March 11, 2015
The FTC charged DIRECTV, the country’s largest provider of satellite television services, with deceptively advertising a discounted 12-month programming package because it failed to clearly disclose that the package requires a two-year contract. In addition, DIRECTV did not clearly disclose that the cost of the package will increase by up to $45 more per month in the second year, and that early cancellation fees of up to $480 apply if consumers cancel the package before the end of the two-year period. FTCMarch 5, 2015
A direct marketing company, Allstar Marketing Group, LLC, selling “as-seen-on-TV” type products such as Snuggies and the Magic Mesh door cover, has agreed to pay $7.5 million to the FTC for consumer restitution to settle charges in connection with its deceptive “buy-one-get-one-free” promotions. The FTC’s settlement was reached alongside a separate action by the New York State Office of the Attorney General. FTCThe Antitrust Week In Review
Posted 02/23/15
Here are some of the developments in antitrust news this past week that we found interesting and are following.
American Express Violated Antitrust Laws, Judge Rules. In a 150-page opinion, Judge Nicholas G. Garaufis of the U. S. District Court for the Eastern District of New York ruled that American Express’s practice of prohibiting any merchant that accepts its cards from encouraging customers to pay with...
Sysco’s “Fix-it-First” Foray Fails To Forestall Food Fight With FTC
Posted 02/20/15
By Allison F. Sheedy
The U.S. Federal Trade Commission announced yesterday that it is challenging the merger of the nation's two largest food distributors, US Foods, Inc. and Sysco Corporation.
By a split vote, the FTC decided to file an administrative complaint and to authorize its staff to go to federal court to seek a temporary restraining order and a preliminary injunction to prevent the parties from...
February 11, 2015
The FTC named Sereika Savariau and Lawrence Goodison in a case against a phony debt relief and credit repair scheme that allegedly deceived consumers about non-existent federal programs to pay off their bills and fix poor credit. The case was originally brought in August 2014 against the American Bill Pay and American Benefits Foundation. The amended complaint was accepted by the court, and the case remains in litigation. The FTC is seeking to have the scam permanently shut down, and obtain refunds for consumers who paid for the scammers’ bogus debt and credit services. FTCEuropean Antitrust Watchdogs Warn Of Uncertain Future For Pay-For-Delay Settlements
Posted 02/10/15
A View from Constantine Cannon’s London Office
By Irene Fraile
A recent lively discussion with European Commission competition officials indicates that antitrust enforcement is continuing to evolve to deal with the thorny issues raised by so-called “reverse-payment” or “pay-for-delay” patent litigation settlements designed to delay the sale of generic drugs.
On January 29, 2015, Brussels Matters...
February 9, 2015
The FTC obtained a $9.5M judgment against sweepstakes promoter Crystal Ewing for deceptively enticing consumers in the U.S., Canada and the United Kingdom to send money to collect large cash prizes that, in fact, did not exist. FTCEuropean Commission Fines London-Based Broker ICAP 14.9 Million Euros For Facilitating Yen Libor Cartels
Posted 02/9/15
A View from Constantine Cannon’s London Office
By Yulia Tosheva and James Ashe-Taylor
The European Commission (“EC”) has fined London-based ICAP, the world’s largest broker of interest-rate swaps, for facilitating bank cartels in the market for Yen-denominated interest rate derivatives.
The EC already imposed heavy fines of 669 million euros on UBS, the Royal Bank of Scotland, Deutsche Bank, Citigroup...
Sysco May Be Selling “Fix-it-First” To Save Food Distributors’ Merger, But FTC May Not Be Buying
Posted 02/3/15
By Allison F. Sheedy
Sysco Corp. announced a divestiture plan this week that it claims should address concerns of the Federal Trade Commission (the “FTC”) about the food behemoth’s proposed acquisition of US Foods, which would combine the two largest food distributors in the United States.
Sysco, the nation’s largest food distributor, said on Monday that it is prepared to sell 11 US Foods distribution...