Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Businesses Can Learn from the FTC’s 2015 Annual Highlights Report

Author: Scarinci Hollenbeck, LLC

Date: May 23, 2016

Key Contacts

Back

Businesses Can Learn from the FTC’s 2015 Annual Highlights Report 

The Federal Trade Commission (FTC) recently released its 2015 Annual Highlights. As the title suggests, the report summarizes the agency’s achievements and initiatives last year in the areas of enforcement, policy, and education.

Annual Highlights Report

For businesses, the report is useful because it highlights where the FTC is focusing its oversight and, consequently, where companies should be directing their compliance resources. Most notably, the report confirms that the FTC is increasingly concerned about how emerging technologies are impacting consumers, as well as how business mergers are impacting competition.

“2015 was another busy year for the FTC fighting fraud and deception, as well as promoting competition and consumer choice,” Chairwoman Edith Ramirez said in a press statement. “In our law enforcement and policy work, we placed special emphasis on sectors of the economy that have the biggest impact on consumers, such as health care and the digital economy.”

FTC Enforcement Highlights

In total, the FTC imposed $21.8 million in civil penalties in 2015. While the agency was active in a variety of industries, the healthcare and pharmaceutical industries saw the most enforcement actions. As evidence of its efforts to prevent anticompetitive healthcare provider consolidation, the FTC filed suit to block three proposed hospital mergers in 2015.

Overall, the FTC filed 27 merger challenges in 2015, along with a number of anticompetitive conduct cases. The agency specifically noted that it successfully prevented Sysco from buying its rival, US Foods, thereby preserving competition in the $231 billion foodservice industry.

In the area of consumer protection, the Annual Highlights report also emphasized that the FTC had many victories in 2015 at both the district court and appellate levels on key issues of concern, including the common carrier exemption (AT&T Mobility), data security (Wyndham), and deceptive advertising (POM Wonderful). As we discussed on this blog, in FTC v. Wyndham Worldwide Corporation, the Third Circuit Court of Appeals affirmed the FTC’s cybersecurity authority to hold businesses liable for data breaches under Section 5 of the Federal Trade Commission Act.

Finally, the FTC also had a record year of debt collection enforcement. It brought twelve new cases against 52 new defendants and resolved nine cases to obtain nearly $94 million in judgments.

FTC Policy Highlights

As noted in the report’s Policy Highlights, the FTC filed amicus briefs in a number of cases, including lawsuits involving prescription drug competition and debt collection. Most notably, in American Sales v. Warner-Chilcott, the FTC argued that reverse-payment patent litigation settlements, also referred to as “pay-for-delay” settlements, can still violate antitrust laws even when non-cash payments are made.

The majority of the FTC staff’s advocacy comments also focused on the healthcare industry. The agency issued comments to legislators in four states, including New York, that raised concerns over efforts to provide antitrust immunity for mergers and other collaborations among health care providers. The FTC also noted that its staff conducted several workshops focused on new and rapidly changing markets or technologies, such as the sharing economy, cross-device tracking, and new developments in healthcare provider organization and payment models.

FTC Outreach Highlights

Whenever the FTC issues new guidance, enforcement actions are likely to follow.

With regard to education, the FTC report highlights its work to alert businesses to the agency’s compliance standards. For those who don’t already follow the agency’s business blog, it is a great way to keep up with data regarding FTC guidance and enforcement initiatives.

In 2015, the FTC launched its multimedia Start with Security initiative, revised its FAQs about the endorsement guides, and issued a new brochure for companies entering the Internet of Things marketplace. In December of 2015, the agency issued guidance on “native advertising,” reminding businesses that an advertisement or promotional message shouldn’t suggest or imply to consumers that it’s anything other than an advertisement, particularly on social media.

Whenever the FTC issues new guidance, enforcement actions are likely to follow. Just a few months later, it announced that retailer Lord & Taylor had reached a settlement over allegations that it misrepresented that Instagram images and captions reflected the independent statements of impartial fashion influencers, when they really were part of a Lord & Taylor ad campaign.

In the area of consumer outreach, the report notes the FTC’s efforts to educate consumers about the “telltale signs of fraud and deceptive business practices.” In keeping with the agency’s growing focus on data security, the report also highlights IdentityTheft.gov, which was created as a centralized government website for the public to report and recover from identity theft.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!