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FTC says Straight Talk's promises of unlimited data were crooked
If you were seduced by offers of "unlimited" phone data on prepaid carriers like Straight Talk or Simple Mobile only to find your service unbearably slow after a certain point, the Federal Trade Commission has your back. The carriers' owner, TracFone, has agreed to pay the FTC $40 million to settle charges that it misled customers by advertising unlimited data that was really throttled into oblivion. In other words, Straight Talk was being... less than straight. Beyond the payout, TracFone has to avoid making sketchy claims in its ads and provide refunds to anyone who's been burned. The settlement won't affect a huge number of people, but it could serve as a warning sign to AT&T and other big carriers trying to avoid penalties for similarly shady throttling practices.
Jon Fingas01.28.2015
FTC to connected device makers: Focus on security and privacy
The Federal Trade Commission just laid out its initial recommendations for the burgeoning Internet of Things industry -- and they're pretty much what you'd expect. In an extensive report (PDF) released this morning, the agency emphasized that connected device makers will need to think hard about security, as well as how they manage consumers' private information. That shouldn't be news to any company that's been developing web-enabled products over the past few decades, but it'll be particularly important when even the most mundane devices in our lives are filled with sensors and connected. "The only way for the Internet of Things to reach its full potential for innovation is with the trust of American consumers," FTC Chairwoman Edith Ramirez said in a statement. "We believe that by adopting the best practices we've laid out, businesses will be better able to provide consumers the protections they want and allow the benefits of the Internet of Things to be fully realized."
Devindra Hardawar01.27.2015
AT&T invokes Title II status to dismiss FTC data throttling suit
AT&T definitely doesn't want to be regulated as a Title II "common carrier" internet provider, but it's happy to use that status to dodge charges of throttling customer data. The carrier just filed a motion to dismiss a recent suit by the FTC over "deceptive" mobile data throttling. It claims its common carrier status for providing voice services exempts it from the FTC's jurisdiction over data as well -- and that it should instead fall under the FCC's writ. The suit resulted after AT&T said that certain unlimited data plan customers would see throttled speeds, despite the fact that they paid for that to not happen. AT&T said that its common carrier designation, rather than specific services it provides (like data), means that "the FTC cannot rewrite the statute to expand its own jurisdiction."
Steve Dent01.10.2015
Yelp: the FTC won't penalize us for review complaints
Yelp maintains that it doesn't game the reviews on its site or try to extort businesses that refuse to pay for ads. In fact, it's just published a blog post to air that the Federal Trade Commission has finished a year-long deep inquiry into its business practices and has chosen not to take any action against the website. Yelp even claims this is the second time the FTC has investigated the company and finished without penalizing it in any way. Part of the blog post reads: The FTC looked into our recommendation software, what we say to businesses about it, what our salespeople say about our advertising programs, and how we ensure that our employees are not able to manipulate the ratings and reviews that we display on our platform. After nearly a year of scrutiny, the FTC decided to close its investigation without taking further action.
Mariella Moon01.07.2015
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.
Jon Fingas12.19.2014
Google is refunding the $19 million your kids spent on in-app purchases
It's been three months since Google ended its row with the Federal Trade Commission (FTC) over its in-app purchasing policies. The commission took issue with children racking up large bills on their parents' credit cards, resulting in Mountain View settling to the tune of $19 million. Now, Google is reportedly starting the laborious process of paying back those hit the hardest by purchases. According to Phandroid, Google is sending customers an email that underlines the new Play Store features aimed at preventing unauthorized purchasing and states that it's "offering refunds in certain cases in line with [its] agreement with the FTC." Those that think they're due compensation will have until December 2nd 2015 to apply for a refund.
Aaron Souppouris12.10.2014
Joystiq Weekly: Free stuff for AC: Unity, Telltale's Borderlands review, a Zelda story and more
Welcome to Joystiq Weekly, a "too long; didn't read" of each week's biggest stories, reviews and original content. Each category's top story is introduced with a reactionary gif, because moving pictures aren't just for The Daily Prophet. Oh wow, look at that scenic view from every retail store in the United States! Hopefully everyone survived Black Friday, an annual, nationwide recreation of that Lion King stampede scene where customers are unwavering bringers of death and retail employees are terrified reincarnations of Simba. We understand the thought process though – cheap video games and consoles are awesome! While you're mending your wounds, whether they were sustained physically or through your wallet, you can catch up on the past week's worth of prominent news with the Joystiq Weekly. News of free vouchers for Vita owners, free games for Assassin's Creed: Unity season pass owners, reviews of Assassin's Creed Rogue and Tales from the Borderlands, a spoken tale of a staff member's first journey to obtain The Legend of Zelda: Ocarina of Time and more is all waiting for you after the break!
