The Federal Trade Commission has approved three omnibus resolutions authorizing compulsory process in investigations involving collusive practices, mergers, acquisitions, and transactions, and the car rental industry.

The omnibus resolutions in these three areas will eliminate the need for FTC staff to seek compulsory process in each related case. Not individually authorizing compulsory process in each matter removes an unnecessary and time-consuming barrier to staff’s pursuit of an investigation.

• The omnibus resolution governing potentially unlawful collusive and coordinated conduct will allow FTC staff to more quickly and efficiently obtain evidence in connection with investigations involving competitors working together in an anticompetitive fashion. There is rising concern that the recent inflationary increase in prices may be giving companies cover to collude against the public interest.

• The omnibus resolution governing proposed mergers, acquisitions, and transactions approved today will allow for quick investigations of all mergers, including those that fall below the value thresholds that require reporting to the antitrust agencies under the Hart-Scott-Rodino Act (HSR). The Commission’s 6(b) study on non-HSR reported acquisitions by technology companies highlighted how some of the largest firms in our economy have made hundreds of acquisitions that are not being reported to the FTC or DOJ.

• The omnibus resolution relating to car rentals will allow staff to investigate unfair and deceptive practices in that industry.

The Commission vote approving the omnibus resolution governing potentially unlawful collusive and coordinated conduct, and the omnibus resolution governing proposed mergers, acquisitions, and transactions was 3-2, with Commissioners Noah Joshua Phillips and Christine S. Wilson voting no and issuing a separate dissenting statement.

The Commission vote approving the omnibus resolution relating to car rentals was 3-2, with Commissioners Noah Joshua Phillips and Christine S. Wilson voting no.

The Commission vote to make all three omnibus resolutions public was 5-0. Commissioner Alvaro Bedoya issued a separate statement, in which he was joined by Chair Lina M. Khan and Commissioner Rebecca Kelly Slaughter.

The Federal Trade Commission has published its FY 2022-2026 Strategic Plan and its FY 2021-2023 Performance Report and Performance Plan as required under the GPRA Modernization Act of 2010.

The FTC Strategic Plan for Fiscal Years 2022-2026 sets the FTC’s priorities over the next five years and will serve as the foundation for annual performance reporting. The new plan was drafted after a thorough review of the agency’s goals, strategies, and metrics. Stakeholder feedback was accepted during a public comment period last fall. The new plan keeps the same three-goal structure of the previous plan, while making numerous improvements. For example, two new objectives ensure that the work of the agency benefits all Americans, including those who live in historically underserved communities.

The FY 2021 Annual Performance Report documents FTC’s performance during FY 2021, based on the goals and metrics set in the Strategic Plan for FY 2018-2022. The FY 2022-2023 Annual Performance Plan establishes strategies and targets based on the new Strategic Plan for FY 2022-2026.

The Commission vote to publish the FY 2022-2026 Strategic Plan was 3-1-1, with Commissioner Christine S. Wilson voting no and issuing a separate dissenting statement, and Commissioner Noah Joshua Phillips not participating. Chair Lina M. Khan also issued a separate statement, in which she was joined by Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro M. Bedoya.

The Commission vote to submit the FY 2021-2023 Performance Report and Performance Plan to Congress was 3-1-1, with Commissioner Christine S. Wilson voting no and Commissioner Noah Joshua Phillips not participating.

The fees for telemarketers accessing phone numbers on the National Do Not Call (DNC) Registry will increase in FY 2023, which starts on October 1, 2022.

All telemarketers calling consumers in the United States are required to download the numbers on the National DNC Registry to ensure they do not call consumers who have registered their phone numbers. The first five area codes are free to download, and organizations that are exempt, such as some charities and political callers, may obtain the entire list for free. Telemarketers must subscribe each year for access to the Registry numbers.

The cost of accessing a single area code in the registry will be $75 in FY 2023, which is an increase of $6 from FY 2022. The maximum charge to any single entity for accessing all area codes nationwide is now $20,740 (up from 19,017 in FY 2022). The fee for accessing an additional area code for a half year will increase $3 from FY 2022, to $38.

