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March 2008
AUSTRALIA
Australian Competition and Consumer Commission
www.accc.gov.au
ACCC obtains consumer compensation over misleading mobile phone
advertisements
The ACCC has accepted court enforceable undertakings from Crazy John's in
which the mobile telephone service provider will compensate customers who
feel they were misled by the company's 'Free*' or '$0*' handset
advertising campaign.
Non-compliant bunks and toys removed from market
The ACCC has accepted court enforceable undertakings from Australian
Discount Retail (Trading) Pty Ltd regarding the supply of two models of
bunk beds and a military toy set called the Special Mission Combat
Force Military Play Set.
ATI Enterprise baby cot fails mandatory safety standard
The ACCC has accepted a court enforceable undertaking from ATI Enterprise
Pty Ltd and its directors after it imported and sold baby cots on its eBay
website, Oz-Mall, that failed to comply with the mandatory product safety
standard for cots for household use.
ACCC marks World Consumer Rights Day: Calls for responsible marketing of
food to children
The ACCC has marked World Consumer Rights Day* by calling for responsible
marketing by the food industry, particularly when food is promoted to
children. "World Consumer Rights Day is an international day of action and
awareness which promotes the rights of consumers around the globe," ACCC
Chairman, Mr Graeme Samuel, said today.
Toy seller gives undertakings over lead paint in toys
The ACCC has accepted court enforceable undertakings from a retailer of
children's toys, Captain Choppers Pty Ltd, which trades as Red Dot Stores,
after the ACCC found paint on some toy cars contained too much lead.
Tasti Products amends Weight Watchers fruit bar packaging
Tasti Products Ltd has given court enforceable undertakings to the ACCC
after concerns that the overall impression created by the wording and
pictorial images used on Weight Watchers fruit cereal bar packaging may be
misleading.
ACCC obtains refunds of almost $120,000 from Rural Network introduction
agency
Thirty-five members of an introduction agency will receive refunds of
nearly $120,000 after the ACCC court has accepted a court-enforceable
undertaking from the firm. The ACCC has also obtained declarations against
the agency as well as injunctions from the Federal Court against the
agency and its director, Ms Leanne McDonald.
Mobile telephone service provider corrects misleading representation
A provider of pre-paid mobile telecommunication services has corrected a
representation regarding its call rate following intervention by the ACCC.
Between January 2005 and December 2007 Commoditel (Australia) Pty Ltd
which trades as Revolution Telecom represented on its website that it
charged customers 9.9 cents per 30 seconds for mobile calls made to mobile
phones and landlines within Australia.
ACCC launches new SCAMwatch tool in fraud fortnight
ACCC, Mr Graeme Samuel, has announced changes to its SCAMwatch website to
help Australians recognise and protect themselves from scams. "The ACCC
will publish 'mock' scams and examples of real scams on its SCAMwatch
website to educate consumers about the elements of common scams and the
warning signs to look out for," Mr Samuel said.
CANADA
Competition Bureau
www.cb-bc.gc.ca
Competition Bureau announces launch of Fifth Annual Fraud Prevention Month
“Statistics showing one million adult Canadians have fallen victim to
mass marketing fraud highlight the need for more consumer education and
vigilance,” Sheridan Scott, Commissioner of Competition, said at the
launch of Fraud Prevention Month. March is Fraud Prevention Month in
Canada and around the world. As chair of the Fraud Prevention Forum, the
Competition Bureau works with its partners to raise awareness among
consumers and businesses about the dangers of fraud by educating them on
how to recognize it, report it and stop it. Over 100 Fraud
Prevention Forum partners from coast to coast will participate in various
activities throughout the month. In Canada, Fraud Prevention Month will
highlight issues including fraud targeting youth, health fraud and fraud
targeting small business. Internationally, 30 countries from around the
world are hosting their own fraud prevention activities.
Atlantic Canadians tell scammers to Fraud Off!
Fraud Prevention Forum members from Atlantic
Canada and the Halifax Partners Against Fraud will participate in Fraud
Off!, an education and awareness event for youth, hosted by the Bank of
Canada, at Dalhousie University. The issue of fraud is so important to
Nova Scotians young and old, that Halifax Mayor Peter Kelly has proclaimed
March as Fraud Prevention Month.
Project False Hope Unveiled: Competition Bureau combats cancer fraud
through education and enforcement
The Competition Bureau launched Project False
Hope, an education and enforcement initiative aimed at targeting
cancer-related health fraud online. Project False Hope has already
uncovered dozens of Canadian-operated Web sites offering cancer-related
products that raise concerns under the false and misleading provisions of
the Competition Act. Millions of Canadians are turning to the
Internet for health-related information. Once online, they will often be
exposed to unproven and downright fraudulent cures or treatments for their
health problems that can cheat them of time, money, and most importantly,
their health. As part of Project False Hope, the Bureau has unveiled two
interactive Web tools to educate consumers on how to recognize scams.
Anatomy of an Online Health Scam is designed to teach you how to identify
some of the tactics often used by scammers selling bogus cancer cures or
treatments online. The Health Fraud Awareness Quiz tests your knowledge of
scammers’ tactics and teaches you how to avoid falling victim. In addition
to providing consumers with more information on how to protect themselves
from fraudulent health claims, the Bureau uses a combination of Internet
surveillance and adaptive investigative techniques to identify online
scams. To date, 92 per cent of the identified sites have complied with the
Bureau's demand to modify or remove the claims at issue, but many similar
sites are still out there. The Bureau will take additional enforcement
actions to obtain compliance from remaining sites as required.
Competition Bureau investigation leads to criminal charges related to
deceptive telemarketing operations
Criminal charges were laid against four
individuals allegedly involved in deceptive telemarketing activities in
Quebec. These activities are estimated to have generated approximately
$9.3 million in revenue during the alleged scam which targeted small and
medium businesses by charging them for CD directories that they did not
order. The accused are Hiep Manh (Ty) Nguyen, 35, of Victoria, owner and
president of Global Management Solutions-GMS (9125-8954 Quebec Inc.) and
Commutel and Marketing USA (9125-8947 Quebec Inc.); Anh-Phong Vo, 35, of
Edmonton, president of Commutel and Marketing USA; Brian Steczko, 55, of
Montreal, president of Commutel; and Cory Kornelson, 35, of Montreal,
president of Global Management Solutions-GMS. Telemarketers promoting a CD
directory containing information about various companies and organizations
contacted small and medium businesses between January 1, 2003, and
February 23, 2005. The telemarketers allegedly led victims to believe that
they were already a customer of the telemarketing company or that the
product was being offered free of charge. However, victims were sent an
invoice if they kept the CD, or if the CD was returned, they had to pay a
separate charge.
