Angry Birds and the FTC

"Scareware" in games like Angry Birds can create angry people. At a Georgetown consumer law symposium, FTC chairwoman Edith Ramirez discussed disclosure and fine print in an era of digital and mobile. Last year, the Commission settled with a company called Jesta over its use of deceptive banner ads in the free version of Angry Birds. They claimed viruses were detected on the mobile device (and that that a click would provide anti-virus software) but buried that it was actually charging users $10 per month for ringtones. Edith says FTC guidance on disclosures in new media even recommends advertisers stay up-to-date on research on how consumers use mobile and tablet screens.

We snapped keynote Ralph Nader with Arent Fox chairman emeritus Marc Fleischaker, who gave a B2B perspective. He says in both a consumer context and business context, there should be more a legitimate negotiation of the terms of agreement—because small companies are also at a disadvantage when negotiating with monoliths. That said, unlike many individuals, he says small companies do want arbitration.

CFPB GC Meredith Fuchs assistant GC Anne Zorc both spoke at the event. Some innovative ideas also came from Harvard Law visiting professor Lauren Willis (not pictured), who suggested performance-based standards for ad firms. Firms should test that people understand the disclosures—otherwise they either can't use them or their terms aren't enforceable. Something similar exists with over-the-counter drugs, she says, and will be implemented in Europe for food nutrition labels.