Dark Patterns

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In its ongoing concern with “dark patterns,” the FTC recently announced results of two reviews of sites and apps purportedly engaging in the practice. As a reminder, the FTC views as “dark patterns” practices or web designs that “get consumers to part with their money or data” using deceptive or manipulative means. Both of the recent reports were completed by global consortiums of regulators of which the FTC is a member.Continue Reading Websites Beware!: FTC Joins Other Regulators in Scrutinizing Alleged Dark Patterns

Much of the focus on US privacy has been US state laws, and the potential of a federal privacy law. This focus can lead one to forget, however, that US privacy and data security law follows a patchwork approach both at a state level and a federal level. “Comprehensive” privacy laws are thus only one piece of the puzzle. There are federal and state privacy and security laws that apply based on a company’s (1) industry (financial services, health care, telecommunications, gaming, etc.), (2) activity (making calls, sending emails, collecting information at point of purchase, etc.), and (3) the type of individual from whom information is being collected (children, students, employees, etc.). There have been developments this year in each of these areas.Continue Reading Mid-Year Recap: Think Beyond US State Laws!

Continuing its focus on potential dark patterns, the FTC has reached a settlement with the lead generation company Response Tree LLC and its president over allegations that the company ran sites that tricked people into opting into receiving marketing calls. The FTC brought the case arguing that the company had violated both Section V of the FTC Act as well as the Telemarketing Sales Rule (or TSR, which implements TCFAPA).Continue Reading FTC Reaches $7 Million Settlement Over Response Tree’s “Consent Farm” Sites

On October 18, the CFPB sued a software company for utilizing their online payment platform to enroll unknowing consumers into annual subscriptions through deceptive acts and “dark pattern” techniques in violation of the CFPA and EFTA. Among other things, the complaint alleges that the company encouraged consumers to unknowingly enroll in free trials and converted the free trials into annual subscriptions through a “negative option” renewal policy (our sister blog covered “negative option” marketing in a previous post here). During this process, the company allegedly collected consumers’ registration information and consumer payments data (e.g., credit or debit card number) so that it could transmit the consumer payments data through its payments systems. Continue Reading CFPB Sues Payment Platform Over Dark Patterns

The California governor recently signed into law the California Age-Appropriate Design Code Act, which will go into effect July 1, 2024. The law applies to “businesses” (as defined by CCPA) that provide online services or features “likely to be accessed by children.” To understand if the product or service is likely to be accessed by children, companies should look at factors like audience composition, if there are child-directed ads, or elements known to be of interest to children. Children are those who are under 18 (as opposed to the federal Children’s Online Privacy Protection Act, applicable to collection of personal information of those under 13).Continue Reading Impact on Companies of California’s Children’s Privacy Law – Effective 2024

Following its 2021 Dark Patterns enforcement policy, the FTC recently issued a staff report on the practice. The report summarized many of the cases the agency has brought against companies it alleges have engaged in “dark patterns” designed to “get consumers to part with their money or data.” These include using design elements that induce false beliefs, that delay important and material information, that lead to unauthorized charges, or that subvert or confuse privacy choices.Continue Reading FTC Renews Focus on Dark Patterns