Competition Bureau provides the "FACTs" on Fraud targeting SMEs and NPOs
The Competition Bureau launched the FACT
Campaign (Fraud Awareness for Commercial Targets), an outreach and
education initiative that provides businesses and not-for-profit
organizations with the tools necessary to avoid becoming victims of fraud,
which costs them millions of dollars annually. The campaign provides
practical Web-based tools to these businesses so they can recognize fraud
and stop it before they are scammed. Among the most common scams,
targeting thousands of small businesses and non-profits across the
country, are fake invoices and fraudulent telemarketing pitches for office
supplies. The campaign was launched in Calgary, home to one of Canada's
fastest-growing SME communities. Easy to read information for SMEs and
NPOs on how to identify common scams, train front-line staff such as
receptionists and book-keepers, and pick out fake invoices is available on
the FACT page of our Web site.
Consumers and businesses should be vigilant year-round in the fight
against fraud
As Fraud Prevention Month comes to a close, the
Competition Bureau is warning consumers and businesses to be vigilant all
year long in the fight against fraud. An Environics commissioned for the
Bureau revealed that in 2007, Canadians lost more than $450,000,000 to
mass marketing fraud (MMF), which is fraud committed by mail, telephone
and Internet. Education and awareness campaigns such as Fraud Prevention
Month are essential to address the issue of fraud and ensure confidence in
the marketplace. These campaigns provide businesses and consumers with the
tools necessary to recognize fraud, report it to the authorities and stop
the scammers. The Competition Bureau chairs the Fraud Prevention Forum,
which is a concerned group of private sector firms, consumer and volunteer
groups, government agencies and law enforcement organizations committed to
fighting fraud aimed at consumers and businesses. Through its partners,
the Forum works to prevent Canadians from becoming victims of fraud by
educating them on how to recognize it, report it and stop it.
FINLAND
Consumer Agency & Ombudsman
www.kuluttajavirasto.fi
January, February & March 2008
15/01/2008
Rules for “tell a friend” marketing: Permission is required to send
marketing in text messages and e-mail
Different forms of marketing in which consumers are involved in
passing on information about a company's products and services have become
increasingly common. A typical example is “tell a friend” marketing, in
which consumers forward product tips, introductory offers, contest
invitations and other marketing messages to people they know by e-mail or
text message.
23/01/2008
Sharp rise in reports about problems in consumer trade - Mobile services
and poor customer service top concerns
Last year the Finnish Consumer Agency and Consumer Ombudsman received
4,600 reports regarding marketing, contract terms and debt collection. The
number has risen sharply: in 2006 nearly 1,000 fewer reports were
received.
31/01/2008
Products are increasingly sold as solutions to climate change – Ads often
exaggerate
As a result of climate change, environmental friendliness is a big selling
point nowadays. This was also visible in a market surveillance campaign
that was conducted by the Finnish Consumer Agency, which examined ads in
21 newspapers and 37 magazines as well as radio and television commercials
during a one-week period. The campaign showed that concern about climate
change has caused many businesses to alter the way they operate. Marketing
sometimes gives an overly positive picture of measures and their
consequences, however.
06/03/2008
Small print still plagues TV advertisements
When businesses launch an advertisement campaign on TV for a special
offer, they frequently use a marketing strategy that tends to highlight
the low price, freebie or some other benefit. The terms and restrictions
of the offer, however, usually appear in miniscule text at the bottom of
the TV screen, and only for a very short time.
13/03/2008
Sonera’s ensuring of its electronic billing conditions inadequate
Dissatisfied customers may terminate subscription without
term of notice
Several complaints have been filed with the Finnish Consumer Agency
following Sonera’s decision to start charging for the paper format bills
it sends to its broadband subscribers. A €1 fee for bills on paper will be
implemented at the start of April this year; bills delivered to the
customer’s email address or electronic bank account will remain cost-free.
17/03/2008
Checklist on credit marketing published for sellers of lines of credit –
Consumers must have time to consider
Vendors of domestic appliances and furniture often offer their customers
the chance to fund purchases with a line of credit. From time to time,
when finalising a deal with the customer, dealers fail to inform consumers
about this or that vital detail of the credit. Some customers have been
surprised to learn that this form of payment is actually revolving credit
granted by a financing company.
19/03/2008
New website offers a safety network against scams – It is advisable to
quickly notify the authorities of scams
The Finnish Consumer Agency's new website helps consumers recognise the
most common types of scams and how to avoid them. Through the website the
consumers can also inform the authorities of scams they have encountered.
______________________________________________________________________
See also the Finnish Consumer
Ombudsman's online newsletter
Current Issues on Consumer Law
1/08
New directive won't undermine Finnish legislation on marketing
According to the Consumer Protection Act, marketing may not involve
conduct that is inappropriate or otherwise unfair from the point of view
of consumers. This basic principle will continue to be upheld even once
the EU Directive concerning unfair commercial practices is adopted in
Finland.
2/08
Company that offers quick loans is being taken to Market Court
Oy Atlas-Invest Ab has long been flouting the rules that govern quick loan
marketing and delivery of contractual terms. The Finnish Consumer Agency
is now seeking an injunction against the company from the Market Court in
order to halt its illegal activities.
Concerns about the use of invoices as a marketing tool
Itella Oyj has harnessed the power of the invoice for marketing purposes.
An invoice, however, should be recognizable. Will a bill mistaken for an
advertisement too easily end up in the recycling bin along with the other
advertisements?
NEW ZEALAND
Commerce Commission
www.comcom.govt.nz
Fight the scammers. Don’t respond. Fraud Awareness Week 3-10 March 2008
Fraud Awareness Week starts today and the Commerce Commission and the
Ministry of Consumer Affairs are warning consumers that scammers are out
to seduce and deceive them.
Online car sales not exempt from obligation to display Supplier
Information Notices
A motor vehicle trader who sold hundreds of cars via the online auction
website, Trade Me, has been convicted and fined for failing to provide
mandatory information about the vehicles to purchasers.
