FTC Action Leads to Ban for Owners of E-Commerce Money-Making Scheme

A federal court had temporarily shut down Automators AI E-Commerce Money-Making Scheme, a deceptive business opportunity that conned consumers into investing $22 million in online stores. The operators, Roman Cresto, John Cresto, and Andrew Chapman, have agreed to surrender assets and face a lifetime ban on selling e-commerce business opportunities. The scheme promised high returns …

FTC Proposes Strengthening Children’s Privacy Rule to Further Limit Companies’ Ability to Monetize Children’s Data

The Federal Trade Commission (FTC) has proposed changes to the Children’s Online Privacy Protection Rule (COPPA Rule) to strengthen children’s privacy and limit companies’ ability to monetize children’s data. The proposed changes include prohibiting the collection of more personal information than necessary for a child to participate in an activity, clarifying the meaning of “activity,” …

Rite Aid Banned from Using AI Facial Recognition After FTC Says Retailer Deployed Technology without Reasonable Safeguard

Rite Aid has been banned by the Federal Trade Commission (FTC) from using facial recognition technology for surveillance purposes for five years. The retailer failed to implement proper procedures, resulting in false tagging of consumers as shoplifters. The FTC’s order aims to protect consumer rights and prevent further misuse of the technology. Rite Aid will …

FTC has taken action against Global Tel*Link Corp

The Federal Trade Commission (FTC) has taken action against Global Tel*Link Corp. and its subsidiaries for failing to adequately secure personal data and notify consumers after a data breach. The breach occurred due to changes made by a third-party vendor to the security settings for the data stored in the cloud, leaving the personal data …

FTC Finalizes Order with 1Health.io Over Charges it Failed to Protect Privacy and Security of DNA Data

The Federal Trade Commission (FTC) has reached a settlement with genetic testing firm 1Health.io over charges of failing to protect the privacy and security of DNA data and making unfair changes to its privacy policy. The FTC accused 1Health.io, formerly known as Vitagene, of deceiving consumers about its privacy and security practices. The company allegedly …

FTC Announces Exploratory Challenge to Prevent the Harms of AI-enabled Voice Cloning

The Federal Trade Commission (FTC) has announced the Voice Cloning Challenge to prevent the misuse of AI-enabled voice cloning technology for fraud and other harms. The challenge aims to promote the development of ideas that protect consumers from the negative effects of voice cloning. The FTC will use its enforcement authority to target companies that …

Amended the Safeguards Rule to require non-banking financial institutions to report data security breaches

The Federal Trade Commission (FTC) has amended the Safeguards Rule to require non-banking financial institutions to report data security breaches. This amendment applies to institutions that discover unauthorized acquisition of information affecting 500 or more people. The Safeguards Rule already requires these institutions to have comprehensive security programs in place. The amendment aims to increase …

1Health Failed to Protect Privacy and Security of DNA Data

The Federal Trade Commission (FTC) has charged genetic testing company 1Health.io (formerly known as Vitagene) with multiple violations related to the privacy and security of DNA data. The company allegedly stored sensitive genetic and health information without encryption, deceived consumers about data deletion, and changed its privacy policy without proper notification. After being warned multiple …

Fortnite maker Epic Games to Pay $245 Million

The Federal Trade Commission (FTC) has finalized an order requiring Epic Games, the maker of Fortnite, to pay $245 million to consumers. The FTC accused Epic of using dark patterns to trick players into making unwanted purchases and allowing children to make unauthorized charges without parental consent. The complaint stated that Fortnite’s confusing button configuration …

Education technology provider Chegg Inc. FTC order for its lax data security practices

The Federal Trade Commission (FTC) has finalized its order with education technology provider Chegg Inc. for its lax data security practices. Chegg failed to protect sensitive information, resulting in four data breaches that exposed the personal data of about 40 million users and employees. The order requires Chegg to implement a comprehensive information security program, …