While fraud artists obviously find the Internet an effective way to reach vast numbers of potential victims, consumer protection authorities have found it also is an efficient mechanism for deterrence. Recognizing that many Net entrepreneurs seem unaware of applicable rules and regulations, the FTC has spearheaded a new approach to alerting these entrepreneurs to how they can comply with the law. To surf, the FTC Consumer Protection staff identifies a type of deceptive practice that appears to be prominent on the Internet.
Staff develops a protocol to find sites displaying the practice.
At the FTC, attorneys review the hard copy and identify sites that are most likely to be violating the law. The communications do not state that the operator has violated the law, but warn that operators in violation of the FTC Act may be subject to enforcement action. Included in the e-mail message is a link to the FTC's web page where site operators can learn more about relevant law and requirements. FTC investigators and attorneys, who have made follow-up site visits approximately a month after surf days, have found that 18 to 70 percent of the questionable sites had been eliminated or revised. If an advertiser continues to make misleading or deceptive claims, staff may open investigations and pursue law enforcement efforts.