PREPARED STATEMENT OF THE

FEDERAL TRADE COMMISSION:

OVERSIGHT OF THE FEDERAL TRADE COMMISSION

Before the 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

WASHINGTON, DC 

AUGUST 5, 2020
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I. INTRODUCTION

Chairman Wicker, Ranking Member Cantwell, and Members of the Committee, we are 

pleased to appear before you today (if remotely).1 Despite the challenges that the Federal Trade 

Commission, like everyone these days, is facing, the agency continues to protect vigorously 

consumers and competition. 

For the Subcommittee hearing two weeks ago, we described the many actions the 

Commission has taken since March to address COVID-related fraud. In this testimony, we take a 

step back and first provide an overview of Commission resources and operations during the 

pandemic. Next, we highlight the pressing need, in light of legal challenges, for Congress to 

affirm the FTC’s authority to get money back to consumers using Section 13(b) of the FTC Act. 

We also call on Congress to reauthorize the SAFEWEB Act, which allows the FTC to work with 

foreign authorities on cross-border law enforcement. Then, we describe the Commission’s major 

accomplishments and challenges on the consumer protection front, and reiterate our support for 

enactment of privacy legislation. We know how hard you, Mr. Chairman, Ranking Member 

Cantwell, and other members of this Committee have worked for this goal. Finally, the testimony

also provides a short summary of the FTC’s work to protect and promote competition through 

the enforcement of the antitrust laws. 

II. RESOURCES AND OPERATIONS DURING THE PANDEMIC

We greatly appreciate the additional $20 million Congress appropriated for the FTC in 

FY2020. Rather than having to reduce Full Time Equivalent employees (“FTEs”) to cover pay 

increases and other expenses, this increase instead allows us to hire up to our full FTE-level—

which means adding approximately 20 new staff for some of the FTC’s most critical work, 

 1 This written statement presents the views of the Federal Trade Commission. The oral statements and responses to 

questions reflect the views of individual Commissioners, and do not necessarily reflect the views of the Commission 

or any other Commissioner.
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including privacy and a new division in the Bureau of Competition dedicated to enforcing the 

antitrust laws in the technology industry. 

Continued budget support over the years has allowed us to invest in the technologies that 

enabled us to transition smoothly during this pandemic from nearly 100% office-based work to 

nearly 100% telework. 

FTC employees have risen to meet the challenges posed by the pandemic. Since early 

March, a cross-agency working group has convened daily to consider and manage the immediate 

operational impacts of the pandemic, along with the longer-term impacts on the agency and its 

employees. As for operational details, during the pandemic, the FTC has maintained essential 

services on site (e.g., mail, security, building maintenance) and ensured that all facilities are 

operating within CDC and GSA building and cleaning guidelines. We have developed virtual 

processes for a range of activities that used to be done in person, including acceptance of filings, 

depositions, court appearances, training, and hiring. 

III. LEGISLATION IS NEEDED TO ENSURE EQUITABLE MONETARY RELIEF 

AND ALLOW FOR CROSS-BORDER ENFORCEMENT

A. Section 13(b) 

The FTC appreciates your support of our mission. An essential part of that mission is 

getting back to consumers money wrongly taken from them. Over the past four fiscal years, the 

FTC has returned more than $975 million directly to consumers and won judgments under which 

consumers received nearly $10 billion more through defendant-administered redress programs. 

We are immensely proud of this work, which as the numbers show, provides a massive public 

benefit. Unfortunately, however, our ability to keep getting such results for consumers has been 

threatened or curtailed by recent judicial decisions. We therefore respectfully request that 

Congress clarify the agency’s statutory authority to obtain complete equitable monetary relief 
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under Section 13(b) of the FTC Act, our principal means of securing judicial orders that require 

this relief. 

Section 13(b) provides that the FTC can seek “permanent injunctions,” and for decades,

courts interpreted that language to mean that the FTC could secure not just behavioral 

restrictions but also equitable monetary remedies, including restitution to consumers and 

disgorgement of ill-gotten gains. Until recently, eight courts of appeals had adopted that 

approach, and none had disagreed. Two years ago, however, two Ninth Circuit judges questioned 

that court’s favorable holdings on the issue,2 and in short order the Seventh Circuit held that 

Section 13(b) did not allow monetary remedies.3 The Supreme Court has now agreed to hear 

both the Seventh and Ninth Circuit cases.4 We expect the Court to resolve this issue by next 

summer. A ruling adverse to the FTC would have dire consequences for consumer redress and 

other forms of monetary relief.

Our redress authority is threatened in two additional ways. First, a decision last year from 

the Third Circuit held that the FTC could bring cases under Section 13(b) only if the illegal acts 

were ongoing or impending at the time the FTC sues, limiting our ability to pursue past 

illegality.5 Although we have been successful so far in fending off arguments relying on that 

case, the Third Circuit’s approach could allow wrongdoers to stop their unlawful conduct and 

potentially keep their ill-gotten gains on the ground that they are not currently violating the law. 

Second, the Supreme Court’s recent Liu decision may place limitations on the amount of money 

we can obtain from wrongdoers and ultimately return to consumers.6

 2 See AMG Cap. Mgmt., LLC v. FTC, 910 F.3d 417 (9th Cir. 2018), (O’Scannlain, J., specially concurring). 3 See FTC v. Credit Bureau Ctr., LLC, 937 F.3d 764 (7th Cir. 2019). 4 FTC v. Credit Bureau Ctr., LLC, 937 F.3d 764 (7th Cir. 2019), cert. granted, No. 19-825 (July 9, 2020); AMG 

Cap. Mgmt., LLC v. FTC, 910 F.3d 417 (9th Cir. 2018), cert. granted, No. 19-508 (July 9, 2020). 5 See FTC v. Shire ViroPharma, Inc., 917 F.3d 147 (3rd Cir. 2019). 6 See Liu v. Sec. Exch. Comm’n, 140 S.Ct. 1936 (2020). 
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In short, our ability to get full redress for consumers is in peril. We request that Congress 

act now to preserve the FTC’s ability to restore to consumers money they lose to scammers and 

fraudsters.

B. SAFE WEB Reauthorization

We want to thank this Committee for your leadership and support in reauthorizing SAFE 

WEB. The SAFE WEB Act is an indispensable part of the FTC’s enforcement arsenal. It 

provides the Commission with critical law enforcement tools to combat fraudulent telemarketing, 

robocalls, privacy violations, misleading health claims, spam, spyware, malware, and other 

cross-border misconduct that harms American consumers. These tools support cooperation with 

foreign counterparts and enforcement action against unlawful cross-border activity. Critically, 

without the Act, the FTC might not prevail in enforcement actions against foreign wrongdoers. 

SAFE WEB contains an express provision stating that the FTC’s authority over unfair and 

deceptive practices extends to foreign conduct that has a “reasonably foreseeable” effect on U.S. 

consumers, or that involves “material conduct” in United States. Without SAFE WEB’s “clear 

statement of Congressional intent,” FTC enforcement against foreign wrongdoers would be in 

jeopardy. The Act will sunset on September 30, 2020, absent action by the Senate. Expiration of 

the Act would hobble the FTC’s enforcement efforts to protect American consumers victimized 

by cross-border fraud and privacy violations, efforts that are even more critical in the current 

COVID-19 environment.

IV. CONSUMER PROTECTION MISSION

As the nation’s primary consumer protection agency, the FTC has a broad mandate to 

protect consumers from unfair and deceptive practices in the marketplace, including fraud. We do 

this by, among other things, pursuing law enforcement actions to stop and deter unlawful 
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practices, and educating consumers and businesses about their rights and responsibilities. The 

FTC’s enforcement and education efforts include working closely with federal, state, 

international, and private sector partners on joint initiatives. 

The FTC has brought all of these tools to bear to fight scams involving the pandemic, 

including law enforcement actions, warning letters, consumer and business education, and 

national and local outreach. Simultaneously, we also are continuing the important day-to-day 

work of protecting privacy and data security, addressing fraud across most sectors of the 

economy, preventing unfair, deceptive, or discriminatory financing transactions, helping ensure 

that advertising claims to consumers are truthful and not misleading, and combating illegal 

robocalls. With Americans’ physical and financial health on the line, we also have stepped up our 

consumer and business education and outreach, building COVID-specific webpages, drafting 

more than 100 blog posts and scam alerts, and partnering with other law enforcement partners 

and industry to reach all segments of the population. 

The FTC’s law enforcement orders prohibit defendants from engaging in further illegal 

activity, impose other compliance obligations, and in some cases, ban defendants from engaging 

in certain businesses altogether. Where appropriate, the FTC collects money to return to harmed 

consumers. During FY 2019, Commission actions resulted in the return of more than $822.4 

million to consumers. Through the third quarter of FY 2020, Commission actions resulted in the 

return of more than $480.5 million to consumers.7 The FTC also collected civil penalties worth 

 7 Specifically, the Commission returned more than $100.7 million in redress to consumers, and FTC defendants 

provided an additional $379.8 million through self-administered consumer refund programs required by prior FTC 

settlements. See, e.g., FTC v. Volkswagen Group of America, Inc., No. 3:16-cv-1534 (N.D. Cal. May 17, 2017), 

https://www.ftc.gov/enforcement/cases-proceedings/162-3006/volkswagen-group-america-inc; FTC v. The 

University of Phoenix, Inc. and Apollo Education Group, Inc., No. 2:19-cv-05772 (D. Ariz. Dec. 20, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/152-3231/university-phoenix-inc; FTC v. AT&T Mobility LLC,

No. 3:14-cv-04785 (N.D. Cal. Dec. 04, 2019), https://www.ftc.gov/enforcement/cases-proceedings/122-3253/attmobility-llc-mobile-data-service; FTC v. The Western Union Company, No. 1:17-cv-0110 (M.D. Pa. Jan. 20, 2017),
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more than $5 billion pursuant to FTC orders—including in the Facebook8 matter—and 

forwarded an additional $6.6 million to the U.S. Treasury through the third quarter of FY 2020,

which represents redress funds that could not be distributed to consumers. 

A. Protecting Consumer Privacy and Data Security

Since the enactment of the Fair Credit Reporting Act (“FCRA”)9 in 1970, the FTC has 

served as the chief federal agency charged with protecting consumer privacy. With the 

development of the internet as a commercial medium in the 1990s, the FTC expanded its focus 

on privacy to reflect the growing collection, use, and sharing of consumer data in the commercial 

marketplace. 

The Commission’s primary source of legal authority in the privacy and data security 

space is Section 5 of the FTC Act, which prohibits deceptive or unfair commercial practices.10

Under Section 5 and other authorities granted by Congress, the FTC has aggressively pursued 

privacy and data security cases in myriad areas, including children’s privacy, financial privacy, 

health privacy, and the Internet of Things.11

 

https://www.ftc.gov/enforcement/cases-proceedings/122-3208/western-union-company; FTC v. Fashion Nova, Inc., 

No. 2:20-cv-03641 (C.D. Cal. Apr. 20, 2020), https://www.ftc.gov/enforcement/cases-proceedings/182-

3031/fashion-nova-inc. Also, in September 2019, a court approved a $170 million judgment, including $136 million 

in civil penalties that the Commission and New York Attorney General negotiated with Google and YouTube. FTC 

Press Release, Google and YouTube Will Pay Record $170 Million for Alleged Violations of Children’s Privacy Law

(Sept. 4, 2019), https://www.ftc.gov/news-events/press-releases/2019/09/google-youtube-will-pay-record-170-

million-alleged-violations. 8 In April 2020, a court approved the record-breaking $5 billion penalty the FTC negotiated with Facebook. 

