Federal Trade Commission Archives

AppWizard

March 2, 2026

Meta makes changes following a Solon man’s $1 million loss in scheme police say started on Facebook Messenger

A 63-year-old resident in Solon, Ohio, lost over a million dollars to a scammer posing as a cryptocurrency investment guru. The scam began with a friendly outreach on Facebook, which transitioned to WhatsApp for private conversations. Over several months, the victim was convinced to invest in what he thought was a legitimate opportunity. This incident reflects a broader trend, as the FBI reported that Ohioans aged 60 and older lost over a million to fraud in 2024. Meta Platforms is enhancing tools to detect and disrupt fraudulent activities on its platforms, including new warnings for screen sharing requests on WhatsApp. In the first half of 2025, Meta removed eight million accounts suspected of scams and shut down 21,000 pages impersonating legitimate businesses. Warning signs in the Solon case included initial contact from a stranger, a quick shift to cryptocurrency discussions, and unusually high promised returns.

AppWizard

February 26, 2026

New York Sues Valve Over Loot Boxes, Calls Them Illegal Gambling

New York Attorney General Letitia James has filed a lawsuit against Valve, the creator of Steam, regarding loot boxes in games like Counter-Strike 2, Dota 2, and Team Fortress 2, claiming they promote gambling behaviors among youth. The state seeks to stop Valve's use of loot boxes and impose financial penalties. The lawsuit argues that loot boxes resemble traditional slot machines and that items obtained can be traded for real-world value, with a virtual gun skin from Counter-Strike 2 reportedly selling for over a million dollars in 2024. The lawsuit claims Valve intentionally makes high-value items rare to increase their perceived worth and highlights the potential for addiction and illegal gambling, particularly among young people. Valve has not yet responded to the lawsuit.

AppWizard

January 26, 2026

Microsoft backs court injunction against Google

Microsoft has filed a friend-of-the-court brief urging a federal court to maintain an injunction against Google, which requires the company to dismantle its alleged monopoly in the Android apps market, particularly regarding payment practices. This injunction stems from Epic Games' lawsuit against Google, initiated in 2020. On January 16, Microsoft submitted its brief ahead of a court hearing where Google and Epic are seeking modifications to a permanent injunction issued in October 2024. The proposed changes could allow Google to impose fees between 9% and 20% on app developers, which Microsoft argues would undermine the original intent of the injunction. A recent settlement between Google and Epic includes a partnership valued at 0 million over six years, but details remain confidential. Judge Donato is reviewing the settlement and has requested briefings from the FTC and appointed an expert witness for evaluation. Epic Games has also announced that its games app is now available on Google Play worldwide.

AppWizard

December 20, 2025

Anonymous messaging app NGL was acquired by ‘earnphone’ startup Mode Mobile

NGL was acquired by Mode Mobile, a company that monetizes user engagement through advertisements. NGL gained popularity in late 2021 but faced controversy for fostering bullying and employing questionable growth hacking strategies, including sending automated misleading messages. The FTC banned NGL's availability to minors after a two-year investigation and fined the app million for deceptive practices. Following the acquisition, the remaining three employees of NGL will join Mode Mobile. Mode Mobile has developed the “EarnPhone,” which allows users to earn money through everyday activities but relies heavily on advertising revenue. The specific terms of the acquisition are undisclosed.

Tech Optimizer

December 7, 2025

FTC sends $15.3 million in refunds to Avast antivirus customers

The Federal Trade Commission (FTC) is distributing million to 103,152 consumers affected by misleading marketing practices related to Avast's antivirus software. This distribution began on December 2, 2025, as part of a settlement finalized in June 2024, which addressed allegations that Avast collected, stored, and sold users' browsing information without proper notice or consent. Consumers can receive payments via checks, PayPal, or Zelle, with specific timeframes for cashing or redeeming funds. Rust Consulting, Inc. is the refund administrator, and individuals are advised not to pay any fees or provide account information to file claims. The settlement also imposes restrictions on Avast, including a permanent ban on selling web browsing data for advertising and a requirement to obtain clear consent from users for any future data sales.

