Federal Trade Commission Closes Investigation of Texas Medical Board After Texas Passes Law Expanding Telemedicine and Telehealth Services

The Federal Trade Commission has closed its investigation of whether the Texas Medical Board violated federal antitrust law by adopting rules restricting the practice of telemedicine and telehealth in Texas. The Commission voted to close the investigation after Texas enacted a law that overrides the board’s restrictive rules.

In a statement explaining its reasoning, the Commission commends the State of Texas for using its authority to permit the expansion of telemedicine and telehealth services, and for addressing competitive concerns raised by the Texas Medical Board’s previous regulations that significantly restricted telemedicine and telehealth services in Texas. Acting Chairman Maureen K. Ohlhausen said, “I have long advocated for the expansion of telemedicine and telehealth options that enhance competition and benefit consumers, while still protecting public health and safety. I commend the Governor of Texas and the Texas state legislature for expanding access to health care services for Texans through telehealth and telemedicine.”

The Commission vote to close the investigation was 2-0. (FTC File No. 1510180; the staff contact is Michael Turner, Bureau of Competition, 202-326-3649)

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Announces First Economic Liberty Public Roundtable

Economic Liberty opens doors.The Federal Trade Commission announced today that its Economic Liberty Task Force will host a roundtable in Washington, DC on July 27, 2017 to highlight approaches that make it easier for workers in state-licensed occupations to offer their services across state lines or move between states.

Most occupational licenses are not portable, meaning that workers who move to a new state often face financial or administrative burdens of applying for a new license. Restrictions on the portability of occupational licenses are especially hard on military families, who move often.

The July 27 roundtable, which will take place from 2 p. m. to 4 p.m., will be the first public event held by the FTC’s new Economic Liberty Task Force. Acting Chairman Maureen K. Ohlhausen established the Task Force earlier this year as her first major policy initiative for the agency. The Task Force is considering how occupational licensing reform could reduce barriers to entry, enhance competition, and promote economic opportunity for all Americans.

Nearly 30 percent of U. S. jobs require a license today, up from less than five percent in the 1950s. Occupational licensing can sometimes be necessary to protect public health and safety, which benefits consumers and serves important state policy interests.

But even in those situations, state-specific licensing requirements can impose barriers to entry on qualified workers who have moved from another state, or want to work across state lines. Often, there may be no legitimate justification for each state to impose different requirements. These barriers restrict the labor supply and reduce competition. Thus, unnecessary or overbroad restrictions on license portability impose costs that harm workers, employers, consumers, and our economy as a whole.

The roundtable, Streamlining Licensing Across State Lines, will bring together legal experts, representatives of professional organizations, and other officials who have worked on the issue at the state level.

The roundtable will consider several existing measures for enhancing occupational license portability, such as interstate compacts and agreements, and state legislative initiatives to help military spouses.

Topics of discussion at the event will include:

  • Barriers to entry raised by cross-state occupational licensing requirements;
  • License portability strategies;
  • The status and effectiveness of interstate licensure compacts, agreements, and model laws to ease licensing requirements across state lines for specific professions;
  • State-based initiatives to improve the portability of licenses held by military service members and their spouses, and the extent to which these experiences may help civilian license portability efforts; and
  • The potential impact of portability measures on licensee mobility, market entry, provider supply, and competition among service providers.

The FTC invites comments from the public on the topics covered by this roundtable. For further information on the roundtable and the public comment process, including a list of suggested questions open for comment, please view the roundtable website.

The roundtable is free and open to the public. It will be held at the Constitution Center, 400 7th St., SW, Washington, DC 20024. An agenda will be published at a later date. Information about reasonable accommodations is available on the roundtable website.

In line with its overall focus on helping service members and veterans, the FTC is holding a separate workshop in San Antonio, Texas on July 19 on financial issues and scams that can affect military consumers.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Offers Comment on Process Aimed at Improving Security of Internet of Things Devices

The Federal Trade Commission has submitted public comments to a working group convened by the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) that is developing guidance about ways for Internet of Things (IoT) device manufacturers to better inform consumers about security updates related to the devices.

The FTC comments pertain to draft guidance on “key elements” that manufacturers should consider conveying to consumers to help them make better informed purchasing and use decisions. Such key elements include whether the device can receive security updates, how it will receive them, and when support for the device would end.

The guidance is being developed by stakeholders involved in the working group, which is part of a voluntary multistakeholder process convened by NTIA on ways to improve the security and patchability of IoT devices. In its comments to the working group, the FTC noted that security updates are an important part of protecting such devices from hackers.

The Commission recommended certain modifications to the working group’s “key elements” such as disclosing a minimum amount of time that consumers can expect security support for their product. The FTC noted that consumers might perceive an anticipated timeline of support as a guarantee of such support. Among the other suggested changes, the Commission recommended that manufacturers consider telling consumers upfront if a “smart” device will lose basic functionality after security support ends and if consumers would expect a similar “dumb” device to have a longer, safer lifespan.

