On February 8, 2017, the Criminal Division of the U.S. Department of Justice quietly issued new guidance on corporate compliance programs for companies implicated in misconduct. Specifically, the Criminal Division posted a set of “important topics and sample questions that the Fraud Section has frequently found relevant in evaluating a corporate compliance program” to the
Washington Court Orders 5-Hour Energy To Pay $4.3M For Deceptive Ads in AG Suit
On February 7, Living Essentials LLC and Innovative Ventures LLC, the makers of 5-Hour Energy were ordered to pay nearly $4.3 million in penalties and attorneys’ fees and costs after a Washington State court found the makers deceived consumers with misleading claims regarding things like the effectiveness of the flavored energy shots.
Living Essentials
FTC and NJ AG Announce Settlement with Vizio over Collecting Consumer Viewing Habits
On February 6, the FTC and the New Jersey Office of the Attorney General announced a $2.2 million settlement with Vizio, Inc. over allegations the TV manufacturer installed software on its TVs to collect viewing data on 11 million consumers without their knowledge or consent.
According to the complaint, Vizio manufactured smart
OCC Releases Semiannual Risk Perspective – January 2017
The Office of the Comptroller of the Currency’s National Risk Committee, which is tasked with monitoring the overall condition of the federal banking system and any emerging threats to the system’s safety and soundness, released its “Semiannual Risk Perspective for Fall 2016” on January 5. Using data from the first half of 2016, the publication
NY AG Settles with Acer for $115,000 over Data Breach
On January 26, New York Attorney General Eric Schneiderman announced a settlement with Acer Service Corporation over an alleged data breach involving more than 35,000 credit card numbers, including the credit card information and other personal information of 2,250 New York residents. As part of the settlement, Acer agreed to pay $115,000 in penalties
Democratic AGs File Motion to Intervene in CFPB “For Cause” Removal Case
On January 23, Democratic attorneys general from 16 states and the District of Columbia filed a motion to intervene in the closely watched PHH Corp. v. Consumer Financial Protection Bureau case, currently pending in the U.S. Court of Appeals for the District of Columbia. As we reported here and here, in October
Lead Generator Defendants Charged by FTC Will Pay $10 Million to Consumers
On December 19, 2016, the United States District Court for the Southern District of Florida entered a Stipulated Order for Permanent Injunction and Monetary Judgment to resolve all matters in dispute in the case of Federal Trade Commission and State of Florida v. Inbound Call Experts, LLC et al. after the parties reached a
Federal Court Grants Temporary Injunction to FTC Over Credit Bureau Center’s Allegedly Fraudulent Practices
On January 10, the FTC filed a complaint in the U.S. District Court for the Northern District of Illinois against Credit Bureau Center LLC and three individuals for allegedly luring consumers into signing up for credit monitoring services using fake rental property ads and offers of free credit reports.
The complaint alleged that all the
Requesting Attorneys’ Fees in Court Summons Does Not Misrepresent Amount of Debt
The U.S. District Court for the Eastern District of Tennessee recently held that a debt collector’s civil court summons requesting “reasonable attorney fees” does not violate the Fair Debt Collection Practices Act. In Wilma Jones et al. v. Hospital of Morristown (Case No. 2:16cv13, 2016 LEXIS 153869 (E.D. Tenn. Oct. 6, 2016)), the plaintiff argued
Ninth Circuit Holds Trustees Performing Non-Judicial Foreclosures Are Not Debt Collectors Pursuant to FDCPA
The Ninth Circuit recently broke from other circuit courts across the country and held that a trustee to a security agreement is not a debt collector pursuant to the Fair Debt Collection Practices Act. The case is Vien-Phuong Thi Ho v. Recontrust Co., N.A., No. 10-56884, 2016 U.S. App. LEXIS 18836 (9th Cir. Oct. 19,