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A federal judge blocked Tapestry's acquisition of Capri on Thursday following a brief trial last month in New York. Representatives for Tapestry and Capri didn't immediately return requests for comment. The decision will ensure that Tapestry and Capri continue to engage in head-to-head competition to the benefit of the American public." The decision comes as consumers balk at high prices for food, apparel and other goods after years of elevated inflation. Lawyers for Tapestry and Capri argued the companies are not each other's main competitors.
Persons: Jennifer Rochon, Kate Spade, Stuart Weitzman, Capri's Versace, Jimmy Choo, Michael Kors, Capri's, didn't, Henry Liu, Biden, Kamala Harris, Lina Khan, Capri, , Melissa Repko Organizations: Federal, Tapestry, Federal Trade Commission, FTC, Competition, Democratic Locations: Capri, New York, FTC's
The Federal Trade Commission on Friday sued three large U.S. health companies that negotiate insulin prices, arguing the drug middlemen use practices that boost their profits while "artificially" inflating costs for patients. It comes three days after Express Scripts sued the FTC, demanding that the agency retract its allegedly "defamatory" July report that claimed that the PBM industry is hiking drug prices. It also alleges that PBMs favor those high-list-price insulins even when more affordable insulins with lower list prices become available. President Joe Biden's signature Inflation Reduction Act has capped insulin prices for Medicare beneficiaries at $35 per month. The FTC said it remains "deeply troubled" by the role insulin manufacturers play in higher list prices, arguing that they inflate prices in response to PBMs' demands for higher rebates.
Persons: Lina Khan, UnitedHealth, drugmakers Eli Lilly, Caremark, PBMs, Rahul Rao, Rao, Joe Biden's, Biden, Eli Lilly, Eli Lilly's Organizations: Federal Trade Commission, CVS, Cigna's, FTC, Sanofi, Novo Nordisk, Express, Competition Locations: Rayburn, Washington ,, U.S, drugmakers, FTC's
Facial recognition frequently misidentifies people of colorMIT Media Lab researcher Joy Buolamwini found that facial recognition technology misidentified black women up to 35% of the time, the New York Times reported in 2018. When fewer photos of people from other racial and gender groups are used, facial recognition tech is less accurate at identifying people of those backgrounds, the study said. In some cases, it's possible to opt out of using facial recognition technology — and its high error rate. But sidestepping facial recognition often isn't possible, said Gideon Christian, a law professor at the University of Calgary who has written about the legal and societal aspects of facial recognition technology. AdvertisementThe FTC banned Rite Aid from using facial recognition technology in stores for five years as a result.
Persons: , Spark, Joy Buolamwini, shoplifters haven't, Gideon Christian, Samuel Levine, Christian Organizations: Service, TSA, Business, MIT Media, New York Times, MIT Technology Review, Walmart, CBP, University of Calgary, FTC, FTC's, Consumer Protection, Rite Aid Locations: India
The FTC filed a lawsuit against H&R Block over what the commission called deceptive advertising. AdvertisementSo-called "free" online tax filing services like Intuit's TurboTax and H&R Block's Online Filing option have, for a long time, not actually been free for many Americans. The consumer protection agency filed a complaint against H&R Block last week, accusing the company of deceptive advertising and unfairly deleting users' tax data. A 2019 ProPublica investigation found Intuit and H&R Block's practices — including hiding their free filing options from Google search — are part of a decadeslong lobbying effort by the companies to keep tax filing services complicated. It was partially because of those lobbying efforts that the IRS did not roll out its own online free tax filing pilot until last year.
Persons: , Samuel Levine, Levine, Dara Redler, Derrick L, Plummer Organizations: FTC, H, Intuit, Service, Consumer, Business, NPR, Google, IRS Locations: FTC's
"Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating." Kroger said in a statement that blocking the deal "will actually harm the very people the FTC purports to serve: America's consumers and workers." The company also pledged $500 million to reduce prices for customers and $1 billion to raise employee wages and expand benefits. Two unions that represent Kroger and Albertsons employees, the United Food and Commercial Workers International Union and the Teamsters union, opposed the deal. Higher grocery prices have irked consumers and become a hot topic on the campaign trail.
