Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 29 JULY 2015

FTC Takes Its First Action Against Crowdfunding Site

Wilson Elser Moskowitz Edelman & Dicker LLP
Explore more from Wilson Elser Moskowitz Edelman & Dicker LLP

As the FTC targets more FinTech under the banner of protecting consumers from deceptive trade practices, the Commission finally turned its attention to the growing movement of "crowdfunding".

United StatesConsumer Protection
Adam Bialek
Adam Bialek
Author LinkedIn connections

As the Federal Trade Commission (FTC) targets more FinTech (new and emerging financial technology) under the banner of protecting consumers from deceptive trade practices, the Commission finally turned its attention to the growing movement of "crowdfunding," the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

The FTC has brought its first action against a crowdfunding project creator, seeking redress and to deter those who believe that crowdfunding projects are an acceptable way of panhandling while leading contributors to believe their money would be used for a purpose from which they might benefit.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New York City’s Click-to-Cancel Rule: What Businesses Need To Know

New York City has enacted the nation's first municipal click-to-cancel rule, requiring businesses to provide clear disclosures, simple cancellation processes, and advance renewal notices for subscription services. With approximately 30 states already implementing similar regulations and the federal landscape in flux following the FTC's vacated rule, companies now face an increasingly complex patchwork of compliance obligations. The rule takes effect October 1, 2026, and imposes penalties ranging from $525 t
United StatesConsumer Protection
Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
Article

Amway To Pay $225 Million Over Alleged False Earnings Claims And Fabricated Sales

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

FCC Replaces TCPA “Revoke All” Rule: New Category-Specific Opt-Out Rules For Robocalls And Robotexts

The Federal Communications Commission has fundamentally altered how businesses must handle consumer opt-out requests under the Telephone Consumer Protection Act, replacing the broad "revoke all" mandate with a more nuanced, category-specific approach for informational messages. This regulatory shift allows companies to maintain separate consent tracks for different types of non-marketing communications while preserving stricter opt-out requirements for telemarketing messages. The Updated Order introduces ne
United StatesConsumer Protection
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

FTC Asks Whether Platform Ad Tools Fuel Impersonation Scams

The Federal Trade Commission is exploring whether digital platforms should bear greater responsibility for preventing impersonation ads that falsely pose as legitimate businesses or government agencies. Through an Advance Notice of Proposed Rulemaking, the agency seeks public input on potential amendments to its existing Impersonation Rule, examining how ad-optimization tools and platform practices...
United StatesConsumer Protection
Greenberg Traurig
Greenberg Traurig
Article

The Coming State-Law Litigation Wave Of 2026-27: “Subscription Trap” Class Actions

State-law class actions targeting automatic renewal and subscription practices are accelerating, creating significant litigation risk for companies that rely on recurring revenue models. Recent settlements demonstrate that even technical compliance failures can lead to seven-figure exposure, with California, Illinois, and Virginia statutes driving the most aggressive litigation.
United StatesConsumer Protection
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

NCAA Enjoined From Enforcing New Fifth-Year Eligibility Rule

A federal court has issued a nationwide injunction blocking the NCAA from enforcing its new five-year eligibility rule against Division I athletes who graduated high school in 2022. The ruling creates immediate compliance challenges for athletic departments as they navigate roster management, revenue-sharing caps, and potential penalties while the NCAA appeals the decision.
United StatesConsumer Protection
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

CONGRESS FIRES BACK?: New Bill Seeks To Revive Written Consent Rule Under TCPA

Congress has introduced the Stop Spam Calls Act, directing the FCC to revise the definition of prior express written consent under the TCPA to require one-to-one seller consent and logical relevance between sellers and website content. This legislative move comes as the Fifth Circuit questions whether written consent is even required under the TCPA, creating a fascinating tension between congressional intent and judicial interpretation that could reshape telemarketing compliance.
United StatesConsumer Protection
Troutman Amin LLP
Troutman Amin LLP
Article

Virginia’s Initial Draft Of Adult-use Marijuana Regulations – What You Should Know And What Questions Remain

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.
United StatesConsumer Protection
Foley Hoag LLP
Foley Hoag LLP
Article

SB 54 Is In Effect: What California’s New Packaging Law Means For Your Business

Although being challenged by an injunction filed on August 20, 2026, by a coalition of 17 states, California’s SB 54 Plastic Pollution Prevention and Packaging Producer Responsibility Act is now in effect, and companies that sell, distribute, import, or ship packaged products into California should be evaluating whether they have compliance obligations.
United StatesPrivacy
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

Navigating Ex Parte Contact With Health Care Providers In Medical Malpractice Litigation

In Snyder v. Virginia Mason Medical Center, No. 104136-5 (Wash. Oct. 1, 2026), the Washington Supreme Court held that corporate defense counsel, risk managers, and claims adjusters may not communicate ex parte with a hospital’s former employee health care providers about patient care. The Court reaffirmed Loudon v. Mhyre, 110 Wn.2d 675, 756 P.2d 138 (1988) prohibiting ex parte communication by defense counsel with a plaintiff’s treating physicians, held that prejudice is presumed when Loudon is violated, and ruled that a quality improvement (QI) committee member’s involvement in defense strategy waives the committee’s statutory privilege under Wash. Rev. Code § 70.41.200.
United StatesFood, Drugs, Healthcare, Life Sciences
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

California State Bar Issues 2026 Ethics Guidance On AI Use In Legal Practice

Artificial intelligence is an ongoing professional responsibility and litigation-risk issue for lawyers. The California State Bar recently published new guidance. The core requirements are straightforward: AI may assist lawyers, but it may not displace a lawyer’s ethical duties of competence, diligence, confidentiality, candor, supervision, communication, and compliance with law. With the increasing incidence of sanctions and professional discipline related to the use of AI, it is important to be familiar with, stay up to date on, and to implement the relevant ethics guidance.
United StatesTechnology
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

Humanoid Robots In The Home – A New Frontier For Product Liability And Privacy Claims

Humanoid robots are entering American homes at an unprecedented pace, with companies like Figure AI, Unitree, and Tesla deploying AI-powered machines capable of learning and adapting in real time. As these autonomous devices become commonplace, outdated legal frameworks governing product liability, privacy protections, and insurance coverage face mounting pressure to address novel risks ranging from physical injuries to unauthorized biometric data collection.
United StatesConsumer Protection
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

California Closes The Third-Party Data Gap In The CCPA Right To Delete: What SB 923 Requires, From Whom, And When

On September 27, 2026, Governor Gavin Newsom signed Senate Bill 923 (Chapter 482, Statutes of 2026), known as the Expanding Privacy Rights Act. The law amends two provisions of the California Consumer Privacy Act (CCPA): (1) the right to delete (Civil Code § 1798.105); and (2) the methods for submitting consumer requests (Civil Code § 1798.130). The legislation was authored by Senator Josh Becker (D-Menlo Park) and sponsored by the California Privacy Protection Agency (also known as CalPrivacy). This amendment takes effect January 1, 2027.
United StatesPrivacy
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

Employment Tip Of The Month – October 2026

There are currently 19 states that legally require employers to permit employees (and sometimes former employees) to view and/or obtain a copy of their personnel file. As of November 8, 2026, that number will increase to 20, when New York’s recently enacted Personnel Records Access Law goes into effect. The majority of states have no law requiring access to personnel files and there is no federal law that confers on current or former employees a statutory right to access their personnel files.
United StatesEmployment and HR
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP