New York SBDC Research Network

https://www.ftc.gov/news-events/press-releases/2020/05/ftc-sba-warn-operator-sbacom-lead-generator-lendio-stop?utm_source=govdeliveryThere is a great deal of information floating around at the moment about relief programs for small business owners and it can be difficult to know what information to trust. In this case, the SBA and the FTC sent warning letters to ITMedia Solutions and Lendio because their sites could confuse small business owners seeking funding under the Paycheck Protection Program (PPP) and other SBA programs.  You can read the full press release here: FTC and SBA Warn Operator of SBA.com and Lead Generator Lendio to Stop Potentially Misleading Coronavirus Relief Loan Marketing The letters warn the recipients to take immediate action to ensure all deceptive claims are removed and to remediate any harm to small business consumers as a result of the claims. The letters also instruct the recipients to notify the FTC within 48 hours about the specific acti...

From FTC.gov Yesterday, the Federal Trade Commission, jointly with the offices of eight state Attorneys General, the New York Division of the U.S. Postal Inspection Service, two U.S. Attorneys’ Offices and the Better Business Bureau (BBB), announced the results of Operation Main Street: Stopping Small Business Scams, a law enforcement initiative targeting operations seeking to defraud small businesses, and an education outreach effort to help small businesses protect themselves from fraud. Operation Main Street - Stopping Small Business Scams (24 Law enforcement actions nationwide; 12 Partners in law enforcement, including the FTC, brought these federal and state actions; 6+ Types of scams - including unordered merchandise, business directories, fake invoices, and imposters - collected more than $290 million from businesses in these cases) - Go to ftc.gov/smallbusiness.The agencies are announcing a total of 24 actions involving defendants who allegedly perpetrated scams against sm...

Obtained From:   Federal Trade Comission The Federal Trade Commission has charged a business opportunity scheme with falsely claiming that people who buy the defendants’ expensive  “Amazing Wealth System”  will learn “secrets for making money on Amazon” and likely earn thousands of dollars a month. According to the FTC, the defendants, who have no affiliation with Amazon.com, have made false or unsubstantiated earnings claims, such as, “Get started on Amazon and Make $5,000-$10,000 in the next 30 days. . . even if you have never sold anything online before.”  They charge from $995 to more than $35,000 for a purported exclusive “plug-and-play system” that allows consumers to create a profitable online business selling products on Amazon.com. Contrary to the defendants’ promises, most, if not virtually all, purchasers do not earn the advertised income. Many of the strategies and techniques included in the “system,” such as posting fake product reviews, are dec...

Obtained from: eMarketer It’s been called a fad, a bubble, a waste of money. But influencer marketing will remain immensely popular in 2018, and it’s important to put the discussion of disclosure in the context of just how important the tactic has become—not just for the usual suspects (marketers of fashion, beauty and gaming products) but increasingly for marketers in other categories. Marketers and influencers that don’t disclose put themselves at risk for Federal Trade Commission (FTC) scrutiny and consumer backlash, both of which are rising.

At the Federal Trade Commission’s request, a federal court has temporarily halted an operation that took more than $14 million from consumers seeking to start their own online business. The operation misrepresented that its purported business coaching program would enable consumers to earn substantial income, such as “six figures  in 90 days  or less.” According to the FTC,  the defendants induced consumers to pay  for a series of tiered memberships with increasing fees, falsely claiming that consumers would learn how to make substantial income with an online business. They promised consumers they would receive individualized coaching from successful marketers that would provide what they needed to build a successful business, but, in reality, these were merely salespeople selling higher membership levels in the defendants’ program. The defendants promoted their scheme via webpages and social media platforms, including Facebook and Instagram, and offered thei...

From the Federal Trade Commission Attacks can be especially devastating to small businesses; Agency provides information on how they can protect themselves At the direction of Acting Chairman Maureen Ohlhausen, the Federal Trade Commission has launched a new website –  ftc.gov/SmallBusiness  – with articles, videos, and other information aimed at helping small business owners avoid scams and protect their computers and networks from cyberattacks and other threats. “Small businesses are critical to our economic strength, building America's future, and helping the United States compete in today's global marketplace,” Acting Chairman Ohlhausen said. “This innovative new website is a one-stop shop where small businesses can find information to protect themselves from scammers and hackers, as well as resources they can use if they are hit with a cyberattack.” According to the  U.S.Small Business Administration (SBA) , there are more than 28 million small businesses nation...

From the FTC : Justin Ramsey permanently banned from robocalling individuals, calling numbers on the Do Not Call Registry The FTC has obtained a settlement order with Justin Ramsey, the ringleader of telemarketing operations that blasted illegal robocalls to consumers and called phone numbers listed on the National Do Not Call (DNC) Registry. The order bans Ramsey and his company, Prime Marketing LLC from placing robocalls to individuals to sell goods or services, initiating sales calls to numbers listed on the DNC Registry, and selling data lists containing phone numbers listed on the Registry. This settlement resolves the Federal Trade Commission’s charges against Ramsey. Ramsey and Prime Marketing also agreed to a $2.2 million civil penalty, which will be suspended upon payment of $65,000. The full judgment will become due if they are later found to have misrepresented their financial condition. According to the  FTC’s January 2017 complaint, in 2012 and 2013 Ramsey and sever...

From the Federal Trade Commission : “Free” and “risk-free” trials come with hidden charges The Federal Trade Commission has charged a group of online marketers with deceptively luring consumers with “free” and “risk-free” trials for cooking gadgets, golf equipment, and access to related online subscription services. According to the FTC, the defendants asked people for their credit card information to cover shipping and handling, and then charged them for products and services without their consent. The FTC’s complaint alleges that Brian Bernheim, Joshua Bernheim, Jared Coates, Robert Koch AAFE Products Corp., JBE International LLC, BSDC Inc., KADC Inc., Purestrike Inc., and BNRI Corp., formerly known as Bernheim and Rice Inc., violated the FTC Act and the Restore Online Shoppers’ Confidence Act. According to the complaint, the defendants’ websites, TV infomercials and email deceived consumers by prominently claiming that their products and services were free, without clearly d...

From the Federal Trade Commission : Think consumers are the only ones harmed by phishing scams? It’s not just a problem for computer users but also for the businesses that the scammers are impersonating. And people who have been scammed may look to the business that was impersonated for help. The Federal Trade Commission has long provided  advice  to consumers about steps they can take to avoid phishing scams. The FTC has  released tips and a video  for businesses on how to respond if they are impersonated as part of a phishing scam. Among the steps businesses should take include notifying customers as soon as possible through social media, email or letters; contacting law enforcement; providing resources for affected consumers; and reviewing the company’s security practices. The Federal Trade Commission works to  promote competition  and  protect and educate consumers . You can  learn more about consumer topics  and file a  consumer c...

From eMarketer : Influencers are taking an increasingly large chunk of the digital ad market, and many individuals with hefty, engaged social media followings are charging top dollar to work with brands to spread the word about their products and services. Guidelines from the Federal Trade Commission (FTC) require sponsored posts on social media to be tagged as ads. However, influencers and content marketers have very different levels of awareness about these guidelines, according to a survey conducted by Lightspeed GMI and Research Now for Izea. The study found that six out of 10 US influencers polled in September 2016 said they’re aware of or understand the guidelines, and another 23% said they’re aware of or at least somewhat familiar with them. Only 11% of marketers reported being aware of or having an understanding of these guidelines, while 23% said they’re “somewhat familiar.”

Following its September workshop on  Ransomware  – malicious software that denies access to computer files until the victim pays a ransom – the Federal Trade Commission is offering tips on how consumers and businesses can protect devices and respond to ransomware. The FTC offers  How to defend against ransomware  to help consumers. Businesses can find guidance in  Ransomware – A closer look  and the accompanying video,  Defend against Ransomware . From Ransomware - A closer look: Ransomware is a form of malicious software that infiltrates computer systems or networks and uses tools like encryption to deny access or hold data “hostage” until the victim pays a ransom, frequently demanding payment in Bitcoin. In the typical case, the criminals demand between $500 to $1,000, but some have demanded as much as $30,000. Panelists described a wide variety of ransomware variants. For instance, some hackers will delete the victim’s files if payment isn’t ma...

From the FTC : The Federal Trade Commission wants businesses to know about important Telemarketing Sales Rule (TSR) amendments that are now in effect. These changes make it unlawful for telemarketers to use three types of payment methods exploited by con artists and scammers. As of this month, it is illegal for telemarketers to ask consumers to pay for goods or services using cash-to-cash money transfers, such as MoneyGram and Western Union provide, or by providing PIN numbers from cash reload cards such as MoneyPak, Vanilla Reload or Reloadit packs. It also is illegal for telemarketers to use unsigned checks called “remotely created payment orders” to withdraw money directly from consumers’ bank accounts. As detailed in a press release issued in November 2015 , the FTC finalized the payment method bans amendments to the TSR late last year.  Business guidance about the new bans  is available.  New guidance warns consumers  that any telemarketer requesting payme...

The Federal Trade Commission has charged a Florida man and his company with bilking at least $1.3 million from newly-opened small businesses by pretending to be a federal government agency, and threatening that the business will be shut down or fined unless they purchase occupational safety and other government regulation posters for their premises. At the FTC’s request, a federal court has temporarily halted the operation. The agency seeks to permanently stop the alleged illegal practices and obtain refunds for the victimized businesses. According to the FTC’s complaint , the defendants call business owners, pretending to be the Occupational Safety and Health Administration or some other agency. Using names that sound like government agencies, such as “Occupational Safety and Compliance Administration,” “US Corporate Compliance Office” and “Occupational Compliance and Safety Administration,” defendants tell the businesses that they are not complying with federal law and that the g...

