From Pymnts · PYMNTS · · 1m 10s
FTC Cases Scrutinize Digital Business Promises
Digital businesses face FTC penalties for broken promises on pricing, subscriptions, and access.
In brief
Digital businesses face FTC penalties for broken promises on pricing, subscriptions, and access. Digital businesses risk fines up to $100 million if they fail to keep consumer promises. Originally reported by Pymnts.
FTC Targets Digital Promises
Digital businesses that don’t keep promises to consumers can pay heavy fines if caught by the FTC.
FTC Cases Yield Millions in Penalties
Enforcement actions in cases involving unfair and deceptive practices have produced tens of millions in consumer redress or civil penalties, sometimes exceeding $100 million.
Five FTC Conduct Categories
The analysis identifies five recurring categories of conduct for assessing digital business practices under the FTC Act.
Unauthorized Charges and Lockouts
Complaints challenged payment services that failed to verify account authority and platforms that denied access to purchased benefits.
Subscription Enrollment Issues
Subscription enrollment and cancellation include inadequate disclosures, enrollment without informed consent, unexpected fees, and difficult exit procedures.
Misleading Earnings Claims
Misleading claims about earnings and available work include advertised pay rates few workers achieved or overstated job opportunities.
Price and Fee Discrepancies
Price and fee disclosures include checkout charges inconsistent with advertised prices and fine print that failed to correct misleading impressions.
The headline
Digital businesses risk fines up to $100 million if they fail to keep consumer promises.
