Consumer Alert
Want to buy now but pay later? Read this first
By
Andrew Rayo
Consumer Education Specialist
December 22, 2022
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Planning to buy things like new clothes or electronics for the holidays, but want to pay later? Some businesses offer “buy now, pay later” plans, which let you get your purchase right away and pay for it over a few weeks or months, sometimes without paying interest. Here’s what to know before you decide if a buy now, pay later plan is right for you now — and later.
Buy now, pay later plans might charge you low or no interest, and offer you a way to pay without using a credit or debit card. But that doesn’t mean the plans are risk-free. Many plans charge high late fees, per-transaction fees, or change fees, among others. When you use a buy now, pay later plan, you might not have the same protections you would if you paid with a credit or debit card. For example, the credit card protections for disputing a payment may not apply. Also, some plan providers may report your payment history to the three nationwide credit bureaus, so if you pay late or miss a payment, it could hurt your credit score.
Before you use a buy now, pay later plan to buy your holiday gifts, know what you’re getting:
- Know the costs. Are there interest charges or fees? Will the plan provider report your payments to the credit bureaus?
- Check the reviews. See what others have to say, especially about disputing charges or making returns.
- Understand the risks. What happens if you miss a payment?
- Prepare for a credit check. Some plan providers require a credit check before you use a plan.To check your credit, order your free credit report at AnnualCreditReport.com or call 877-322-8228.
If you have a bad experience with a business when you’re buying now and paying later, tell the FTC at ReportFraud.ftc.gov.
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For Release
FTC Extends Public Comment Period on Potential Funeral Rule Changes to January 17, 2023
December 21, 2022
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The Federal Trade Commission has voted to extend the public comment period for its advanced notice of proposed rulemaking on changes to the Funeral Rule to January 17, 2023. A number of commenters requested that the FTC extend the current deadline due to the holiday season. Information on how to submit comments can be found in the Federal Register notice.
In October 2022, the FTC announced that after a rule review, it would retain the Funeral Rule and issued an Advance Notice of Proposed Rulemaking concerning potential amendments to the rule, including whether and how funeral providers should be required to display or distribute their price information online and through electronic means.
The Commission vote approving the public comment period extension was 4-0.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Press Release Reference
FTC Seeks to Improve the American Public’s Access to Funeral Service Prices Online
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Media Contact
Office of Public Affairs
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Consumer Alert
Here’s where to get FREE COVID tests
By
Gema de las Heras
Consumer Education Specialist, FTC
December 21, 2022
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With the reopening of the federal government program to order no-cost COVID-19 tests, there are more options to get free tests this year. But how do you know what’s legit and what’s a scam? Read on.
To steer clear of scams, know that there are four ways to get FREE at-home tests:
- Visit COVID.gov/tests to order four free rapid tests per residential household. Or call 1-800-232-0233 (TTY 1-888-720-7489) to order. The Postal Service will start shipping them during the week of December 19, 2022.
- Get free tests through your health insurance plan. Contact your provider to find an in-network pharmacy where you can get up to eight at-home COVID-19 tests per month. They’ll either be free on the spot or you’ll get fully reimbursed once you submit a claim to your insurance plan.
- Get free tests through Medicare. Medicare beneficiaries can receive 8 free tests a month at participating pharmacies. Find a partial list of pharmacies participating in the Medicare COVID-19 Over-the-Counter tests initiative.
- Check community testing sites, libraries, food banks, and schools in your area to see if they’re handing out rapid tests.
Remember: At COVID.gov/tests, there are no shipping costs, and no need to give a credit card number or anything but your home address. (You’ll have the option to share your email if you want updates.) And, as you take stock of what tests you have and what you might need, check to see if the expiration dates of your COVID-19 tests have been extended before you throw them out.
Learn more about the latest COVID-related scam at ftc.gov/coronavirus/scams. And, as ever, if you spot a scam, tell the FTC at ReportFraud.ftc.gov.
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Consumer Alert
Give back with a plan this season and avoid charity scams
By
Terri Miller
Consumer Education Specialist
December 20, 2022
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For many of us, the holiday season is a time for cheerful giving. But charity scammers ruin the mood by trying to cash in on your good will. If you’re supporting a charitable cause this winter, make a donation plan that includes spotting and avoiding scams.
Charitable giving goes up near the end of the year and scammers know it. Your year-end giving has the best chance of reaching the organizations you want to reach — and not scammers — when you:
- Check out a charity before you give. Most organizations use heart-warming messages to inspire you to give. But scammers might do that too. So before you donate to a charity, check them out on Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator
, Charity Watch, or Candid
- . If you find anything that worries you about the organization, find another way to give to the cause.