From the Federal Trade Commission : Your phone rings. You recognize the number, but when you pick up, it’s someone else. What’s the deal? Scammers are using fake caller ID information to trick you into thinking they are someone local, someone you trust – like a government agency or police department, or a company you do business with – like your bank or cable provider. The practice is called caller ID spoofing, and scammers don’t care whose phone number they use. One scammer recently used the phone number of an FTC employee. Don’t rely on caller ID to verify who’s calling. It can be nearly impossible to tell whether the caller ID information is real. Here are a few tips for handling these calls: If you get a strange call from the government, hang up. If you want to check it out, visit the official (.gov) website for contact information. Government employees won’t call out of the blue to demand money or account information. Don’t give out — or confirm — your personal or financial inf...

At the Federal Trade Commission’s request, a  federal court has banned Robert Ray Law and his company, CPU Service Incorporated (CPU)  from sending unsolicited direct mail to advertise or promote goods or services, imposed a judgment of almost $400,000, and required them to immediately pay $45,000. In July 2014, the FTC charged Law and Your Yellow Book Inc. (YYB)  with using bogus invoices to trick small businesses, doctors’ offices, retirement homes, and religious schools into paying for unordered online business directory listings.  In December 2014, a final order banned them from the directory business  and prohibited them from misrepresenting that consumers owe money for a good or service. According to FTC, Law created CPU to run a virtually identical scam, faxing fake invoices to nearly 150,000 small businesses across the country seeking payment for online computer support and consulting. As a result, in August 2015, the FTC asked the court to hold...

The Federal Trade Commission has completed its review of the Interpretations, Rules, and Guides under the Magnuson-Moss Warranty Act and will keep them in their present form, with certain changes to the Interpretations as set forth in a Federal Register Notice (FRN) to be published shortly. In 2011, as part of its  systematic review of all current FTC rules and guides , the FTC sought public comments on its Interpretations, Rules, and Guides regarding product warranties under the Warranty Act, which became law in 1975. The Interpretations provide the Commission’s views on terms and provisions in the Act; the Guides help advertisers avoid unfair or deceptive practices; and the Rules specify disclosure requirements, require that warranty information be available before purchase, and set standards for any informal dispute settlement provisions in a warranty.

Thanks to emails and calls from people who sensed something wasn't right, the Federal Trade Commission has heard that an FTC imposter scam it's written about before is back. The email tells you there’s a complaint against your business, and wants you to click on a link. Here’s what one of the scammy emails said: “This notification has been automatically sent to you because we have received a consumer complaint, claiming that your company is violating the CCPA (Consumer Credit Protection Act).According to our policy, we have initiated a formal investigation before taking legal action. You can download the document containing the complaint and the plaintiff contact information, from...” followed by a link. At first glance, it might look legitimate. It has the FTC seal, the email appears to come from an FTC email address, and the web address looks like it goes to an FTC site. But if you hover over the web address, you’ll see the link actually sends you somewhere else. If...

In a letter to the court-appointed consumer privacy ombudsman in the bankruptcy case of the electronics retailer RadioShack, Federal Trade Commission Consumer Protection Director Jessica Rich recommended conditions the court could place on the sale of consumers’ personal information to protect their privacy. According to the letter, substantial amounts of personal data collected by RadioShack, including consumers’ names, addresses, e-mail addresses, and purchase histories, are among the assets being put up for auction to settle the bankruptcy. Documents indicate information from tens of millions of consumers may be among the assets for sale. In the letter, Rich points to the extensive privacy promises that RadioShack made to consumers both online and in its stores – including promises not to sell consumers’ information or the company’s mailing lists.  She notes the  FTC’s previous intervention in the bankruptcy of online retailer Toysmart , which sought to sell its cust...

Can you spot a government imposter? Even if your phone’s caller ID says “FTC” or “IRS,” or shows Washington, DC’s “202” area code, it could still be a scam. Scammers know how to show fake information on caller ID. The Federal Trade Commission is warning consumers about scammers who pretend they’re with the government to scare you into sending money. They say you  owe taxes  or some other debt, and tell you to put money on a prepaid debit card and tell them the number — something no government agency would ask you to do.

The Federal Trade Commission is warning small businesses that an email with a subject line "Pending consumer complaint" is not from the FTC. The email falsely states that a complaint has been filed with the agency against their company. The FTC advises recipients not to click on any of the links or attachments with the email. Clicking on the links may install a virus or other spyware on the computer. The FTC’s advice: Delete the email. For more information on malicious software (malware), visit www.OnGuardOnline.gov/malware .