Posted 10/15/09 at 08:23:13 PM by Ryan Whitwam

The Interactive Advertising Bureau (IAB) has some harsh words for the Federal Trade Commission (FTC). They want the FTC to withdraw the new regulations requiring bloggers to disclose financial ties to companies. The IAB said the rules “unfairly and unconstitutionally” penalize online media, while leaving traditional media untouched. They also invoked the first amendment right to free speech.

The IAB also took issue with the size of the possible fine for violating the rules. The FTC indicated a fine of $11,000 is possible for offending individuals. They later clarified their position, claiming the fine was a “worst-case scenario” that would be used only for chronic offenders.
 
These attempts as calming the concerns of bloggers seem to only be marginally successful. The IAB wants the fines eliminated despite the FTC’s assurances. They say that they aren’t asking for special treatment for bloggers. “Rather, we’re saying the new conversational media should be accorded the same rights and freedoms as other communications channels,” said Rothenberg, of the IAB. So, is the FTC overreaching, or is the internet overreacting?

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Posted 10/13/09 at 10:01:49 AM by Pulkit Chandna

While the U.S Federal Trade Commission (FTC) is busy probing “the Google/Apple interlocking directorates issue” the two companies are trying their best to placate the trade regulator.

A couple of months after Google CEO Eric Schmidt resigned from Apple’s board of directors, the last surviving link between the boards of the two companies has also snapped with Genentech chairman Arthur D. Levinson resigning from Google’s board. But he will continue to remain on Apple’s board of directors.

 “Art has been a key part of Google’s success these past five years, offering unvarnished advice and vital counsel on every big issue and opportunity Google has faced,” Schmidt said, hailing Levinson’s contribution.

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Posted 10/05/09 at 08:34:04 PM by Ryan Whitwam

Bloggers that endorse products are about to be under a lot more scrutiny. The FTC today has issued new rules requiring the disclosure of financial ties between bloggers, and products/services they review. These changes are the first in nearly 30 years to redefine the relationship between reviewers and companies.

The so called “Guides Concerning the Use of Endorsements and Testimonials in Advertising”, say that any material connections must be fully disclosed by the blogger. This could include payments in cash or free products. The FTC made it clear that this was not a blanket decree and that possible infractions would be handled on a case by case basis.

The new rules set out a possible penalty of $11,000 per violation if a blogger should fail to disclose these financial relationships. Though, the FTC didn’t lay out specifics on how bloggers should disclose these connections. The rules take effect December 1st.

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Posted 03/19/09 at 04:30:27 PM by Paul Lilly

Earlier this month, Google blamed a bug for causing an "isolated incident" which resulted in some users of Google Docs having their word-processing and presentation documents inadvertently shared. According to Google, the mishap only affected 0.05 percent of documents stored at the site, but that's enough to have privacy advocates turning to the Federal Trade Commission (FTC) to shut down all of Google's online services until government-approved "safeguards are verifiably established."

"If we were talking about a child safety seat that could not be securely attached to a car passenger seat, the commission in that instance would say to the company, 'Look, you've got to fix that problem,'" Marc Rotenberg, a lawyer and adjunct law professor, said in a telephone interview with CNet on Tuesday. "Consumers are at risk when that product is in the marketplace. We have a similar view of cloud computing at this point: people are at risk."

Leading the charge is the Electronic Privacy Information Center (EPIC), who submitted a letter to the FTC asking that all Google cloud-computing services be halted, including Gmail. In addition to shutting everything down, EPIC also wants Google to pay $5 million into a "public fund" to benefit advocacy groups.

Is EPIC asking for too much? And equally important, can you manage without Gmail? Hit the jump and sound off.

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Posted 02/17/09 at 07:26:54 PM by Pulkit Chandna

Online behavioral advertisers have received a dressing down from the Federal Trade Commission. In fact, Federal Trade Commissioner Jon Leibowitz - not convinced they are doing enough - has asked advertisers to remain prepared for the “day of reckoning” that may be fast approaching. He has also threatened that FTC might wield its subpoena authority to extract necessary information from these companies.