The Commission vote authorizing publication of the Federal Register notice announcing the new fees was 5-0.

The Federal Trade Commission is sending payments to 576 consumers nationwide who bought deceptively marketed cannabidiol (CBD) products from Arizona-based Kushly Industries LLC. In total, the FTC is returning almost $21,000 to consumers deceived by Kushly’s false or unsubstantiated claims about its CBD products, averaging $36 each.

Consumers will receive either a PayPal payment or a check in the mail. The deadline for consumers to cash their checks is November 22, 2022. PayPal payments must be claimed by September 23, 2022. Recipients who have questions about their refund should contact the refund administrator, Analytics, Inc., at 1-866-461-4332. The Commission never requires people to pay money or provide account information to get a refund.

The FTC’s March 2021 complaint against Kushly and the company’s CEO, Cody Alt, alleged that they made false or unsubstantiated claims that their CBD products could effectively treat or cure a host of conditions—from common ailments, like acne and psoriasis, to more serious diseases, including cancer and multiple sclerosis. The complaint also alleged that the company falsely claimed that scientific studies or research had proven CBD products effectively treat, mitigate, or cure diseases, including hypertension, Parkinson’s disease, and Alzheimer’s disease.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court going forward. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.

The Federal Trade Commission has declined to extend the public comment period for its proposed rule that would ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. The deadline for members of the public to comment remains September 12, 2022.

In its decision declining to extend the deadline, the Commission notes that it has received requests from stakeholders asking to extend the deadline, as well as from stakeholders asking to keep the deadline as is. The Commission also notes that by the time the public comment period closes, members of the public will have had 80 days to review the proposed rule.

Members of the public can submit comments on the proposed rule at regulations.gov.

The Commission vote to decline the extension of the comment period was 5-0.

About the Proposed Rule

As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges. The proposed rule would protect consumers and honest dealers by making the car-buying process more clear and competitive. It would also allow the Commission to recover money when consumers are misled or charged without their consent.

In the Notice of Proposed Rulemaking, the Commission is seeking comment on proposed measures that would:

• Ban bait-and-switch claims: The proposal would prohibit dealers from making a number of deceptive advertising claims to lure in prospective car buyers. This deal deception can include the cost of a vehicle or the terms of financing, the cost of any add-on products or services, whether financing terms are for a lease, the availability of any discounts or rebates, the actual availability of the vehicles being advertised, and whether a financing deal has been finalized, among other areas. Once in the door or on the hook, consumers face the fallout of false promises that don’t pan out.

• Ban fraudulent junk fees:  The proposal would prohibit dealers from charging consumers junk fees for fraudulent add-on products and services that provide no benefit to the consumer (including “nitrogen filled” tires that contain no more nitrogen than normal air).

• Ban surprise junk fees: The proposal would prohibit dealers from charging consumers for an add-on without their clear, written consent and would require dealers to inform consumers about the price of the car without any of optional add-ons.

• Require full upfront disclosure of costs and conditions: The proposal would require dealers to make key disclosures to consumers, including providing a true “offering price” for a vehicle that would be full price a consumer would pay, excluding only taxes and government fees. It would also require dealers to make disclosures about optional add-on fees, including their price and the fact that they are not required as a condition of purchasing or leasing the vehicle, along with disclosures to consumers with key information about financing terms.

The notice includes questions for public comment to inform the Commission’s decision-making on the proposal. These include questions about provisions in the proposed rule and whether other provisions should or should not be included in the rule, as well as questions related to the costs and benefits to consumers and auto dealers of the proposed rule. In addition, the notice includes a preliminary regulatory analysis estimating that the net economic benefit of the rule would be more than $29 billion over ten years. After the Commission reviews the comments received, it will decide whether to proceed with issuance of a final rule.

The Federal Trade Commission is seeking additional public comment on how children are affected by digital advertising and marketing messages that may blur the line between ads and entertainment. Marketers increasingly reach children via digital media, including by embedding advertising in video sharing platforms, social media platforms through influencer and celebrity posts, games, virtual worlds, and other digital environments.