The Commission also recommended changes to the “additional elements” section in the guidance such as considering adoption of a uniform method for notifying consumers about updates that are not made automatically and considering providing real-time notification to consumers when manufacturers stop providing security updates for IoT devices.

In providing its comments, the Commission noted that the Internet of Things can provide enormous benefits for consumers. At the same time, in its education, policy, and enforcement work, the FTC has stressed the importance of taking reasonable steps to safeguard privacy and security when it comes to IoT devices.

The Commission vote to authorize the filing of the comment was 2-0.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Announces Agenda for Military Consumer Financial Workshop: Protecting Those Who Protect Our Nation

The Federal Trade Commission has announced the agenda and speakers confirmed to date for its upcoming workshop in San Antonio, Texas on July 19, 2017, a forum on financial issues and scams that can affect military consumers, including active duty servicemembers in all branches and veterans.

The 2017 Military Consumer Financial Workshop: Protecting Those Who Protect Our Nation, will feature opening remarks by FTC Acting Chairman Maureen K. Ohlhausen.

Military consumer advocates and groups, government representatives (local, state, and federal), military legal services and legal clinics (including those at universities), all service branches, and industry representatives will discuss:

  • Auto purchase, financing, and leasing
  • Student and other lending, including installment credit practices
  • Debt collection
  • Legal rights and remedies
  • Financial literacy and capability, including identity theft and financial resources

“Helping servicemembers and veterans avoid fraud, learn about their legal rights and remedies, and find resources that protect them in the financial area is a top priority.” Acting Chairman Ohlhausen said. “I look forward to hearing from speakers in the private sector, military, and government about how to best protect military consumers on these issues.”

The workshop, which is free and open to the public, will take place at Chapman Auditorium, Trinity University, San Antonio, Texas 78212. Preregistration is not required. Doors will open at 8:00 a.m. CDT, and the workshop will begin at 8:30 a.m. CDT.

The event will also be tweeted live from FTC’s Military Consumer Twitter account (@Milconsumer) using hashtag #MilFinancialWorkshop.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC and Two State Attorneys General Challenge Proposed Merger of the Two Largest Daily Fantasy Sports Sites, DraftKings and FanDuel

The Federal Trade Commission has authorized legal action to block the merger of the two largest daily fantasy sports sites, DraftKings and FanDuel, alleging that the combined firm would control more than 90 percent of the U.S. market for paid daily fantasy sports contests. The FTC, jointly with the Offices of the Attorneys General in the State of California and the District of Columbia, will file a complaint in federal district court seeking a preliminary injunction to stop the deal and to maintain the status quo pending an administrative trial. The Commission also issued an administrative complaint alleging that the proposed merger violates Section 7 of the Clayton Act and Section 5 of the FTC Act. Public versions of both complaints will be available and linked to this news release as soon as possible.

According to the FTC’s complaint, DraftKings and FanDuel are each other’s most significant competitor. At present, the two companies battle head-to-head to offer the best prices and product quality, including the largest prize pools and greatest variety of contests. The proposed merger would create a single provider with by far the largest share of the market for paid daily fantasy sports contests in the United States.

“This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” said Tad Lipsky, Acting Director of the FTC’s Bureau of Competition. “The FTC is committed to the preservation of competitive markets, which offer consumers the best opportunity to obtain innovative products and services at the most favorable prices and terms consistent with the provision of competitive returns to efficient producers.”

Founded in 2012 and headquartered in Boston, DraftKings is the country’s largest daily fantasy sports provider in terms of entry fees and revenues. It offers contests in football, baseball, basketball, hockey, golf, stock car racing, mixed martial arts, soccer, Canadian football, and eSports.

Founded in Scotland in 2009, FanDuel is the second-largest daily fantasy sports provider in the United States, and offers contests in football, baseball, basketball, hockey, soccer, and golf.

Customers who participate in paid daily fantasy sports contests generally pay an entry fee and select a lineup of professional athletes, typically limited by a salary cap. Each lineup earns fantasy points based on the real-life performance of the selected athletes using a predetermined scoring system. The users whose lineups generate the most fantasy points, based on their ranking and the rules of the contest, receive prizes directly from the daily fantasy sports provider.

According to the FTC’s complaint, consumers of paid daily fantasy sports are unlikely to view season-long fantasy sports contests as a meaningful substitute for paid daily fantasy sports, due to the length of season-long contests, the limitations on number of entrants and several other issues. The complaint also alleges that entry or expansion by other providers is not likely to provide timely or sufficient competition to offset the anticompetitive effects of the merger. The complaint also asserts that purported efficiencies would not offset the likely competitive harm.

The Commission votes to issue the administrative complaint and to authorize staff to seek a temporary restraining order and preliminary injunction in federal court were both 2-0. The federal district court complaint was filed on June 19, 2017 in the U.S. District Court for the District of Columbia. The administrative trial is scheduled to begin on November 21, 2017.

