Header graphic for print
Franchise Law Update Commentary on Business and Legal Issues of Franchising

Tag Archives: FTC

Franchisor did not violate disclosure law, 5th Circuit agrees

Posted in Legal Decisions, Regulatory Compliance

Last June we blogged about a lawsuit that ended favorably for a franchisor.  In Braatz, LLC v. Red Mango FC, LLC, the trial court determined that a franchisor did not violate Wisconsin’s “14-day Rule”, which requires franchisors to provide an “offering circular” (aka FDD) to prospects 14 days before selling a franchise.  3:14-CV-4516-G (N.D. Tex. Apr. 27, 2015). The… Continue Reading

What You Need to Know about the Final FTC Rule Implementing the Fair Packaging and Labeling Act

Posted in Industry Updates, Regulatory Compliance

The Federal Trade Commission (FTC) this week amended its rules under the Fair Packaging and Labeling Act (FPLA), which requires certain products to carry labels identifying the contents, source, item quantity, and other information to help consumers compare products.   The changes include: Modernizing the “place of business” requirement to account for new technologies. Labels are… Continue Reading

SEIU Now Targeting Franchisees

Posted in Business Updates, Industry Updates, Joint Employer, Regulatory Compliance

Opening a new front in the War Against Franchising, the Wall Street Journal is reporting today that the Service Employees International Union or SEIU has targeted disgruntled franchisees and former franchisees in an attempt to form an alliance against some of the biggest franchisors, including McDonald’s Corp. and 7-Eleven Inc. According to today’s article, the effort… Continue Reading

Start the FTC and State Annual Update and Renewal Process Now!

Posted in Regulatory Compliance

Many franchisors’ fiscal year ended on December 31st.   The FTC gives a franchisor 120 days to update its franchise disclosure document (FDD) but  you should be gathering the information needed to update your FDD and file your state renewals (if applicable) NOW!    Below are some quick tips franchisors should follow to ensure they meet the deadlines: Keep in contact… Continue Reading

Do You Have a Plan for Deploying Monitoring and Tracking Software? (If not, the FTC may want to speak with you.)

Posted in Legal Decisions, Regulatory Compliance

Aaron’s, a national Rent-to-Own retail store with approximately 1,300 corporate locations and 700 franchised locations, recently reached a consent agreement (pdf) with the Federal Trade Commission (“FTC”) respecting its privacy practices.  Specifically, the FTC had filed a complaint against Aaron’s for violation of section 5 of the FTC Act, 15 U.S.C. section 45(a). The FTC’s… Continue Reading

You’ve Been Served . . . via Facebook?

Posted in Uncategorized

There has recently been much discussion regarding service of legal process–things like complaints, writs and subpoenas–via Facebook and other social media. You may recall some hyperbolic media reporting earlier this year around the case of the FTC v. PCCare247, Inc., No. 12 Civ. 7189 (PAE), (S.D.N.Y. March 7, 2013), where a federal district court did… Continue Reading

FTC Reinforces Endorsement Guides–With Video!

Posted in Regulatory Compliance

Today the Federal Trade Commission issued updated guidance regarding endorsements.  As you may recall, the FTC last issued endorsement guidance in June 2010. That guidance focused on three major principles: Endorsements must be truthful and not misleading; Endorsements cannot contain claims requiring proof you don’t have; and Endorsements must clearly disclose any material connection between… Continue Reading

The FTC Is Monitoring Data Breaches . . . And Appears to Be Eager to Bring Enforcement Actions When Policy Isn’t Matched by Practice

Posted in Privacy Policy, Regulatory Compliance

  A few months ago we wrote about the FTC’s decision to launch a Consumer Privacy Bill of Rights. One of the more interesting things about the Bill of Rights was that the FTC seemed to be setting up a regime where a company’s voluntary decision to "opt-in" to the regime could become the basis… Continue Reading

The “Do Not Track” Button: If only a large office supply chain could start making those as well.

Posted in Regulatory Compliance

By now, you have almost certainly seen the reports that the White House and the Federal Trade Commission want a Consumer Privacy Bill of Rights with seven principles: Individual Control: Consumers have a right to exercise control over what personal data companies collect from them and how they use it. Transparency: Consumers have a right… Continue Reading

What Does Our Online Privacy Policy Say About Apps?

Posted in Regulatory Compliance

Compliance with online privacy rules just got a little more complicated. The Wall Street Journal is reporting late this afternoon that California Attorney General Kamala Harris has reached an agreement with six leading mobile device companies regarding privacy policies for apps.  The companies who agreed to the settlement are the largest in the sphere: Apple,… Continue Reading