Bureau of Consumer Protection

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This week, the Federal Trade Commission (FTC) Bureau of Consumer Protection issued 13 warning letters to rental housing management software providers focused on the display of the total advertised price of their properties. According to the FTC, the software providers do not allow rental property managers and owners to advertise a total monthly rental price that includes all mandatory fees. This in turn prevents consumers from obtaining complete pricing information on those property owner websites and platforms.

The FTC noted that such practices may be in violation of Section 5 of the FTC Act, which prohibits unfair or deceptive acts and practices, as well as the Gramm-Leach-Bliley Act, which makes it unlawful to use false, fraudulent, or fictitious statements or representations to obtain, attempt to obtain, cause the disclosure of, or attempt to cause the disclosure of customer information of a financial institution. Violations are subject to civil penalties of up to $53,088 per violation.

Continue Reading FTC Begins Rulemaking on Unfair Rental Housing Fees After Issuing Warning Letters

Chris Mufarrige, the director of the FTC’s Bureau of Consumer Protection, spoke last week at the National Advertising Division’s Annual Conference in Washington, providing further insight into how the FTC is thinking about key issues.

Mufarrige focused his remarks on privacy and AI. He said he views the basic principles for all consumer protection to be ensuring consumers can make well-informed choices and that companies keep their promises. 

FTC’s Evolving Approach to Privacy Enforcement

Mufarrige noted that individual preferences make abstract rules governing privacy difficult to draft and administer. He criticized the Lina Khan-led FTC for its efforts to use Section 5 of the FTC Act as an omnibus privacy statute. He said the agency should instead focus enforcement on specific privacy statutes such as the Children’s Online Privacy Protection Rule (COPPA) and use Section 5’s unfairness authority only where economic analysis shows consumer harm. 

Continue Reading FTC Bureau of Consumer Protection Director on Privacy Rules and AI Regulation