The FTC is seeking public input in conjunction with an October 19, 2022 event that will examine these topics.

The public will have until November 18, 2022 to submit comments to accommodate those who wish to provide input on the topics discussed at the October digital advertising event. Information on how to submit a comment is available on the event page. Submitted comments will be posted to Regulations.gov. Staff has reviewed comments previously submitted in response to the FTC’s announcement in May about the October event, and those commenters can resubmit their comments on Regulations.gov or submit additional comments.

The Federal Trade Commission has issued an order lifting the stay in the administrative proceeding against Intuit Inc.

The case originally commenced in March, 2022. Based on a motion filed by Intuit, the matter was automatically withdrawn from adjudication pursuant to the Commission Rules of Practice on May 6, 2022, and was stayed to allow the Commission to consider whether further litigation was in the public interest. The order returns the matter to adjudication before an Administrative Law Judge and lifts the stay on the administrative proceeding against the company.

In its order returning the matter to adjudication, the Commission set an evidentiary hearing before the Administrative Law Judge on March 27, 2023.

The Commission vote to issue the order returning the matter to adjudication was 4-1, with Commissioner Noah Joshua Phillips voting in the negative.

The Federal Trade Commission is sending 14,521 checks totaling more than $822,000 to borrowers who lost money to a student loan debt-relief scheme that operated under the name Student Advocates.

Consumers who receive checks should cash them within 90 days, as indicated on the check. Recipients who have questions about their refund should call the refund administrator, JND Legal Administration, at 877-540-0989. The Commission never requires people to pay money or provide account information to get a refund.

In September 2019, the FTC filed a complaint against a student loan debt-relief scheme and the financing company that assisted them. The FTC alleged that the operators of Student Advocates, assisted by Equitable Acceptance Corporation, charged illegal upfront fees that they falsely claimed went toward consumers’ student loans. The defendants steered customers into high-interest loans to pay these fees. The FTC also alleged that the defendants made false promises that their services would permanently lower or even eliminate consumers’ student loan payments and debt balances. None of the money collected by the defendants was paid toward consumers’ student loans.

At the time the FTC filed its complaint, it also announced a stipulated final order with Equitable Acceptance Corporation that banned the company from assisting debt-relief services and violating the Telemarketing Sales Rule. The order also prohibited Equitable Acceptance from collecting any further payments from consumers who purchased these debt-relief services and required the company to pay monetary relief.

After more than a year of litigation, in May 2021, the FTC announced a stipulated final order with Student Advocates that banned the company from providing debt relief service, prohibited them from collecting further payments from consumers who purchased their debt relief services, and required them to pay additional monetary relief.

The FTC’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but these refunds were the result of cases resolved before the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court going forward. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.

The Federal Trade Commission is sending payments totaling more than $9.7 million to 61,990 consumers who were charged hidden fees by LendingClub Corporation.

These payments are the result of a claims process conducted by the FTC in February 2022. It is the second distribution of funds in this matter and brings the total amount refunded to consumers to more than $17.6 million.

Consumers who chose to receive a PayPal payment will have 30 days to accept it. Consumers who chose to receive a check will have 90 days to cash it. Recipients who have questions about their refund should call the refund administrator, Rust Consulting, Inc., at 833-630-1417. The Commission never requires people to pay money or provide account information to get a refund.

The FTC sued LendingClub in April 2018, charging that the company falsely promised loan applicants that they would receive a specific loan amount with “no hidden fees,” when in reality the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans. The FTC also alleged that LendingClub told consumers they were approved for loans when they were not—which delayed applicants from seeking loans elsewhere—and took money from consumers’ bank accounts without authorization. LendingClub agreed to a settlement in July 2021 that bars them from making misrepresentations to loan applicants and requires that the company clearly and conspicuously disclose the amount of any fees and the total amount of funds that borrowers will receive.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of Commission refunds. In 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court going forward. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.