Telecommunications Commissioner launches study into Next Generation
Networks issues
Dr Ross Patterson, Telecommunications Commissioner, today announced that
the Commerce Commission intends to use its sector monitoring powers under
the Telecommunications Act 2001 to proactively initiate a study into Next
Generation Networks.
Commerce Commission freezes assets associated with Wings and Wheels over
Waikato
The Commerce Commission today confirmed that it has obtained a court order
freezing the assets of Hawker Holdings, airshow.co.nz - Media Limited,
airshow.co.nz Limited and Kenneth James Ross.
Telecom cleared to acquire radio spectrum management rights
The Commerce Commission has cleared Telecom Leasing Limited (Telecom) to
acquire the management rights from the New Zealand Government for the
radio frequency range between 2520 and 2540 GHz, together with the
corresponding natural pair management rights in the 2640 – 2660 GHz range.
Next step underway for sub-loop related services
The Commission today issued notices requiring Telecom to submit a standard
terms proposal for the following sub-loop related services:
- unbundled
copper local loop from Telecom’s distribution cabinets;
- backhaul from
Telecom’s distribution cabinet to the exchange;
- co-location
services at Telecom’s distribution cabinets.
Final report issued on regulation of mobile roaming
The Commerce Commission has issued its final recommendation to the
Minister of Communications on the regulation of mobile roaming.
Vita NZ applies for clearance to acquire assets of Pacific Brands
The Commerce Commission has received an application from Vita New Zealand
seeking clearance to acquire the New Zealand foams, flooring and bedding
businesses of Pacific Brands.
Commission declines to give Sumitomo Forestry clearance to acquire Carter
Holt Harvey MDF assets in Rangiora
The Commerce Commission has today declined to give clearance to Sumitomo
Forestry Co Limited to acquire all of the medium density fibre board (MDF)
assets and business operations of Carter Holt Harvey Limited (Building
Supplies Division) situated in Rangiora.
Review of electricity distribution businesses 2007/08 asset management
plans
The Commerce Commission has today released its review of the 2007/08 asset
management plans of electricity distribution businesses, noting
satisfactory progress by the majority of electricity distribution
businesses towards best practice in asset management planning.
Finance firm fined over credit contracts
A consumer finance company which lends almost exclusively to the Tongan
community has been fined $37,480, in the Manukau District Court for
breaches of the Credit Contracts and Consumer Finance Act (CCCF Act) and
Fair Trading Act.
Commission declines to give DFS Group Limited clearance to acquire the New
Zealand operations of The Nuance Group
The Commerce Commission has today
declined to give clearance for DFS Group Limited (DFS Galleria) to acquire
100 % of the shares in, or assets of, the New Zealand operations of The
Nuance Group (Nuance).
NORWAY
Norwegian Consumer Ombudsman
www.forbrukerombudet.no
Congratulations - you won?
Is it possible to win several thousand dollars simply by clicking on an ad
on the Internet?
Special merit prize for Norwegian iTunes campaign
The Norwegian Consumer struggle with unfair commercial practices carried
out by online traders in general, and iTunes in particular, received a
special merit prize for the iTunes campaign.
Norway
4-3-2008 document
POLAND
Office of Competition and Consumer Protection
www.uokik.gov.pl
Consumer Markets Scoreboard
The OCCP hosted a meeting with DG Sanco and various Polish institutions to
discuss the European Commission's latest consumer markets research
project.
UNITED KINGDOM
Office of Fair Trading
www.oft.gov.uk
March is Consumer Codes Awareness
Month, and the OFT is advising consumers to look for businesses displaying
the OFT Approved code logo when buying goods and services.
The OFT has published the findings
of its web sweep of the UK's top retail websites. Download the
web
sweep analysis (pdf
436 kb).
As part of its follow up to the internet shopping report published last
June, the OFT worked with Local Authority Trading Standards Services (TSS)
to conduct a web sweep to check whether the most popular shopping websites
were complying with key requirements of the Distance Selling Regulations
and Electronic Commerce Regulations.
The OFT has obtained assurances
from a South African marketing agency that they will no longer send
misleading mailings to UK consumers.
Turn A Direct, operating under
various names such as The Prize Consortium, Fusion Award Network and Door
2 Door Merchandise, sent over 400,000 mailings to UK consumers promoting
prize draw and merchandise offers. The mailings encouraged recipients to
send a fee of between £14.95 and £24.95 to claim their prize or a parcel
of items. Over 15,000 responses from UK consumers were received.
The OFT has published its Annual
Plan which sets out its priorities for the coming year, and how it plans
to address a number of forthcoming new challenges.
Download the
OFT
Annual Plan (pdf 282
kb).
UNITED STATES OF AMERICA
|Federal Trade Commission
http://www.ftc.gov
William E. Kovacic Assumes Position as Federal Trade Commission Chairman
Commission Issues Staff Report, “Protecting Consumers in the Next
Tech-ade.”
Commission issues staff report: The Commission has issued a staff report
highlighting the challenges of consumer protection in the face of emerging
and evolving technologies in the next ten years.
Chairman Issues Commission’s Annual Report at ABA Spring Meeting
“The FTC in 2008: A Force for Consumers and Competition”
Statement of Federal Trade Commission Chairman Deborah Platt Majoras
As previously announced, I will resign as Chairman of the Federal Trade
Commission, effective March 30.
FTC Asks Court to Halt Prepaid Calling Card Scam; Alleges Consumers
Receive Fewer Calling Minutes Than Advertised and Pay Hidden Fees
The Federal Trade Commission has asked a U.S. district court judge to
order a halt to the alleged illegal practices of CTA, a major distributor
of prepaid calling cards across the country.
La FTC le Solicita a la Corte que Detenga una Estafa de
Tarjetas Telefónicas Prepagadas; Se Alega que los Consumidores Reciben
Menos Minutos de Llamadas que los Anunciados y que Pagan Cargos No
Declarados
La Comisión Federal de Comercio (Federal Trade Commission, FTC) le ha
solicitado a un juez de una Corte Federal de Distrito que ordene el cese
de las prácticas presuntamente ilegales de CTA, un importante distribuidor
de tarjetas telefónicas prepagadas que opera en todo el país.
