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Consumer Protection

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The Federal Trade Commission (“FTC”) continues to bring enforcement actions against companies that engage in false advertising and deceptively enrolling consumers in ongoing sales plans without express informed consent – a practice known as “negative option” marketing.On October 24, 2018, the FTC announced that a federal district court in California temporarily enjoined three defendants and the companies they controlled from enrolling consumers in any ongoing sales plan without the consumer’s express informed consent. A negative…

1. Global contextAs noted in the IMF’s “Virtual Currencies and Beyond: Initial Considerations” report released in January 2016: “[Virtual currencies (VCs)] offer many potential benefits, including greater speed and efficiency in making payments and transfers – particularly across borders – and ultimately promoting financial inclusion… At the same time, VCs pose considerable risks as potential vehicles for money laundering, terrorist financing, tax evasion and fraud.”Regulators around the world have begun to focus on this issue…

On 24 February 2016, an amendment to the German Act on Injunctive Relief came into force entitling eligible associations to bring cease and desist actions against companies for violations of certain data protection provisions. So far, in Germany, only affected individuals and data protection authorities (and in some very limited circumstances competitors and consumer associations) had standing to sue companies for data protection infringements. Large technology companies (including non-EU companies) targeting data subjects in Germany…