Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC seeks comment on consumer fraud susceptibility study, (Aug 5, 2013)

By Tobias J. Gillett, J.D., LL.M.

The FTC is seeking public comment on its proposal to conduct an exploratory study on consumer susceptibility to fraudulent and deceptive marketing in order to inform its mission of combating unfair and deceptive trade practices, the agency has announced.

The FTC believes the study will permit it to “better inform the FTC’s ongoing efforts to fight fraud through law enforcement and consumer education,” “to improve its consumer education materials to address specific vulnerabilities,” to “more efficiently target [its] education materials to particularly vulnerable populations,” and to “adapt disclosures to address critical vulnerabilities that lead to fraud victimization.”

The study will involve an online survey of 5,000 consumers who would agree to participate in a private survey firm’s panel. The study will incorporate two ads for each of three types of products, with one ad for each product containing “implausible and likely fraudulent” claims, and the other containing “only plausible claims.” Each participant will be shown one ad for each of two of the three products, at least one of which will be an ad containing fraudulent claims, and will be asked how likely they would be to purchase the product or recommend it to a friend. They will also be asked whether they have previously been a victim of certain kinds of frauds, including weight-loss, business-opportunity, or work-at-home scams, related to the content of the advertisements evaluated in the survey. The survey will also collect information concerning the participants’ personal characteristics and behavior, including willingness to take risks, degree of skepticism of advertising claims, and interest in the products that were the subject of the advertisements.

Comments must be submitted on or before September 3, 2013, and can be filed online at https://public.commentworks.com/ftc/fraudinternetpanelstudypra2, or through the mail by writing “Fraud Susceptibility Internet Panel Study, FTC File No. P095500” on the comment and the envelope, and delivering it to Federal Trade Commission, Office of the Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW., Washington, D.C. 20580.

News: ConsumerProtection FederalTradeCommissionNews