IN THE NEWS AND LATEST UPDATES
Fourteen months after proposing a far-reaching rule that would have overhauled the way fees are disclosed across sectors (see our previous discussion here), the FTC today announced a significantly curtailed final rule limited to the sale of live-event tickets and short-term lodging. The Rule, which still applies to both business-to-consumer and business-to-business transactions, requires covered industries to include a clear and conspicuous disclosure of the total price whenever a price offer is made, meaning that ticketing and hotel sites will need to include total pricing information upfront if they display a price.
DC Attorney General Brian Schwalb recently filed a lawsuit against Amazon for allegedly deceiving some District residents into paying for Prime delivery benefits they are not receiving, in violation of the Consumer Protection Procedures Act (CPPA). The complaint alleges Amazon quietly instituted exclusionary practices in its Prime Membership delivery program for certain ZIP codes in DC starting in 2022, while continuing to charge full subscription fees for consumers living in the “excluded” ZIP code areas.
Yesterday, President-elect Trump announced his picks to round out the Federal Trade Commission for his second administration. Trump tapped current Republican Commissioner Andrew Ferguson to be elevated to chair the agency, and nominated Mark R. Meador to fill the commissioner vacancy that will be left behind upon Chair Khan’s departure. As we previously discussed in a post here predicting what to expect pre- and post-inauguration at the FTC, Chair Khan is expected announce her resignation prior to Trump’s inauguration on January 20. Even if she did not and made an unusual attempt to hold over into the Trump administration, the Republican-controlled Senate’s anticipated confirmation of Meador would moot the move. Current Democratic Commissioners Slaughter and Bedoya, as well as Republican Commissioner Holyoak, are also expected to remain on the Commission.
Texas Attorney General Ken Paxton, joined by ten other Republican-led states, filed a lawsuit in the U.S. Eastern District of Texas against BlackRock, State Street, and Vanguard, accusing them of illegally conspiring to manipulate coal markets. The 104-page complaint alleges that these investment firms leveraged their substantial ownership stakes in major U.S. coal producers to “artificially” constrain the supply of coal, resulting in diminished competition, higher energy prices for consumers, and “cartel-level profits” for the defendants.
Yesterday, the FTC announced a court order requiring GOAT – an online marketplace for sneakers, apparel, and accessories – to pay more than $2 million for violating the Mail Order Rule, which requires companies to have reasonable shipping practices. The FTC’s complaint also alleged that GOAT offered an “Assurance of Authenticity” and “Buyer Protection” for consumers that received deficient products but that the company did not put a system in place to honor its policies.
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