FTC Press Release, FTC Gives Final Approval to Modify FTC’s 2012 Privacy Order with Facebook with Provisions 

from 2019 Settlement (Apr. 28, 2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-gives-finalapproval-modify-ftcs-2012-privacy-order-facebook. 9 15 U.S.C. §§ 1681-1681x. Among other things, the FCRA prohibits the unauthorized disclosure of sensitive data 

used for credit, employment, and other decisions.

10 15 U.S.C. § 45. The Commission also enforces sector-specific statutes containing privacy and data security 

provisions, such as the Gramm-Leach-Bliley Act (“GLB Act”), Pub. L. No. 106-102, 113 Stat. 1338 (1999) 

(codified as amended in scattered sections of 12 and 15 U.S.C.), and the Children’s Online Privacy Protection Act 

(“COPPA”), 15 U.S.C. §§ 6501-6506. 11 See, e.g., FTC Press Release, FTC Releases 2019 Privacy and Data Security Update (Feb. 25, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-releases-2019-privacy-data-security-update. 
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In total, we have brought about 80 general privacy cases, more than 70 data security 

cases, more than 100 spam cases (with more than $100 million ordered in monetary relief), 30 

cases enforcing the Children’s Online Privacy Protection Act (“COPPA”) (with more than $180 

million in civil penalties), more than 100 cases enforcing the FCRA (with more than $40 million 

in civil penalties), 147 cases alleging violations of Do Not Call (with orders totaling $1.7 billion 

in civil penalties, redress, or disgorgement, and actual collections exceeding $160 million), and 

106 cases enforcing the Fair Debt Collection Practices Act (with more than $700 million ordered 

in monetary relief). In addition to our enforcement work, in the privacy and security area, we 

have hosted about 75 workshops and issued approximately 50 reports. 

Most notably, in April 2020, the Commission obtained court approval of its settlement 

with Facebook, Inc. and modified its 2012 administrative order.12 This settlement resolved a 

six-count complaint that the company violated the 2012 order by deceiving users about their 

ability to control the privacy of their personal information, among other things, and also 

violated the FTC Act.13 In addition to a $5 billion penalty for violating the order, the modified 

order places additional restrictions and obligations on Facebook’s business operations as they 

relate to privacy.14 

 12 FTC Press Release, FTC Gives Final Approval to Modify FTC’s 2012 Privacy Order with Facebook with 

Provisions from 2019 Settlement (Apr. 28, 2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-givesfinal-approval-modify-ftcs-2012-privacy-order-facebook. 13 FTC Press Release, FTC Imposes $5 Billion Penalty and Sweeping New Privacy Restrictions on Facebook (July 

24, 2019), https://www.ftc.gov/news-events/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-newprivacy-restrictions. 14 Relatedly, the Commission also issued an opinion against Cambridge Analytica, and approved settlements with a 

Cambridge Analytica executive and an app developer, relating to the collection, sharing, and/or use of data obtained 

from Facebook users. See FTC Press Release, FTC Issues Opinion and Order Against Cambridge Analytica For 

Deceiving Consumers About the Collection of Facebook Data, Compliance with EU-U.S. Privacy Shield (Dec. 6, 

2019), https://www.ftc.gov/news-events/press-releases/2019/12/ftc-issues-opinion-order-against-cambridgeanalytica-deceiving; see also FTC Press Release, FTC Grants Final Approval to Settlement with Former Cambridge 

Analytica CEO, App Developer over Allegations they Deceived Consumers over Collection of Facebook Data (Dec. 

19, 2019), https://www.ftc.gov/news-events/press-releases/2019/12/ftc-grants-final-approval-settlement-formercambridge-analytica.
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Using its enforcement authority under COPPA, the Commission also has been active in 

protecting children’s privacy. In September 2019, the Commission announced a settlement 

against Google LLC and its subsidiary YouTube, LLC. The settlement resolves charges by the 

FTC and the New York Attorney General that the YouTube video sharing service violated 

COPPA by illegally collected persistent identifiers, which are used to track users across the 

internet, from children without their parents’ consent.15 The defendants agreed to injunctive 

relief and a $170 million monetary judgment. Most recently, the Commission enforced the 

COPPA Rule against an app developer that allowed third-party ad networks to collect personal 

information in the form of persistent identifiers, without notifying parents or obtaining 

verifiable parental consent.16

The Commission also continues to take action against companies that fail to protect 

consumer data. In July 2019, credit reporting agency Equifax Inc. agreed to pay at least $575 

million, and potentially up to $700 million, as part of a global settlement with the FTC, the 

Consumer Financial Protection Bureau (“CFPB”), and 50 U.S. states and territories.17 The 

complaint alleged that the company’s failure to take reasonable steps to secure its network led 

to a data breach in 2017 that affected approximately 147 million people, exposing millions of 

names and dates of birth, Social Security numbers, physical addresses, and other personal 

information that could lead to identity theft and fraud. In addition to monetary relief, the order 

 15 FTC Press Release, Google and YouTube Will Pay Record $170 Million for Alleged Violations of Children’s 

Privacy Law (Sept. 4, 2019), https://www.ftc.gov/news-events/press-releases/2019/09/google-youtube-will-payrecord-170-million-alleged-violations. 16 FTC Press Release, Developer of Apps Popular with Children Agrees to Settle FTC Allegations It Illegally 

Collected Kids’ Data without Parental Consent (June 4, 2020), https://www.ftc.gov/news-events/pressreleases/2020/06/developer-apps-popular-children-agrees-settle-ftc-allegations-it. 17 FTC Press Release, Equifax to Pay $575 Million as Part of Settlement with FTC, CFPB, and States Related to 

2017 Data Breach (July 22, 2019), https://www.ftc.gov/news-events/press-releases/2019/07/equifax-pay-575-

million-part-settlement-ftc-cfpb-states-related.
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requires the company, among other things, to implement a comprehensive information 

security program and to obtain third-party assessments of that program every two years.

Notably in the data security area, the Commission has sought to improve the 

effectiveness of its orders. In recent data security cases involving entities as diverse as an auto 

dealer management service provider,18 a multi-level marketing company service provider,19 an 

internet router manufacturer,20 and a smartwatch manufacturer,21 the Commission has required 

board-level oversight of data security issues where appropriate, set forth more specific 

requirements (e.g., requirements to encrypt data and segment networks), and improved the 

accountability of third-party data security assessors.

Section 5, which we use to bring our general privacy and data security cases, is not 

without its limitations. In fact, Section 5 is a general consumer protection statute enacted in the 

early 20th century that we use to tackle modern technologies. To better equip the Commission to 

meet its statutory mission to protect consumers, we urge Congress to enact privacy and data 

security legislation, enforceable by the FTC, which grants the agency civil penalty authority, 

authority to issue targeted rules under the Administrative Procedure Act, and jurisdiction over 

non-profits and common carriers.22

 18 FTC Press Release, FTC Gives Final Approval to Settlement with Auto Dealer Software Company That Allegedly 

Failed to Protect Consumers’ Data (Sept. 6, 2019), https://www.ftc.gov/news-events/press-releases/2019/09/ftcgives-final-approval-settlement-auto-dealer-software-company. 19 FTC Press Release, Utah Company Settles FTC Allegations it Failed to Safeguard Consumer Data (Nov. 12, 

2019), https://www.ftc.gov/news-events/press-releases/2019/11/utah-company-settles-ftc-allegations-it-failedsafeguard-consumer. 20 FTC Press Release, D-Link Agrees to Make Security Enhancements to Settle FTC Litigation (July 2, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/07/d-link-agrees-make-security-enhancements-settle-ftclitigation. 21 FTC Press Release, Canadian Maker of Smart Locks Settles FTC Allegations That it Deceived Consumers about 

its Security Practices (Apr. 6, 2020), https://www.ftc.gov/news-events/press-releases/2020/04/canadian-makersmart-locks-settles-ftc-allegations-it-deceived. 22 Commissioner Noah Joshua Phillips supports congressional efforts to consider consumer data privacy legislation. 

He believes legislation should be based on harms that Congress agrees warrant a remedy, and that tools like 

penalties and rulemaking should be calibrated carefully to address those harms. Commissioner Phillips believes 
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While the Commission believes new authority could be very beneficial for American 

consumers, we strive to continue to use every tool currently at our disposal to address 

consumer harm. Despite the relatively small number of employees dedicated to privacy 

enforcement, we aim to use our existing resources effectively, and we have brought more 

cases and obtained larger fines than any other privacy enforcement agency in the world. 

However, with additional resources, we could better ensure that American consumers’ privacy 

is protected. 

We currently have well under the number of FTEs that data protection authorities in 

other, much smaller, countries have. Our Division of Privacy and Identity Protection includes 

40-45 employees and its work is supplemented by the privacy-related work of other units 

within the FTC’s Bureau of Consumer Protection. For example, the Enforcement Division 

enforces our privacy and data security orders, including against Facebook and Google; the 

Division of Marketing Practices enforces the Do Not Call Rule and CAN-SPAM; the Division 

of Financial Practices enforces the Fair Debt Collection Practices Act; the Division of 

Consumer and Business Education and the Division of Consumer Response and Operations 

are responsible for our identity theft program, including IdentityTheft.gov; the Division of 

Litigation Technology and Analysis employs several technologists and other professionals 

who focus on research and development; and the FTC regional offices bring privacy and 

security cases. Despite dedicating these resources to privacy, we possess far fewer resources 

than other countries for addressing privacy issues. 

 

Congress should also give appropriate consideration to the trade-offs involved in new regulation, and, with regard to 

rulemaking, reserve to itself fundamental value judgments appropriately made by the legislature. Finally, 

Commissioner Phillips believes data security legislation is a critical step Congress should also take to protect 

consumer privacy.
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In addition to its enforcement efforts in the privacy and data security areas, the 

Commission seeks to improve agency decision-making through its policy initiatives. The 

Commission is currently examining whether regulatory changes are needed in the COPPA Rule 

in light of advancements in technology or other developments.23 On July 13, 2020, the 

Commission hosted a workshop examining proposed changes to the Gramm-Leach-Bliley 

Safeguards Rule.24 Last month, the FTC also held its fifth PrivacyCon, an annual event that 

explores evolving privacy and data security research.25

The Commission also is empowered to conduct industry studies under Section 6(b) of 

the FTC Act, including those related to privacy and data security.26 In 2019, we issued orders 

to several internet service providers to evaluate their privacy practices.27 As we have in the 

past, we will use the information we learn from this study to better inform our policy and 

enforcement work.

