Two FTC Rulings that Impact Associations

The Federal Trade Commission (FTC) has recently passed two rulings that impact the association space: Business Impersonation / Fraud and Banning Non-Compete Agreements.

Business Impersonation / Fraud
The FTC Rule on Impersonation to combat scams was passed earlier this spring and went into effect April 1. Impersonation includes scammers selling fake membership lists or hotel room blocks. The FTC also shared new data on the most common ways consumers are targeted by these treacherous scams. Combined, reported losses to these impersonation scams topped $1.1 billion for the year, more than three times what consumers reported in 2020. Additionally, the ruling includes a method to report fraud, scams and bad business acts: 
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Rule Banning Non-Compete Agreements
On April 23, 2024, the Federal Trade Commission voted in favor of issuing a Final Rule banning non-compete agreements, declaring them an unfair method of competition. The Final Rule will go into effect 120 days after being published in the Federal Register, though there will certainly be legal challenges to it. 
FTC Press Release on Ruling  |  RumbergerKirk Article 

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