Policing the Internet for
deceptive ads is one of the Federal Trade Commission's top priorities, consumer protection head David Vladeck said Monday.
"We have a lot of work to do in this area," he said in a keynote
address at the Better Business Bureau's National Advertising Division annual law conference. "We need to clean up commerce on the Internet."
Vladeck added that ridding the Web of false and
deceptive ads will "level the playing field for legitimate companies that play by the rules."
He noted that the FTC recently brought a slew of cases regarding questionable advertising
techniques. In April, the commission filed 10 lawsuits against online marketers that
allegedly created fake news sites where they posted phony testimonials touting acai berry dietary supplements.
"We've brought cases now against every tier of player, from the lowly affiliate
marketer to the merchant. The Internet is too important an engine of commerce for us not to try to police that space as carefully as we can," Vladeck said.
Vladeck also referenced a lawsuit
against Canadian entrepreneur Jesse Willms and 10 other companies that allegedly duped consumers into providing their credit and debit card numbers. The FTC alleged in court papers that Willms and the
other companies promised consumers "free" trial offers of tooth whiteners, weight-loss products and the like. But consumers who signed up for the free products were then charged recurring fees, the
FTC said.
Two weeks ago, U.S. District Court Judge Marsha Pechman in Seattle entered a sweeping preliminary injunction banning Willms and the other companies from offering any products under
"negative option" plans, where consumers are automatically billed unless they cancel memberships.
The order also prohibits the companies from other practices, including offering "free" trials,
or charging consumers' credit cards without express consent.