Penalty Amount
$5,600,000
Consumers Affected
117,044
The FTC settled with Ring for failing to secure consumer videos, allowing unauthorized access by employees and hackers. Ring agreed to provide $5.6 million in refunds to affected customers and implement security measures.
Ring is required to provide refunds totaling over $5.6 million to affected consumers and implement security safeguards to protect customer videos.
In-house legal teams should review customer agreements (e.g., terms of service, privacy policies) for clauses governing data security, access controls, and video privacy, ensuring they impose obligations to secure consumer videos, restrict employee/contractor access, obtain consent for video use (such as algorithm training), and include breach notification procedures. Vendor agreements must be assessed for third-party security standards, and employee agreements should incorporate access control provisions. Potential changes include adding explicit security standards, mandatory consent mechanisms, enhanced breach response protocols, and refund or compensation terms for security failures.
Entity
Ring
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-sends-refunds-ring-customers-stemming-2023-settlement-over-charges-company-failed-block
ftc says ring employees illegally surveilled customers faile
https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-says-ring-employees-illegally-surveilled-customers-failed-stop-hackers-taking-control-users
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Ring"
"Ring deceived its customers by failing to restrict employees’ and contractors’ access to its customers’ videos, using its customer videos to train algorithms without consent, and failing to implement security safeguards."
"117,044 PayPal payments"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.