Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC official highlights consumer protection efforts with Attorneys General, (May 20, 2014)

By Greg Hammond, J.D.

Jessica Rich, Director of the FTC’s Bureau of Consumer Protection (BCP), spoke at the National Association of Attorneys General Consumer Protection Conference on May 19, 2014, discussing joint initiatives and her priorities as BCP Director with regard to increasing consumer protection in today’s rapidly changing marketplace.

In her speech, titled “Working Together to Protect Consumers,” Rich began by stating that she would like to increase the FTC’s collaboration with states, noting how previous joint initiatives have been successful in fighting fraud, stopping deceptive advertising, and protecting consumer privacy. In addition, Rich explained how her specific priorities could open up additional areas of collaboration between the FTC and states, as well as how her priorities are designed to track developments in the marketplace.

Current and past joint initiatives. According to Rich, the FTC has and continues to work jointly with states to fight fraud and stop deceptive advertising through: (1) joint investigations and enforcement; (2) education and outreach; (3) sharing consumer complaints; and (4) working jointly through Common Ground events, task forces, and working groups.

Previous joint investigations included topics such as mortgage scams, weight loss scams, resale fraud, and business opportunity schemes, which have led to a number of successful enforcement actions and settlements, including cases like Fortune Hi-Tech Marketing, Inc., LeanSpa, LLC, and Worldwide Info Services, Inc., as well as 191 actions to stop fraudulent timeshare operations. In addition, the FTC and states have led successful consumer outreach and business education co-sponsored events and efforts, such as National Consumer Protection Week, Military Consumer Protection Day, and Co-branding.

The FTC’s Consumer Sentinel database has also been made available to virtually all Attorneys General offices in the U.S., which allows the agency and states to share consumer complaints and learn about new and harmful scams, respond to emerging frauds before they become critical issues, and assist law enforcement in developing evidence. Further, common ground events, which have been steadily utilized since 2010, allow law enforcement and community organizations to discuss common priorities and different perspectives, and plan joint work.

Current BCP priorities. During her speech, Rich set out a number of priorities that she has for the BCP, including: (1) targeting mobile and connected devices fraud and deception; (2) addressing “Big Data” consumer protection issues; (3) protecting vulnerable and targeted consumer groups; and (4) targeting facilitators that enable fraud and deception.

In support of the BCP’s efforts to curb mobile and connected devices fraud and deception, the agency has: created the Mobile Technology Unit to coordinate enforcement, policy, and outreach efforts; utilized workshops and reports to educate the unit and the public about the mobile marketplace; and brought numerous cases challenging violations occurring in the “mobile ecosystem,” such as Apple Inc., Goldenshores Technologies, LLC, and Snapchat, Inc.

Big data is another area of concern, as it could allow for unlimited data collection without a consumer’s knowledge or consent; data breaches of a plethora of consumer information; and uncertainty on whether companies will make inferences regarding consumers that are not accurate. The BCP’s initiatives to address the effects of “big data” on consumers include a three-part “Spring Seminar Series,” which will discuss big data trends and their impact on consumer privacy; a workshop titled “Big Data: A Tool for Inclusion or Exclusion”; a report on data brokers who collect and sell consumer information; and establishing procedures to enforce the Fair Credit Reporting Act.

In addition, the agency is making it a top priority to stop and prevent fraudulent and deceptive practices on targeted groups of consumers, such as Spanish-speakers, seniors, financially-distressed consumers, veterans and service members, and kids. The agency will also target entities that facilitate fraud and deception, such as payment processors, lead generators, telemarketers, robocallers, affiliate marketers, billing aggregators, and others.

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