Commission Issues Advisory Opinion on FDCPA and Debt Collectors; FTC
Extends Comment Period for Mobile Town Hall
Issuance of Commission advisory opinion: The Commission has issued an
advisory opinion stating that the Fair Debt Collection Practices Act does
not prohibit a debt collector in the foreclosure context from
communicating with consumers regarding possible settlement options that
may assist consumers to avoid foreclosure. Extension of public
comment period: In preparation for the FTC’s “Beyond Voice” Town
Hall scheduled for May 6 and 7, 2008, the Commission requested comments
and original research from interested parties on the general topics noted
in its February 4, 2008, press release.
FTC Approves Federal Register Notice Seeking Comments on Revised Proposed
Business Opportunity Rule
Commission approval of Federal Register notice: The Commission has
approved the publication of a Federal Register notice seeking comments on
a revised proposal for a new trade regulation rule governing business
opportunities.
Federal Trade Commission to Host Workshop on Health Care Clinical
Integration
One-Day Public Event Scheduled for May 29, 2008, in
Washington, DC
Nation’s Largest Telephone Bill Aggregators Will Pay $1.9 Million and Stop
‘Cramming’ to Settle FTC Charges
Three companies that placed more than $30 million in bogus collect call
charges on consumers’ telephone bills have agreed to pay $1.9 million for
consumer redress in a settlement with the Federal Trade Commission that
bars them from billing for unauthorized charges and misrepresenting that
consumers are obligated to pay for them.
FTC Approves Federal Register Notice on Funeral Rule
The Federal Trade Commission has approved the publication of a Federal
Register notice closing the regulatory review of the Trade Regulation
Review on Funeral Industry Practices (the Funeral Rule) and retaining the
Rule in its current form.
FTC to Host Workshop on Innovations in Health Care Delivery
The Federal Trade Commission will host a workshop on April 24, 2008, to
examine recent trends related to health care delivery.
Judgment Entered Against Spyware Scammer
Trojan Program Downloaded Spyware, Adware, Porno Pop-Ups to Consumers’
Computers
FTC Cautions Consumers About Tax and Rebate Scams
The Federal Trade Commission is cautioning consumers looking forward to
rebate checks from the government that they may be targets of scammers out
to steal their identity.
‘Cramming’ Defendant Permanently Banned from Billing on Local Telephone
Bills
Willoughby Farr, the owner of three companies that billed more than
$30 million in bogus collect call charges to millions of consumers
throughout the country, has been banned from all billing on local
telephone bills.
Adult Website Operation Settles FTC Charges Unwitting Consumers Exposed to
X-Rated Spam
An X-rated Web operation that paid affiliates who used illegal e-mail to
drive customers to its Web sites will pay a $413,000 civil penalty under a
settlement reached with the FTC and the Department of Justice.
Commission Approves Federal Register Notice Announcing Regulatory Reviews
Scheduled for 2008; FTC Issues Federal Register Notice Regarding Labeling
Requirements for Biodiesel Fuels
The Federal Trade Commission has approved the publication of a Federal
Register notice announcing the rules and guide that it will review in 2008
under its routine regulatory review process. The Commission has
approved the publication of a Federal Register notice of proposed
rulemaking regarding the labeling requirements for biodiesel fuels.
Student Lender Settles FTC Charges That It Failed to Safeguard Sensitive
Consumer Information and Misrepresented Its Security Practices
A student loan company has agreed to settle Federal Trade Commission
charges that it failed to provide reasonable and appropriate security for
consumers’ sensitive personal information in violation of federal law.
Work-At-Home BizOpp Marketers Settle FTC Charges
A group of business opportunity marketers who told consumers they could
make substantial income processing medical claims from home have agreed to
settle Federal Trade Commission charges that they misled consumers in
violation of federal law.
National Consumer Protection Week Focuses Efforts on Promoting Financial
Education
National Agencies Partner to Help Consumers Manage Their Money and Make
Sound Financial Decisions
La Semana Nacional de Protección del Consumidor Concentra
sus Esfuerzos en la Promoción de la Educación Financiera
Agencias Nacionales se Unen para Ayudar a los Consumidores a Administrar
su Dinero y Tomar Decisiones Financieras Sólidas
February 2008
United States of America
Federal Trade Commission
http://www.ftc.gov
FTC Sues Two Mortgage Foreclosure “Rescue” Operations
As part of the Federal Trade Commission’s intensified efforts to protect
consumers from mortgage foreclosure rescue scams, the agency has filed two
lawsuits charging six individuals and their businesses with falsely
claiming that they will stop foreclosure.
FTC Charges Mortgage Foreclosure “Rescuers” with Deceiving Homeowners
In an ongoing effort to crack down on businesses that prey upon homeowners
facing foreclosure, the Federal Trade Commission has charged six
businesses and three individuals with violating the Home Ownership and
Equity Protection Act (HOEPA), the FTC Act, and the Truth in Lending Act
(TILA) by enticing homeowners into high-cost, short-term loans secured by
an additional mortgage on their homes.
Chairman Deborah Platt Majoras to Leave FTC in Late March
Federal Trade Commission Chairman Deborah Platt Majoras today announced
her decision to leave the FTC in late March.
FTC Testifies Before House Appropriations Subcommittee on Consumer
Protection in Financial Services
The Federal Trade Commission today presented testimony before the U.S.
House Committee on Appropriations, Subcommittee on Financial Services and
General Government, discussing how the Commission protects consumers at
every stage of the consumer credit life cycle, from the advertising and
marketing of financial products to debt collection and debt relief.
FTC Charges Three Internet Payday Lenders with Not Disclosing Required APR
Information in Ads
Three payday lenders have agreed to settle Federal Trade Commission
charges that their Internet advertising stated the cost of loans without
disclosing annual percentage rate information that federal law requires.
Court Bars Georgia Defendants from Selling Bogus Business Opportunities
Principals Ordered to Pay $8.98 Million; Relief Defendant to Pay $250,000
Marketers of 7 Day Miracle Cleanse Program Banned From InfomercialsThe
marketers of the 7 Day Miracle Cleanse Program, a purported herbal
colon-cleansing program, have agreed to settle Federal
FTC Announces Workshop on ‘Green Guides’ and Packaging
Next Public Workshop in Series Scheduled for April 30, 2008, in
Washington, DC
BlueHippo Defendants Will Pay up to $5 Million to Settle FTC Charges
Two companies that offer to finance the sale of personal computers to
consumers with poor credit ratings have agreed to pay up to $5 million for
consumer redress to settle Federal Trade Commission charges that they
violated federal laws.