 23 Federal Register, Request for Public Comment on the Federal Trade Commission's Implementation of the 

Children's Online Privacy Protection Rule (July 25, 2019), 

https://www.federalregister.gov/documents/2019/07/25/2019-15754/request-for-public-comment-on-the-federaltrade-commissions-implementation-of-the-childrens-online. See also

FTC Press Release, FTC to Host Workshop on October 7 to Examine COPPA Rule (Oct. 4, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/10/ftc-host-workshop-october-7-examine-coppa-rule; The 

Future of the COPPA Rule: An FTC Workshop event page, https://www.ftc.gov/news-events/eventscalendar/future-coppa-rule-ftc-workshop. 24 FTC Press Release, FTC to Host Workshop Examining Issues Related to Proposed Amendments to the Safeguards 

Rule (Mar. 2, 2020), https://www.ftc.gov/news-events/press-releases/2020/03/ftc-host-workshop-examining-issuesrelated-proposed-amendments; see also Information Security and Financial Institutions: FTC Workshop to Examine 

Safeguards Rule event page, https://www.ftc.gov/news-events/events-calendar/information-security-financialinstitutions-ftc-workshop-examine. 25 FTC Press Release, FTC Announces PrivacyCon 2020 and Calls for Research Presentations (Oct. 11, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/10/ftc-announces-privacycon-2020-calls-researchpresentations; see also PrivacyCon 2020 event page, https://www.ftc.gov/news-events/events-calendar/privacycon2020. 26 15 U.S.C. § 46(b). 27 FTC Press Release, FTC Seeks to Examine the Privacy Practices of Broadband Providers (Mar. 26, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/03/ftc-seeks-examine-privacy-practices-broadband-providers; 

see also FTC Press Release, FTC Revises List of Companies Subject to Broadband Privacy Study (Aug. 29, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/08/ftc-revises-list-companies-subject-broadband-privacystudy.
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Consumer and business education also is an important part of the Commission’s 

privacy toolkit. To further our privacy and data security mission, the agency has published 

consumer and business education materials on artificial intelligence,28 edtech,29 and cloud 

computing.30 More recently, we have focused on providing privacy education materials 

related to the pandemic.31 For example, in April, given the exponential rise in virtual learning, 

and with school districts increasingly offering educational services online, we issued guidance 

to parents, schools, and educational technology companies on how to protect student 

privacy.32 We also issued guidance on privacy and security for videoconferencing services, as 

well as guidance to businesses on how to use data responsibly to further public health 

purposes during the pandemic in a privacy-protective way.33

Finally, many of the FTC’s privacy and data security investigations and cases involve 

complex facts and technologies and well-financed defendants, which require retaining costly 

outside experts. It is critical that the FTC has sufficient resources to support its investigative and 

 28 FTC Business Blog, Using Artificial Intelligence and Algorithms (Apr. 8, 2020), https://www.ftc.gov/newsevents/blogs/business-blog/2020/04/using-artificial-intelligence-algorithms. 29 FTC Business Blog, COPPA Guidance for Ed Tech Companies and Schools during the Coronavirus (Apr. 9, 

2020), https://www.ftc.gov/news-events/blogs/business-blog/2020/04/coppa-guidance-ed-tech-companies-schoolsduring-coronavirus; FTC Consumer Blog, Remote learning and children’s privacy (Apr. 9, 2020), 

https://www.consumer.ftc.gov/blog/2020/04/remote-learning-and-childrens-privacy. 30 FTC Business Blog, Six steps toward more secure cloud computing (June 15, 2020), https://www.ftc.gov/newsevents/blogs/business-blog/2020/06/six-steps-toward-more-secure-cloud-computing. 31 FTC Business Blog, Privacy during coronavirus (June 19, 2020), https://www.ftc.gov/newsevents/blogs/business-blog/2020/06/privacy-during-coronavirus. 32 FTC Business Blog, COPPA Guidance for Ed Tech Companies and Schools during the Coronavirus (Apr. 9, 

2020), https://www.ftc.gov/news-events/blogs/business-blog/2020/04/coppa-guidance-ed-tech-companies-schoolsduring-coronavirus; FTC Consumer Blog, Remote learning and children’s privacy (Apr. 9, 2020), 

https://www.consumer.ftc.gov/blog/2020/04/remote-learning-and-childrens-privacy 33 FTC Business Blog, Video conferencing: 10 privacy tips for your business (Apr. 16, 2020), 

https://www.ftc.gov/news-events/blogs/business-blog/2020/04/video-conferencing-10-privacy-tips-your-business; 

FTC Consumer Blog, Stay safe while video conferencing (Apr. 16, 2020),

https://www.consumer.ftc.gov/blog/2020/04/stay-safe-while-video-conferencing; see also FTC Business Blog, 

Privacy during coronavirus (June 19, 2020), https://www.ftc.gov/news-events/blogs/business-blog/2020/06/privacyduring-coronavirus.
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litigation needs, including expert work, particularly as demands for enforcement in this area 

continue to grow. 

B. Protecting Consumers from Fraud

Fighting fraud is a major focus of the FTC’s law enforcement efforts. The Commission’s 

anti-fraud program tracks down and stops some of the most egregious scams that prey on U.S. 

consumers—often, the most vulnerable consumers who can least afford to lose money. 

In 2020, imposter scams remained the top consumer fraud complaint. In fact, in just the 

first six months of 2020, the FTC received 168,818 reports about imposter scams, of which more 

than 62,970 were about government imposters. The FTC has filed multiple cases against 

defendants who deceptively pose as the government or well-known tech companies,34 and the 

FTC continues to coordinate with law enforcement partners to monitor the marketplace and bring 

cases where appropriate. 

In the wake of the pandemic, unscrupulous businesses have begun posing as the Small 

Business Administration (“SBA”). To combat this newly emerging fraud, the FTC—in 

conjunction with the SBA—issued eight warning letters to companies making potentially 

misleading claims about federal loans or other temporary small business relief, and potentially 

 34 See, e.g., FTC Press Release, Operators of Tech Support Scam Settle FTC Allegations they Tricked Consumers 

into Buying Computer Repair Services (Dec. 10, 2019), https://www.ftc.gov/news-events/pressreleases/2019/12/operators-tech-support-scam-settle-ftc-allegations-they-tricked; FTC Press Release, American 

Immigration Center Settles with FTC on Government Imposter Allegations (Oct. 16, 2018), 

https://www.ftc.gov/news-events/press-releases/2018/10/american-immigration-center-settles-ftc-governmentimposter. The court entered the Stipulated Order for Permanent Injunction and Monetary Judgment against the 

defendants on December 7, 2018. See also FTC Press Release, FTC Takes Action against the Operators of Copycat 

Military Websites (Sept. 6, 2018), https://www.ftc.gov/news-events/press-releases/2018/09/ftc-takes-action-againstoperators-copycat-military-websites. The Commission has also taken action against companies that used 

deceptively-generated sales leads from Sunkey and others to market their schools. FTC Press Release, Operator of 

Colorado Technical University and American InterContinental University Will Pay $30 Million to Settle FTC 

Charges it Used Deceptive Lead Generators to Market its Schools (Aug. 27, 2019), https://www.ftc.gov/newsevents/press-releases/2019/08/operator-colorado-technical-university-american-intercontinental.
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deceiving consumers into believing that they are affiliated with the SBA.35 In April 2020, the 

FTC also took action to stop a company the FTC charged with deceptively claiming to be an 

approved lender for the federal coronavirus relief lending program for small businesses.36

The Commission has a long history of focusing on halting fraud that targets older 

consumers, and the last year was no different. For example, the Commission recently brought a 

case against Online Trading Academy, charging that the company targeted older Americans 

and claimed to teach them how to make substantial income in the financial markets through its 

training, which often cost as much as $50,000.37 The Commission also recently completed a 

month-long trial against the defendants in Sanctuary Belize, a massive land sale scam that 

allegedly bilked consumers out of nearly $140 million, largely from retirees.38 

Many of the Commission’s law enforcement actions address scams that target those 

already struggling with debt and credit issues. For example, earlier this year, the Commission 

obtained settlements in the Grand Teton Professionals matter that permanently ban the owners 

of an alleged bogus credit repair scam from future credit repair activities and provide over $11 

million in monetary relief.39 The Commission also obtained bans and an $18.5 million 

 35 See FTC Press Release, FTC and SBA Warn Six Companies to Stop Potentially Misleading Marketing Aimed at 

Small Businesses Seeking Coronavirus Relief Loans (June 24, 2020), https://edit.ftc.gov/news-events/pressreleases/2020/06/ftc-sba-warn-six-companies-stop-potentially-misleading-marketing; FTC Press Release, FTC and 

SBA Warn Operator of SBA.com and Lead Generator Lendio to Stop Potentially Misleading Coronavirus Relief 

Loan Marketing (May 18, 2020), https://www.ftc.gov/news-events/press-releases/2020/05/ftc-sba-warn-operatorsbacom-lead-generator-lendio-stop. 36 FTC Press Release, FTC Takes Action to Stop Company Posing as SBA Lender and Preying on Small Businesses

(Apr. 17, 2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-takes-action-stop-company-posingsba-lender-preying-small. 37 FTC v. OTA Franchise Corporation, No. 8:20-cv-00287 (C.D. Cal. Feb. 12, 2020). In April 2020, the court issued 

a preliminary injunction against Online Trading Academy, which bars it from using false or unfounded earnings 

claims and freezes assets for potential consumer redress. FTC Press Release, FTC Obtains Preliminary Injunction 

Against Investor Training Scheme Online Trading Academy (Apr. 7, 2020), https://www.ftc.gov/news-events/pressreleases/2020/04/ftc-obtains-preliminary-injunction-against-investor-training. 38 In re Sanctuary Belize Litigation, No. 1:18-cv-03309 (D. Md. Nov. 8, 2018).

39 FTC Press Release, Defendants in FTC Credit Repair Scheme Case Agree to Settle Charges (Jan. 17, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/01/defendants-ftc-credit-repair-scheme-case-agree-settlecharges. Similarly, in July 2019, the Commission’s case against Educare Centre Services halted a telemarketing 
16

judgment against the Preferred Law defendants, who preyed on financially distressed 

consumers by falsely promising to make their mortgages more affordable.40 The Commission 

also has been active in stopping debt-relief scams targeting students.41 For example, in July 

2020, the FTC won summary judgment against a student loan scheme run by Mission Hills 

Federal. In that case, the judge banned the operators from telemarketing and debt relief 

activities and ordered over $27 million in monetary relief for consumers.42

The FTC also continues to target business opportunity and coaching and mentoring scams 

that prey on people seeking extra household income. In June 2019, the FTC sued the operators of 

“8 Figure Dream Lifestyle” and “Online Entrepreneur Academy,” alleging that the defendants 

falsely claimed—at times using illegal robocalls—that consumers could make $10,000 or more 

in 60 to 90 days using defendants’ programs.43 More recently, the Commission halted the 

operations of two large real estate training schemes, Zurixx and Nudge, which allegedly used TV 

celebrities and lavish false or unfounded earnings claims to bilk consumers out of at least $900 

 

credit card interest reduction scheme run by Canadian nationals that allegedly preyed on U.S. consumers with false 

promises of debt reduction. FTC Press Release, FTC and Ohio Stop Rogue Payment Processor and a Credit Card 

Interest-Reduction Telemarketing Scheme that Allegedly Worked Together to Scam Consumers (July 29, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/07/ftc-ohio-stop-rogue-payment-processor-credit-card-interest. 40 FTC Press Release, Court Rules in Favor of FTC Against Mortgage Scammers (Dec. 30, 2019) 

https://www.ftc.gov/news-events/press-releases/2019/12/court-rules-favor-ftc-case-against-mortgage-reliefscammers. 41 See, e.g., FTC Press Release, Ringleader of Student Loan Debt Relief Scheme Liable for $11 Million in Settlement 

of FTC Charges (May 30, 2019), https://www.ftc.gov/news-events/press-releases/2019/05/ringleader-student-loandebt-relief-scheme-liable-11-million; FTC Press Release, Three Defendants in Student Debt Relief Scheme Banned 

from Selling Debt Relief and Telemarketing (Mar. 10, 2020), https://www.ftc.gov/news-events/pressreleases/2020/03/three-defendants-student-debt-relief-scheme-banned-selling-debt. 42 FTC Press Release, Court Rules in FTC’s Favor Against Student Debt Relief Scammers (July 20, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/07/court-rules-ftcs-favor-against-student-debt-reliefscammers. 43 FTC Press Release, FTC, Law Enforcement Partners Announce New Crackdown on Illegal Robocalls (June 25, 

2019), https://www.ftc.gov/news-events/press-releases/2019/06/ftc-law-enforcement-partners-announce-newcrackdown-illegal. Similarly, in Digital Altitude, the Commission shuttered an online business coaching operation

that the Commission alleged defrauded consumers out of millions of dollars—some individuals paid more than 

$50,000 for defendants’ services. FTC Press Release, FTC Obtains Court Order Halting Business Coaching Scheme

(Feb. 8, 2018), https://www.ftc.gov/news-events/press-releases/2018/02/ftc-obtains-court-order-halting-businesscoaching-scheme.
17

million.44 The FTC also recently has sued or settled with several multi-level marketers alleging 

they operated as pyramid schemes.45

The FTC strives to stay ahead of fraudsters by analyzing complaints received in our 

Sentinel complaint database. To help our law enforcement partners—and to help raise public 

awareness about fraud—the FTC has recently built interactive dashboards to make Sentinel data 

more accessible.46 These dashboards, which provide a bird’s eye view of the types of fraud in a 

particular state or metropolitan area, help enforcers and others more effectively target fraud and 

protect and warn consumers. In March 2020, the FTC also began publishing aggregated statistics 

on complaints related to COVID-19 and, beginning in June 2020, started publishing a daily series 

of interactive dashboards that allow COVID-related complaints tracking in real-time.47 

In addition, the FTC recently published a data spotlight focusing on online shopping, the 

top complaint category related to the pandemic.48 The spotlight uses data to illustrate how 

fraudsters are targeting consumers during the pandemic, such as non-delivery scams for face 

masks and hand sanitizer, and provides consumer tips for avoiding these schemes. 

 44 The Commission charges that Zurixx took more than $500 million, and Nudge more than $400 million, from 

consumers. FTC Press Release, FTC Expands Its Case Against Zurixx Real Estate Seminar Scheme (May 20, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/05/ftc-expands-its-case-against-zurixx-real-estate-seminarscheme; FTC Press Release, FTC Acts to Shut Down Companies Operating Real Estate Seminar Scheme (Nov. 5, 

2019), https://www.ftc.gov/news-events/press-releases/2019/11/ftc-acts-shut-down-companies-operating-real-estateseminar-scheme. 45 FTC Press Release, FTC Acts to Shut Down ‘Success by Health’ Instant Coffee Pyramid Scheme (Jan. 16, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/01/ftc-acts-shut-down-success-health-instant-coffee-pyramidscheme; FTC Press Release, FTC Sues Multi-Level Marketer Neora, formerly known as Nerium, Alleging it 

Operates as an Illegal Pyramid Scheme (Nov. 1, 2019), https://www.ftc.gov/news-events/pressreleases/2019/11/ftc-sues-multi-level-marketer-neora-formerly-known-nerium; FTC Press Release, Multi-Level 

Marketer AdvoCare Will Pay $150 Million To Settle FTC Charges it Operated an Illegal Pyramid Scheme (Oct. 2, 

2019), https://www.ftc.gov/news-events/press-releases/2019/10/multi-level-marketer-advocare-will-pay-150-

million-settle-ftc. 46 See https://public.tableau.com/profile/federal.trade.commission#!/. 47 See https://public.tableau.com/profile/federal.trade.commission#!/vizhome/COVID-19andStimulusReports/Map. 48 FTC Data Spotlight, Pandemic Purchases Lead to Record Reports of Unreceived Goods (July 1, 2020), 

https://www.ftc.gov/news-events/blogs/data-spotlight/2020/07/pandemic-purchases-lead-record-reports-unreceivedgoods. 
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C. Protecting Consumers from Unfair, Deceptive, or Discriminatory Financing 

Transactions

 The FTC is also focused on protecting consumers in financing transactions. Many 

consumers rely on financing to pay for important purchases. It is thus important for consumers 

who seek financing to be able to count on truthful and accurate information to evaluate their 

financing options, and to be treated fairly and in a non-discriminatory manner when engaging in 

financing transactions. The FTC has taken a number of actions to protect consumers from 

deceptive, unfair, or discriminatory financing transactions.

In April, the FTC obtained a $175 million settlement against Progressive Leasing, a 

company that markets rent-to-own payment plans in retail stores nationwide, to resolve the 

FTC’s allegations that the company misled consumers about the true price of items purchased 

through its plans.49 Then in May, the FTC secured a $1.5 million settlement against an auto 

dealer and its manager in a novel case alleging violations of Equal Credit Opportunity Act 

(ECOA) for discriminating against African-American and Hispanic car buyers, and for 

deceptively and unfairly charging unnecessary fees and charges, as alleged in the FTC 

complaint.

50

In addition to protecting individual consumers, the FTC has broad jurisdiction under the 

FTC Act and other laws to stop deceptive, unfair, and other unlawful practices that target small 

businesses. In June 2020, the FTC sued RCG Advances LLC, a related company, and several 

officers and managers for operating a small business financing operation that allegedly used 

 49 FTC Press Release, Rent-To-Own Payment Plan Company Progressive Leasing Will Pay $175 Million to Settle 

FTC Charges It Deceived Consumers About Pricing (Apr. 20, 2020), https://www.ftc.gov/news-events/pressreleases/2020/04/rent-own-payment-plan-company-progressive-leasing-will-pay-175. 50 See FTC v. Liberty Chevrolet, Inc. et al., No. 1:20-cv-03945 (May 21, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/162-3238/bronx-honda.
19

deception and threats of physical harm to seize personal and business assets from small 

businesses, non-profits, religious organizations, and medical offices.51 

D. Truthfulness in National Advertising 

Ensuring that advertising is truthful and not misleading has long been one of the FTC’s 

core missions. Truthful advertising allows consumers to make well-informed decisions about 

how to best use their resources and promotes the efficient functioning of market forces by 

encouraging the dissemination of accurate information. 

The FTC continues to bring cases challenging false and unsubstantiated health claims, 

including cases against entities targeting consumers concerned about coronavirus, older 

consumers, consumers who seek health information online, and consumers affected by the opioid 

crisis. The Commission recently filed concurrent administrative and federal district court 

complaints challenging claims that a dietary supplement treats, prevents, or cures COVID-19 and 

that its efficacy is clinically proven.52 The Commission has pursued marketers who targeted older 

consumers claiming their products were “cure-alls” for pain and inflammation and for age-related 

ailments.

53 We also challenged native advertising—commercial advertising masquerading as 

 51 FTC Press Release, New York-Based Finance Companies Deceived Small Businesses, Non-Profits and Seized 

Their Personal and Business Assets, FTC Alleges (June 10, 2020), https://www.ftc.gov/news-events/pressreleases/2020/06/new-york-based-finance-companies-deceived-small-businesses. 52 Marc Ching, FTC Docket No. 9394 (Apr. 22, 2020); FTC v. Marc Ching, No. 2:20-cv-3775 (C.D. Cal. Apr. 24, 

2020). To date, the federal district court has approved a stipulated preliminary injunction against the defendant, and 

the Commission approved a proposed consent agreement that is pending public comment. FTC Press Release, FTC 

Order Stops the Marketer of “Thrive” Supplement from Making Baseless Claims It Can Treat, Prevent, or Reduce 

the Risks from COVID-19 (July 10, 2020), https://www.ftc.gov/news-events/press-releases/2020/07/ftc-order-stopsmarketer-thrive-supplement-making-baseless-claims. 53 See, e.g., FTC v. Mile High Madison Grp., Inc., No. 1:20-cv-21622 (S.D. Fla. Apr. 17, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/172-3132-172-3143/nordic-clinical-inc-encore-plus-solutionsinc; FTC v. Renaissance Health Publ’g, LLC, No. 9:20-cv-80640 (S.D. Fla. Apr. 15, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/renaissance-health-matter; FTC v. Health Center, Inc., No. 

2:20-cv-00547 (D. Nev. Mar. 19, 2020), https://www.ftc.gov/enforcement/cases-proceedings/182-3002/healthcenter-inc; FTC v. Quantum Wellness Botanical Inst., LLC, No. 2:20-cv-00244 (D. Ariz. Feb. 3, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/172-3131/quantum-wellness-botanical-institute-llc; FTC v. 

NatureCity, LLC, No. 9:19-cv-81387 (S.D. Fla. Oct. 15, 2019), https://www.ftc.gov/enforcement/casesproceedings/172-3153/naturecity-llc. We have also challenged claims that electrical stimulation devices will provide 
20

editorial content—to deceptively sell health products,

54 as well as marketing that failed to 

disclose that it used paid social media influencers.55 The Commission also has sued companies 

that claimed, allegedly without scientific evidence, that using their products could alleviate the 

symptoms of opioid withdrawal and increase the likelihood of overcoming opioid dependency.56

In addition, pursuant to the recently enacted SUPPORT (Substance Use-Disorder Prevention that 

Promotes Opioid Recovery and Treatment) for Patients and Communities Act,57 Congress has 

authorized the Commission to seek civil penalties for unfair or deceptive acts or practices with 

respect to substance use disorder treatment service or substance use disorder treatment products, 

and the FTC will use that authority where appropriate.58 

In addition to health claims, the FTC has pursued enforcement action against companies 

that run national advertising campaigns making false or deceptive claims about job prospects and 

career earnings—a central concern for consumers considering higher education. For example, in 

December, the Commission announced a $191 million settlement with a for-profit school, the 

University of Phoenix, and its parent company, Apollo Education Group, to resolve charges that 

 

relief from pain, including pain throughout the body and chronic, severe pain and inflammation. See FTC v. 