AppWizard

November 19, 2025

Meta Learns That Nothing Is a Monopoly If You Just Wait Long Enough

Judge James Boasberg ruled that Meta, the parent company of Facebook, Instagram, and WhatsApp, does not have an illegal monopoly in the social media market. The Federal Trade Commission (FTC) failed to prove that Meta currently holds monopoly power, despite its past dominance. The emergence of competitors like TikTok and YouTube has created significant competition for Meta. The judge noted that consumers are increasingly spending time on these alternative platforms, which contributes to Meta's need to invest heavily to stay relevant. This ruling is part of a broader trend among major tech companies successfully navigating antitrust challenges in rapidly changing markets.

AppWizard

October 30, 2025

CWA president urges regulators scrutinise EA Saudi deal

Claude Cummings Jr., president of the Communications Workers of America (CWA) union, has requested a thorough investigation by the Federal Trade Commission (FTC) and the Committee on Foreign Investment in the United States (CFIUS) regarding the proposed acquisition of Electronic Arts (EA) by a consortium of investors primarily funded by Saudi Arabia. He expressed concerns about job security for thousands in the gaming industry and the potential impact on market dynamics, urging regulators to evaluate how the acquisition could affect EA's market power and wage-setting authority. The acquisition would transition EA to private ownership under investors including the Saudi Public Investment Fund. The CWA previously supported the acquisition of Activision Blizzard by Microsoft after negotiating a labor neutrality agreement.

AppWizard

October 17, 2025

Saudi Arabia’s acquisition of Electronic Arts faces pushback from game developers, petition calls on FTC to ‘scrutinize this deal closely’

Saudi Arabia's Public Investment Fund, along with private equity firms, is acquiring Electronic Arts (EA) for a billion dollars, facing significant resistance from the United Videogame Workers-CWA union. The union has urged regulators to prioritize job protection, creative freedom, and accountability in decision-making. EA, with annual revenues of .5 billion and profits of billion, is not in distress, but concerns have been raised about potential layoffs, particularly at BioWare, a studio known for its progressive narrative approach. The union warned that job losses would be a choice made for investor profit rather than necessity. U.S. senators Richard Blumenthal and Elizabeth Warren have expressed concerns about national security risks related to the acquisition, but regulatory intervention seems unlikely due to a shift in the FTC's stance and the involvement of Jared Kushner in the deal. The union has initiated a petition to prompt regulatory examination of the acquisition.

AppWizard

October 1, 2025

FTC alleges messaging app violated child privacy law, duped users into subscriptions

The Federal Trade Commission (FTC) has filed a legal complaint against the operator of the Sendit messaging app for unlawful data collection from minors and deceptive subscription practices. The complaint, initiated by the Department of Justice, alleges that Sendit did not inform parents about collecting personal information from children under 13, including sensitive data linked to social media. The complaint targets Hunter Rice, CEO of Iconic Hearts Holdings, Inc., Sendit's parent company, for violating the Children’s Online Privacy Protection Rule (COPPA). The FTC claims Sendit used manipulative tactics to encourage subscription purchases, misleading users with messages from fictitious individuals to create an illusion of interaction. The app reportedly did not disclose subscription costs and sent provocative messages to entice users into a "Diamond Membership" priced at up to .99 per week. The FTC's allegations include violations of COPPA, the FTC Act, and the Restore Online Shoppers’ Confidence Act (ROSCA). It was noted that in 2022, about 116,000 users reported being under 13 years old, and Iconic Hearts was aware of this due to complaints from parents and self-reported data.

AppWizard

September 27, 2025

Kids growing up with ‘Minecraft’ and ‘Fortnite’ are particularly…

Concerns about the impact of video gaming on mental health include increased anxiety, depression, eye strain, and obesity. Certain popular games like Minecraft and Fortnite may expose children to gambling-related behaviors through features such as loot boxes, which can influence young minds and predispose them to gambling. Young men are particularly at risk due to the development of their prefrontal cortex, with a recent poll showing that 10% of men aged 18 to 30 exhibit signs of a gambling problem compared to 3% in the general population. The Entertainment Software Rating Board has introduced a warning label for games with gambling-like features, but critics argue this is insufficient. Epic Games settled with the Federal Trade Commission for million over allegations of deceptive practices related to loot boxes. Parents are advised to avoid normalizing gambling, monitor competitive behavior, watch for financial red flags, be vigilant about gaming habits, and observe changes in attitude in their children.