In 2011, the Federal Trade Commission (“FTC”) filed a complaint against text message marketer Phil Flora alleging that he had sent millions of deceptive text messages to consumers in violation of the FTC Act.  The FTC’s complaint alleged that Mr. Flora used a network of affiliate marketers to deliver unsolicited text messages advertising deceptive mortgage…

#94616354 / gettyimages.com Rite Aid Corporation (“Rite Aid”) was recently sued in the United States District Court for the Southern District of California for allegedly sending unsolicited commercial text messages in violation of the Telephone Consumer Protection Act (the “TCPA”). A Real Pill of a TCPA Class Action Lawsuit The class action complaint alleges that…

On May 27, 2014, the Federal Trade Commission (“FTC”) released a report entitled Data Brokers: A Call for Transparency and Accountability (the “Report”).  The Report codified the FTC’s findings after a study initiated in December 2012, involving nine (9) data brokers.  In proposing legislation aimed at data brokers, the FTC segmented the industry into three…

Recently, six (6) well known New Jersey Internet poker and online gaming affiliate marketers received cease and desist letters from the New Jersey Attorney General’s office requiring that the affiliates “immediately remove any online gaming links that are not authorized under federal law or under the law of any state.”  The New Jersey Internet poker…

David O. Klein Comments on NYC Airbnb Investigation Will Airbnb Inc. hosts balk at New York State’s attorney general Eric Schneiderman combing through their records? The room-renting start-up reached an agreement with the state Wednesday to deliver anonymized records of all its New York hosts, and to identify hosts Mr. Schneiderman decides to further investigate. Mr. Schneiderman…

In a record Federal Communications Commission (“FCC”) Do-Not-Call violation settlement announced on May 19, 2014, Sprint Corporation (“Sprint”) agreed to pay $7.5 Million to resolve an FCC investigation into its wireless division’s failure to honor consumer requests to opt-out of the receipt of future telephone and text message marketing.  This settlement follows an earlier 2011…

On May 7, 2014, the Federal Communications Commission (“FCC”) issued a notice of apparent liability ruling which held that a robocalling service provider may be held liable for violations of the Telephone Consumer Protection Act (“TCPA”) related to prior written consent, even if the robocalling service was merely providing transmission facilities that enabled its third…

In its continuing effort to remove deceptive weight loss advertising from the Internet, on May 14, 2014, the Federal Trade Commission (FTC) brought suit in Federal District Court in Florida against various companies and their respective principals for violating Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices in or affecting commerce.  Specifically,…

This week, Associate Director Maneesha Mithal of the Federal Trade Commission (“FTC”) testified before the Senate Committee on Homeland Security and Governmental Affairs, detailing the FTC’s renewed focus on the online advertising industry.  Specifically, the Associate Director made clear that the FTC is now aggressively targeting issues relating to privacy, spyware/malware and data security.  …

Wall Street Journal Quotes KMT Managing Partner David O. Klein Small Businesses Often Tripped Up by Rules, Suits Craig Dubitsky, founder and CEO of Hello Products, which was sued by Procter & Gamble. Daniella Weeks after Craig Dubitsky’s new company delivered its first shipment of “pink grapefruit” and “mojito mint” toothpaste to about 8,000 stores across the…

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