Court Rules FTC's Non-Compete Rule Is Unenforceable Nationwide
The Federal Trade Commission's (FTC) rulemaking crusade suffered a serious blow this week, when Judge Ada Brown of the Northern District of Texas set aside the agency's Final Rule that made most employment-related non-compete agreements unenforceable. The court found that the rule exceeded the FTC's authority and was arbitrary and capricious. Absent appellate intervention, the decision will prevent the rule from taking effect nationwide.
Federal Court Narrowly Construes FTC Jurisdiction Over Nonprofit Institutions
In a surprising ruling, a federal district court in Arizona has held that the Federal Trade Commission (FTC) cannot prosecute claims under the FTC Act against a nonprofit educational institution.
Façade, Fraud: FTC Final Rule Banning Fake Reviews
On August 14, the Federal Trade Commission (FTC) announced a final rule aimed at protecting American consumers against fake reviews and testimonials. The rule, approved through a 5-0 vote, comes after nearly two years of rulemaking proceedings on the topic. The FTC has said customer reviews play an important role in consumer decision making, and the rule follows in the steps of related cases and notices of penalty offenses brought and issued by the FTC against the use of fake reviews, as well as guidance the FTC has published on the use of endorsements and testimonials. This final rule now provides the FTC with a potentially powerful tool to punish businesses that knowingly violate it, and to seek consumer redress for violations of the rule.