Flashes at a railroad crossing. That chirp from a smoke detector. The “check engine” light on the dashboard. Those are just a few warnings that merit your attention. The FTC’s proposed settlement with T-Mobile – which imposes at least $90 million in financial remedies, including full consumer refunds – highlights another warning that businesses should heed: clear indications that consumers are getting billed without consent.
The FTC’s status as an independent agency, secured in an early constitutional challenge to the FTC Act, was tested during the early years of the Cold War when the agency’s international work provoked a national security debate at the highest levels.
When it comes to cars, sometimes good things come in twos: double wishbone suspension, dual overhead cams, twin torsion bars, and classic 2 + 2 muscle cars. What’s not on that list? Two lawsuits charging two auto dealers with deceptive advertising in violation of two FTC orders.
It’s called human chorionic gonadotropin and it’s a hormone produced by the human placenta – which explains why marketers call it HCG when advertising it for weight loss. The FTC just settled a second case against a company that pitched homeopathic HCG drops as an easy way to drop the pounds.
“No need to be fat. No need to diet or go through unpleasant exercise.”
“Your thin friends can tell you the right way to fight fat.”
“Men avoided me. I was too fat.”
Sounds like a lot of the bogus diet promotions the FTC has gone to court to shut down. But there are two things different about this false advertising case.
First, it went to the Supreme Court. And second, the year was 1931.