On January 13, the FTC announced a settlement with WealthPress, an online service provider that recommends trades in financial markets. The settlement resolved allegations that WealthPress violated both the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 by making false and misleading claims about how much consumers could earn with the company’s trading recommendation services. The action is noteworthy for two reasons. First, building upon the FTC’s prior MoviePass settlement, the FTC’s ROSCA allegations focus not on the terms of the subscription service offered, but rather on the failure to clearly disclose material information about the company’s services. Second, this is the FTC’s first settlement imposing civil penalties for alleged earnings claims violations predicated upon a Notice of Penalty Offenses issued in October 2021. The settlement provides for $1.3 million in consumer redress, $500,000 in civil penalties, and injunctive relief.
Andrew Siegel advises clients on advertising, data security, and privacy matters. Andrew represents clients in investigations by the Federal Trade Commission and State Attorneys General, advising clients on a variety of privacy and consumer protection matters, including marketing and claim substantiation issues. In addition, Andrew advises clients in investigating and responding to data security incidents and cyber-based attacks, including data breaches involving personal and other regulated data, advanced persistent threats, and state-sponsored attacks.