FTC Takes Aim at Facial Recognition Claims in Latest Deception Settlement
On January 11, 2021, the Federal Trade Commission (FTC or the "Commission") announced it reached a proposed settlement with Everalbum, Inc. ("Everalbum"), a developer of a photo app, to resolve allegations that the company deceived consumers about its use of facial recognition technology.
FTC Cracks Down on Mobile Gaming Middlemen Offering In-Game Rewards and Offers
Last week the FTC announced it had settled with mobile advertising platform Tapjoy regarding allegations that it failed to provide in-game rewards that users were promised for completing advertising offers. Commissioners Rohit Chopra and Rebecca Kelly Slaughter also issued a Joint Statement on the settlement, criticizing mobile app "gatekeepers" for excessive "rent extraction" from mobile gaming apps, which they believe has forced developers to adopt alternative – and often harmful – means of generating revenue, such as loyalty offers and loot boxes. The settlement, and particularly the separate concurrence written by Democratic Commissioners Rohit Chopra and Rebecca Slaughter, highlights the increased scrutiny over the entire mobile gaming ecosystem and the various businesses that operate within it.
FTC a Scrooge on CBD Claims
The FTC has deemed claims made by CBD marketers to be humbug, announcing on December 17, 2020, a law enforcement crackdown on six companies that sell CBD and make allegedly deceptive and unsubstantiated claims that their products can treat serious health conditions including cancer, heart disease, hypertension, and Alzheimer's disease. CBD is a naturally occurring substance that comes from the marijuana plant. While the claims brought by the FTC are similar to claims brought against marketers of other products making similar claims, the dueling statements by Commissioners Chopra and Wilson are noteworthy.
Pushing to the Forefront – Get Ready for Push-to-Card Payments
As the payments industry continues to evolve at a lightning pace, one of the newest developments is the ability for payments companies to leverage card network services to "push" payments to cardholders. Earlier this year, the technology gained attention as a potentially safe and efficient way to transfer funds in response to the challenges presented by the COVID-19 pandemic. In particular, as businesses shift to a remote environment, push-to-card services can provide benefits for both individuals and businesses, including for person-to-person (P2P) money transfer, funds disbursement, and bill payment, among other uses. And with the increased focus on "faster payments," push technology has been discussed as a private sector means to speed up transaction settlement.
Managing Risks in Third-Party Sender ACH Processing
With much of the economy disrupted as a result of the COVID-19 pandemic, one area that continues to grow is automated clearing house (ACH) payments, according to data recently released by Nacha, the non-profit that governs ACH payments. While the recent jump in ACH volume was driven in part by the delivery of federal stimulus payments, it is reflective of a longer term trend of growth in the industry, as ACH becomes increasingly popular for consumer bill payment (rent and utilities), health care payments, payroll processing, and business account payables.