AAF Baltimore Legislative Committee Update May 12, 2020

MAYBE:

  • You win a prize and told to send back taxes and fees.
  • You get paid as a “secret shipper” and are told to wire back money.
  • You sold an item online and the buyer overpays.

IN ALL CASES:

  • You get a check.
  • They ask you to send back money.

THAT’S A SCAM.

IF IT’S A FAKE CHECK, WHY IS MONEY IN YOUR ACCOUNT?

  • Banks have to make deposited funds available within days. It’s the law. But uncovering a fake check can take weeks. By then, the scammer has your money. And you have to repay the bank. Remember, just because the check has “cleared” does not mean it is good.
  • Be wary. Talk to someone your trust and contact your bank before you act.
  • Never take a check for more than the selling price.
  • Selling online? Consider using an escrow or online payment service.
  • Never send back to someone who sent you a check.
  • Spot this scam? Tell the Federal Trade Commission and your state’s Attorney General.

https://www.consumer.ftc.gov/articles/fake-check-scams-infographic


A New Privacy Bill for California?

Californians for Consumer Privacy Rights Act is likely to be on the Ballot in November. Announced last week, a new privacy law is likely to be on the California ballot in November. If adopted it would replace the California Consumer Privacy Act, which entered into force earlier this year. The CPRA is truly an omnibus data protection law, modeled on the EU General Data Protection Regulation, and would create a much broader set of privacy rights and obligations than the CCPA. Would enter into force January 2023 with a lookback to January 2020.

The California Privacy Rights Act (CPRA) gives consumers the power to take back control over our information from thousands of giant corporations. CPRA will do the following:

  1. Protect our personal information: Creates new rights allowing us to stop businesses using our sensitive personal information, including about our health or finances, and especially our exact location, without our consent.
  2. Safeguard our children’s privacy: It will triple 2018’s California Consumer Privacy Act fines for collecting and selling our children’s private information.
  3. Establish an enforcement arm: Establish a new authority to protect these rights, the California Privacy Protection Agency. Increase transparency through this agency, giving consumers back control over their data.


The FTC and FDA are Concerned about Influencers
with Advertising Food and Dietary Supplements.

Food and dietary supplement companies are increasingly using influencers and social media to advertise their products, and these marketing strategies are even more important during the current Coronavirus-driven lockdown, as consumers spend more time online. Beyond the current pandemic, online advertising is a valuable tool for reaching younger generations of consumers, communicating proven and potential health benefits, and drawing attention to new product releases. However, for companies that are unaware of or ignore the rules and guidance set forth by the FDA and FTC, these strategies can easily lead to both government actions and private litigation. In this webinar, panelists will discuss both general and industry-specific issues, such as the recently released FTC guidelines for social media influencers, recent FTC activity and areas of focus, trends in online marketing, and litigation risks for touting nutritional and health benefits for both foods and dietary supplements.