• The Federal Trade Commission (FTC) won a temporary restraining order against Inc21, an Internet services company which allegedly crammed unauthorized charges onto the telephone bills of thousands of consumers and small businesses for services those customers never agreed to buy. Inc21 is accused of either never contacting the customers it billed or of providing misleading information that concealed the cost of the services provided. The FTC charged the defendants with unfair and deceptive acts, in violation of the FTC Act and the Telemarketing Sales Rule. FTC v. Inc21.com Corp., Case No. 3:10-cv-00022-WHA (N.D. Cal.); FTC File Nos. 092 3171, X100019.
  • ControlScan, a company that verifies whether retail and other Web sites adequately secure customers’ personal information, has agreed to settle charges with the FTC that it misled its customers and the public as to how often it checked the security of its customers’ Web sites. The FTC alleges that ControlScan issued security certificates for its customers’ Web sites but did not actually verify that appropriate protections were in place. Third-party security and privacy certifications are a means by which online merchants can show their customers that they have taken the appropriate steps to protect their identity and financial information. FTC v. ControlSan, Inc., No. 1:10-cv-00532-JEC (N.D. Ga.); FTC File No. 072 3165.