Direct Marketing Systems, Inc., and Maggie Chapman, who owns a sole proprietorship.

The Commission vote approving the amended complaint was 4-0. A copy of the complaint can be found on the FTC’s Web site and as a link to this press release. (FTC File No. X090073; the staff contact is Carmen Christopher, Bureau of Consumer Protection, 202-326-3643; see press release dated October 6, 2009, at http://www.ftc.gov/opa/2009/07/gwi.shtm.)

Copies of the documents mentioned in this release are available from the FTC’s Web site 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 54.2009.wpd)

The Federal Trade Commission today told the U.S. House Subcommittee on Commerce, Trade and Consumer Protection of the Committee on Energy and Commerce that the FTC has cracked down on the deceptive marketing of prepaid phone cards, and that pending legislation would benefit consumers by giving the agency stronger tools to combat the problem.

Lois Greisman, Associate Director of the FTC’s Division of Marketing Practices, told the Subcommittee that in 2009 the FTC obtained court orders settling two cases against major distributors of prepaid calling cards. The orders impose judgments totaling more than $3.5 million and bar the companies from deceiving consumers about the number of calling minutes that their cards provide. The orders also require the defendants to undertake a strict compliance and monitoring program. A few months ago, the Commission sued another major player in the industry for allegedly using the same kinds of deceitful tactics. As the testimony explains, in all three of these cases, the companies’ prepaid calling cards delivered only roughly half the advertised calling time in the FTC’s extensive testing of the cards.

The testimony also notes that the FTC works closely with other law enforcement partners to fight fraud in the prepaid calling card industry. The FTC has established a joint federal-state task force, which includes representatives from the offices of more than 35 state attorneys general and other state and local agencies, to combat deceptive marketing practices in the prepaid calling card industry.

In addition, the testimony reiterates the FTC’s support for repeal of a statutory provision that limits the FTC’s authority to take action against telecommunications service providers. As the testimony explains, common carriers subject to the Communications Act currently are exempt from the FTC Act’s prohibitions on unfair or deceptive acts and practices. This exemption dates back to a time when highly regulated monopolies provided telephone services, and no longer makes sense in today’s competitive telecommunications marketplace, the testimony states.

The testimony also discussed the Prepaid Calling Card Consumer Protection Act pending in the House of Representatives. The FTC supports the goals of the legislation, which would require prepaid calling card providers and distributors to provide better disclosures to consumers. The legislation would partially repeal the common carrier exemption and give the FTC the authority to sue both prepaid telecommunications service providers and distributors, as well as the power to fine companies that violate the proposed law. These new tools would assist the FTC’s efforts to crack down on the deceptive marketing of prepaid calling cards.

The Commission vote approving the testimony 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 1,700 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.

(PrepaidTestimony.wpd)
(FTC File No. P074406)

Marketers of violent music, movies, and video games can do more to restrict the promotion of these products to children, according to the seventh in a series of Federal Trade Commission reports on marketing violent entertainment to children.

“The Commission has been reviewing and reporting on the movie, music, and video game industries’ advertising and marketing practices relating to violent entertainment for 10 years now,” noted FTC Chairman Jon Leibowitz in a separate statement accompanying the report. “Despite considerable improvements, the self-regulatory systems are far from perfect.” He also emphasized that “in the future, it will be particularly important to address the challenges presented by emerging technologies – such as mobile gaming – that are quickly changing the ways that children access entertainment.”

The FTC’s report states that the music industry still has not adopted objective marketing standards limiting ad placement for explicit-content music. As a result, the industry still advertises music labeled with a Parental Advisory Label (PAL) on television shows viewed by a substantial number of children. Music retailers routinely sell labeled music to unaccompanied teens.

The report also finds that movie studios intentionally market PG-13 movies to children under 13, and the movie industry does not have explicit standards in place to restrict this practice. The growing practice of releasing unrated DVDs undermines the rating system, and confuses parents.

Both the video game and movie industries can do more to limit ad placement on Web sites that disproportionately attract children and teens, according to the report.

