Posts Tagged: ROSCA

FTC 2017: Consumer Protection Year in Review (aka. If you do it, we’ll catch you)

The FTC put out its consumer protection year in review providing a comprehensive list of significant consumer protection developments in 2017.  Let us indulge you with a recap of a few illustrative actions affecting the promotion world.

“Free” Samples

In October 2017, the FTC charged A1 Janitorial Supply Corp. with deceptively calling businesses offering a “free” sample of its cleaning products and then billing them for the samples after shipping.  Hoping that one hand wouldn’t wash the other, the company shipped the goods to one employee (who received the telephone call) but then sent the invoice to another employee.  The FTC alleged that this practice violated the Telemarketing Sales Rule, 16 CFR Part 310 and the Unordered Merchandise Statute, 39 U.S.C. § 3009.  A TRO was entered and the case is still pending.

The lesson:  To stay squeaky clean, remember free means free even when it’s B2B. (more…)

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