Commission Approves Federal Register Notice Seeking Comments on Amplifier
Rule Review
Commission approval of Federal Register notice: The Commission has
approved the publication of a Federal Register notice seeking comments as
part of the regulatory review of the FTC’s Trade Regulation Relating to
Power Output Claims for Amplifiers Utilized in Home Entertainment
Products, commonly known as the Amplifier Rule.
Commission Extends Public Comment Period in Matter of Negotiated Data
Solutions, LLC; FTC Approves Federal Register Notice Seeking Comments on
Platinum Section of Jewelry Guides
Commission extension of public comment period: By a vote of 5-0, the
Commission has approved the extension of the public comment period related
to the recent consent order in the matter of Negotiated Data Solutions,
LLC. Commission approval of Federal Register notice: The Commission has
approved the issuance of a Federal Register notice seeking comments on a
proposed amendment to the platinum section for the
Guides for the Jewelry, Precious Metals, and Pewter Industries, 16 CFR
Part 23 (Jewelry Guides) to address new platinum
alloys, and, specifically, whether the Guides should address
platinum-plated, platinum-filled, and similar products.
Court Finds Payment Processor in Contempt, Issues Warrant for His Arrest
Defendant Ira Rubin Assisted Cross-Border Telemarketing Scams
Debt Reduction Companies Settle with FTC
Two debt reduction companies and their principals have agreed to settle
Federal Trade Commission charges alleging that they violated federal law
by falsely claiming that they could reduce consumers’ credit card interest
rates or the amount of their credit card debt.
FTC Releases List of Top Consumer Fraud Complaints in 2007
The FTC today released the list of top consumer fraud complaints received
by the agency in 2007.
FTC Testifies on Efforts to Stop Mortgage Foreclosure ‘Rescue’ Fraud
The Federal Trade Commission today told the U.S. Senate Special Committee
on Aging that the Commission, partnering with other federal agencies and
state and local governments, is working to prevent mortgage foreclosure
“rescue” fraud through law enforcement and consumer outreach.
Tips on Helping Tornado Victims
FTC Tells Consumers Ways to Give Wisely
FTC Sues Sellers of Weight-Loss Pills for False Advertising
The Federal Trade Commission has charged a business operation with
violating federal law by falsely claiming that its weight-loss pills cause
users to lose weight without dieting or exercise.
Statement of FTC Chairman Deborah Platt Majoras on Congressional Passage
of Legislation Regarding the National Do Not Call Registry
FTC Offers Pearls of Wisdom for Jewelry Shoppers
With Valentine’s Day just around the corner, the Federal Trade Commission
has issued a new publication, “Puttin’ on the Glitz: What to Know When
Jewelry Shopping,” to help consumers make smart decisions about buying
gold, watches, gemstones, pearls, and diamonds.
Judge Agrees with FTC, Orders Spammers to Pay More Than $2.5 Million and
Stop Selling Bogus Weight-Loss and Anti-Aging Products
At the request of the Federal Trade Commission, a federal judge has
ordered Sili Neutraceuticals, LLC and Brian McDaid to pay more than $2.5
million for making false advertising claims and sending illegal e-mail
messages in violation of the FTC Act and the CAN-SPAM Act (Controlling the
Assault of Non-Solicited Pornography and Marketing Act).
FTC to Host Town Hall Meeting to Explore the Mobile Marketplace
The Federal Trade Commission will host a two-day Town Hall meeting to
explore the evolving mobile commerce (M-commerce) marketplace and its
implications for consumer protection policy.
FTC, IAPP, Northwestern University Law School to Co-Host April 15 Workshop
for Businesses on Best Practices for Protecting Personal Information and
Securing Data
The Federal Trade Commission, International Association of Privacy
Professionals, and Northwestern University School of Law will co-host a
one-day public workshop on April 15, 2008 on how businesses can secure the
personal information of consumers and employees.
AUSTRALIA
Australian Competition and Consumer Commission
www.accc.gov.au
Auto Super Cars supplier makes undertakings over lead in toys' paint
The ACCC has accepted court enforceable undertakings from Rite Price
Wholesalers Pty Ltd, an importer and supplier of children's toys, after
the ACCC found paint on some Rite Price toy cars contained too much lead.
Another medical sheepskin supplier undertakes to not make false claims:
ACCC warns industry
Less than three months after sheepskin manufacturer Tasman Sheepskin
Tannery, gave a court enforceable undertaking for making false claims,
Australian Linen Supply, trading as Confident Care Products, has given a
court enforceable undertaking to the ACCC for similar conduct.
ACCC obtains $11,510 in refunds from introduction agency
Former members of an introduction agency will receive refunds totalling
$11,510 from Country Contacts International Pty Ltd and its director, Ms
Voula Saris, after an ACCC investigation. The ACCC was concerned CCI
published advertisements depicting a woman who was available to meet men
in a local area when in fact the descriptions were often untrue and it was
unknown whether the woman was available to meet men in the particular
area.
Seductive scams target consumers
Australasian Consumer Fraud Taskforce: Unprecedented numbers of
'seductive' scams are tempting Australians into giving away their money or
personal details. "That surprise lottery win in the mail, the 'amazing'
share offer over the phone, that unexpected e-greeting from a name you
don't know - all these can be fronts for scams," warned Ms Louise Sylvan,
Deputy Chair of the ACCC and Chair of the Australasian Consumer Fraud
Taskforce.
Marie Claire magazine brown sunglasses recall
Brown fashion sunglasses supplied as a free gift with the February edition
of Marie Claire magazine are being voluntarily recalled by Pacific
Magazines Pty Ltd, Marie Claire's publisher. The sunglass giveaways
complemented the magazine's 'Sunsmart' campaign and were available in
black or brown frames. Testing commissioned by the ACCC and those provided
by Marie Claire on the performance characteristics of the brown
sunglasses indicated that some of the brown framed glasses did not comply
with the mandatory consumer safety standard for sunglasses and fashion
spectacles.
Prouds 'was/now' discount advertising misleading
The Federal Court has held 'Was/Now' discount advertising by Prouds
Jewellers Pty Ltd to be misleading in breach of the Trade Practices Act
1974.