Persons: Henry Liu, Kroger, Albertsons, Biden, Joe Biden, Rodney McMullen Organizations: U.S . Federal Trade Commission, Kroger, Albertsons, FTC, Washington D.C, Walmart, Amazon, Costco, White, United Food, Commercial Workers International Union, Teamsters Locations: Arizona , California, Washington, , Illinois, Maryland , Nevada , New Mexico , Oregon, Wyoming, FTC's
An H & R Block tax preparation office is seen on Flatbush Avenue on February 06, 2024 in the Prospect Heights neighborhood of Brooklyn borough in New York City. H&R Block marketed free products to many consumers who didn't qualify and made it difficult to downgrade, according to the complaint. "H&R Block allows consumers to downgrade to a less expensive DIY product via multiple mechanisms while ensuring the preparation of accurate tax returns." FTC banned 'deceptive advertising' from IntuitThis is the second FTC action against tax filing software providers in recent history. Other free tax filing optionsMeanwhile, consumers have several free tax filing options this season, including a Direct File pilot via the IRS, which will offer limited free filing for certain taxpayers in 12 states by mid-March.
Persons: Michael M, Samuel Levine, Dara Redler, Ed Mierzwinski, PIRG Organizations: Santiago, Getty, Intuit, Federal Trade Commission, Block, Consumer Protection, U.S . Public Interest Research, FTC, IRS Locations: Flatbush, Prospect Heights, Brooklyn, New York City, FTC's
WASHINGTON — The Federal Trade Commission on Friday announced that it fined Kubota, one of the world's largest tractor manufacturing companies, $2 million for mislabeling some of its replacement parts as "Made in the USA." "Today's settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule," said Samuel Levine, director of the FTC's Bureau of Consumer Protection. "The FTC will continue cracking down on deceptive Made in USA claims that cheat consumers and honest businesses." Kubota said in a statement that it "cooperated fully with the FTC" and is voluntarily addressing its concerns. "All parts in this matter sold to customers since 2021 were produced by approved Kubota suppliers, and Kubota continues to stand behind these parts as 'Kubota Genuine Parts,'" the company said.
Persons: WASHINGTON, Kubota, Samuel Levine, Ran Reske Organizations: Federal Trade Commission, Consumer, FTC, Kubota North America Corporation, U.S, Established, Dallas Morning News Locations: USA, FTC's, Dallas, U.S, Japan, Southern California
Sollers will cancel $3.4 million in student debt for those who entered income-share agreements. The FTC said the school lied about job placement rates and employer partnerships. "Today's order cancels all income-share agreements issued by the school." This is not the first time a federal agency has raised red flags over income-share agreements. The Consumer Financial Protection Bureau recently sued career bootcamp Prehired, accusing it of misrepresenting the nature of its income-share agreements with students.
Persons: Sollers, , Joe Biden's, New Jersey —, Samuel Levine, Weill, Weill Cornell Medicine —, Aerotek, bootcamp Prehired, Prehired Organizations: FTC, Service, Federal Trade Commission, Sollers, Consumer, Sollers College, The Federal Trade Commission, Weill Cornell Medicine, Consumer Financial Protection Locations: New Jersey, FTC's, Sollers
"Americans across the country were put at risk of wrongful housing denials because TransUnion failed to follow the law," Consumer Financial Protection Bureau Director Rohit Chopra said. "We are ordering TransUnion to cease its yearslong illegal activity, clean up its broken business practices, redress its victims, and pay penalties." Under the proposed order, which is pending approval by a federal court, $11 million of a $15 million settlement will compensate consumers and $4 million will go to the CFPB's civil penalty fund. The firm also said it has worked with the CFPB and FTC over the past year "to enhance our rental-screening reporting practices, including making certain changes to how eviction records are reported." The CFPB and FTC further argued that tenants who can't access vendors that keep criminal and eviction records face challenges in correcting inaccurate background data.