Since the FTC issued its first report on marketing violent entertainment to children in 2000, the agency has called on the entertainment industry to be more vigilant in three areas: restricting the marketing of mature-rated products to children; clearly and prominently disclosing rating information; and restricting children’s access to mature-rated products at retail. This latest report found areas for improvement among music, movie, and video game marketers, but credited the game industry with outpacing the other two industries in all three areas.

Parents who want to know more about how entertainment for children is rated can visit ftc.gov/ratings. This site describes the different ratings systems, and provides links to the organizations that sponsor them.

“Marketing Violent Entertainment to Children: A Sixth Follow-up Review of Industry Practices in the Motion Picture, Music Recording & Electronic Game Industries” analyzed information from sources including marketing documents submitted by industry members, an undercover “mystery” shopper survey, consumer surveys conducted in shopping malls and by telephone, “surfs” of industry Web sites, and data acquired from proprietary ad-monitoring services. Findings include:

• Music: While the music industry’s Parental Advisory Label alerts parents to explicit lyrics in recordings, it does not provide information about the nature of that content. The music industry has declined to implement rules restricting the marketing of explicit-content labeled music to children. The report does not find any indication of specific targeting of children, but does show numerous examples of ads for explicit-content music on television programs popular with teens. Disclosure of the label in advertising is still spotty, including on official artist and company Web sites, where the label usually is not readable. Television ads display the explicit content label only half the time, and even then usually not prominently. Music CD retailers and online download sites, by contrast, do an excellent job of displaying the parental advisory label. Finally, retailers do not effectively prevent children from buying explicit-content music, with seven in 10 underage shoppers able to buy CDs with a Parental Advisory Label.
• Movies: Although the movie industry determines on a case-by-case basis whether a PG-13-rated film may be advertised to children under 13, there is no explicit policy restricting such marketing. As detailed in the marketing plans reviewed by the Commission, movie studios targeted violent PG-13 films to children under 13 both through advertising and promotional tie-ins with foods, toys, and other licensed products. Studios continued to place a significant number of ads for violent R-rated movies on television shows and Internet sites highly popular with children under 17. Increasingly, industry members post “red tag” trailers for R-rated movies, intended for age-restricted audiences, on the Internet without age-based access restrictions. Although the MPAA rating and rating reasons are not always prominent, the industry generally does display the MPAA rating in advertising. Rating information on DVDs is not prominently placed; moreover, more and more DVD versions of movies are not rated, and some studios hype the lack of a rating. The Commission’s research shows that parents are not adequately informed that unrated DVDs may contain additional violent or adult content. On the positive side, theaters denied 72 percent of underage shoppers admission to R-rated movies, a significant improvement from 2006 and even more so from 2000. Most retailers, however, continue their poor record of enforcement against underage purchase of R-rated and unrated DVDs.
• Electronic Games: The FTC finds a high degree of compliance with the video game industry’s marketing and advertising rules, although these standards allow game
  marketers to advertise on many television shows and Web sites popular with children. Further, retailers are enforcing age restrictions on the sale of M-rated games to children, with an average denial rate of 80 percent. The report notes, however, that children may be able to obtain M-rated games by, for example, using retailer gift cards online. Finally, the proliferation of game applications for mobile devices provides challenges – for example, some companies do not provide any rating system for games available on their networks, and there is no consistent system of age-based parental controls for these applications.

The Commission recommends these measures to strengthen the entertainment industry’s self-regulatory programs and better restrict the marketing of violent entertainment to children:

• The movie and music industries should develop specific and objective criteria to restrict the marketing of violent movies and music to children. Specifically, marketing of PG-13 movies to young children directly and through tie-ins with foods, toys, and other licensed products should be restricted. All three industries should tighten restrictions on online and viral marketing.
• The movie industry should increase enforcement against online posting of “red tag” trailers without adequate age-based access restrictions, and should ensure that the content of “appropriate audience” trailers is consistent with the feature films they will precede.
• All three industries should improve their display of rating information in advertising and packaging. The movie industry should place the rating and rating reasons on the front of DVD cases and disclose rating information prominently in all advertising venues. The music industry should display the Parental Advisory Label more prominently in advertising, particularly in television and online venues, and it should provide information about the specific type of explicit content. The electronic game industry should include content descriptors with the rating on the front panel of game packaging and continue to provide more detailed rating summaries for parents online.
• The movie industry should better inform parents about additional adult content in unrated DVDs and give parents a way to evaluate unrated versions. The industry should consider re-rating DVD releases or, at a minimum, expand new disclosure rules for unrated DVDs.
• Gaps in enforcement of age-based sales restrictions for movies, music, and electronic games should be closed, and enforcement challenges created by the use of gift cards for online purchases should be addressed.

The Commission vote to approve the report was 4-0. Chairman Jon Leibowitz issued a separate statement, which can be found on the FTC’s Web site and as a link to this press release.

Copies of the report 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 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 1,700 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.

(Violent Entertainment Report NR.wpd)
(FTC File No. P994511)

For Your Information

December 3, 2009

WHAT:	The Federal Trade Commission will host the first of three public Roundtables to explore the privacy challenges posed by technology and business practices that collect and use consumer data. This first roundtable will focus on the benefits and risks of information-sharing practices, consumer expectations regarding such practices, behavioral advertising, information brokers, and the adequacy of existing legal and self-regulatory frameworks. The updated agenda and other information about the Roundtable is at http://www.ftc.gov/bcp/workshops/privacyroundtables/index.shtml
WHEN:	Monday, December 7, 2009 8:30 AM – 6:00 PM
WHERE:	FTC Conference Center 601 New Jersey Avenue N.W. Washington, DC 20580

The Roundtable is free and open to the public. Pre-registration is not required. Members of the public and press who wish to participate but cannot attend can view a live Webcast.

(Roundtable)

Contact Information

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

STAFF CONTACT:

Christopher Olsen,
Bureau of Consumer Protection
202-326-3621

The Federal Trade Commission will host a public event on consumer protection issues arising when debt collectors sue consumers to recover on a debt. This will be the last in a series of three FTC roundtable discussions on these topics.

WHO:	“Protecting Consumers in Debt Collection Litigation: A Roundtable Discussion”
WHEN:	December 4, 2009, 9 a.m. to 5 p.m. Registration – begins at 8 a.m.
WHERE:	FTC’s Satellite Building Conference Center 601 New Jersey Avenue, N.W., Washington, D.C. 20001

This Roundtable follows up on the Commission’s February 2009 Report, Collecting Consumer Debts: The Challenges of Change – A Workshop Report, which announced that the FTC would hold regional roundtables to help develop policy recommendations related to debt collection litigation and arbitration proceedings. A group of state court judges, government officials, debt collectors and debt buyers, consumer attorneys and advocates, academics, and other stakeholders will discuss topics related to consumer debt collection litigation proceedings, such as service of process, consumer default rates, time-barred debts, evidentiary requirements in collection actions, and post-judgment issues.

The Roundtable is free and open to the public. No pre-registration is required. The Commission will also offer a live webcast of the event for those who wish to participate but cannot attend. For details and a link to the webcast, go to http://www.ftc.gov/bcp/workshops/debtcollectround/index.shtm.

Interested parties are encouraged to submit written comments or original research relating to debt collection litigation or arbitration proceedings through January 8, 2009. Comments should refer to “Debt Collection Roundtable – Comment, Project No. P094806.” To file electronically, follow the instructions and fill out the form at https://public.commentworks.com/ftc/debtcollectroundtable3. Paper comments should include the above reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex A), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Comments containing confidential material, however, must be filed in paper form, must be clearly labeled “Confidential,” and must comply with Commission Rule 4.9(c). The FTC requests that any paper comments be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.

Reasonable accommodations for people with disabilities are available upon request. If you need an accommodation related to a disability, please contact Bevin Murphy at 202-326-3224 or via e-mail at [email protected]. Your request should include a detailed description of the accommodations you need and a way to contact you if we need more information. Please provide advance notice.