In proceedings commenced in
December 2006 the ACCC claimed that Prouds discount advertising of certain
jewellery items in its mass distribution catalogues published to coincide
with Valentine's Day and Mother's Day in 2006 contravened the Act.
Bunk bed recall
The ACCC has obtained final orders by consent in the Federal Court at
Melbourne against Hercules Iron Pty Ltd and its general manager, Mr Tom
Hatz regarding the company's contravention of the Trade Practices Act
1974 for supplying two models of bunk beds which did not comply with
the prescribed consumer product safety standard for bunk beds.
ACCC court action against Nudie Foods Australia Pty Ltd
The ACCC has instituted proceedings in the Federal Court, Perth against
Nudie Foods Australia Pty Ltd alleging Nudie made misleading claims on the
packaging and in promotional material for two of its fruit juice products,
Rosie Ruby and Rosie Blue.
The ACCC alleges that Nudie
represented on the Rosie fruit juice labels that the Rosie Ruby
juice consisted either solely or predominantly of cranberry, and the
Rosie Blue juice consisted either solely or predominately of cranberry
and blueberry, when in fact 80 per cent of the Rosie Ruby juice and
78 per cent of the Rosie Blue juice was apple juice.
VIPtel mobile phone telemarketers misled consumers: refunds follow
The Federal Court in Darwin today declared that VIPtel Mobile engaged in
multiple breaches of the Trade Practices Act 1974 during
telemarketing calls across Australia.
Many customers were contracted to
24 month commitments while living in places without network coverage. The
ACCC took action following complaints from remote indigenous communities
in the Northern Territory. More than 150 customers with no network
coverage will receive refunds and will be able to cancel contracts with no
penalty as a result of the ACCC action.
ACCC releases groceries issues paper
The ACCC has today released an issues paper on matters relevant to its
inquiry* into the competitiveness of retail prices for standard groceries.
The paper outlines the issues on which the ACCC is seeking information and
describes how submissions can be made. The issues paper will be available
from the ACCC website.
ACCC provides guidance for 'green' marketers
The ACCC has issued updated guidance for businesses and industry on the
use of environmental claims in marketing. "The ACCC has produced Green
marketing and the Trade Practices Act in response to the increasing
use of green claims in advertising by businesses seeking to differentiate
themselves and their products from their competition by means of
environmental claims," ACCC Chairman, Mr Graeme Samuel, said.
CHILE
National Consumer Service
www.sernac.cl
Retail’s “sins”
February 6th 2008
According to consumers’ perceptions and studies
carried out by SERNAC retail market suffer of several imperfections that
have not been solved yet. Falabella’s and D&S’s merger rejection shed
light on these issues.
1 out of 5 consumers claim that retail stores have
charged their bills without their consent and 9 out of 10 argue that they
can not even understand them. Also, 67% of consumers think that
supermarkets have no interest in solving their problems and a 71% thinks
the same about retail stores.
Surveys conducted by SERNAC also show that these
asymmetries are increased when loans are involved. As a matter of fact,
all our studies conclude that consumers must know advanced mathematics in
order to know the final cost of credits.
It has been proved that the information provided to
consumers can become useless and leads to confusion. For instance, the
price is fragmented into principal, interest rate and administrative fees
and, moreover different indicators are used (such as money, percentages
and indexed units of account). It is hard to compare since prices are
usually expressed on ranges and they change according to unknown variables
(costs vary from department to department, i.e. white goods, computers,
etc.).
Moreover, SERNAC has detected large variations on
commissions and interests charged by retail’s credit cards. For instance,
our last study detected differences of 1,140% for a $50.000 money
withdrawal based on different interests and commissions. All these issues
are really serious when we analyze the fact that there are almost 25
million retail credit cards in the market, more than 3 per family.
These considerations were taken into account by
Chile’s Competition Tribunal when rejecting Falabella’s and D&S’s merger.
Both companies would have had nearly a 40% of supermarket’s and credit
card’s market share. SERNAC’s concern was not about the merge itself, but
that the issues previously described would be worsened.
However, the issues in this market exist with or
without merger. A list of malpractices can be done by analyzing
jurisprudence on this area:
Unilateral changes: Courts have sanctioned
that consumers have rights and that the agreed conditions can not be
changed by retail stores, even though they claim to act in the benefit of
consumers.
Give credit to a third person: after the
robbery of their retail credit cards, many consumers have suffered by
their misuse and had to pay for things they never bought. Courts have
determined that retail stores are obliged to confirm that the buyer is
actually the cardholder even though the credit card has not been blocked.
Excessive Interests: in the year 2005, SERNAC
carried out a class action against 7 retail stores for charging excessive
(and illegal) interest rates. The action was settled and more than 5
million consumers will share US$34,785,000 in compensation.
Non-hired insurances: insurances not accepted
by consumers are usually added to contracts in a clear violation to their
right to choose.
Abusive clauses: clauses establishing
unilateral changes in prices, conditions and affecting consumers’ basic
rights are usually established.
Legal warranty: even though consumers have the
right to obtain their money withdrawal, change the product or have it
repaired for free when it presents a failure, many businesses do not
respect it.
Out of Court debt collection: consumers
usually suffer harassment and receive letters simulating judicial notices.
Both actions have been sanctioned by Justice.
DENMARK
The Consumer Ombudsman
www.consumerombudsman.dk
Consumer Protection: the European Dimension
Uniform rules and more comprehensive
harmonisation on a high level form part of the future consumer policy
framework in the EU. In a recently published article, Danish Consumer
Ombudsman Henrik Oee offers his views on the workings of the current
system along with a suggestion for a way to approach future regulation of
the internal market.
MEXICO
Consumer Protection Federal Agency (Profeco by its initials in Spanish
language).
www.profeco.gob.mx
Profeco participates in the international campaign
“February, Fraud Prevention Month”.
- From February 25th to March 7th
2008, it will seek to alert consumers about their rights and
obligations when purchasing online.
- During 2006, the total amount of e-commerce
sales was of $482 million dollars, according to the Mexican Association
of Internet (AMIPCI, by its initials in Spanish language).
The Consumer Protection Federal Agency (Profeco, by
its initials in Spanish language) of Mexico participates and spreads the
International Campaign “February, Fraud Prevention Month”, and in this
occasion it seeks to emphasize on the Fraud Prevention in the context of
Electronic Commerce.
