BUSINESS LAW

The Federal Trade Commission (FTC) is a federal agency that enforces consumer protection laws. Consumers may seek recourse for unfair trade practices by suing for compensatory or punitive damages. Plaintiffs do not have to prove intent. Showing that the practice itself was unfair or deceptive is sufficient.

Google LLC and its subsidiary YT, LLC will pay a record $170 million to settle allegations by the Federal Trade Commission and the New York Attorney General that the YT video-sharing service illegally collected personal information from children without their parents consent.

The settlement requires Google and YT to pay $136 million to the FTC and $34 million to New York for allegedly violating the Childrens Online Privacy Protection Act (COPPA) RuleLinks to an external site. The $136 million penalty is by far the largest amount the FTC has ever obtained in a COPPA case since Congress enacted the law in 1998. www.FTC.govLinks to an external site.

The FTC investigates issues raised through several sources, including consumer, business, and media reports. If the FTC concludes that there was unlawful conduct, it may seek several forms of recourse. These include the pursuit of voluntary compliance through a consent order, the submission, and filing of administrative complaints, or the initiation of federal action and litigation.

The FTC has the power to create rules regarding widespread industry practices. Rules created in this fashion to address systemic issues are called trade rules.

What are your thoughts and concerns about the FTC? Please indicate whether you feel, in general, that the FTC has too much, too little, or an appropriate amount of power.