Thomas Schulenberg11.29.2014
Sony to refund some customers after misleading PS Vita ads
According to the Federal Trade Commission, Sony deceived consumers by falsely advertising the PlayStation Vita's "game-changing" features when the console launched in the US. And, perhaps in an effort to stay out of court, the electronics company has agreed and, more importantly, settled with the FTC. As a result, Sony will be providing a partial refund of $25 cash or credit, or a $50 voucher for select, as-of-yet-unnamed games and/or services, to people who bought its handheld console prior to June 1st, 2012. The FTC cites Sony's Cross-Platform Gaming, Cross-Save, Remote Play and 3G connectivity as the features used to mislead consumers, noting that some of these a) didn't work as advertised or b) were nowhere to be found.
Edgar Alvarez11.25.2014
Sony to refund Vita customers in FTC settlement over false ads
Sony Computer Entertainment America has settled with the FTC over charges that it produced false and misleading advertisement during the Vita's launch campaign from late 2011 to early 2012. Sony will provide refunds to Vita customers who purchased the device before June 1, 2012 – either a $25 cash or credit refund, or a $50 voucher for select games and services. Sony will email eligible customers after the settlement is finalized. The FTC alleges that some of Sony's claims about the Vita were misleading, including that the Vita "would revolutionize gaming mobility" by enabling remote play and cross-platform play with the PS3, allowing players to start a game on PS3 and finish it on Vita. Sony is barred from similar advertising practices in the future. The FTC alleges the following: "Sony claimed, for example, that PS Vita users could pause any PS3 game at any time and continue to play the game on their PS Vita from where they left off. This feature, however, was only available for a few PS3 games, and the pause-and-save capability described in the ads varied significantly from game to game.... Sony's PS Vita ads falsely implied that consumers who owned the 3G version of the device (which cost an extra $50 plus monthly fees) could engage in live, multi-player gaming through a 3G network. In fact, consumers could not engage in live, multiplayer gaming.... In reality, most PS3 games were not remote playable on the PS Vita."
Jessica Conditt11.25.2014
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.
Mariella Moon11.20.2014
Turns out TRUSTe isn't so trustworthy, settles FTC complaint
Spend enough time on the web and you're bound to come across TRUSTe's logo. It signifies that the site you're on -- like eBay, Yelp and Etsy -- self-certified with TRUSTe's set of membership requirements like the Children's Online Privacy Protection Act (COPPA), the EU-US Safe Harbor Framework and generally has an eye toward keeping any of your sensitive info safe. Except the outfit's seal might not mean too much anymore. Why? Because it's settling with the Federal Trade Commission on a claim that from 2006 to 2013 the company failed to hold websites accountable for keeping consumers' private info safe. The FTC says that in that span of time, there were some 1,000 "incidences" where companies weren't forced to re-certify on an annual basis despite TRUSTe's site claiming otherwise. Right about now you're probably wondering how much these infractions will cost the firm. Well, if you guessed $200,000 you'd be right on the money.
Timothy J. Seppala11.17.2014
Apple assures FTC that it will keep Apple Watch health data secure
With the Apple Watch capable of collecting sensitive health data, Reuters reports that the FTC has sought assurances from Apple that said data will not be used without the consent of the owners, will not be sold to third-parties, and above all, will remain safe and secure. Naturally, Apple has obliged, pointing out to the FTC that health data on the Apple Watch is encrypted. The two people, both familiar with the FTC's thinking, said Apple representatives have met on multiple occasions with agency officials in recent months, to stress that it will not sell its users' health data to third-party entities such as marketers or allow third-party developers to do so. Apple said it works closely with regulators around the world, including the FTC, to describe built-in data protections for its services. "We've been very encouraged by their support," Apple spokeswoman Trudy Muller told Reuters. The report adds that the FTC's focus on Apple is not likely to lead to any type of formal investigation, but is rather the result of previous findings which have shown that some developers with access to user health data sell that information to third party advertisers.
Yoni Heisler11.14.2014
FTC sues AT&T over 'deceptive' mobile data throttling (update: response)
If you felt that AT&T pulled a fast one by promising you unlimited mobile data only to throttle your service later on, you're not alone. The Federal Trade Commission has just sued the carrier for misleading grandfathered customers about the changes; allegedly, it's not doing enough to warn these subscribers that it heavily throttles their connections after they reach a data usage milestone. It's not really unlimited access if your service becomes so slow that music streaming and other common features don't work, the FTC says. Effectively, AT&T changed the terms of use for people who were still under contract, and didn't say much when customers renewed.