Persons: TransUnion, Rohit Chopra, CFPB, TURSS, Samuel Levine Organizations: San Francisco , California ., San Francisco , California . WASHINGTON —, Trans, Financial, Federal Trade Commission, Inc, CNBC, Consumers, Consumer Protection Locations: San Francisco , California, San Francisco , California . WASHINGTON, Colorado, FTC's
[1/2] A screen displays the logo for Black Knight on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 4, 2022. REUTERS/Brendan McDermid Acquire Licensing RightsAug 31 (Reuters) - The U.S. Federal Trade Commission (FTC) on Thursday said it had secured a settlement resolving antitrust concerns over NYSE-owner Intercontinental Exchange's (ICE.N) proposed purchase of data vendor Black Knight (BKI.N). The proposed settlement ensures Black Knight's divestiture of Empower and Optimal Blue, two businesses that provide services in the mortgage origination process, the FTC said. Black Knight said in mid-July it would sell its Optimal Blue business for $700 million. Optimal Blue provides data and technology to price and trade mortgages.
Persons: Knight, Brendan McDermid, Henry Liu, Joe Biden, Jasper Ward, David Ljunggren, Cynthia Osterman, Bill Berkrot Organizations: New York Stock Exchange, REUTERS, U.S . Federal Trade Commission, NYSE, Intercontinental, FTC, Competition, Constellation Software, Constellation Web Solutions, ICE, Thomson Locations: New York City, U.S, FTC's
The FTC accused two companies of scamming student-loan borrowers out of $8.8 million. The FTC said they pocketed "illegal" fees for debt relief services that are normally free. A federal court halted the operations of the companies last week, and it will determine whether they violated the law. Biden's administration has previously warned borrowers to keep an eye out for scams, especially with confusion surrounding the debt relief conversation. Nearly a year ago, the Education Department announced up to $20,000 in debt relief for federal borrowers.
Persons: Joe Biden's, Samuel Levine, Pell Grant Organizations: FTC, Service, Federal Trade Commission, Intercontinental Solutions, Joe Biden's Education Department, Education Department, FTC's Bureau, Consumer Locations: Wall, Silicon
The Federal Trade Commission on Friday proposed a new rule that seeks to ban fake online reviews, marking its most aggressive step yet to thwart review fraud. Fake reviews and review abuse have been a persistent issue for online platforms such as Amazon , Google and Yelp . Bad actors often rely on fake reviews to boost their products in search results and drive more sales. Amazon, which has struggled to combat fake reviews on its third-party marketplace, has increasingly gone after fake review brokers and Facebook group administrators in court. The agency has filed several other cases in recent years against companies that used fake reviews to sell products online, and blocked their users from leaving negative reviews.
Persons: Samuel Levine Organizations: Federal Trade Commission, Consumer Protection, Google, Facebook, FTC, Bountiful, CNBC Locations: FTC's
The Publishers Clearing House offices in Jericho, New York on Jan. 30, 2019. Bill Perlman/Newsday RM via Getty Images)How 'dark patterns' can trap consumersSara Adair shows off the oversized check for $1 million her husband Mark received from the Publishers Clearing House Prize Patrol in South Boston, Massachusetts, on April 1, 2022. Dark patterns are a "manipulative" and unlawful design trick, examples of which include pre-checked boxes, hard to find and read disclosures, and confusing cancellation policies, the FTC said. When it included disclaimers or clarifying information, the text was in small, light font and overlooked by consumers, the FTC claimed. In addition to sweepstakes, PCH also sells merchandise and magazines.
Persons: Bill Perlman, Sara Adair, Mark, Craig F, Walker, Samuel Levine, PCH Organizations: Clearing, Newsday, Getty, Publishers, Boston Globe, FTC, Amazon, Consumer, Firms Locations: Jericho , New York, South Boston , Massachusetts, FTC's
From big-box chains Walmart (WMT.N) and Best Buy (BBY.N) to specialty retailers like Savage X Fenty and Adore Me, retailers' subscription programs are facing growing scrutiny. Amazon is under fire from the U.S. Federal Trade Commission, which filed a lawsuit against it in Seattle. Amazon "substantially revamped its Prime cancellation process" to some customers before the lawsuit was filed, according to the complaint. He withdrew the lawsuit, according to the court docket. Best Buy in 2021 launched a subscription program offering tech support and discounts on products.
