Ask the Expert: What’s the Area of Greatest Focus for the FTC?
We recently sat down with experts to discuss FTC areas of interest, as well as actions. Here’s what we learned
Q: What’s the area of greatest focus for the FTC?
A: I believe the FTC is going to focus on digital and social media ads in which the required disclosures are not clear and conspicuous on all capable mobile devices, such as smartphones. The FTC wants the disclosures to be in close proximity to the claims, disfavors scrolling, and does not consider pop-ups or hover-over disclosures to be clear and conspicuous.
Q: What’s the latest news on FTC actions, as it relates to dealership advertising?
A: The FTC just settled enforcement actions with two Ohio dealers for advertising leasing deals not available to a majority of consumers – and which omitted terms required to be disclosed under the federal Consumer Leasing Act and Regulation M. In this case, the FTC emphasized that disclosures in small print at the bottom of the ad were not clear and conspicuous in which event the FTC treats the ad as if no disclosures were made. Both dealers were compelled to sign 20-year consent decrees which means any type of unfair or deceptive ads they make over the 20 years will incur substantial financial penalties.
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