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FTC Testifies Before Senate Judiciary Committee On its Efforts to Combat Fraud Affecting Older Americans In testimony before Congress today, the Federal Trade Commission described the current trends relating to fraud affecting older Americans, and how the FTC uses law enforcement and other tools at its disposal to combat these frauds. Testifying on behalf of the Commission before the Senate Special Committee on Aging, Lois Greisman, Associate Director of the FTC’s Division of Marketing Practices, said certain types of scams are more likely to affect older Americans, such as fraudulent prize promotion schemes. The Commission’s efforts to identify and stop illegal marketing affecting seniors has become increasingly vital as the population of older Americans is growing rapidly, the testimony states. “To protect seniors, the Commission has implemented a multi-faceted approach that encompasses robust law enforcement, strategic policy initiatives, and vigorous consumer education and outreach,” the testimony states. The Commission has identified several varieties of fraudulent and deceptive schemes that affect seniors, including: (1) sweepstakes, prize promotions and lotteries, (2) timeshare sales and re-sales, (3) health care products and services, (4) investments, business opportunities and work-from-home programs, (5) technical support services, and (6) charitable donations. The Commission has filed 45 cases against 163 companies and 121 individuals responsible for billions of illegal robocalls, as well as numerous Do Not Call violations, many targeting older Americans, and it has brought 25 cases involving conduct that specifically targeted or disproportionately harmed older adults. For example, the FTC has aggressively pursued the money transfer services commonly used in scams targeting older Americans. Just two weeks ago, Western Union agreed to historic settlements with the FTC and the Department of Justice. The FTC’s action alleged that despite knowing its service was used by scammers, including some who were using the so-called “grandparent” scam, Western Union failed to take reasonable steps to stop the frauds. As part of the FTC’s case, as well as a deferred prosecution agreement Western Union entered into with the Department of Justice, the company has agreed to pay $586 million to redress victims. The FTC also has collaborated extensively with criminal and foreign law enforcement agencies to combat fraud, including scams affecting the elderly. Hundreds of fraudsters have faced criminal charges and prison time as a result of FTC prosecution referrals, the testimony states. The Commission, with the Department of Justice, also organizes and participates in a multilateral network of agencies that enforce laws prohibiting mass marketing fraud, which was pivotal in recent enforcement actions to dismantle a global network of mass mailing fraud schemes that allegedly defrauded millions of elderly and vulnerable consumers out of hundreds of millions of dollars. In addition, the Commission partners with multiple foreign agencies to combat cross-border fraud that affects the elderly. Outside of enforcement, in order to address changes in the marketplace that relate to fraud against older Americans, including rapid developments in both demographics and technology, the FTC uses a variety of policy tools including holding workshops, coordinating with industry, and holding public contests seeking technological innovation. For example, in 2014, the FTC created Pass It On, an innovative education effort aimed at active, older adults that covers topics such as imposter and health care scams, charity fraud, and identity theft, the testimony states. The Commission seeks to reach older adults where they gather and live: libraries, social and civic clubs, senior centers, adult living communities, and veterans’ facilities. It recently has released a number of new videos to encourage people to talk about the frauds they experience. Since 2014, the FTC has distributed 5.9 million pieces of Pass It On print material in English and Spanish. Committee members or their constituents can post them, link to them, or order printed copies from www.ftc.gov/bulkorder. The Commission vote approving the testimony and its inclusion in the formal record was 3-0. The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources. Marketer of Water Filtration Systems Settles with FTC, Agrees to Drop Misleading ‘Made in USA’ Claims A Georgia-based distributor of water filtration systems will stop making misleading unqualified claims that its products are made in the United States, under a settlement with the Federal Trade Commission. In its complaint against iSpring Water Systems, LLC, the FTC alleged that the company deceived consumers with false, misleading, or unsupported claims that its water filtration systems and parts are “Built in USA,” “Built in USA Legendary brand of water filter,” and “Proudly Built in the USA.” In fact, according to the complaint, iSpring’s products either are wholly imported or are made using a significant amount of inputs from overseas.     “Supporting American manufacturing is important to many consumers. If a product is advertised or labelled as ‘made’ or ‘built’ in the USA, consumers rightly expect that to be the case when they part with their hard-earned money,” said Acting FTC Chairman Maureen Ohlhausen. “This is an important issue for American business and their customers, and the FTC will remain vigilant in this area.” iSpring markets water filtration products to consumers on its website, and through third parties that include Amazon, Overstock, and the websites of Sears, Home Depot, and Walmart. The stipulated final order prohibits iSpring from making unqualified “Made in USA” claims for any product unless it can show that the product’s final assembly or processing – and all significant processing – take place in the United States, and that all or virtually all ingredients or components of the product are made and sourced in the United States. iSpring also is prohibited from making any country-of-origin representation about its products unless it possesses and relies upon a reasonable basis for that representation. The order permits iSpring to make qualified “Made in USA” claims as long as they include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients, and/or processing.  More information about the FTC’s consent agreement can be found in the analysis to aid public comment. The Commission vote to issue the complaint and accept the proposed consent order was 3-0. The FTC will publish the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through March 3, 2017, after which the Commission will decide whether to make the proposed consent order final. Comments can be filed electronically or in paper form by following the instructions in the “Supplementary Information” section of the Federal Register notice.  NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $40,654. The FTC’s Enforcement Policy Statement on U.S. Origin Claims provides further guidance on the Made in USA standard. The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).  Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources. FTC says filtration system’s Made in USA claims didn’t hold water By Lesley Fair For consumers in the market for a water filtration system, the choices can leave them feeling drenched. So when deciding among competing products, a claim that a particular system is “Proudly Built in the USA” may turn a browser into a buyer. But an FTC lawsuit against iSpring Water Systems alleges that the company’s “Built in USA” claims were all wet. Read more > U.S. Customs and Border Protection provides information about the January 27, 2017 executive order, "Protecting the Nation from Foreign Terrorist Entry into the United States," on its website.  Please check that site for ongoing updates.