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. These filings do not constitute a finding that any violation of law has occurred. The request for preliminary relief will be assessed in federal court, while the merits of the complaint will be assessed in an administrative trial subject to review by the FTC and ultimately by federal appellate courts.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Announces Final Agenda for Connected Cars Workshop

The Federal Trade Commission has announced the final agenda for its June 28, 2017, workshop to examine the consumer privacy and security issues posed by automated and connected cars.

FTC Acting Chairman Maureen K. Ohlhausen will deliver opening remarks at the daylong workshop. The event will bring together a variety of stakeholders, including industry representatives, consumer advocates, academics, and government officials, to discuss privacy and security issues related to connected and automated vehicles.

The workshop will feature panel discussions on the types of data connected cars will generate, collect and share; cybersecurity challenges; the privacy implications of connected cars; and potential role of government agencies.

The workshop, which is free and open to the public, will be held at the Constitution Center, 400 7th St., SW, Washington, DC 20024. The conference will be webcast live. Additional information about the conference can be found on the event page. Pre-registration is not required for this event.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Approves Final Order with China National Chemical Corporation and Syngenta AG, Preserving Competition in U.S. Markets for Three Pesticides

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that the proposed merger of China National Chemical Corporation (ChemChina) and Swiss global agricultural company Syngenta AG would harm competition in the U.S. markets for the herbicide paraquat, the insecticide abamectin, and the fungicide chlorothalonil.  

First announced in April 2017, the complaint alleged that without the proposed divestiture, the merger would eliminate the direct competition that exists between ChemChina generics subsidiary ADAMA and Syngenta’s branded products. The merger would also increase the likelihood that U.S. customers buying paraquat, abamectin and chlorothalonil would be forced to pay higher prices or accept reduced service for these products, the complaint states.

The Commission vote approving the final order was 2-0. (FTC File No. 1610093; the staff contact is David Morris, Bureau of Competition, 202-326- 3156.)

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Returns Money to Victims of Auto Loan Modification Scheme

The Federal Trade Commission is mailing 288 checks totaling more than $109,000 to people who paid an up-front fee to Regency Financial Services, which promised to get them better terms for their auto loans. According to the FTC, the company and its CEO, Ivan Levy, did not provide the promised services and failed to honor their “money-back guarantee.”

In July 2015, the defendants agreed to pay money to settle the lawsuit. The settlement banned them from telemarketing, and from selling debt relief products or services.

Affected consumers will receive full refunds based on information they reported to law enforcement. The average amount is $380.

Recipients should deposit or cash checks within 60 days, and if they have questions about the case, they should contact the FTC’s refund administrator, Rust Consulting Inc., at 866-591-7249.

To learn more about the FTC’s refund program, visit www.ftc.gov/refunds.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Approves Final Order with Kidney Dialysis Chain DaVita, Inc. that Preserves Competition to Provide Outpatient Dialysis Services in New Jersey and greater Dallas area

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that outpatient kidney dialysis chain DaVita, Inc.’s $358 million acquisition of competitor Renal Ventures Management LLC would have been anticompetitive.

First announced in March 2017, the complaint alleged that the acquisition would lead to significant anticompetitive effects in five New Jersey markets (Brick, Clifton, Somerville, Succasunna, and Trenton), and in two Dallas-area markets (Denton and Frisco). The complaint alleged that without the competition in these markets, and with new entry unlikely to be timely or sufficient, the likely result would be reduced quality and higher prices for dialysis patients.

DaVita agreed to divest the seven clinics to PDA-GMF Holdco, LLC, a joint venture between Physicians Dialysis and GMF Capital LLC.

The Commission vote approving the final order was 2-0. (FTC File No. 151 0204; the staff contact is Lisa DeMarchi Sleigh, Bureau of Competition, 202-326-2535.)

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

FTC Amends Complaint Against Invention Promotion Scheme Defendants

The Federal Trade Commission has amended its complaint against the operators of an invention-promotion scheme, World Patent Marketing (WPM), that allegedly deceived consumers and suppressed complaints about the company, including by threatening dissatisfied customers with criminal prosecution.

According to the FTC’s original complaint, filed in March 2017, consumers paid the defendants thousands of dollars to patent and market their inventions based on bogus “success stories” and other misrepresentations.

A federal court in Miami, Florida, temporarily halted the scheme and froze its assets pending litigation. On June 5, the court extended its temporary restraining order until June 26, 2017.

The amended complaint alleges that WPM claimed its clients’ products were sold in numerous popular “big box” stores, even though no such inventions are sold in any brick and mortar stores. According to the FTC, WPM also touted licensing deals between inventors and “WPM China” involving WPM’s purported manufacturing plant in China; yet, “WPM China” does not exist, and WPM has no manufacturing plant in China. Further, the amended complaint alleges that WPM falsely told consumers that its  review team needed to approve their ideas before they could move forward with the company, when in fact no such review occurred.

The Commission vote approving the amended complaint was 2-0. It was filed in the U.S. District Court for the Southern District of Florida on May 25, 2017.

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 case will be decided by the court.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).  Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.