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FTC Cracks Down on Companies That Impose Harmful Noncompete Restrictions on Thousands of Workers
The Federal Trade Fee has taken authorized motion from three organizations and two individuals, forcing them to drop noncompete limits that they imposed on 1000’s of personnel. Drawing from the FTC’s substantial knowledge in this room, these actions mark the 1st time that the agency has sued to halt illegal noncompete constraints. According to the issues issued by the FTC, each individual of the firms and people today illegally imposed noncompete constraints on employees in positions ranging from low-wage safety guards to production employees to engineers that barred them from looking for or accepting operate with an additional employer or working a competing company immediately after they left the organizations.…
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FTC Explores Changes, Possible Expansion of Its Business Opportunity Rule
The Federal Trade Fee is discovering adjustments to the Business enterprise Chance Rule, looking for remark from the general public on the rule’s effectiveness and a probable growth to the rule to cover other kinds of income-making options, these kinds of as coaching or mentoring programs, e-commerce possibilities, or financial commitment options. “The Fee is well prepared to use every single resource to make certain that providers can’t prey on customers with phony funds-earning options,” claimed Samuel Levine, Director of the Bureau of Customer Security. “One important device is our Organization Prospect Rule, and we want to hear from the community on how we can enhance it.” The FTC is…
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FTC Proposes New Rule to Combat Government and Business Impersonation Scams
The Federal Trade Fee has proposed a rule to battle federal government and small business impersonation scams—a perennial scourge that has cost customers hundreds of millions of bucks around the past five a long time. The proposed rule would codify the effectively-recognized theory that impersonation cons violate the FTC Act, as do these who provide impersonators with the signifies to harm buyers. The proposed rule would allow for the Fee to get better cash from, or seek civil penalties from, scammers who hurt people in violation of the rule. “The proposed rule will grow the Commission’s toolkit to combat the substantial damage prompted by governing administration and enterprise impersonation frauds,” explained…
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FTC Consumer Protection Bureau Alerts Businesses for Health Data
Connected Practices & Jurisdictions On July 11, 2022, the Federal Trade Commission’s Bureau of Consumer Protection issued a small business alert on businesses’ dealing with of sensitive details, with a distinct target on locale and health and fitness data. The inform describes the “opaque” market in which consumers’ site and health data is collected and exchanged among firms and the worries and dangers related with the processing of these types of info. The inform particularly focuses on the “potent combination” of spot data and user-generated health and fitness and biometric facts (e.g., through the use of wellness and physical fitness applications and the sharing of face and other biometric info for app/product…
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FTC Charges HomeAdvisor, Inc. with Cheating Businesses, Including Small Businesses, Seeking Leads for Home Improvement Projects
The Federal Trade Commission today issued an administrative criticism towards Denver-dependent HomeAdvisor, Inc. – a company affiliated with Angi – alleging it used a wide range of misleading and misleading tactics in providing property improvement undertaking potential customers to company vendors, which include tiny businesspeople working in the “gig” economy. The FTC’s grievance versus HomeAdvisor alleges that given that at the very least the center of 2014 it has designed wrong, misleading, or unsubstantiated statements about the excellent and source of the prospects the company sells to assistance providers, these kinds of as standard contractors and smaller garden care businesses, who are in lookup of potential consumers. “Gig financial state…
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FTC puts business opportunities on notice regarding promotional claims and content
The Federal Trade Commission has recently been sending “Notices of Penalty Offenses Concerning Money-Making Opportunities and Endorsements and Testimonials” to franchisors and companies selling other types of business opportunities. These notices from the federal consumer protection agency are seemingly coming from out of the blue and being served on registered agents similar to a lawsuit, causing recipients a fair amount of concern. Although the FTC tells the recipient that it is not being singled out (see this list of businesses who received the notice in October), it warns in bold letters on the first page that the recipient is now on notice that engaging in certain conduct could subject the…