FTC doubles down on pledge to cease COVID-19 scams | Hudson Cook dinner, LLP
We have written about this earlier than, but it surely apparently bears repeating. The Federal Commerce Fee has no misplaced love for the people who find themselves making an attempt to revenue from the COVID-19 pandemic or the financial penalties that movement from it.
In current weeks, the FTC has visited the Senate Committee on Commerce, Science and Transportation and the Subcommittee on Shopper Safety, Product Security and Knowledge Safety and launched a workers report titled “Defending Customers Through the COVID-19 Pandemic: A Yr in Overview.” All through the 2 Senate shows, the FTC has mentioned its continued concentrate on “unscrupulous actors looking for to use the pandemic and its financial fallout. ”The FTC plans to make use of the funds just lately acquired from the US bailout to step up its efforts and use the civil penalties allowed by the brand new COVID-19 shopper safety legislation to thwart the dangerous actors. And the FTC stated within the workers report: “[M]Make no mistake: the Fee’s work on its response to COVID-19 is simply starting. He later stated within the report that he “anticipates that exploiting financial misery and instability might be a unbroken and pervasive drawback stemming from the pandemic that can require and evolve enforcement efforts. the legislation. “
The COVID-19 Shopper Safety Act prohibits beneath Part 5 of the Federal Commerce Fee Act anybody from partaking in any misleading act or observe that impacts commerce and is related to remedy, therapeutic, prevention, mitigation or analysis of COVID-19 or a authorities profit associated to COVID-19. It may very well be argued that the COVID-19 Shopper Safety Act lends itself extra to focusing on merchants of well being / wellness merchandise or bogus stimulus checks. That could be true, however bear in mind a used automobile marketer was one of many first to be sued by the FTC for COVID-19-related mischief.
Funding suppliers should proceed to intently monitor enterprise improvement and advertising and marketing efforts to make sure they keep effectively outdoors the FTC’s sights. Now just isn’t the time for a “0% Vaccination Celebration Fundraising Tent Sale” or a “COVID-19 Second Spherical Stimulus Deposit Extravaganza.” Preserve your insurance policies and procedures useful and perhaps add a slide to your advertising and marketing coaching platform to debate the significance of staying away from something COVID-19 associated throughout advertising and marketing to customers.