Physician’s Technology, LLC, No. 2:20-cv-11694 (E.D. Mich. June 25, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/172-3129/physicians-technology-llc; FTC v. NeuroMetrix, Inc., 

No. 1:20-cv-10428 (D. Mass. Mar. 3, 2020), https://www.ftc.gov/enforcement/casesproceedings/1723130/neurometrix-inc. 54 See, e.g., FTC v. Glob. Cmty. Innovations LLC, No. 5:19-CV-00788 (N.D. Ohio Apr. 10, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/162-3135/global-community-innovations-llc-et-al-geniux; 

Creaxion Corp., No. C-4668 (Feb. 8, 2019), https://www.ftc.gov/enforcement/cases-proceedings/172-

3066/creaxion-corp; Inside Publ’ns, LLC, No. C-4669 (Feb. 8, 2019), https://www.ftc.gov/enforcement/casesproceedings/172-3067/inside-publications-llc. 55 FTC v. Teami, LLC, No. 8:20-cv-00518 (M.D. Fla. Mar. 5, 2020), https://www.ftc.gov/enforcement/casesproceedings/182-3174/teami-llc. 56 FTC v. Catlin Enters., Inc., No. 1:17-cv-403 (W.D. Tex. May 17, 2017), https://www.ftc.gov/enforcement/casesproceedings/1623204/catlin-enterprises-inc. In addition, in conjunction with the FDA, the FTC issued letters to 

companies that appeared to be making questionable claims in order to sell addiction or withdrawal remedies. See

FTC Press Release, FTC, FDA Warn Companies about Marketing and Selling Opioid Cessation Products (Jan. 24, 

2018), https://www.ftc.gov/news-events/press-releases/2018/01/ftc-fda-warn-companies-about-marketing-sellingopioid-cessation. 57 P.L. 115-271 (2018). This legislation included provisions affecting several agencies, including the Commission. 58 See The Opioid Addiction Recovery Fraud Prevention Act of 2018, P.L. 115-271, 15 U.S.C. § 45d, et seq. (2018).
21

they used deceptive advertisements that falsely touted their relationships and their ability to 

provide job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The 

American Red Cross.59

One of the most effective ways to protect consumers from false claims is to remove the 

claims from the market quickly and efficiently. To accomplish this, the Commission has used 

warning letters to halt quickly proliferating scams. For example, since the pandemic began in 

March, we have issued joint warning letters with the Food and Drug Administration (“FDA”) to 

more than seventy marketers regarding claims that their products will treat, cure, or prevent 

COVID-19, and there are additional warning letters in the pipeline.60 The FTC also has issued its 

own warning letters to more than 200 additional marketers of COVID-19 products.61 In addition, 

the Commission and FDA have issued joint warning letters to marketers who claim their dietary 

supplements and cannabidiol (“CBD”) products treat or prevent other serious diseases, including 

Alzheimer’s disease, cancer, and autism.62 Overwhelmingly, companies that have received FTC 

 59 FTC Press Release, FTC Obtains Record $191 Million Settlement from University of Phoenix to Resolve FTC 

Charges It Used Deceptive Advertising to Attract Prospective Students (Dec. 10, 2019), https://www.ftc.gov/newsevents/press-releases/2019/12/ftc-obtains-record-191-million-settlement-university-phoenix. 60 See FTC, Coronavirus Warning Letters, https://www.ftc.gov/coronavirus/warning-letters. Please note that this 

webpage is continuously updated. 

61 In addition to targeting health claims, some of the warning letters addressed allegedly unsubstantiated claims that 

consumers recently out of work could earn significant income through involvement with multi-level marketing. See

FTC Press Release, FTC Sends Warning Letters to Multi-Level Marketers Regarding Health and Earnings Claims 

They or Their Participants are Making Related to Coronavirus (Apr. 24, 2020), https://www.ftc.gov/newsevents/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health; FTC Press Release, 

FTC Sends Second Round of Warning Letters to Multi-Level Marketers Regarding Coronavirus Related Health and 

Earnings Claims (June 5, 2020), https://www.ftc.gov/news-events/press-releases/2020/06/second-round-warningletters-to-mlms-regarding-coronavirus. A vast majority of the claims at issue have been taken down. 62 See FTC Press Release, FTC and FDA Warn Florida Company Marketing CBD Products about Claims Related to 

Treating Autism, ADHD, Parkinson’s, Alzheimer’s, and Other Medical Conditions (Oct. 22, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/10/ftc-fda-warn-florida-company-marketing-cbd-productsabout-claims; FTC Press Release, FTC Joins FDA in Sending Warning Letters to Companies Advertising and 

Selling Products Containing Cannabidiol (CBD) Claiming to Treat Alzheimer’s, Cancer, and Other Diseases (Apr. 

2, 2019), https://www.ftc.gov/news-events/press-releases/2019/04/ftc-joins-fda-sending-warning-letters-companiesadvertising; FTC Press Release, FTC and FDA Send Warning Letters to Companies Selling Dietary Supplements 

Claiming to Treat Alzheimer’s Disease and Remediate or Cure Other Serious Illnesses Such as Parkinson’s, Heart 

Disease, and Cancer (Feb. 11, 2019), https://www.ftc.gov/news-events/press-releases/2019/02/ftc-fda-sendwarning-letters-companies-selling-dietary.
22

warning letters these past several months have taken quick steps to correct their problematic 

claims. As a result, warning letters are frequently the most rapid and efficient means to address 

the problem. However, when a warning letter does not work, or is not appropriate given the 

conduct at issue, the FTC has pursued law enforcement.

When consumers with serious health concerns fall victim to unsupported health claims, 

they may put their health at risk by avoiding proven therapies and treatments. Thus, in addition to 

enforcement actions and warning letters, the FTC has launched consumer education campaigns. 

Through the FTC’s advisories, the agency urges consumers to check with a medical professional 

before starting any treatment or product to treat serious medical conditions.63 In response to the 

pandemic, we also launched a webpage, “Coronavirus Scams: What the FTC is Doing,” available 

at www.ftc.gov/coronavirus, which provides consumer education regarding COVID-19 scams.

The Commission also has exercised its authority under the Consumer Review Fairness 

Act of 2016 (“CRFA”).64 We obtained orders with five companies to settle allegations that they 

violated the CRFA by including restrictions in consumer form contracts on consumers’ ability to 

provide negative reviews.65 The Commission also has continued to invoke this relatively new 

authority to challenge non-disparagement provisions used to facilitate, among other things, 

fraudulent business operations and real estate seminars.66

The Commission also hosts public workshops, where relevant stakeholders discuss 

emerging issues in the national advertising landscape, and promulgates rules and guides. Last 

 63 FTC Consumer Blog, Treatments and Cures, https://www.consumer.ftc.gov/topics/treatments-cures. 64 15 U.S.C. § 45b. 65 FTC Press Release, FTC Approves Final Consent Orders with Five Companies that Allegedly Violated the 

Consumer Review Fairness Act (Aug. 16, 2019), https://www.ftc.gov/news-events/press-releases/2019/08/ftcapproves-final-consent-orders-five-companies-allegedly. 66 FTC Press Release, Defendants in FTC Credit Repair Scheme Case Agree to Settle Charges (Jan. 17, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/01/defendants-ftc-credit-repair-scheme-case-agree-settlecharges; FTC Press Release, FTC Acts Against Company Using Celebrity Endorsements, Bogus Earnings Claims to 

Sell Real Estate Seminars (Oct. 4, 2019), https://www.ftc.gov/news-events/press-releases/2019/10/ftc-acts-againstcompany-using-celebrity-endorsements-bogus.
23

year, we held a workshop examining consumer protection issues in the online ticket sales market, 

and in May, Commission staff issued a Staff Perspective summarizing its observations about the 

workshop.67 Last August, we hosted a workshop to explore consumer issues surrounding loot 

boxes in the video game industry, such as concerns with the marketing and use of loot boxes and 

other in-game purchases, and the potential behavioral impact of these virtual items on 

consumers, especially children.68 In March, we co-hosted an “FDA/FTC Workshop on a 

Competitive Marketplace for Biosimilars,” where we led a panel on truthful and non-misleading 

advertising and promotional communications.69 Finally, in June, the Commission approved a 

final rule amending the Contact Lens Rule, which facilitates shopping for contact lenses by 

requiring prescribers to provide automatically a copy of a patient’s prescription and to verify or 

provide prescriptions to third-party sellers.70 When it goes into effect, the revised final rule, 

among other things, will provide confirmation that patients have received their contact lens 

prescriptions. The Commission also is undertaking regulatory review of its Guides Concerning 

the Use of Endorsements and Testimonials in Advertising.71

E. Illegal Robocalls

Illegal robocalls remain a significant consumer protection problem and one of 

consumers’ top complaints to the FTC. Through the first nine months of FY2020, the FTC has 

received more than 2.7 million complaints about unwanted calls, including 1.9 million 

complaints about robocalls. The FTC has used all the tools at its disposal to fight these illegal 

 67 FTC Press Release, FTC Staff Perspective Recaps Online Event Tickets Workshop (May 7, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/05/ftc-staff-perspective-recaps-online-event-tickets-workshop. 68 See FTC Workshop, Inside the Game: Unlocking the Consumer Issues Surrounding Loot Boxes (Aug. 7, 2019), 

https://www.ftc.gov/news-events/events-calendar/inside-game-unlocking-consumer-issues-surrounding-loot-boxes. 69 See FTC Workshop, FDA/FTC Workshop on a Competitive Marketplace for Biosimilars (Mar. 9, 2020), 

https://www.ftc.gov/news-events/events-calendar/fda-ftc-workshop-competitive-marketplace-biosimilars. 70 The Rule is codified at 16 C.F.R. Part 315. The final rule will be published in the Federal Register shortly. 71 16 C.F.R. Part 255.
24

calls and has brought 148 enforcement actions against 502 corporations and 398 individuals to 

date.72

The FTC’s most recent law enforcement crackdown, “Operation Call It Quits,” included 

94 total actions by the FTC and 25 federal, state, and local agencies.73 Collectively, the 

defendants in these cases were responsible for making more than a billion illegal robocalls to 

consumers nationwide. Other FTC cases reflect the FTC’s robocall enforcement efforts. For 

example, in Grand Bahama Cruise Line, the FTC is litigating claims against defendants who 

allegedly made or facilitated millions of illegal calls to consumers pitching free cruise 

vacations.74 In Career Education Corporation, the operator of several post-secondary schools 

agreed to pay $30 million to settle FTC charges that it used sales leads from lead generators that 

called consumers on the National Do Not Call Registry, making false representations that the 

callers were affiliated with the U.S. military.75 The FTC also recently filed its first action against 

a Voice over Internet Protocol (“VoIP”) service provider based on evidence that it provided 

 72 See FTC Robocall Initiatives, https://www.consumer.ftc.gov/features/feature-0025-robocalls. In its enforcement 

actions, the Commission has collected over $160 million in equitable monetary relief and civil penalties. See 

Enforcement of the Do Not Call Registry, https://www.ftc.gov/news-events/media-resources/do-not-callregistry/enforcement. 73 See FTC Press Release, FTC, Law Enforcement Partners Announce New Crackdown on Illegal Robocalls (June 

