Penn Corner - October 2010

Subscribe | Unsubscribe or Manage Preferences

Juiced Up Claims?

The FTC says POM Wonderful isn't all it's cracked up to be. The agency charged that the company overstated the health benefits of its pomegranate products — and is challenging claims that POM Wonderful's pomegranate juice and POMx supplements prevent or treat heart disease, prostate cancer, and impotence. According to the FTC's complaint, in some cases, the company's studies were flawed, and in others, the juice proved no more effective than a placebo.

The High Cost of Mortgage Discrimination

Golden Empire Mortgage, Inc., a California-based company, will pay $1.5 million to settle FTC charges that it violated the Equal Credit Opportunity Act. According to the FTC, the company illegally charged Hispanic borrowers higher prices for mortgage loans than it charged non-Hispanic whites. The agency said the price disparities were not based on either the applicants' credit histories or the underwriting risk, but rather on the 'discretion' of the company's loan officers — who stood to benefit financially from charging higher interest rates and fees. The company must implement a policy that restricts pricing discretion on the part of loan originators and a program that ensures the accuracy and completeness of its data; monitor its lending practices for fairness; and train its employees, in addition to paying consumer redress.

Data Broker Broke Privacy Promises

US Search, Inc., collects and sells personal data through a variety of search services, including "People Search." But the company also sold PrivacyLock, a service that it promised would block others from seeing your personal information. The FTC alleged that PrivacyLock didn't work as advertised. For not honoring its privacy pledges, US Search is sending full refunds to 5,000 customers who paid $10 each to "lock" their data and keep it from appearing in certain searches — and is agreeing to not misrepresent their services. For tips on protecting your personal information, visit our website.

"Any consumer who sees POM Wonderful products as a silver bullet against disease has been misled."

David Vladeck, Director, Bureau of Consumer Protection

Bottle It Up

Coca-Cola plans to spend $12 billion to purchase its largest North American bottler, which also distributes soft drinks for Dr. Pepper Snapple. To do so, Coca-Cola will have to set up a firewall to protect the sensitive business information of its competitor. According to the FTC, Coca-Cola's access to this information could have given the company an unfair advantage and raised prices for soda drinkers. The Commission also finalized a similar restriction on PepsiCo's recent $7.8 billion purchase of two of its largest bottlers.

Create a Net Cetera Network

Net Cetera: Chatting with Kids About Being Online is brimming with practical tips to help parents help their kids navigate the online world. Community leaders can use the newly released Net Cetera toolkit to present key points about kids' online safety. The toolkit includes a presentation, videos, and a guide for kids.

Is Gold the New Black?

It might seem like all the rage, but don't rush to invest in gold before reading the FTC's new consumer alert. Learn the facts about investing in gold and how to investigate before you invest.

Talk the Talk

The FTC is encouraging parents to talk to their middle school kids about the dangers of underage drinking. Talk early, talk often, and talk to other parents. That's the advice of this year's We Don't Serve Teens campaign.

IN OTHER News:

more >