Chapter 3: Regulatory Enforcement Flashcards
Agency that handles unfair and deceptive trade practices
FTC
Consent decree
Formal agreement between the government and a company on how they will behave
FTC complaint process
Investigation
Complaint
Resolution or Administrative Law court appeal
Federal court appeal
Factors in determining unfair practices
Injures consumer
Violates public policy
Unethical or unscrupulous
Criteria for determining unfair practices
Substantial injury
Injury not outweighed by benefits
Injury must not be reasonably avoidable by consumers
FTC vs. Wyndham Worldwide
Did not live up to their privacy policy with the security investments
FTC vs. LabMD
2016
Inufficient cybersecurity practices
FTC vs. LifeLock
2010
Deceptive advertising
Also must implement stronger security controls
First LifeLock fine
$12 million
Second Lifelock fine
2019
$100 Million
FTC vs. DesignerWare
2012
Spyware and keystroke logger
Order to stop doing this
Deceptive practices
Likely to mislead consumers
Perspective of reasonable consumer(s)
Pracrice is material
Geocities deceptive practices
Sold customer info after saying they wouldn’t
Eli Lilly deceptive practices
Collected patient info and then sent patient identities to all other patients
Nomi deceptive practices
Used sensors to track customers mobile devices without their consent
Snapchat deceptive practices
Told customers that messages and pictures disappeared forever but knew there were workarounds