Last week, the FTC staff issued a report titled Self-Regulatory Principles for Online Behavioral Advertising. The FTC staff has revised its online behavioral principles. It wants users to have the choice of preventing advertisers from collecting their information. The report has also asked advertisers to store private information till it is necessary.

Though the FTC staff, in the report, hasn’t blatantly threatened advertisers, it has still delivered a strict warning behind a diaphanous veil of measured words.

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Posted 01/08/09 at 12:09:37 AM by Nathan Grayson

Want to bring some law back to this lawless, DRM-overrun country? Here’s your chance. The Federal Trade Commission plans to devote an entire town hall meeting to the do’s and don’ts of DRM, and it’s asking for input from those who feel that digital rights management has been mismanaged.

“Digital rights management (DRM) refers to technologies typically used by hardware manufacturers, publishers, and copyright holders to attempt to control how consumers access and use media and entertainment content," the FTC explained on its official page. "Among other issues, the workshop will address the need to improve disclosures to consumers about DRM limitations."

Even better, making your voice heard is as simple as vandalizing a blank email page with one of your scandalous messages – though bombarding the FTC’s inbox with outraged anti-DRM hatemail probably isn’t the best idea.
 
"The Commission invites interested parties to submit requests to be panelists and to recommend other topics for discussion. The requests should be submitted electronically to drmtownhall@ftc.gov by January 30, 2009....The Commission will select panelists based on their expertise and on the need to represent a range of views."

Frankly, we’re all for this. No matter the meeting’s outcome, it’s a sign that people in positions of power – and not just keyboard warriors – are beginning to realize DRM’s invasive nature. At the very least, cries of DRM’s deviance will no longer ring ineffectively in the ears of companies like EA. DRM has finally hit the big time, and the big time’s hitting back.

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Posted 12/15/08 at 01:32:30 PM by Mark Edward Soper

You know spyware and virus, malware and DDOS, Trojan of horse fame, phishing and worm. But do you recall the brand-newest threat of them all? (apologies to Johnny Marks). Well, the Federal Trade Commission does: it's called "scareware," and late last week, the FTC slammed two of the biggest scareware providers with an asset freeze and a temporary injunction.

What is "scareware?" Arstechnica.com's report explains it thus:

Scareware-selling companies would contract with reputable websites to display advertisements on behalf of other reputable companies, but would poison the ads in question. Once clicked, visitors were actually redirected to a vendor-controlled website, which would then "scan" their computer and amazingly enough, find evidence of damage or infection. Cue the appropriate links, websites (just $39.95), and a few minutes later the result is one scammed customer who has just paid good money for nothing. The thieves, meanwhile, earn extra points if they manage to nick a credit card number in the process.

Some typical examples include Antivirus XP, DriveCleaner, and WinFixer. Drop by the Trend Micro blog for an animated portrayal of a typical Antivirus XP attack, which includes a replacement desktop wallpaper with no way to change it and a scary-looking fake BSOD screensaver.

To learn more about the baddies behind Antivirus XP and its ilk, and to learn how to clean up after scareware, join us after the break.

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Posted 10/15/08 at 10:58:19 AM by Paul Lilly

We're not so naive to think that male enhancement, weight-loss, and prescription medication solicitations will stop infiltrating our inbox and filling up our spam queue, but perhaps after the Federal Trade Commission's latest bust they'll be a little less frequent. The FTC said on Tuesday it had shut down one of the largest global spam networks allegedly responsible for sending billions of unsolicited emails.

The FTC received some 3 million complaints in connection with spam tied to the HerbalKing operation, which is said to have operated in the United States, China, New Zealand, and other nations. According to the FTC, HerbalKing received $400,000 in Visa credit car charges in a single month, leading a U.S. District Court to freeze the various defendants' assets.

As is typical of spam rings, HerbalKing utilized botnets to mass-mail recipients. Mega-D, believed to be the group's largest botnet, was responsible for 35,000 zombie PCs capable of sending out a whopping 10 billion email solicitations per day. But the list of infractions goes well beyond violating the Can-Spam Act of 2003. The FTC accuses HerbalKing of unlawful operation of a pharmacy, making false claims regarding the safety of herbal products containing potentially harmful ingredients, selling medication without proof of a prescription, and more.

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