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Tag Archives: Federal Trade Commission

How A Dental Board Decision Could Affect The Business of Practicing Law.

07 Saturday Mar 2015

Posted by Celia C. Elwell, RP in Federal Trade Commission, Government, Legal Ethics, Paralegals/Legal Assistants, Rules of Professional Responsibility, Supervising Support Staff, Unauthorized Practice of Law, United States Supreme Court

≈ Comments Off on How A Dental Board Decision Could Affect The Business of Practicing Law.

Tags

Anti-trust, Board of Dental Examiners, Federal Trade Commission, Forbes, Ken Friedman, LegalZoom Inc., Monopoly, Non-Lawyers, Unauthorized Practice of Law

Could Dental-Board Decision Unlock Lawyer Control Of State Bar Regulations?, guest post Ken Friedman, Forbes

(Mr. Friedman is the Vice President of Legal and Government Affairs for LegalZoom Inc.)

http://www.forbes.com/sites/danielfisher/2015/03/04/dental-board-decision-could-unlock-lawyer-control/

Many state regulatory agencies are controlled by active members of the very professions they oversee. Last week, this fox-and-hen-house scenario was addressed by the United States Supreme Court, which ruled that such agencies are not immune to federal antitrust laws unless their actions are actively supervised by politically accountable government officials. While the case dealt specifically with dentistry (teeth whiteners everywhere, rejoice!), the ruling will have far broader ramifications for many professions, including how the practice of law is regulated.

In North Carolina State Board of Dental Examiners v. Federal Trade Commission, the Supreme Court upheld the FTC’s ruling that the Dental Examiners violated antitrust laws when they sent dozens of ‘cease and desist’ letters to teeth whiteners, claiming that they were engaged in the ‘unauthorized practice of dentistry.’ The letters and other strong-arm tactics worked – dentists in North Carolina established a monopoly over teeth-whitening services until the FTC intervened.

The Dental Examiners monopolistic campaign was modeled after a similar, if less successful, campaign engaged by the North Carolina State Bar.

The Supreme Court’s decision will have broad positive effects throughout the country. The Court’s ruling recognizes that letting professionals enforce their own monopolies creates a ‘real danger’ that they will act to further their ‘own interests,’ rather than the public interest. These practices increase prices to the detriment of consumers while decreasing consumer choice. The Court recognized that the problem is far worse when the boundaries of the state-granted monopoly are not ‘clearly articulated and affirmatively expressed as state policy,’ and the professionals are given the power to decide what is the ‘unauthorized practice’ of their profession.

This lack of clarity is not uncommon. For example, Rhode Island opens the door to this defining the unauthorized practice of law as the ‘doing of any act for another person usually done by attorneys at law in the course of their profession.’ They list a few examples, ‘without limiting the generality of the definitions.’

The active supervision concept is important. While the requirement is ‘flexible and context-dependent,’ the Court made clear that the ‘supervisor must review the substance of the anticompetitive decision, not merely the procedures followed to produce it.’ The supervisor cannot be a market participant and needs to have the power to veto or modify decisions. This will require significant interaction.

Regulating the practice of law is the classic example of active market participants protecting their monopoly. In its amicus brief, the NCSB states that its authority is vested in the State Bar Council, 65 of whose 68 members are lawyers.

The threat this poses is not idle. . . .

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Android Flashlight App Violated Users’ Privacy By Secretly Sharing Information.

27 Friday Dec 2013

Posted by Celia C. Elwell, RP in Android Phones, Apps, Cell Phones, Federal Trade Commission, Legal Technology, Privacy

≈ Comments Off on Android Flashlight App Violated Users’ Privacy By Secretly Sharing Information.

Tags

Advertising, Android, Android Apps, Federal Trade Commission, Flashlight, FTC, Privacy policy

Android Flashlight App Developer Settles FTC Charges It Deceived Consumers, Federal Trade Commission

http://tinyurl.com/o7fecue

This flashlight app seemed like a good idea at the time. Unfortunately, it secretly shared its users’ information with advertisers and other third parties without the users’ knowledge. -CCE

The creator of one of the most popular apps for Android mobile devices has agreed to settle Federal Trade Commission charges that the free app, which allows a device to be used as a flashlight, deceived consumers about how their geolocation information would be shared with advertising networks and other third parties.

Goldenshores Technologies, LLC, managed by Erik M. Geidl, is the company behind the ‘Brightest Flashlight Free’ app, which has been downloaded tens of millions of times by users of the Android operating system. The FTC’s complaint alleges that the company’s privacy policy deceptively failed to disclose that the app transmitted users’ precise location and unique device identifier to third parties, including advertising networks. In addition, the complaint alleges that the company deceived consumers by presenting them with an option to not share their information, even though it was shared automatically rendering the option meaningless.

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