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Uber will pay $20 million for exaggerating drivers' earnings
In yet another big settlement for the ride-hailing giant, Uber has agreed to pay a $20 million fee to resolve a case with the US Federal Trade Commission. According to the FTC's complaint, Uber intentionally exaggerated drivers' potential income and vehicle financing rates in order to attract new drivers to its platform.
FTC drags D-Link into court for lax router and camera security (Updated)
When you buy a router or other internet-connected device from a company as well known as D-Link, you expect a high standard of security. Many of D-Link's products are advertised with these kind of claims, which is part of the reason the US Federal Trade Commission is suing the company in a California court. In legal action launched yesterday, the FTC has accused D-Link of putting consumers at risk with its lax approach to hardware security.
AT&T will finally refund $88 million in unauthorized charges
Thanks to some shady business dealings between AT&T and a pair of companies known for bloating customers' cell phone bills, roughly 2.7 million current and former AT&T mobile subscribers are getting more than $88 million dollars in refunds from the Federal Trade Commission. The refunds are part of a 2014 settlement in which AT&T was accused of "mobile cramming" -- the practice of tacking unnecessary third-party fees onto your bill without consent -- along with two known cramming companies Tatto and Acquinity.
Why celebrities get away with stealth shilling on Instagram
Kim Kardashian is a social media powerhouse, boasting 72 million followers on Instagram and more than 45 million on Twitter. For celebrities in general, it's never been easier to reach fans across the world, whether it be with a 140-character tweet or a selfie that breaks the internet. Though public figures mostly use these platforms to give outsiders a peek into their glamorous lives (or simply stay relevant), they're also using them to make money.
FTC issues warning to apps covertly monitoring TV broadcasts
It's like the those skeevy flashlight apps all over again. The Federal Trade Commission has sent out a warning to mobile software developers using the Silverpush framework that their applications could be invading the privacy of unknowing consumers. As Fortune notes, Silverfish and others of its ilk are why some apps that don't do anything in terms of voice transmission ask for permission to access your microphone. This alone sounds a bit creepy, but trust me, it gets even more gross.
Meet the FTC's new chief technologist
The US Federal Trade Commission (FTC) has again cocked an eye toward privacy by appointing Lorrie Cranor as chief technologist. Cranor heads Carnegie Mellon University's CyLab Usable Privacy and Security Laboratory (CUPS), and has written over 150 research papers on the topic. The FTC is set up to prevent "fraudulent, deceptive and unfair business practices," so Cranor will advise it on concerns around technology and policy. For starters, she would like companies to simplify their privacy and security practices so that they're easier for the public to grasp. "Companies add more rules, which does not always make websites more secure," she told TribLive.
FTC names its $25,000 counter-robocall contest winner
Despite being banned by the Federal Trade Commission, prerecorded robocalls are still a common hassle for Americans. That could soon change now that the FTC has announced the winner of its $25,000 Robocalls: Humanity Strikes Back contest. The winning team of Ethan Garr and Bryan Moyles developed a mobile app called Robokiller that works a lot like your email's spam folder.
Judge says AT&T can't stop FTC lawsuit over data throttling
AT&T's attempt to turn the tables on the Federal Trade Commission's mobile data throttling lawsuit hasn't exactly worked out as planned. A federal judge has rejected the carrier's claims that it can't be sued because its status as a common carrier for voice, which exempts it from FTC oversight, also applies to data. This exception only applies to the services that they're meant to cover, according to the court -- while the Federal Communications Commission's upcoming net neutrality rules will factor in mobile data, they aren't in effect right now. The judge also says AT&T misrepresented the whole point of the rule. It's intended to prevent overlap between common carrier regulations, not (as the network suggested) regulations as a whole. In short, AT&T will have to deal with the consequences of limiting its unlimited data customers, whether that's a slap on the wrist or a serious change in policy. [Image credit: AP Photo/Mark Lennihan]
FTC launches a research office devoted to tech issues
You may have noticed that a lot of the Federal Trade Commission's regulation revolves around technology, whether it's device privacy or less-than-honest phone carriers. The agency certainly has. It recently created the Office of Technology Research and Investigation, a division that will study everything from connected cars to internet security. It's a much bigger effort than the FTC's previous Mobile Technology Unit, and should help shape policies on everything digital. There aren't any guarantees that it'll change the FTC's tune on big issues -- it already has an established track record on mobile, for instance. Still, don't be surprised if the Commission makes more informed decisions that protect you from scams and other shady business practices in emerging tech. [Image credit: AP Photo/Alex Brandon]
T-Mobile pays $90 million to settle claims it profited from texting scams
T-Mobile protested its innocence after the Federal Trade Commission accused it of letting text message-based scams run amok in the name of profit, but it's not going to fight that complaint to the bitter end. The UnCarrier has agreed to a settlement that will have it paying "at least" $90 million in fines to the FCC and all 50 states. Moreover, it'll have to both offer full refunds to victims and require explicit permission for third-party charges. In the future, that sketchy celebrity gossip service can't take your cash unless you offer consent. T-Mobile's decision to cry "uncle" isn't surprising given that AT&T already settled with the FTC over similar unauthorized billing. However, it suggests that Sprint faces an uphill battle in its own texting dispute -- history definitely isn't on the company's side.