Jon Fingas10.28.2014
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.
Nicole Lee10.21.2014
AT&T to pay $80 million in refunds for unauthorized charges
In order to settle an FTC complaint over unauthorized third-party charges, AT&T will pay $80 million to the Commission for customer refunds. The FTC complaint alleges that the carrier billed "hundreds of millions of dollars" in charges from outside companies for subscriptions, ringtones, horoscopes and more without consent -- a practice more commonly referred to as mobile cramming. It also states that AT&T pocketed at least 35 percent of collected funds that usually appeared as $9.99 monthly additions. Folks who think they might've been charged without giving proper consent can submit a claim with the FTC starting today. AT&T will also pay $20 million in penalties and fees to 50 states and the District of Columbia alongside a $5 million penalty to the FCC. That brings the grand total of the settlement to $105 million. An AT&T spokesperson responded to the matter, noting (among other things) that it was the first carrier to stop billing for this so-called premium SMS content in late 2013. The rest of the statement resides after the jump.
Billy Steele10.08.2014
Yelp settles with the FTC over claims it collected personal info from kids
The FTC is eager to crack down on any perceived online privacy violations, especially when they involve children -- and we just got a good demonstration of that eagerness today. Both Yelp and mobile app developer TinyCo have settled with the FTC over allegations that they knowingly scooped up kids' personal information without permission. Yelp is paying a $450,000 penalty because it didn't have an effective age screen in its apps, letting those under 13 sign up by themselves. TinyCo, meanwhile, is shelling out $300,000 after some of its kid-oriented games asked for email addresses in return for in-game currency. These aren't the biggest settlements we've seen by any stretch, but they'll hopefully serve as warning to any app creator that wants to collect your little ones' data.
Jon Fingas09.17.2014
Online stores now have to ship your orders on time, or else
Internet stores can sometimes be far too optimistic about the time it takes to ship your order -- just ask the scores of gift givers whose packages arrived late last year. They'll have to be much more pragmatic from now on, though. The FTC has issued new rules requiring that retailers ship within a "reasonable" selected timeframe, or within 30 days if they can't provide a date. If they don't meet their targets, they'll have to either get your permission for a delay or issue a prompt refund. You can still change your mind even if you agree to wait, and saying nothing will still get your money back. The new guidelines take effect on December 8th, so you can buy your holiday presents online with a little more confidence this time around. [Image credit: AP Photo/Paul Sakuma]
Jon Fingas09.17.2014
Google settles with the government for $19 million over in-app purchases
Don't think that Apple and Amazon are the only ones currently in the FTC's crosshairs over their in-app purchasing policies. But while Jeff Bezos and company are fighting tooth and nail, Google has decided simply settle with the government and offer refunds to parents whose children went a little overboard with the in-app purchases. Mountain View will issue full refunds to those who were charged for unauthorized purchases made by their kids. That will mean a minimum of $19 million dollars is being returned to angry consumers, though that's mere pocket change for the internet giant. That's also significantly less than the $32.5 million Apple settled for, though it remains to be seen how much Amazon will be hit for if it fails to fend off the FTC's lawsuit.
Terrence O'Brien09.04.2014
Fandango finalizes a truce with the FTC after exposing your movie ticket data
Fandango slipped up in a big way between 2009 and 2013: its mobile apps would send your movie ticket purchases without a basic security measure, leaving credit card info and other data vulnerable to theft. However, the company is about to make amends for playing fast and loose with your personal info. The FTC has just approved a settlement with Fandango that will require the movie service to follow the straight and narrow. As agreed to in March, Fandango has to implement new procedures that address security concerns in apps before they reach the public; it will also have to get independent security reviews every other year for the next 20 years. The remedy won't help much if someone swiped your banking details while you were watching a summer blockbuster, but it should at least reduce the chances of a movie-related breach in the future.
Jon Fingas08.19.2014
FTC busts up $275 million credit card scam, sues the folks behind it
The folks down at the Federal Trade Commission are busy helping all of us these days, whether they're weighing in on patent disputes or forcing firms to help cover your child's lack of parental supervision. Today, the FTC charged several companies and individuals with participation in an elaborate shell game from 2010 that was really just a $275 million dollar credit card scam. According to a separate, ongoing lawsuit filed by the Commission, a company called I Works did the stealing, but wouldn't have been able to take $26 million of the total without the aid of the defendants in this new lawsuit.
Michael Gorman08.02.2014