From February 25th to March 7th
2008, this Institution will carry out a campaign to inform consumers
regarding the best practices when they purchase online, what aspects
should be watched and which are their rights, in order to prevent online
abuses or deceptions.
Currently, e-commerce has become one of the most
useful modalities of trade, since the cyber-consumer has access, in real
time, to a wide range of articles, goods and services without the need to
travel to obtain them.
According to the Survey on Electronic Commerce 2007
of the Mexican Association of Internet (AMIPCI, by its initials in Spanish
language), during 2006, the total amount of e-commerce sales was of $482
millions of dollars; therefore, there is an annual growth of 54%, compared
with 2005. Of that figure, 66% was generated in the tourism sector, while
the remaining 34% in the consumption sector.
In addition, the survey points out that 61% of the
sales were carried out in the Federal District (Distrito Federal, in
Spanish language), 34% in the rest of the country and only 4% were
international transactions. The figures indicate that the cyber consumer
strengthens its confidence when the supplier is domiciled within Mexican
territory due to the greater legal protection.
It should be emphasized that Profeco has the faculty
to protect the consumers both in conventional transactions as in the
electronic ones. This is supported by the article 76 bis of the
Federal Consumer Protection Law (Ley Federal de Protección al Consumidor,
in Spanish language), which provides protection to consumers for online
commercial transactions.
The mentioned article covers aspects of
confidentiality in the information provided by the consumer; likewise, the
supplier should use any of technical elements available to offer safety
and confidentiality regarding the information the consumer provides ,
besides, they must provide real data on its physical address, telephone
numbers, etc.
Likewise, the publicity of goods and services offered
can not be deceptive, also it forbidden the use of marketing or publicity
that is not clear and it suggested special attention in the marketing
aimed at vulnerable population (children, elderly, ills). The consumer has
the right to broad information such as terms, conditions, costs, extra
charges, method of payment, shipping, etc.
Before carrying out an electronic commercial
transaction, the consumer must verify that the web site has full contact
details; to identify that the information of the products is clear and
accurate; to confirm that the price of the product is expressed in
national currency; to read the cancellation, refund, warranties and
returns terms.
Also, a website that offers goods or services must
clearly specify the general conditions of the transaction; restrictions
for the purchase, such as geographical location, time for delivery, sort
of product or quantity to be obtained and which the methods of payment
are.
It is important to point out that Mexico is Member of
the International Consumer Protection and Enforcement Network (ICPEN)
since 1994. ICPEN is a system of organizations, including the consumer
protection authorities from around 30 countries, as well as
representatives from the European Commission and the Organization for
Economic Cooperation and Development (OECD).
Profeco exhorts the cyber-consumers to visit its web
site at the section of “informed consumption”, the specific sections of
e-commerce and spam in order for consumers to obtain illustrative
information on these topics, such as recommendations to do commercial
transactions, definitions and warnings on fraud.
If the cyber-consumers, when purchasing online in a
Mexican site, detect unfair or unclear clauses in the cyber contract; it
the is not adequately delivered or it does not comply with the offered
features, they must go to the Consumer Protection Federal Agency
(Procuraduría Federal del Consumidor, in Spanish Language) of Mexico to
submit a complaint or to receive advice and in case the site is a
foreigner one, they can report it in the following web site:
www.econsumer.gov
NEW ZEALAND
Commerce Commission
www.comcom.govt.nz
Telecom to be prosecuted over Go Large promotion
The Commerce Commission has decided to prosecute Telecom and its
subsidiary Xtra for alleged breaches of the Fair Trading Act, in relation
to the Go Large broadband promotion.
Cadmus and Provenco cleared to merge
The Commerce Commission has cleared the proposed merger between Cadmus
Technology Limited (Cadmus) and Provenco Group Limited (Provenco).
Court dates set for Warehouse appeal
The Court of Appeal has set 29 April -1 May 2008 as the dates for the
Commerce Commission’s appeal against the High Court’s decision to be
heard. The High Court’s decision in November 2007 cleared the way for the
three Foodstuffs co-operatives or Woolworths Ltd to acquire up to 100%
shares in, or assets of, The Warehouse Group Ltd.
Draft standard terms released for local loop and bitstream backhaul
services
The Commerce Commission has today released draft determinations on the
price and non-price terms for the backhaul services that support the
unbundled copper local loop (UCLL) and unbundled bitstream (UBA) broadband
services.
Cancer society asked to provide sunscreen results
The Commerce Commission has asked the Cancer Society for information about
the alleged failure of one its sunscreen products, and what the society is
doing about the problem.
Nufarm’s prosecution brings fines in NZ’s biggest cartel case over $7.5m
New Zealand’s largest cartel case to date has resulted in further
heavy penalties for companies and individuals involved in the cartel in
the timber preservatives industry.
New Zealand Investment Holdings applies for clearance to acquire RX
Plastics
The Commerce Commission has received an application from New Zealand
Investment Holdings Limited (NZIH) seeking clearance to acquire 100% of
the shares, or assets and business, of RX Plastics Limited.
Air Liquide cleared to acquire ASCOGAS
The Commerce Commission has cleared Air Liquide to acquire all the shares
of ASCOGAS.
Real estate agent, and his company, admits misleading advertising
A Wellington real estate agent, and the company he worked for, has
admitted advertising a property in a way that was likely to mislead
potential buyers, in breach of the Fair Trading Act.
Next step underway for mobile co-location standard terms determination
On 8 February 2008, the Commerce Commission issued a notice to Vodafone to
prepare a standard terms proposal for mobile co-location. This proposal
will specify the non-price terms and conditions on which the co-location
should be available to mobile network operators.
Finance company to refund 1200 customers
Allied Nationwide Finance Limited has agreed to refund more than 1200
customers after they were charged an unreasonable fee for repaying their
loans early.
Sunscreen companies settle with Commission
The Commerce Commission has reached settlements with four sunscreen
companies that have admitted to misleading consumers about the protection
from the sun offered by their products.
Vodafone cleared to acquire radio spectrum management rights
The Commerce Commission has cleared Vodafone Mobile NZ Limited
(Vodafone) to acquire the management rights from the New Zealand
Government for the radio frequency range between 899.8 and 915 MHz,
together with the corresponding natural pair management rights in the
944.8 – 960 MHz range.