Persons: Amazon, William Kovacic, Kathleen Benway, SAVAGE, Savage X, Savage, Ranjan Roy, Me's, Morgan Stanley, Spencer Sheehan, Arriana McLymore, Kate Masters, Siddharth Cavale, Muralikumar Organizations: YORK, Amazon.com Inc, Euromonitor Inc, U.S . Federal Trade Commission, FTC, Amazon, George Washington University Law School, FTC's, Consumer, WALMART, BEST, Walmart, Thomson Locations: Seattle, United States, U.S, Europe, California, Michigan, New York City
The FTC accused Arete Financial Group of scamming student-loan borrowers out of $3.3 million. Specifically, the FTC said the group promised debt relief but instead pocketed consumers' payments. Last week, the Federal Trade Commission announced that it is sending checks totaling over $3.3 million to 37,800 student-loan borrowers who gave money to Arete Financial Group, a debt-relief company. According to the FTC's press release, Arete Financial pretended to be affiliated with the Education Department and "falsely" promised borrowers debt relief, but instead, "pocketed customers' payments and never provided the promised relief." "These lawsuits to shut down student loan debt relief schemes continue the agency's crackdown on junk fees, unwanted calls, and financial exploitation."
Persons: , Arete, Joe Biden's, Samuel Levine Organizations: FTC, Arete, Service, Federal Trade Commission, Arete Financial, Education Department, Administration, White House and Education Department, Consumer Financial, Bureau, FTC's Bureau, Consumer
WASHINGTON, June 5 (Reuters) - Microsoft (MSFT.O) will pay $20 million to settle U.S. Federal Trade Commission (FTC) charges that the tech company illegally collected personal information from children without their parents' consent, the FTC said on Monday. The order requires Microsoft to take steps to improve privacy protections for child users of its Xbox system. It will extend COPPA protections to third-party gaming publishers with whom Microsoft shares children's data, the FTC said. "Our proposed order makes it easier for parents to protect their children's privacy on Xbox, and limits what information Microsoft can collect and retain about kids," said Samuel Levine, director of the FTC's Bureau of Consumer Protection. The law requires online services and websites directed to children under 13 to notify parents about the personal information they collect and to obtain verifiable parental consent before collecting and using any personal information collected from children.
Persons: Samuel Levine, Levine, Kanishka Singh, Jacqueline Wong, Sonali Paul Organizations: Microsoft, Federal Trade Commission, Children's, FTC, Consumer, COPPA, Thomson Locations: FTC's, Washington
It also revealed new details about incidents of Ring employees and contractors spying on customers. The FTC complaint revealed that in between June and August 2017, a male Ring employee viewed "thousands" of videos captured on Ring cameras belonging to "at least 81" women, including Ring customers and employees. More than 55,000 hack victimsPrior to the publication of Wednesday's complaint, public knowledge about Ring employees spying on customers has been known, but vague. The complaint also reveals how many people were the victims of a series of 2019 hacks, which targeted Ring customers in several high profile incidents. Between January 2019 and March 2020, the FTC said in its Wednesday complaint, "more than 55,000 U.S. customers" were the victims of hackers targeting Ring accounts.
Persons: Yarger, Ring, Elisa Jillson, Jillson Organizations: FTC, Morning, Federal Trade Commission, FTC's, Consumer Locations: Ukraine, U.S, Washington ,
The FTC said two companies cheated student-loan borrowers out of $12 million. It accused the companies of lying about repayment programs and debt relief that did not exist. "As Americans struggle with massive student loan debt and uncertainty around the prospect of forgiveness, scammers are looking to cash in," Samuel Levine, Director of FTC's Bureau of Consumer Protection, said in a statement. "These lawsuits to shut down student loan debt relief schemes continue the agency's crackdown on junk fees, unwanted calls, and financial exploitation." Along with the FTC's latest action, the Consumer Financial Protection Bureau has also cracked down on fraudulent behavior targeting student-loan borrowers over the past months.
The FTC said Wednesday that Meta violated a 2020 privacy agreement with practices around its Messenger Kids app. Meta called the proposed changes to the 2020 order "a political stunt" and said the company plans to fight the changes. The initial 2020 order led to a $5 billion settlement with Facebook and called for an expanded privacy program. The agency claimed Meta misled parents about their ability to control who children communicate with through Messenger Kids, as some were able to talk to unapproved contacts through group messages. A group of childcare experts and advocates said in 2018 that the Messenger Kids app was satisfying a nonexistent need, and instead trying to "target" younger children who likely do not yet have other social media, according to The Associated Press.
