News from the Federal Trade Commission - March 2016

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march2016

Privacy Risk with ASUS Routers

router

ASUSTeK Computer, Inc., a company that sells wireless routers for home use, agreed to settle FTC charges that its home routers and cloud services were insecure and put people’s privacy at risk. According to the FTC’s complaint, ASUS routers had major security flaws that allowed hackers to harm people in several ways, including getting access to sensitive personal information — like tax documents — that people stored through cloud services. The FTC says the ASUS router update tool often indicated that software was current when it wasn’t, putting people’s home networks at risk. ASUS also pre-set weak default passwords on its routers.

Illegal Robocalls Pitch Energy Savings

solarsavings

On behalf of the FTC, the Department of Justice asked a federal court to permanently stop Francisco Salvat and three of his companies from making illegal robocalls that promised people energy savings. According to the complaint, Salvat and his companies called people whose numbers are on the Do Not Call Registry, and kept calling after people asked them to stop. Although the companies’ messages said things like “This is an urgent call about your energy bill,” people who pushed a number to get more information didn’t get energy help. They were transferred to Salvat’s telemarketers, who collected their names and sold them to solar installation companies as leads.

Debt Relief Scheme Targets Homeowners and Students

debtrelief

The FTC took action against Good EBusiness LLC, saying the company offered debt relief services to people struggling to pay off mortgages and student loans but didn’t deliver on its promises. The company promised to help homeowners lower payments, reduce mortgage interest rates, and avoid foreclosure. Good EBusiness told people with student loan debt it could lower their monthly payments, wipe out their debt, and remove wage garnishments. According to the FTC, people paid thousands in fees but didn’t get the promised debt relief.

Online High School Diploma Course Misleads

onlinediploma

The FTC took action against Stratford Career Institute for making misleading claims that its diploma program would help people get jobs or further their education. Stratford advertised its online high school equivalency program, saying “it’s never too late to get your diploma.” But, according to the FTC, people who enrolled and completed the program later learned from colleges and employers that Stratford’s diploma wasn’t equivalent to a traditional high school diploma, and wouldn’t be accepted.

Generic Drug Competition Preserved

generics

The FTC preserved competition for vital generic drugs by requiring divestitures in three mergers. The orders covered ten generic drugs used to treat a variety of conditions, including bacterial infections and inflammation, as well as injectables used to treat chicken pox and epilepsy. According to the FTC, without the divestitures, prices for these products would likely go up after the mergers.

                                

The Internet of Things is growing by leaps and bounds, with millions of consumers connecting smart devices to their home networks. Routers play a key role in securing those home networks, so it’s critical that companies like ASUS put reasonable security in place to protect consumers and their personal information.”

Jessica Rich, Director of the FTC’s Bureau of Consumer Protection

New Imposter Scams Video

impostervideo

The FTC has a new video called Fraud Effects Every Community: Imposter Scams. The video talks about what happened when Maria Juarez got a phone call from someone claiming to be an attorney with a court order, and threatening her with arrest unless she settled an old debt. The video, in Spanish with subtitles in English, encourages people to talk about their own experiences and report fraud whenever they see it. Visit ftc.gov/everycommunity to watch the video.

Your Money Back

The FTC is returning money to people targeted by a payday loan ploy. Loan operators Sean C. Mulrooney, Odafe Stephen Ogaga and their five companies promised to help people get payday loans, then illegally debited their bank accounts in increments of $30. The FTC says people’s accounts were debited without their authorization. If you get a check from the FTC, deposit or cash it within 60 days of the mailing date. For more information about the FTC’s refund program, visit ftc.gov/refunds.

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    • FTC videos can save you time and money! Watch for tips about # jobscams, #debtcollectors, #onlineshopping and more. http://go.usa.gov/cwJ5V
    • Beware of phony #healthinsurance calls. #Scammers could be #phishing for your personal info. http://go.usa.gov/cwJNk
    • Free trials aren’t always risk-free. It could be a lure to keep billing you after the #freetrial is over. http://go.usa.gov/cwJHj
       

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