25, 2019), https://www.ftc.gov/news-events/press-releases/2019/06/ftc-law-enforcement-partners-announce-newcrackdown-illegal. 74 FTC v. Grand Bahama Cruise Line, LLC, No. 6:20-cv-52 (M.D. Fla. filed Jan. 10, 2020), 

https://www.ftc.gov/enforcement/cases-proceedings/162-3005/grand-bahama-cruise-line-llc. 75 FTC v. Career Education Corp., No. 1:19-cv-5739 (N.D. Ill. filed Aug. 27, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/152-3264/career-education-corporation. There are many other 

recent cases in which the FTC has stopped illegal robocalls. See, e.g., U.S. v. Derek Jason Bartoli, No. 6:19-cv01160 (M.D. Fla. filed June 21, 2019), https://www.ftc.gov/enforcement/cases-proceedings/182-3105/derek-jasonbartoli (banning a robodialer responsible for more than 57 million calls to numbers on the Do Not Call Registry in 

just six months in 2017); U.S. v. Media Mix 365, No. 8:19-cv-01243 (C.D. Cal. filed June 21, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/182-3070/media-mix-365-llc (obtaining $264,000 in civil 

penalties from a solar panel lead generator and its owners who called millions of numbers on the National Do Not 

Call Registry); FTC v. First Choice Horizon LLC, No. 6:19-cv-1028 (M.D. Fla. filed June 3, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/172-3161-x190029/first-choice-horizon-llc (shutting down 

illegal robocalls allegedly used to contact financially distressed consumers with offers of bogus credit card interest 

rate reduction services). The Commission’s case against fraudulent business opportunity 8 Figure Dream Lifestyle, 

described above, was also part of Operation Call it Quits. See FTC v. 8 Figure Dream Lifestyle LLC, No. 8:19-cv01165 (C.D. Cal. filed June 12, 2019), https://www.ftc.gov/enforcement/cases-proceedings/182-3117/8-figuredream-lifestyle-llc.
25

marketers the means to make the alleged illegal calls.76 While there is more work to do and 

there were likely many factors—including more aggressive blocking by phone companies and 

warning letters from the FTC and others—the FTC has seen a sharp drop in the number of 

robocall complaints since bringing its first VoIP case in December 2019.77

Despite the FTC’s vigorous law enforcement program, however, technological advances 

continue to permit bad actors to place millions or even billions of calls, often from abroad, at 

very low cost, and in ways that are difficult to trace. This phenomenon infuriates consumers and 

challenges enforcers. Recognizing that law enforcement, while critical, is not enough to solve the 

problem of illegal calls, the FTC has taken steps to spur the marketplace to develop technological 

solutions. For instance, from 2013 to 2015, the FTC led four public challenges to incentivize 

innovators to help tackle the unlawful robocalls that plague consumers, which led to a shift in the 

development and availability of technological solutions in this area.

78 The telecommunications 

industry also has developed a new framework, SHAKEN/STIR, to help limit illegitimate number 

spoofing and reduce illegal robocalls. Congress mandated the implementation of this or a similar

framework in last year’s TRACED Act.79

 76 The FTC amended its complaint in the Educare Centre Services litigation to add Globex Telecom, Inc. FTC v. 

Educare Centre Services, Inc., No. 3:19-cv-196 (W.D. Tex., Am. Compl. filed Dec. 3, 2019), 

https://www.ftc.gov/enforcement/cases-proceedings/192-3033/educare-centre-services-inc. 77 See FTC Press Release, Court Halts Operations of VoIP Service Provider after the FTC and Ohio Alleged that It 

Helped Promote Credit Card Interest Reduction Scheme (Dec. 5, 2019), https://www.ftc.gov/news-events/pressreleases/2019/12/court-halts-operations-voip-service-provider-after-ftc-ohio. 78 The first challenge, in 2013, called upon the public to develop a consumer-facing solution to block illegal 

robocalls. One of the winners, “NomoRobo,” was on the market within 6 months after being selected by the FTC. 

NomoRobo, which reports blocking over 600 million calls to date, is being offered directly to consumers by a 

number of telecommunications providers and is available as an app on iPhones. See FTC Press Release, FTC 

Announces Robocall Challenge Winners (Apr. 2, 2013), https://www.ftc.gov/news-events/pressreleases/2013/04/ftc-announces-robocall-challenge-winners; see also FTC Press Release, FTC Awards $25,000 Top 

Cash Prize for Contest-Winning Mobile App That Blocks Illegal Robocalls (Aug. 17, 2015), 

https://www.ftc.gov/news-events/press-releases/2015/08/ftc-awards-25000-top-cash-prize-contest-winning-mobileapp-blocks; FTC Press Release, FTC Announces Winners of “Zapping Rachel” Robocall Contest (Aug. 28, 2014), 

https://www.ftc.gov/news-events/press-releases/2014/08/ftc-announces-winners-zapping-rachel-robocall-contest. 79 Pub. L. No. 116-105, § 4, 133 Stat. 3274, 3276–80 (2019). Congress directed the FCC to establish a hospital 

protection working group in the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act of 2019 

(TRACED Act), Pub. L. No. 116-105, § 4, 133 Stat. 3274, 3276–80 (2019). Pursuant to the TRACED Act, on June 
26

The FTC continues to engage with industry stakeholders and supports industry initiatives 

to authenticate caller ID numbers and curb illegal calling. For example, the FTC sent 15 warning 

letters to VoIP service providers and others that may have been assisting and facilitating the 

transmission of robocalls using coronavirus-related messages (six of the letters were sent jointly 

with the FCC).80 To identify these entities, the FTC used information provided by the 

USTelecom Industry Traceback Group, a collaborative effort of companies across the wireline, 

wireless, VoIP, and cable industries that actively trace and identify the source of illegal 

robocalls.81 The FTC also regularly works with its state, federal, and international partners to 

combat illegal robocalls.82

For many years, the Commission has recommended eliminating the common carrier 

exemption to our jurisdiction. The exemption is outdated and no longer makes sense in today’s 

marketplace where the lines between telecommunications and other services are increasingly 

 

25, 2020, the FCC established the Hospital Robocall Protection Group (HRPG), a federal advisory committee 

dedicated to combatting robocalls to hospitals. 80 FTC Press Release, FTC and FCC Send Joint Letters to VoIP Service Providers Warning against ‘Routing and 

Transmitting’ Illegal Coronavirus-related Robocalls (Apr. 3, 2020), https://www.ftc.gov/news-events/pressreleases/2020/04/ftc-fcc-send-joint-letters-voip-service-providers-warning-against; FTC Press Release, FTC and 

FCC Send Joint Letters to Additional VoIP Providers Warning against ‘Routing and Transmitting’ Illegal 

Coronavirus-related Robocalls (May 20, 2020), https://www.ftc.gov/news-events/press-releases/2020/05/ftc-fccsend-joint-letters-additional-voip-providers-warning. 81 FTC Coronavirus Warning Letters to Companies, https://www.ftc.gov/coronavirus/enforcement/warning-letters.

On July 27, 2020, the FCC’s Enforcement Bureau designated the USTelecom Industry Traceback Group as the 

official consortium for coordinating industry-led efforts to trace back the origin of suspected unlawful robocalls. 

https://www.fcc.gov/document/fcc-designates-robocall-traceback-manager. 82 See, e.g., FTC Press Release, FTC and FCC to Host Joint Policy Forum on Illegal Robocalls (Mar. 22, 2018), 

www.ftc.gov/news-events/press-releases/2018/03/ftc-fcc-host-joint-policy-forum-illegal-robocalls; FTC Press 

Release, FTC and FCC Seek Exhibitors for an Expo Featuring Technologies to Block Illegal Robocalls (Mar. 7, 

2018), www.ftc.gov/news-events/press-releases/2018/03/ftc-fcc-seek-exhibitors-expo-featuring-technologies-blockillegal; see also Memorandum of Understanding Among Public Authorities of the Unsolicited Communications 

Enforcement Network Pertaining to Unlawful Telecommunications and SPAM (May 2016), 

https://www.ftc.gov/policy/cooperation-agreements/international-unlawful-telecommunications-spam-enforcementcooperation; FTC Press Release, FTC Signs Memorandum of Understanding With Canadian Agency To Strengthen 

Cooperation on Do Not Call, Spam Enforcement (Mar. 24, 2016), https://www.ftc.gov/news-events/pressreleases/2016/03/ftc-signs-memorandum-understanding-canadian-agency-strengthen. The FTC also held a workshop 

in January 2020 titled “You Don’t Say: An FTC Workshop on Voice Cloning Technologies” that examined the use 

of cloned voices to perpetuate telemarketing fraud. See FTC Workshop, You Don’t Say: An FTC Workshop on Voice 

Cloning Technologies (Jan. 28, 2020), https://www.ftc.gov/news-events/events-calendar/you-dont-say-ftcworkshop-voice-cloning-technologies. 
27

blurred. It impedes the FTC’s work tackling illegal robocalls and more broadly circumscribes 

other enforcement initiatives. For example, a carrier that places, or assists and facilitates, illegal 

telemarketing might argue that its common carrier activities are beyond the Commission’s reach 

because of the common carrier exemption. Likewise, the exemption may frustrate the 

Commission’s ability to obtain complete relief for consumers when there are multiple parties, 

some of whom engage in common carrier activity. It also may pose difficulties when a company 

engages in deceptive or unfair practices involving a mix of common carrier and non-common 

carrier activities. Even where the FTC prevails against common carrier arguments raised in 

litigation,83 fighting such arguments uses resources that could be better spent on finding—and 

halting—the next fraud. 

F. Consumer and Business Education and Outreach 

The FTC also supports and amplifies its consumer protection mission by engaging the 

public through outreach and education that reach tens of millions of people each year. Using the 

FTC’s website, the media, partner organizations, and grass roots networking, the Commission 

disseminates actionable, practical, plain-language guidance to the public on timely topics and 

issues affecting American consumers and businesses. 