- Ask how much of your donation will go to the charity. If you donate through an online platform, the platform or another organization may keep part of the money as a fee before sending the rest to your chosen charity. That information should be clear and easy to find on the platform’s website. If it’s not, consider donating directly to the charity instead.
- Don’t rush. Scammers pressure you to give right away. They don’t want you to have time to research their claims or think it through. Honest charities always need your donations — but they won’t rush you into donating immediately.
- Pay by credit card. It’s your safest bet.Scammers often ask you to wire money through companies like Western Union and Money Gram or buy gift cards. Or they might insist that you pay by cryptocurrency. If someone says it’s the only way for you to donate, you know it’s a scam.
If you spot a charity scam, tell the FTC at ReportFraud.ftc.gov and your state charity regulator at nasconet.org.
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Business Blog
What’s new – and what isn’t – in the FTC’s just-published Health Products Compliance Guidance
By
Lesley Fair
December 20, 2022
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Looking for advice on substantiating your company’s advertising claims? FTC staff just issued a new Health Products Compliance Guidance publication that merits your careful attention. You may be wondering if the publication reflects major changes to the FTC’s 1998 guidance. As we’ll explain, the answer to that question is yes – and no. So turn off your phone, pour a cup of cocoa, and spend some time with what may be one of the most important documents you’ll read in 2022.
If you’ve routinely consulted the FTC’s 1998 brochure, Dietary Supplements: An Advertising Guide for Industry, the new publication is designed to take its place. For the most part, the legal fundamentals remain unchanged, but there are key revisions we hope to convey.
The new publication’s substantiation compliance guidance isn’t just for companies that sell dietary supplements. One major change is the title, which is meant to make it clear that the guidance applies across the board to all health-related claims.
The new publication draws upon key compliance points conveyed by FTC actions brought since 1998.When it comes to ad substantiation, a lot has happened since 1998 – including more than 200 FTC law enforcement actions challenging false or deceptive health claims. We’ve incorporated the lessons of those cases in numerous new examples – revisions designed to add a practical gloss on long-standing compliance fundamentals. In addition, the new publication reflects updates from other FTC guidance documents – for example, guidelines on endorsements and testimonials and the enforcement policy statement on homeopathic drugs.
The new publication aims to correct misunderstandings and “urban myths” that have circulated about FTC substantiation standards. FTC staff has always encouraged open lines of communication with businesses that have questions about substantiating health claims. However, every now and then we hear from industry representatives who have misread the original publication, selectively misquoted it, or repeated misinterpretations of certain cases. One goal of the revised Health Products Compliance Guidance is to correct those misperceptions.
Readers will notice that the basic content of the guide is largely unchanged. Like its predecessor, it sets out the regulatory framework for the FTC’s authority over ads for health-related products, describes how the FTC and FDA coordinate their enforcement activities, and explains the FTC’s process for identifying the express and implied claims communicated by an ad and assessing whether there is adequate scientific support for those claims. The revised guide also repeats a central theme from the 1998 publication: that the purported evidence a company proffers as substantiation must be relevant to the specific product and to the advertising claims. In addition, the Health Products Compliance Guidance makes clear that it offers practical perspectives from FTC staff, but that it doesn’t have the force or effect of FTC law.
There’s no substitution for reading the publication from cover to cover, but here are some revisions and expansions worthy of special mention:
- The breadth of products discussed. Underscoring the broad applicability of the publication, you’ll see new examples related to foods, over-the-counter drugs, devices, and other health-related products.
- The “clear and conspicuous” standard and qualified claims. You’ll find more detailed guidance on the FTC’s “clear and conspicuous” standard, including the challenges companies face in adequately communicating qualified claims to consumers. (And just to be clear, in FTC parlance a “qualified claim” is one with limitations or caveats.)
- The “competent and reliable scientific evidence” standard. This section has been expanded to emphasize the general rule that the FTC expects companies to support health-related claims with high quality, randomized, controlled human clinical trials (RCTs).
- Testing methodology. Drawing on the POM Wonderful decision, the revised guidance takes a deeper dive into the key elements of quality research. Some fundamentals have been carried over from the 1998 publication regarding the use of control groups, randomization, double blinding, and the requirement that results must be both statistically significant between the treatment and control group and clinically meaningful to consumers. One noteworthy point spelled out in more detail: a specific caution against “p-hacking” – the practice of selectively relying on an analysis of a small subset of data after failing to find a treatment effect in the study population at large.
There’s much more, of course, including discussions about the use of consumer testimonials and expert endorsements, the DSHEA disclaimer, traditional use claims, FDA approval claims, and third-party literature. For the legally inclined, the publication includes endnotes to FTC cases and other key resources, but it’s written in a to-the-point style designed for business executives and advertising professionals – not just attorneys and scientists.