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 1,700 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.

(Roundtable)

Today, the Federal Trade Commission opened new areas of a “virtual mall” with content that will help kids learn to protect their privacy, spot frauds and scams, and avoid identity theft. The FTC Web site, www.ftc.gov/YouAreHere, introduces key consumer and business concepts and helps youngsters understand their role in the marketplace. The FTC is the nation’s consumer protection agency.

“YouAreHere presents practical lessons about money and business in a fun and familiar setting,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “The new content takes kids behind the scenes to raise their awareness of advertising and marketing, pricing and competition, fraud and identity theft.

At the FTC’s online mall, visitors play games, watch short animated films, and interact with customers and store owners. They can design and print advertisements for a shoe store, investigate suspicious claims in ads and sales pitches, learn to identify the catches behind bogus modeling schemes and vacation offers, and guess the retail prices of various candies based on their supply, demand, and production costs.

At the Security Plaza, visitors can build a social networking page and see the unintended consequences of posting personal information. They also get tips on how to keep their computers safe while they’re online. In the arcade, visitors can play Info Defender 3 and protect Earthlings from Cyclorian invaders who would steal their identities. The game teaches the importance of protecting personal information, including Social Security numbers.

For parents and teachers, the site offers detailed fact sheets with ideas for related activities. Teachers can use the site to complement lessons in consumer economics, government, social studies, language arts, and critical thinking. The National Council for Economic Education has developed a lesson plan that prominently features YouAreHere; it is available on the Parents and Teachers page.

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 1,700 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.

(You Are Here NR.wpd)

The Federal Trade Commission will host more than 250 government officials, business leaders, consumer advocates, and academics from around the world to discuss opportunities and challenges for consumers in electronic commerce at a conference organized by the Organization for Economic Co-operation and Development (OECD) December 8-10, 2009. The event, Empowering E-consumers: Strengthening Consumer Protection in the Internet Economy, coincides with the ten year anniversary of the OECD’s Guidelines for Consumer Protection in the Context of Electronic Commerce, which were adopted on December 9, 1999. The OECD is a 30-nation forum that promotes sustainable economic growth, trade, and development, and provides a setting for governments to compare policy experiences and coordinate domestic and international policies.

On December 8, FTC Chairman Jon Leibowitz will welcome conference participants, and U.S. Permanent Representative to the OECD, Karen Kornbluh, will deliver opening remarks. On December 9, U.S. Secretary of Commerce Gary Locke and OECD Secretary-General Angel Gurría will deliver keynote addresses. Later that day, John Donahoe, the President and CEO of eBay, Inc. will give a keynote address at an invitation-only luncheon at the Canadian Embassy.

More information on the conference, including registration materials, the conference program, a list of speakers, and a background report on e-commerce trends and the conference topics is available on the OECD’s website at www.oecd.org/ict/econsumerconference.

The event, which is organized by the OECD, is free; however, there are space limitations and advance registration through the OECD is required. The conference will be held at the FTC’s satellite building conference center, located at 601 New Jersey Avenue, N.W., Washington, DC. Overflow rooms will be available at the FTC Headquarters Building, 600 Pennsylvania Avenue, N.W., Washington, D.C. All attendees will be required to display a current driver’s license or other form of photo identification for entry. All sessions are open to the media.

There will also be live webcast of the event for those who wish to participate but cannot attend. The link for the webcast, which will begin at 9:00 a.m. on December 8 is http://htc-01.media.globix.net/COMP008760MOD1/ftc_web/FTCindex.html.

Questions may be made by the public, using the tool at: http://moderator.appspot.com/. These will be shared with the panelists at the conference. Discussion may also be followed via the OECD Twitter group, http://search.twitter.com.  You must enter the hashtag (#ecom) as a keyword.

Reasonable accommodations for people with disabilities are available upon request. Requests for such accommodations should be submitted via e-mail to: [email protected] or by calling Carrie McGlothin at 202-326-3388. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more 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 1,700 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.

(OECD E-consumer Conference)