As our activities during the past several months illustrate, the FTC keeps pace with 

current trends and strives to create education materials and campaigns that are timely and 

relevant to both consumers and business. In early February, the FTC posted its first blog 

warning consumers about potential COVID-related scams.84 Within weeks, the FTC 

 83 Recently, for example, the court rejected a defendant’s argument that it was a common carrier and thus not subject 

to FTC jurisdiction. It held that the defendant’s VoIP service constituted an unprotected “information service,” as 

opposed to protected “telecommunication service.” See Order at 13–18, Dkt. No. 145, FTC v. Educare Centre 

Services, Inc., No. 3:19-cv-196 (W.D. Tex. Jan. 14, 2020), https://www.ftc.gov/enforcement/cases-proceedings/192-

3033/educare-centre-services-inc. 84 FTC Consumer Blog, Coronavirus: Scammers follow the headlines (Feb. 10, 2020), 

https://www.consumer.ftc.gov/blog/2020/02/coronavirus-scammers-follow-headlines.
28

developed a multi-media campaign, complete with a dedicated website85 containing a library 

of nearly 100 consumer and business blog posts, scam alerts, and videos on topics ranging 

from relief checks86 and treatment claims87 to charity fraud,88 government imposter scams,89

and misinformation.90 Simultaneously, the Commission leveraged its relationships with 

national and local organizations,91 as well as its partnerships with federal agencies, to 

coordinate messaging and to deliver webinars, presentations, social media shareables, and 

infographics about COVID-related scams.92 And, as concerns about contact tracing scams 

began to emerge, the FTC developed consumer messaging that it delivered through consumer 

blog posts,93 an infographic,94 and a joint announcement with the U.S. Department of Justice 

(“DOJ”) and Health and Human Services,

95 all with the aim of helping people spot scams 

 85 FTC Website, Coronavirus Pandemic: The FTC in Action, ftc.gov/coronavirus (English) and 

ftc.gov/coronavirus/es (Spanish). 86 FTC Consumer Blog, Want to get your Coronavirus relief check? Scammers do too. (Apr. 1, 2020), 

https://www.consumer.ftc.gov/blog/2020/04/want-get-your-coronavirus-relief-check-scammers-do-too. 87 FTC Consumer Blog, More FTC warnings about scam Coronavirus treatments (June 4, 2020), 

https://www.consumer.ftc.gov/blog/2020/06/more-ftc-warnings-about-scam-coronavirus-treatments. 88 FTC Consumer Blog, Make your Coronavirus donations count (May 5, 2020), 

https://www.consumer.ftc.gov/blog/2020/05/make-your-coronavirus-donations-count. 89 FTC Consumer Blog, Scammers are using COVID-19 messages to scam people (Apr. 10, 2020), 

https://www.consumer.ftc.gov/blog/2020/04/scammers-are-using-covid-19-messages-scam-people. 90 FTC Consumer Blog, CBD, COVID-19 and cancer: The unfounded facts (Apr. 28, 2020), 

https://www.consumer.ftc.gov/blog/2020/04/cbd-covid-19-and-cancer-unfounded-facts. 91 A small sample includes: the national Better Business Bureau and several state BBBs; the American Bankers 

Association Foundation; AARP National; AARP Oregon; Small Business Development Corporations; affordable 

housing managers; the Bar Association of Puerto Rico; the National Asian American Coalition; members of the 

Financial Literacy and Education Commission (FLEC), and public librarians in multiple states. 

92 These partnerships include: the Federal Depository Insurance Corporation; Federal Emergency Management 

Agency; Department of Justice (“DOJ”); and Department of Health and Human Services. See, e.g., DOJ Press 

Release, The Justice Department, Department of Health and Human Services, and the Federal Trade Commission 

Partner to Alert Public of Contact Tracing COVID-19 Fraud Schemes (June 30, 2020), 

https://www.justice.gov/opa/pr/justice-department-department-health-and-human-services-and-federal-tradecommission-partner#:~:text=The%20Justice%20Department%2C%20HHS%20and,or%20ftc.gov%2Fcomplaint.

93 FTC Consumer Blog, COVID-19 contact tracing text message scams (May 19, 2020), 

https://www.consumer.ftc.gov/blog/2020/05/covid-19-contact-tracing-text-message-scams; FTC Consumer Blog, 

Help COVID-19 tracers, not scammers (June 25, 2020), https://www.consumer.ftc.gov/blog/2020/06/help-covid-19-

contact-tracers-not-scammers. 94 FTC Infographic, Contact Tracing Call? 5 Things To Know (June 25, 2020). 

https://www.consumer.ftc.gov/articles/contact-tracing-infographic. 95 DOJ Press Release, The Justice Department, Department of Health and Hunan Services, and the Federal Trade 

Commission Partner to Alert Public of Contact Tracing COVID-19 Fraud Schemes (June 30, 2020) 
29

while maintaining trust in the important public health process. The FTC also has developed 

and delivered materials and presentations on the financial impact of the coronavirus,96 and 

expects to continue its work to inform and protect consumers and businesses in this 

challenging environment.

The FTC continues to expand its outreach to consumers of diverse backgrounds, ages, 

education, and experience. For example, for more than a decade, the FTC has reached 

consumers in Spanish,97 but the Commission recently launched a new webpage containing 

key consumer education materials translated into additional languages, including Chinese, 

Korean, Tagalog, and Vietnamese.98 The agency also initiated an ambitious outreach 

campaign aimed at educating consumers and businesses in Puerto Rico, including webinars 

for the Legal Services of Puerto Rico and the Bar Association of Puerto Rico, as well as 

broadcast events with the local AARP office in Puerto Rico. Working with organizations 

around the country, the FTC also continues to host Ethnic Media Roundtables aimed at 

increasing consumer engagement and fraud reporting in diverse communities.99 In addition, 

the FTC recently refreshed and revised the Pass It On campaign for older adults,100 which 

remains a cornerstone of the agency’s efforts to educate older adults in English and Spanish 

about how to avoid scams. Through continued partnership with organizations like AARP to 

 

https://www.justice.gov/opa/pr/justice-department-department-health-and-human-services-and-federal-tradecommission-partner. 96 FTC Website, Financial Impact of the Coronavirus, https://www.consumer.ftc.gov/coronavirus/financial-impact. 97 See, e.g., https://www.consumidor.ftc.gov/, https://www.ftc.gov/es/coronavirus/las-estafas-relacionadas-con-elcoronavirus, https://www.consumidor.gov, https://www.consumidor.ftc.gov/destacado/destacado-0030-pasalo, and 

https://www.ftc.gov/es/consejos/para-empresarios/las-estafas-y-su-pequeno-negocio-una-guia-para-los-negocios. 98 The website ftc.gov/languages features other languages, including Amharic, Arabic, Dari, French, Haitian Creole, 

Russian, and Somali.

99 For example, the Commission brought together public officials, legal aid providers, community advocates and 

reporters in Indianapolis, IN; Charleston, WV; Milwaukee, WI; Birmingham, AL; and Oklahoma City, OK. A 

listing of these events is available at https://www.consumer.gov/content/common-ground-conferences-androundtables-calendar. 100 Materials are available in English at https://www.ftc.gov/passiton and in Spanish at https://www.ftc.gov/pasalo.
30

deliver nationwide webinars and tele-town halls for this audience, the FTC has shared well 

over 13 million copies of Pass It On print materials throughout the country. 

The Commission also works to provide companies with timely and relevant resources on 

a variety of issues that affect businesses. For example, the FTC continues to promote its popular 

Cybersecurity for Small Business campaign to make sure that businesses have the tools they need 

to meet their security obligations.101 In addition, the FTC recently launched Green Lights & Red 

Flags: FTC Rules of the Road for Business, a new one-day business seminar series on 

advertising, data security, antitrust, social media marketing, and other business basics designed 

for business owners, marketing professionals, and attorneys.102 As with consumer education, the 

Commission fosters and leverages its numerous partnerships with other agencies and private 

organizations. In collaboration with the SBA, Small Business Development Corporations, and 

the Better Business Bureau, the agency has focused on expanding the reach of its Spanish 

language campaign materials, including Scams and Your Small Business: A Guide for 

Businesses, which describes common scams and the steps businesses can take to avoid them.103

V. COMPETITION MISSION

The FTC also enforces U.S. antitrust laws in many sectors that affect consumers and their 

wallets, such as health care, consumer products and services, technology, manufacturing, and 

energy. The Commission shares federal antitrust enforcement responsibilities with the Antitrust 

Division of the DOJ (collectively, “the agencies”).

 101 See Cybersecurity for Small Business, https://www.ftc.gov/tips-advice/business-center/smallbusinesses/cybersecurity and https://www.ftc.gov/es/tips-advice/business-center/smallbusinesses/cybersecurity/espanol. 102 FTC Press Release, FTC and Partners Sponsor “Back-to-Basics” Advertising and Data Security Workshop in 

Atlanta (July 2, 2020), https://www.ftc.gov/news-events/press-releases/2019/07/ftc-partners-sponsor-back-basicsadvertising-data-security. 103 This publication is available on the FTC’s website at https://www.ftc.gov/tips-advice/businesscenter/guidance/scams-your-small-business-guide-business.
31

One of the agencies’ principal responsibilities is to prevent mergers that may substantially 

lessen competition. Under U.S. law, parties to certain mergers and acquisitions must file 

premerger notification and observe a statutorily prescribed waiting period before consummating 

their transactions. Prior to the COVID pandemic, premerger filings under the Hart-Scott-Rodino 

(“HSR”) Act had increased steadily since FY 2013, with more than 2,000 HSR filings in each of 

the past three fiscal years.104 Filings for the last three months have been below historic levels, 

down approximately 50 percent compared to the most recent years.

105 

Even so, between previously reported deals and non-reportable transactions, the 

Commission has maintained a very full merger docket, and our resources continue to be stretched 

thin; in fact, the agency is on pace to record the most merger enforcement actions in a year since 

2001.

106 Since the beginning of this fiscal year—and despite the challenges created by the 

COVID-19 pandemic—the Commission has sued to block or unwind seven mergers,107 and 

another eight were abandoned in the face of antitrust concerns raised in our investigations. The

 104 In FY 2019, the FTC and DOJ received notice of 2,089 transactions, compared with 1,326 in FY 2013. For 

historical information about HSR filings and U.S. merger enforcement, see the joint FTC/DOJ Hart-Scott-Rodino 

annual reports, https://www.ftc.gov/policy/reports/policy-reports/annual-competition-reports. 105 In response to heightened interest in the level of merger activity during the pandemic, the FTC’s Premerger 

Notification Office is now posting monthly figures for HSR filings on the FTC website at 

https://www.ftc.gov/enforcement/premerger-notification-program. 106 Since Congress raised the HSR filing thresholds in 2001, FTC merger enforcement actions peaked at 25 in FY 

2012. So far in FY 2020, the FTC has already challenged 24 mergers with more than two months to go. 

107 FTC Press Release, FTC Sues to Unwind Altria’s $12.8 Billion Investment in Competitor JUUL (Apr. 1, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sues-unwind-altrias-128-billion-investment-competitorjuul; FTC Press Release, FTC and Commonwealth of Pennsylvania Challenge Proposed Merger of Two Major 

Philadelphia-area Hospital Systems (Feb. 27, 2020), https://www.ftc.gov/news-events/press-releases/2020/02/ftccommonwealth-pennsylvania-challenge-proposed-merger-two-major; FTC Press Release, FTC Files Suit to Block 

Joint Venture between Coal Mining Companies Peabody Energy Corporation and Arch Coal (Feb. 26, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-files-suit-block-joint-venture-between-coal-miningcompanies; FTC Press Release, FTC Files Suit to Block Edgewell Personal Care Company’s Acquisition of Harry’s, 

Inc. (Feb. 3, 2020), https://www.ftc.gov/news-events/press-releases/2020/02/ftc-files-suit-block-edgewellpersonalcare-companys-acquisition; FTC Press Release, FTC Challenges Consummated Merger of Companies that 

Market Body-Worn Camera Systems to Large Metropolitan Police Departments (Jan. 3, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/01/ftc-challenges-consummated-merger-companies-marketbody-worn; FTC Press Release, FTC Alleges Post Holdings, Inc.’s Proposed Acquisition of TreeHouse Foods, Inc.’s 

Private Label Ready-to-Eat Cereal Business will Harm Competition (Dec. 19, 2019), https://www.ftc.gov/newsevents/press-releases/2019/12/ftc-alleges-post-holdings-incs-proposed-acquisition-treehouse; FTC Press Release, 

FTC Challenges Illumina’s Proposed Acquisition of PacBio (Dec. 17, 2019), https://www.ftc.gov/newsevents/press-releases/2019/12/ftc-challenges-illuminas-proposed-acquisition-pacbio.
32

Commission also accepted negotiated settlements in an additional nine mergers, requiring 

divestitures to preserve competition in markets as diverse as blockbuster pharmaceuticals,108

prosthetic joints,109 specialty veterinary services,110 and gas stations.111 The Commission also 

assessed a civil penalty for failure to comply with a consent order to divest ten gas stations in a 

timely manner.112 The Commission’s vigorous enforcement has led to a significant competition 

litigation workload, which continues to expand and requires significant resources, and which also 

includes federal preliminary injunction hearings and multiple administrative trials pending 

against unconsummated and consummated mergers.

