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Note:This website is where you can find advertising law information based on archived news briefs from past issues of Advertising Compliance Service. These archived advertising law-related news briefs were published in Advertising Compliance Service in June 2004.

 

 

 

 


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FTC SEEKS COMMENTS ON PROPOSED REGULATION TO LIMIT MARKETING SOLICITATIONS FROM AFFILIATES

FTC is seeking public comment on proposed regulations that would give consumers the chance to "opt out" before a company uses certain information provided by an affiliate to market its products or services to the consumer.

The proposed rulemaking would implement the affiliate marketing provisions in section 214 of the Fair and Accurate Credit Transactions Act (FACTA), which adds a new section 624 to the Fair Credit Reporting Act (FCRA).

After being published in the Federal Register, your comments can be filed electronically at http://www.regulations.gov. Commentors should select "Federal Trade Commission" at "Search for Open Regulations," locate the summary of this notice, click on "Submit a Comment on this Regulation," and complete the form.

Your comments must be received by July 20, 2004.

(The Fair and Accurate Credit Transactions Act of 2003: 16 C.F.R. Part 680: The Use of Information By Affiliated Companies for Marketing Solicitations: Proposed Rule and Request for Comment, FTC File No. R411006, June 10, 2004.)

FTC HALTS ALLEGEDLY FRAUDULENT DO NOT CALL "SERVICE"

FTC announced a stipulated final court order effectively shutting down a "scheme" in which a company allegedly defrauded consumers nationwide by offering a $399 "service" to safeguard their personal financial information from unscrupulous telemarketers. The defendants allegedly told consumers that their information--including their social security and bank account numbers--was for sale on a large number of telemarketing lists. The defendants allegedly told consumers that a $399 call screening device could help them avoid becoming victims of identity theft. Most consumers received little more than a $34.95 call-screening device that they could have bought themselves at many retail locations.

The stipulated court order bars defendants from making similar false representations to consumers about their financial information, and from billing them or debiting their accounts without their prior authorization.

NOTE: The Commission issues or files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the named parties have violated the law.

(FTC v. Vector Direct Marketing, LLC, et al., U. S. District Court for the District of Arizona at Phoenix, Case No. CV 04 0095 PHX SMM, FTC File No. X040027; Civ. No. CV04 0095 PHX SMM, June 29, 2004.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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