FTC proposes ban on Meta profiting from minors' data
  + stars: | 2023-05-03 | by ( ) www.reuters.com   time to read: +3 min
The FTC's proposed changes include barring Facebook from making money off data collected on users under age 18, including in its virtual reality business. Meta, which also owns Instagram, relies on digital ads targeted on the basis of its users' personal data for more than 98% of its revenue. In a statement, Meta said the FTC action was "a political stunt" and that the FTC failed to act against "Chinese companies, like TikTok." Williamson said that some 5.2% of Facebook's monthly U.S. users are under 18, along with 12.6% of Instagram users. Separately, the FTC sued to stop Meta from buying the virtual reality content maker Within Unlimited but lost in court.
The U.K. Competition and Markets Authority's decision to block Microsoft's proposed acquisition of "Call of Duty" maker Activision means the U.S. does not need to stand alone in its challenge of the massive $69 billion deal. In the latest hurdle for the deal, the CMA argued the acquisition threatens to hurt competition in the nascent cloud gaming market. But it did not challenge potential competition concerns in console gaming, after saying last month that evidence from industry participants convinced the agency that the transaction wouldn't harm competition in that particular market. The FTC claimed the proposed acquisition would likely reduce competition or create monopolies in markets for gaming subscription services, cloud gaming and high-performance consoles. WATCH: Microsoft-Activision deal collapse a 'discouraging' move for Big Tech, says former FTC commissioner
Funeral homes must provide pricing information in person and over the phone under federal regulation. Now, the Federal Trade Commission is looking to broaden transparency for funeral pricing. The Federal Trade Commission is considering an update to a federal rule that forces funeral homes to disclose prices in person and over the phone, the New York Times reported. "People are at their most vulnerable when they're grieving," Lina M. Khan, chair of the Federal Trade Commission, told the Times. According to the FTC, less than a quarter of all funeral homes provide full price lists on their websites, and many provide little to no pricing information.
The FTC announced a settlement with BetterHelp over allegations of sharing user data with third parties. BetterHelp will be banned from sharing the data with outside parties for advertising, and pay $7.8 million in partial refunds. Users who signed up from August 2017 through 2020 may have had their data improperly shared, per the FTC. He continued: "Instead, BetterHelp betrayed consumers' most personal health information for profit. The company was similarly banned from sharing the health information of its users with advertisers, and agreed to pay a $1.5 million fine.
ICE's takeover of Black Knight would follow its $11 billion purchase of Ellie Mae, another mortgage software company, in 2020. ICE provided its consent to Black Knight going ahead with the move, the sources added. It could not be learned if Black Knight is carrying out the sale process for Empower in co-ordination with the FTC. Black Knight and Truist did not respond to requests for comment. Holly Vedova, director of the FTC's Bureau of Competition, said in a speech last week, without addressing the Black Knight deal specifically, that the agency was not inclined to approve mergers on the basis of divestitures.
GoodRx pays $1.5 million to settle health privacy allegations
  + stars: | 2023-02-01 | by ( ) www.reuters.com   time to read: +1 min
WASHINGTON, Feb 1 (Reuters) - U.S. healthcare firm GoodRx Holdings (GDRX.O) has agreed to pay $1.5 million to settle allegations that it failed to notify customers that it shared personal health information with Alphabet's (GOOGL.O) Google, Meta's (META.O) Facebook and others, the Federal Trade Commission said on Wednesday. Under the terms of the settlement, GoodRx will be barred from sharing user health data with other companies to use for advertising. "Digital health companies and mobile apps should not cash in on consumer’s extremely sensitive and personally identifiable health information," said Samuel Levine, director of the FTC's Bureau of Consumer Protection, in a statement. The settlement is the first under the FTC's Health Breach Notification Rule, the agency said. GoodRx promised users it would never share health information with advertisers but gave information to Google, Facebook, Criteo and others, the agency said in their complaint.
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