Commerce
Commission to look into Blue Chip
The Commerce Commission will examine documentation relating to Blue Chip
New Zealand after complaints that people may have been induced to invest
based on false or misleading representations.
Crane Group applies for clearance to acquire RX Plastics
The Commerce Commission has received an application from Crane Group
Limited seeking clearance to acquire 100% of the shares in, or assets of,
RX Plastics Limited.
Petrol station fined for misleading prices
A North Shore petrol station was fined $35,000 in the Auckland District
Court today for breaching the Fair Trading Act by misleading their
customers about the price of petrol.
Septic tank cleaning company pleads guilty to misleading customers
A Waikato septic tank cleaning company and its Director have been fined a
total of $28,500 for misleading customers.
NORWAY
Norwegian Consumer Ombudsman
www.forbrukerombudet.no
Increased competition pushes iTunes towards interoperability
Increased competition in the online music market should encourage iTunes
to intensify talks with the record companies about offering DRM-free
music.
POLAND
Office of Competition and Consumer Protection
www.uokik.gov.pl
Costly cash desk
The OCCP targets unfair terms in banking services contracts: mostly
concerning additional charges imposed on consumers.
Fuel quality in 2007
The quality of petrol and diesel fuel in Poland has improved. However, the
first-time ever inspection of LPG reveals a darker picture. In 2007, the
the whole fuel distribution chain was scrutinised for the first time.
THE NETHERLANDS
Netherlands Consumer Authority
www.consumerauthority.nl
Advertising for ‘free’ ringtones considered misleading
The Dutch Advertising Code Committee (Reclame Code Commissie, RCC)
has upheld six complaints submitted by the Dutch Consumer Authority (Consumentenautoriteit)
against ringtone providers last year. The complaints relate to Internet
advertisements for 'free' ringtones, which actually concern paid
subscriptions. Some of the advertisements have been placed on sites
specifically aimed at children. On the basis of the Dutch Advertising Code
(Nederlandse Reclamecode) and the Code for Advertising directed at
Children and Young People (Kinder- en Jeugd Reclamecode), the
Advertising Code Committee ruled that all the advertisements in question
should be considered misleading.
Consumer Authority imposes fine on PostGarant B.V.
The Consumer Authority is imposing a fine on the company PostGarant B.V.
(formerly Fitanova), as it has violated a number of consumer law
regulations, which has resulted in consumers being seriously duped.
PostGarant B.V., trading under names such as TopForm, Slim+, SuperWhite,
StarBright, Pet's Energy and Lively Spirit, is a mail order company that
supplies products such as slimming products and dental care products. The
fines imposed amount to a total of EUR 130,000, and unless the company
improves the information it provides to consumers on its website, a
penalty will be imposed upon it. If a penalty is imposed upon PostGarant
B.V., it will not be permitted to continue its unsolicited mailing of
products in the future.
UNITED KINGDOM
Office of Fair Trading
www.oft.gov.uk
SCAM AWARENESS MONTH
On 1st February, the OFT launched its 2008 Scams Awareness
Month to raise awareness of mass marketed scams, which cost the UK public
£3.5billion a year.
1.
OFT launches Scams Awareness Month 2008 01 February 2008
Campaign highlights the plight of
elderly victims who suffer in silence
Every year an estimated three million UK
consumers fall victim to scams sent by post, email, text, the phone and
internet. One of the main themes of this year's campaign is to highlight
the hidden misery of thousands of elderly and vulnerable consumers who
repeatedly fall victim to scams such as bogus lotteries, deceptive prize
draw and sweepstakes, fake psychics and 'miracle' health cures.
2.
OFT launches nationwide 'Scamnesty' campaign 05 February 2008
Campaign with local authorities asks
public to drop in scam mailings to fight back against scammers.
In partnership with over 50 local
authority Trading Standards Services, the OFT is asking members of the
public to collect any potential scam mailings they have recently received
and drop them into designated 'Scamnesty' bins or boxes at local libraries
and other public areas across the country.
3.
OFT exposes scammers 'tricks of the trade' 08 February 2008
The OFT has highlighted the top five
'tricks of the trade' used by scammers to con the UK public.
Although there are many different types of scam delivered through the
post, by email, over the phone, or in person, most use the same basic
techniques to deceive over three million UK consumers every year.
4.
OFT sends out fake 'scam' text messages to warn young consumers about
scams 15 February 2008
The OFT has today sent out thousands
of fake scam text messages to 18-24 year-old mobile phone users to raise
awareness about scams.
The text message reads: 'Urgent! U may have won £1k cash with '2 Good 2 B
True.' It is followed shortly afterwards by a second text that makes clear
that there is in fact no prize and that the message has been sent by the
OFT to warn about scams. The message also highlights SMSus, a new text
message service launched by PhonepayPlus, the phone-paid service
regulator. SMSus allows users to text details of a premium rate number or
shortcode and receive an automatic reply with the cost of the number,
details of the service provider, how to contact them and how to complain
if necessary.
5.
TV's The Real Hustle joins OFT in fight against scammers 20 February
2008
BBC's The Real Hustle team have urged
consumers to join the fight against scammers as part of the OFT Scams
awareness month.
6.
OFT sends out fake mailing to warn consumers about 'miracle' slimming
scams 22 February 2008
The OFT has sent out thousands of
fake slimming scam mailings to UK consumers.
The mailing promotes bogus 'Fat-Off' capsules which claim to guarantee
weight loss of 20 pounds every week through a secret 'fat-eating' plant
ingredient that goes to work while you sleep. However the mailing goes on
to make clear that it has been sent by the OFT to help raise consumers'
awareness of typical weight loss scams and highlight the tricks used by
scammers.
Uk - OTHERS
The British Association of Removers receives code approval from the OFT
22 February 2008
The British Association of Removers (BAR)* has become the first trade body
within the UK professional removal sector to successfully secure OFT
approval for its code of practice under the OFT's
Consumer Codes Approval Scheme (CCAS).
*The BAR is a trade association for professional removal and storage
businesses representing over 650 members in the UK, ranging from small
family businesses to multinational companies.
OFT statement regarding holiday and travel prices 28 February 2008
The OFT is aware that Ryanair has now changed its website to display
prices on the first page of its booking process that include fixed,
non-optional costs. The OFT welcomes the steps taken by Ryanair and other
airlines towards greater price transparency for consumers and continues to
monitor the situation closely.
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