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

Acting in advance of a California law that goes into effect on January 1, cloud gaming platform Steam has begun posting a notice that its customers are purchasing a license, not a product. The language that appears in the Steam shopping cart now includes the advisory that “purchase of a digital product grants a license for the product on Steam.” Signed into law last month, California’s AB 2426 is categorized a consumer protection law against false advertising for digital goods. Specifically, it requires online sellers provide a “conspicuous” advisory that licenses are limited in duration and can be revoked. Continue reading Steam Preemptively Adds License-Only Terms to Online Store

In a unanimous vote, the Federal Trade Commission has banned the use of fake reviews, such as those generated by artificial intelligence, and also prohibits reviews or testimonials that are paid for, even if written by humans. The new rule, finalized Wednesday, also reins in other deceptive practices, like paying for fake social media followers, in an effort to stem misleading practices that are increasingly used by marketers. Generative AI has made manufactured reviews easily available, though the agency’s readiness to seek fines against knowing violators may make fabulists think twice before using them. Continue reading FTC Rule Takes Aim at Fake Reviews, Influence Manipulators

Florida Governor Ron DeSantis has signed a bill into law preventing children under 14 from creating new social media accounts, and requiring platforms to delete existing accounts, with no opportunity for parental consent. For children 14- to 15-years of age, consent of a parent or guardian is required to create or maintain accounts. Without it, or upon request, the accounts and personal data must be deleted, with fines of up to $50,000 per incident per platform. The law, set to take effect in January 2025, is being called the most restrictive passed by any state and is sure to face First Amendment scrutiny by the courts. Continue reading Florida Enacts the Nation’s Most Restrictive Social Media Law

The House of Representatives has introduced a bill that would make it illegal in the U.S. to distribute TikTok under its current ownership. The Protecting Americans from Foreign Adversary Controlled Applications Act “prevents app store availability or web hosting services in the U.S. for ByteDance-controlled applications, including TikTok, unless the application severs ties to entities like ByteDance that are subject to the control of a foreign adversary,” according to a sponsor statement. Violators would be subject to a penalty of $5,000 for every U.S. user that “accessed, maintained or updated” any “foreign adversary controlled applications” from its platform. Continue reading House Intros a Bill to Penalize App Stores Distributing TikTok

Apple has been fined $1.95 billion by the European Union after the bloc’s executive body, the European Commission, found the iPhone maker in violation of antitrust law by using its App Store market dominance to stifle music streaming competition. The EC found that Apple suppressed the ability of app developers to communicate with iOS users about alternative music subscription services available outside the App Store. The fine stems from a 2019 complaint from Spotify that triggered an investigation into Apple. Spotify hailed the result as a win for consumers and “an important moment in the fight for a more open Internet,” while Apple has vowed to appeal. Continue reading Apple Fined $1.95 Billion by EU for Music Streaming Antitrust

Ireland’s Data Protection Commission (DPC) announced a TikTok fine of about $368 million today based on how the popular social platform processes data of younger users. DPC announced in 2021 that it was investigating TikTok’s compliance with the European Union’s General Data Protection Regulation (GDPR) privacy and security laws. The investigation identified specific problems with TikTok’s default account settings, the Family Pairing settings, and its age verification process (although the age verification model did not violate GDPR, the probe found that TikTok did not sufficiently protect the privacy of children under 13 who were able to create an account). Continue reading Ireland Fines TikTok $368 Million for Mishandling of User Data

The Federal Communications Commission has issued a formal Notice of Proposed Rulemaking (NPRM) for the U.S. Cyber Trust Mark labeling program for smart devices announced in July with the Biden administration. The voluntary program to provide certification for baseline cybersecurity standards is designed to help consumers make informed purchase decisions regarding Internet of Things (IoT) products. The FCC, which proposes to own the new Cyber Trust trademark and administer it in conjunction with third parties, is now officially soliciting comments from industries and the public on the scope of the proposed program. Continue reading FCC Advances ‘U.S. Cyber Trust Mark’ to Foster IoT Security

After raising $30 million from investors and generating $5.4 million selling NFTs on marketplace OpenSea, Los Angeles-based entertainment firm Impact Theory LLC has agreed to pay the Securities and Exchange Commission a $6 million settlement in what has been reported as the SEC’s first NFT enforcement action. Impact Theory was accused of selling “unregistered asset securities in the form of purported non-fungible tokens.” Purported, because the SEC claims the NFTs “sold to investors were investment contracts and therefore securities” and as such, are required by law to be registered. Continue reading SEC Treats NFTs as Unregistered Securities, Fines Company

Meta Platforms has agreed to sell Giphy to Shutterstock for $53 million in net cash, winding down a yearslong legal battle with the UK Competition and Markets Authority, which ordered the divestiture. Shutterstock, which licenses photos and other image content, said Giphy adds 1.7 billion in daily mobile users and global partners that include Meta’s own Instagram, Facebook and Whatsapp in addition to Microsoft, Samsung, Twitter, TikTok, Slack and Discord. Meta acquired Giphy in 2020 for $315 million and was one year later ordered by the UK CMA to unwind the deal, citing antitrust issues. Continue reading Meta Platforms Is Selling Giphy to Shutterstock for $53 Million

Meta Platforms has been hit with a record $1.3 billion fine for violating European Union rules that prohibit transferring the data of EU citizens to other countries. Ireland’s Data Protection Commission, the agency of record in the region in which Meta was sued, said that the tech giant continues to operate outside of compliance with the EU’s General Data Protection Regulation (GDPR) after a 2020 ruling by the bloc’s highest court found that Facebook user data was being shipped to America without adequate protection from U.S. spy agencies. Continue reading Meta Is Fined $1.3 Billion for Facebook’s EU Privacy Violation