FTC shutters bogus tech support firms that scammed $120 million from victims
You've heard it happen one time or another: a senior who's not very tech-savvy clicked a dubious link online and paid a shady internet company a hefty sum to remove a virus that was never there. It's one of the oldest tricks in the book, and apparently, still one of the most effective: the Federal Trade Commission has just shut down two massive Florida-based telemarketing operations that reportedly scammed victims (mostly seniors) out of $120 million in total, duping them into buying fake anti-virus software and fake tech support. Both have been active since at least 2012, so they might sound familiar. The first one sold software called PC Cleaner, while the other did business under several names, including Boost Software Inc., OMG Tech Help and, hilariously enough, OMG Total Protection.
FTC appoints privacy consultant as its new Chief Technologist
The Federal Trade Commission has just appointed Ashkan Soltani, an independent consultant on privacy and security matters, as its new Chief Technologist. Soltani's most recent accomplishments include contributing to the Washington Post's coverage on Edward Snowden and assisting the paper on technology topics. He has also provided insight for the New York Times and the Wall Street Journal on similar stories. Soltani had already spent time at the FTC as a staff technologist in 2010 and 2011, so this will be his second stint at the agency. This appointment of Soltani, according to the New York Times, could signal a stronger push by the FTC to keep an eye on online privacy and security as concerns about those topics continue to surface.
FTC says T-Mobile has let text message scams run wild (Update: T-Mobile responds)
Is your cell phone bill running a little high? You might be suffering from unauthorized third-party charges, a type of text messaging subscription scam that bills users for SMS-delivered celebrity gossip, horoscopes, quizzes and other content. Consumers can choose to sign up to these services manually, but are often duped into signing up to them through fraudulent and deceptive advertisements -- causing charges in upwards of $9.99 to appear on their phone bill without their authorization. It's a practice the Federal Trade Commission calls "cramming," and it says T-Mobile as been allowing these scammers to charge its customers unchecked for far too long. Now the FTC is taking the carrier to court, demanding it issue refunds to the customers it failed to protect.
Snapchat settles with FTC for misrepresenting its ephemeral nature, gathering user data
Snapchat has been a popular choice for those looking to send temporary messages that will soon disappear forever. Well, the auto-erase feature wasn't without flaws, and now the mobile outfit has settled with the Federal Trade Commission over it. The FTC has announced that it had reached an agreement with Snapchat for misleading users about the ephemeral focus of the app, after the commission found that users could easily save messages with third-party apps and other tricks. Despite claims to the contrary, the complaint alleges that the software gobbled up location details and other user info (like contacts) which allowed researchers to build a database of over four million user names and their matching phone numbers.