The Commission is dedicated to using the antitrust laws actively to promote competition, 

including using established law to address emerging trends and evolving industries so as to 

ensure that consumers continue to benefit from competition. For example, this year the 

Commission has challenged several mergers in which an established incumbent proposed to 

acquire an emerging competitor in order to reduce competition in the future.113 In one instance, 

 108 FTC Press Release, FTC Imposes Conditions on AbbVie Inc.’s Acquisition of Allergan plc (May 5, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/05/ftc-imposes-conditions-abbvie-incs-acquisition-allerganplc; FTC Press Release, FTC Approves Final Order Requiring Bristol-Myers Squibb Company and Celgene 

Corporation to Divest Psoriasis Drug Otezla as Condition of Acquisition (Jan. 13, 2020), https://www.ftc.gov/newsevents/press-releases/2020/01/ftc-approves-final-order-requiring-bristol-myers-squibb-company. The BMS/Celgene 

divestiture, valued at $13.4 billion, is the largest divestiture that the FTC or DOJ has ever required in a merger 

enforcement matter.

109 FTC Press Release, FTC Imposes Conditions on Össur Hf’s Acquisition of College Park Industries, Inc. (Apr. 7, 

2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-imposes-conditions-ossur-hfs-acquisitioncollege-park. 110 FTC Press Release, FTC Requires Veterinary Service Providers Compassion First and National Veterinary 

Associates to Divest Assets in Three Local Markets (Feb. 14, 2020), https://www.ftc.gov/news-events/pressreleases/2020/02/ftc-requires-veterinary-service-providers-compassion-first. 111 FTC Press Release, FTC Requires Divestitures as Condition of Tri Star Energy, LLC’s Acquisition of Certain 

Assets of Hollingsworth Oil Company, Inc., C & H Properties, and Ronald L. Hollingsworth (Jun. 24, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/06/ftc-requires-divestitures-condition-tri-star-energy-llcs. 112 FTC Press Release, Alimentation Couche-Tard Inc. and CrossAmerica Partners LP Agree to Pay $3.5 Million 

Civil Penalty to Settle FTC Allegations that they Violated 2018 Order (July 6, 2020), https://www.ftc.gov/newsevents/press-releases/2020/07/alimentation-couche-tard-crossamerica-partners-agree-to-pay-civil-penalty. 113 See, e.g., FTC Press Release, FTC Imposes Conditions on Össur Hf’s Acquisition of College Park Industries, Inc. 

(Apr. 7, 2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-imposes-conditions-ossur-hfsacquisition-college-park; FTC Press Release, FTC Files Suit to Block Edgewell Personal Care Company’s 
33

the Commission challenged Illumina, Inc.’s proposed acquisition of Pacific Biosciences of 

California under both Section 2 of the Sherman Act (which addresses monopolization) and 

Section 7 of the Clayton Act (which targets anticompetitive mergers).114 Similarly, the 

Commission is pursuing dual Sherman Act Section 1 (unlawful agreement) and Clayton Act 

Section 7 theories in seeking to undo Altria’s $12.8 billion investment in its e-cigarette 

competitor, JUUL Labs, which the complaint alleges would eliminate competition between the 

companies and allow the companies to share JUUL’s profits.115

The Commission also maintains a robust program to identify and stop anticompetitive 

conduct, relying on antitrust enforcement to combat practices that harm consumers by 

suppressing, and at times eliminating, beneficial price competition. For instance, the Commission 

continues to challenge anticompetitive conduct by drug manufacturers, whether it involves the 

abuse of government process through sham litigation,

116 a product-hopping scheme that relies on 

deception to maintain a lucrative monopoly,117 or other elaborate agreements designed to 

 

Acquisition of Harry’s, Inc. (Feb. 3, 2020), https://www.ftc.gov/news-events/press-releases/2020/02/ftc-files-suitblock-edgewell-personalcare-companys-acquisition. 114 FTC Press Release, FTC Challenges Illumina’s Proposed Acquisition of PacBio (Dec. 17, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/12/ftc-challenges-illuminas-proposed-acquisition-pacbio. The 

complaint alleged that the proposed acquisition would remove a nascent competitive threat to Illumina’s monopoly 

power in the U.S. market for next-generation DNA sequencing systems and prevent increased future competition 

between Illumina and PacBio. Two weeks after the Commission issued its complaint, the parties abandoned their 

transaction.

115 FTC Press Release, FTC Sues to Unwind Altria’s $12.8 Billion Investment in Competitor JUUL (Apr. 1, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sues-unwind-altrias-128-billion-investment-competitorjuul. 116 FTC v. AbbVie Inc., No. 14-cv-5151 (E.D. Pa. Sept. 8, 2014), https://www.ftc.gov/enforcement/casesproceedings/121-0028/abbvie-inc-et-al. 117 FTC Press Release, Indivior, Inc. to Pay $10 Million to Consumers, Settling FTC Charges that the Company 

Illegally Maintained a Monopoly over the Opioid Addiction Treatment Suboxone (July 24, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/07/indivior-inc-pay-10-million-consumers-settling-ftccharges; FTC Press Release, Reckitt Benckiser Group plc to Pay $50 Million to Consumers, Settling FTC Charges 

that the Company Illegally Maintained a Monopoly over the Opioid Addiction Treatment Suboxone (July 11, 2019), 

https://www.ftc.gov/news-events/press-releases/2019/07/reckitt-benckiser-group-plc-pay-50-

millionconsumerssettling-ftc.
34

maintain high prices for life-saving drugs.118 The Commission is attentive to the use of overly 

broad non-compete agreements, which can effectively block competition and harm consumers.119

To ensure that employees reap the benefits of competition among employers for their skills, the 

Commission also will consider the implications of any conduct, including a merger that may 

reduce competition in labor markets.

120

The Commission continues to focus on developments in the high-technology sector. 

Given the important role that technology companies play in the American economy, it is critical 

that the Commission—in furthering its mission to protect consumers and promote competition—

not only understand the current and developing business models, but also ensure that companies 

in this sector abide by the same rules of competitive markets that apply to any company. To 

marshal the Commission’s scarce resources more effectively, the agency created the Technology 

Enforcement Division (“TED”) within the Bureau of Competition. Working with staff throughout 

the agency, TED is pursuing a number of investigations involving technology platforms. In 

addition, to ensure that the Commission understands the scope of these companies’ business 

strategies, the agency has used its authority under Section 6(b) of the FTC Act to issue special 

 118 FTC Press Release, FTC and NY Attorney General Charge Vyera Pharmaceuticals, Martin Shkreli, and Other 

Defendants with Anticompetitive Scheme to Protect a List-Price Increase of More Than 4,000 Percent for 

LifeSaving Drug Daraprim (Jan. 27, 2020), https://www.ftc.gov/news-events/press-releases/2020/01/ftc-nyattorney-general-charge-vyera-pharmaceuticals-martin. 119 See e.g., FTC Press Release, FTC Sues to Unwind Altria’s $12.8 Billion Investment in Competitor JUUL (Apr. 1, 

2020), https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sues-unwind-altrias-128-billion-investmentcompetitor-juul; FTC Press Release, Rent-to-Own Operators Settle Charges that They Restrained Competition 

through Reciprocal Purchase Agreements (Feb. 21, 2020), https://www.ftc.gov/news-events/pressreleases/2020/02/rent-own-operators-settle-charges-they-restrained-competition; FTC Press Release, FTC 

Challenges Consummated Merger of Companies that Market Body-Worn Camera Systems to Large Metropolitan 

Police Departments (Jan. 3, 2020), https://www.ftc.gov/news-events/press-releases/2020/01/ftc-challengesconsummated-merger-companies-market-body-worn; FTC Press Release, FTC Puts Conditions on NEXUS Gas 

Transmission, LLC’s Acquisition of Generation Pipeline LLC (Sept. 13, 2019), https://www.ftc.gov/newsevents/press-releases/2019/09/ftc-puts-conditions-nexus-gas-transmission-llcs-acquisition. 120 FTC Press Release, Statement of the FTC Chairman Regarding Announcement that Aveanna Healthcare and 

Maxim Healthcare Services have Terminated Their Acquisition Agreement (Jan. 30, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/01/statement-ftc-chairman-regarding-announcement-aveannahealthcare.
35

orders to five large technology firms (Alphabet, Amazon, Apple, Facebook, and Microsoft) 

requiring them to provide information about prior acquisitions not reported to the antitrust 

agencies under the HSR Act.121 This initiative will allow the Commission to determine whether 

and to what extent large tech companies are making potentially anticompetitive acquisitions of 

nascent or potential competitors, outside the purview of advance HSR Act review.

The FTC supports its enforcement work with a vigorous policy agenda, which includes 

substantial research to stay informed of market developments. In June 2019, the Commission 

concluded its series of public Hearings on Competition and Consumer Protection in the 21st

Century, through which the agency examined whether broad-based changes in the economy, 

evolving business practices, and new technologies might require adjustments to competition and 

consumer protection law, enforcement priorities, and policy.122 One output from the hearings is 

the recently released Vertical Merger Guidelines, which is the first time the FTC and the DOJ

have issued joint guidelines explaining how the agencies evaluate the likely competitive impact 

of vertical mergers.123

VI. CONCLUSION

The FTC remains committed to marshalling its resources efficiently in order to 

effectively protect consumers and promote competition, to anticipate and respond to changes in 

 121 FTC Press Release, FTC to Examine Past Acquisitions by Large Technology Companies (Feb. 11, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-examine-past-acquisitions-large-technology-companies. 122 See Prepared Remarks of Chairman Simons Announcing the Competition and Consumer Protection Hearings 

(June 20, 2018), 

https://www.ftc.gov/system/files/documents/public_statements/1385308/prepared_remarks_of_joe_simons_announc

ing_the_hearings_6-20-18_0.pdf. From September 2018 through June 2019, the FTC held 14 sessions over the 

course of 23 days as a part of its Hearings on Competition and Consumer Protection in the 21st Century. In addition 

to the 393 individuals from outside the agency who participated in the Hearings, 71 members of FTC staff also 

participated. The hearings garnered a combined online audience of over 21,000 in addition to those who attended in 

person. The FTC held hearing sessions in Washington, DC; New York City; and Omaha, Nebraska. 123 FTC News Release, FTC and DOJ Issue Antitrust Guidelines for Evaluating Vertical Mergers (Jun. 30, 2020), 

https://www.ftc.gov/news-events/press-releases/2020/06/ftc-doj-issue-antitrust-guidelines-evaluating-verticalmergers.
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the marketplace, and to meet current and future challenges. We look forward to continuing to 

work with the Committee and Congress, and we would be happy to answer your questions.