Telemarketing Sales Rule – Article ( Articles ) Telemarketing Sales Rule (TSR) Protecting Consumers from Deceptive Practices and Fraud The TSR, established by the Federal Trade Commission (FTC), is a vital tool for protecting consumers from deceptive and abusive telemarketing practices, including telemarketing fraud. This rule ensures that telemarketers operate transparently and ethically, providing consumers with the […]
Month: November 2024
Disclosure Failures – Article ( Articles ) Disclosure Failures (DF) When Transparency Takes a Backseat In today’s complex marketplace, consumers rely on clear and accurate information to make informed decisions. This is especially true when it comes to consumer products, consumer financial products, and investment products. However, disclosure failures – instances where companies fail to provide adequate or […]
SEC-PR-2024-188 (11-27-24) SEC Updates List of Firms Using Inaccurate Information to Solicit Investors Excerpt: Washington D.C., Nov. 27, 2024 — The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 14 soliciting entities, two impersonators of genuine firms, and four […]
FTC-PR-241127-1 (11-27-24) FTC Takes Aim at Top Fraud Driving Losses Among Older Americans – FTC expands Telemarketing Rule to cover technical support scams, which drove $175 million in losses among consumers 60 and older last year Excerpt: The Federal Trade Commission has approved final amendments to its Telemarketing Sales Rule (TSR) that will extend the rule’s coverage to […]
High-Yield Investment Scams – Article ( Articles ) High-Yield Investment Scams (HYIS) The Allure of Easy Money and the Risk of Losing It All The promise of high returns with minimal effort is a siren song that lures many investors into the treacherous waters of HYIS. These schemes often target individuals seeking quick riches, promising […]
Pump-and-Dump Schemes – Article ( Articles ) Pump-and-Dump Schemes (PND) A Deceptive Game of Hype and Profit PND schemes are a form of market manipulation that preys on unsuspecting investors. These schemes involve artificially inflating the price of a stock or other asset through misleading information and hype, only to dump the inflated asset for […]
FTC-PR-241126-2 (11-26-24) Smart Products Surveyed Fail to Provide Consumers with Information on How Long Companies will Provide Software Updates – Software updates ensure products function properly, stay secure, according to FTC Staff Perspective Excerpt – A new paper from Federal Trade Commission staff finds that nearly 89% of products surveyed failed to disclose on their […]
FTC-PR-241126-1 (11-26-24) FTC Takes Action Against Evolv Technologies for Deceiving Users About its AI-Powered Security Screening Systems – Proposed settlement would prohibit misrepresentations and allow affected schools to opt out of current contracts for security screening systems Excerpt – The Federal Trade Commission is taking action against Evolv Technologies over allegations that the company made […]
Cherry-Picking Allocations – Article ( Articles ) Cherry-Picking Allocations (CPA) A Risky Game in Investment Management In the world of investment management, CPA refers to a practice where portfolio managers selectively allocate investments to specific funds or strategies based on their recent performance, often favoring those with strong recent returns. While this approach may seem appealing, […]
SEC-PR-2024-187 (11-25-24) SEC Charges Ken Leech, Former Co-Chief Investment Officer of Western Asset Management Co., with Fraud – Defendant allegedly engaged in cherry-picking, allocating hundreds of millions of dollars in net first-day gains and losses to favored and disfavored portfolios, respectively Excerpt: Washington D.C., Nov. 25, 2024 — The Securities and Exchange Commission today announced […]