The Federal Trade Commission rule targeting fake reviews and paid testimonials went into effect this week. The rule bans the creation, purchase or sale of reviews and opinion pieces attributed to fictional customers, or real ones who are financially compensated without plainly disclosing the transactional nature of the relationship. The rule, which subjects offenders to civil penalties, also takes aim at businesses who use threats or coercion to thwart the publication of negative reviews that are genuine. The new FTC rule was approved by unanimous vote in August. Continue reading FTC Rule Prohibiting Fake and Paid Reviews Goes into Effect

The Federal Trade Commission has implemented a consumer “click-to-cancel” rule that requires sellers to make it as simple to cancel subscriptions or memberships as it was to sign up. The FTC vote was 3 to 2, along party lines, in favor of implementing the rule, which makes it easier to divest of unwanted, recurring bills. “Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.” Continue reading FTC Adds Click-to-Cancel Provision to Negative Option Rule

Entertainment and eSports brand FaZe Clan completed a $725 million merger with B. Riley Principal 150 Merger Corp., a special purpose acquisition company (SPAC) and began publicly trading on the Nasdaq stock exchange Wednesday. FaZe Clan currently has around 93 creators with a combined 500 million followers across popular social platforms such as YouTube, TikTok and Twitch. In May, Forbes ranked FaZe Clan the fourth most valuable eSports company, estimating its worth at $400 million. Trading as FAZE, the stock fell nearly 25 percent in its first day of trading. Continue reading Gen Z Brand FaZe Clan Goes Public in $725M SPAC Merger

Chinese tech and entertainment conglomerate Tencent Holdings posted a 23 percent first quarter profit decline on earnings that inched up only 0.1 percent, its worst results since publicly listing on the Hong Kong Stock Exchange in 2004. China’s COVID-19 resurgence and the ensuing regulatory crackdown of the past year were cited as factors. The world’s largest video game developer said that it is refocusing on quality product as Beijing telegraphs it will limit the number of titles release in the coming months. Authorities suspended video game licenses and put time restrictions on game streaming in an effort to protect the nation’s youth. Continue reading Tencent Reports a Significant Profit Decline on Flat Revenues

The European Union has led the movement to leverage antitrust laws in an effort to limit the power of Big Tech companies from the United States. Now, convinced that the impact of these efforts did not go far enough to change behavior, they are pursuing a different tack, this time drafting regulations that address specific business practices. But even as the chief executives of Amazon, Apple, Facebook and Google were grilled in a Congressional hearing last week, they reported skyrocketing revenue and billions in profit. Continue reading European Union Adopts New Strategy to Contain Tech Firms

At a meeting in Argentina of G20 finance ministers and central bankers, the Europeans pushed to advance global rules to tax the digital economy, contrary to the point of view of the U.S. delegation. The group’s final communiqué reiterated the body’s commitment to “address the impacts of the shift to a digital economy on the international tax system by 2020,” but gave no further details. Earlier this year, the European Commission proposed rules to make digital companies such as Amazon, Facebook and Google pay more taxes. Continue reading At G20 Meeting, Europeans Push Enactment of a Digital Tax

MIT has launched the new “Initiative for the Digital Economy” to address the impact of existing and emerging digital technologies. The initiative’s three primary objectives are to analyze the potential of digital technologies to change businesses, the economy, and society; to engage students and faculty in programs related to the digital revolution; and to make practical recommendations to industry leaders and policymakers regarding the digital economy. Continue reading MIT Initiative Explores Impact of Emerging Digital Economy