FTC Sues LA Fitness Over Impossible-to-Cancel Memberships

2025-08-20
FTC Sues LA Fitness Over Impossible-to-Cancel Memberships

The Federal Trade Commission (FTC) is suing LA Fitness and other gym chains for allegedly making it nearly impossible for consumers to cancel memberships. The FTC's complaint highlights numerous obstacles, including restricted cancellation hours, requiring in-person cancellation with specific employees, and unclear instructions for mail cancellations. The FTC seeks a court order to stop these practices and provide refunds to affected consumers. This action underscores the FTC's commitment to protecting consumers from unfair business practices.

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Misc

FTC Releases FAQs on New Rule Targeting Deceptive Fees

2025-05-07
FTC Releases FAQs on New Rule Targeting Deceptive Fees

The Federal Trade Commission (FTC) has published FAQs clarifying its new rule on unfair or deceptive fees, effective May 12, 2025. This rule combats practices like bait-and-switch pricing that hide total costs in live event ticketing and short-term lodging. The FAQs detail which businesses are covered, mandatory fees to be included in advertised prices, permissible exclusions, and clear disclosure requirements. The rule aims to increase price transparency and protect consumers without prohibiting specific pricing strategies, focusing instead on upfront honesty about total costs.

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FTC Sues Uber Over Deceptive Subscription Practices

2025-04-21
FTC Sues Uber Over Deceptive Subscription Practices

The Federal Trade Commission (FTC) today filed a lawsuit against Uber, alleging that the ride-sharing and delivery company charged consumers for its Uber One subscription service without consent, failed to deliver promised savings, and made it difficult for users to cancel despite a 'cancel anytime' promise. FTC Chair Andrew N. Ferguson stated that Americans are tired of unwanted subscriptions that are nearly impossible to cancel. The FTC alleges Uber not only deceived consumers but also made cancellation unreasonably difficult. The complaint details deceptive billing and cancellation practices, including falsely advertised savings, obscured subscription information, unauthorized charges, and an excessively complex cancellation process. The FTC contends Uber's actions violate the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA).

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Startup

FTC Cracks Down on DoNotPay's Misleading 'Robot Lawyer'

2025-02-12
FTC Cracks Down on DoNotPay's Misleading 'Robot Lawyer'

The Federal Trade Commission (FTC) has ordered DoNotPay to cease deceptive marketing of its AI chatbot as a “robot lawyer.” The FTC argued that DoNotPay’s claims were unsubstantiated, failing to meet the standards of a human lawyer in generating legal documents and advice. The final order includes a $193,000 penalty, notification to affected consumers (2021-2023 subscribers), and a ban on advertising its service as a lawyer’s replacement without sufficient evidence.

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FTC Slams GoDaddy for Lax Data Security

2025-01-28
FTC Slams GoDaddy for Lax Data Security

The Federal Trade Commission (FTC) is taking action against GoDaddy for allegedly failing to implement reasonable security measures, leading to multiple data breaches since 2018. The FTC alleges GoDaddy misled customers about its data security protections. The proposed settlement requires GoDaddy to establish a comprehensive data security program and undergo independent security assessments. This action highlights the importance of robust security practices for web hosting providers and underscores the FTC's commitment to protecting consumer data.

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FTC Sues Deere for Anticompetitive Repair Practices

2025-01-15
FTC Sues Deere for Anticompetitive Repair Practices

The Federal Trade Commission (FTC), along with the Attorneys General of Illinois and Minnesota, sued agricultural equipment manufacturer Deere & Company for anticompetitive practices that inflate repair costs and restrict farmers' access to timely repairs. Deere limits access to its essential repair software, forcing farmers to rely on expensive authorized dealers. The FTC's lawsuit aims to end Deere's practices by requiring them to provide full repair access to equipment owners and independent repair providers.

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