FTC says Apple's gotta pay for your kids' in-app purchases
In my day, when a kid spent his parents' money when he wasn't supposed to, a form of indentured servitude ensued to pay off the debt. These days, courtrooms and federal agencies are the parentally-preferred sources of remuneration. Today, Apple settled up with the FTC over a complaint filed by the Commission many moons ago regarding in-app purchases made by children without mom or dad's consent. Why should you care? In truth, you shouldn't. See, Apple already went to court over this very issue, and agreed to refund these unwitting customers hoodwinked by their genetic spawn months ago at the conclusion of a class-action lawsuit. Thing is, the FTC complaint is separate from that lawsuit, despite the fact that it concerns the very same issues -- today's announcement merely tidies things up by putting the issue finally and completely to rest. The outcome of both settlements is that Apple modifies its billing practices to get express, informed consent before allowing in-app purchases, and allow that consent to be withdrawn at any time before the end of March. Additionally, Apple's gotta refund at least $32.5 million dollars to affected customers, and should it send out less money in settlements, then the difference will be paid to the FTC. Apple's not so keen on the FTC's announcement, but an internal memo from Tim Cook obtained by Recode confirms that this settlement with the Commission is entirely duplicative of Apple's ongoing lawsuit settlement efforts. Gotta love governmental redundancy, right?
FTC will not challenge Google's $1 billion Waze acquisition
When Google acquired Waze back in June, the Federal Trade Commission decided to investigate the deal to see if it violated antitrust regulations, and today, it looks like Mountain View is in the clear. According to Bloomberg's sources (unnamed people "familiar with the matter," naturally), the FTC will not interfere with the acquisition, as the $1 billion purchase isn't seen as an aggressive act designed to stifle competition. The review's outcome is indeed welcome news at Google, as the company can now proceed with integrating Waze's crowd-sourced traffic and mapping capabilities with its own services. By this point, antitrust challenges must be awfully familiar to the folks at Google, but we're pretty sure that winning them never gets old.
The FTC wants your thoughts on proposed patent troll investigation
Here's a question. Forced to decide, would you rather have a patent troll breathing down your neck, or cuddle up with an entity just as ghoulish that's living under a bridge? The FTC wants your thoughts on the matter, even if its description isn't quite so... colorful. The agency is putting out a call for public commentary on its proposed investigation of patent assertion entities, which have come under federal scrutiny as of late. Key to the proposal, the FTC would request information from 25 patent trolls to learn non-public information such as their corporate structure, patent holdings, means of acquiring patents, the cost of enforcing them and the earnings that the trolls generate. Accordingly, the agency hopes to "develop a better understanding of how they impact innovation and competition." For comparison sake, the FTC also proposes an information request from approximately 15 companies in the wireless communication sector, which would include manufacturers and other licensing entities. You're more than welcome to answer the bridge question in the comments, but if you want to contact the FTC directly, you'll find everything you need after the break. [Image credit: Tristan Schmurr / Flickr]
Google pledges to change its ways to assuage FTC anti-competitive concerns
Google's drawn the ire of the Federal Trade Commission for myriad reasons over the past year, and so the FTC began a formal investigation into those transgressions. Today, Chairman Jon Leibowitz announced that the investigation has concluded with a settlement after the FTC found several issues with the way Big G does business. Head on past the break for a full rundown of the FTC's findings.
FTC calls Motorola's bid for Apple product injunction 'inappropriate'
On December 5, the Federal Trade Commission (FTC) stated in a filed brief that it felt a previous district court decision to deny Motorola's bid for an injunction of several Apple products was correct. Motorola had claimed that Apple's iPhone and iPad allegedly infringed on wireless patents, and requested that the courts block Apple from selling iPhones and iPads in the United States. The FTC brief said that a court-ordered injunction is inappropriate when the holder of a patent has licensed it under fair, reasonable and nondiscriminatory (FRAND) terms. The FTC felt that Motorola might have been using the threat of an injunction in what is called "patent hold-up." When a patent is considered standard-essential (SEP), the patent owner sometimes threatens legal action to get higher than usual royalty rates and licensing terms. For budding Apple lawyers, the brief can be found here in its entirety.
Court approves FTC's $22.5 million penalty for Google over Safari cookies
The FTC might not have been impressed with Google bypassing Safari cookie settings in the name of +1 functionality, but it'll at least be satisfied with the outcome. A Northern District of California federal court has approved the FTC's proposed settlement, which sees Google pay a $22.5 million penalty in addition to altering its cookie behavior to respect privacy in Apple's browser. The fiscal punishment is a drop in the bucket for a company that might well make up that loss by the time you're done reading this; all the same, we'll take it if other web companies are more mindful of their behavior in the future.
