FTC

Question 1

Scope

Answer 1

• anti- trust
• consumer protection
• “unfair/deceptive acts or practices” (UDAP)

Question 2

“Unfair”

Answer 2

• substantial injury
• without offsetting benefits
• cannot be reasonably avoided

Question 3

“Deceptive”

Answer 3

• “material” statement or omission
• likely to mislead

Question 4

Section 5

Answer 4

• regulate UDAP
• Most important privacy leg in the US
• does not apply to non- profits

Question 5

Section 5L

Answer 5

• issue complaint
• admin proceedings
• determine violations = yes= cease and desist

Question 6

Section 6

Answer 6

• authority to investigate

Question 7

Structure

Answer 7

independent agency with 5 comissioners

Question 8

Section 13B

Answer 8

• judicial enforcement (w/o cease and desist)
• used to seach equitable money relief w/o first issuing C&D
• resistution= recover monetary loss
• disgorgment = repay profits from wrongful conviction

Question 9

Section 19

Answer 9

courts grant relief if FTC issued C&D

Question 10

UDAP Exceptions

Answer 10

• Banks
• INS Cos
• Non- Profits
• Transportation/Communication Carriers

Question 11

Penalities

Answer 11

• order final after 60 days
• $43,280 if order is ignored (per violation)
• each violation = serperate offense
• each day failed to comply = serperate offense

Question 12

Consent Decree

Answer 12

• agreement between FTC and company
• company admits no fault
• agrees to changes practices to avoid further litigation or fines
• publishes to guide other companies
• monitored by “Division of enforcement” with DOJ

Question 12

Contents of Consent Decree

Answer 12

• actions company will take/cease
• proof of compliance
• subject to audit

Question 13

Office of Technology

Answer 13

• created by FTC in 2023
• releases annual reports about FTC’s regulatory priorities
• holds workshops

Question 14

Magnuson Moss

Answer 14

• FTC doesn’t follow Administrative Procedures Act
• MM established FTC’s rulemaking
• FTC may issue rules defining UDAP

Question 15

Dark Patterns

Answer 15

designs that coerce users into buying products/services or disclosing PII

Question 16

FTC Health Breach Notification Act- HBNR (16 CFR Part 318)

Answer 16

requires entities NOT covered by HIPPA to notify users, the FTC and sometimes the media of breaches involving unsecured individually idenitifable health information

Question 17

HBNR timeline

Answer 17

“without unreasonable delay”
- for 500+, no later than 60 calendar days after discovery

Question 18

HBNR contents

Answer 18

• detailed info of what happened
• type of info involved
• steps for indivduals
• company mitigation efforts
• contact info for entity

Question 19

FTC Act (Wheeler- Lee Act of 1938)

Answer 19

• only applies to acts in or affecting interstate commerce