After raising $30 million from investors and generating $5.4 million selling NFTs on marketplace OpenSea, Los Angeles-based entertainment firm Impact Theory LLC has agreed to pay the Securities and Exchange Commission a $6 million settlement in what has been reported as the SEC’s first NFT enforcement action. Impact Theory was accused of selling “unregistered asset securities in the form of purported non-fungible tokens.” Purported, because the SEC claims the NFTs “sold to investors were investment contracts and therefore securities” and as such, are required by law to be registered. Continue reading SEC Treats NFTs as Unregistered Securities, Fines Company

Meta Platforms has agreed to pay $725 million to settle a 2018 class action lawsuit initiated by Facebook users who said their personal data was breached in an incident involving UK-based political consultancy Cambridge Analytica. The proposed amount would reportedly be the largest settlement in a U.S. data privacy class action. Although Meta is not admitting to any wrongdoing as part of the settlement, the firm says it has over the past three years “revamped” its approach to privacy. Lawyers for the plaintiffs called the proposal a “historic settlement” that will provide meaningful relief in a “complex and novel” case. Continue reading Meta $725M Cambridge Analytica Settlement Moves Forward

Twitter shareholders this week approved the $44 billion takeover bid by Elon Musk, voting the same day as whistleblower Peiter Zatko testified at a Senate Judiciary Committee hearing, telling lawmakers that the social media company’s leadership misled regulators about security failures. Senator Chuck Grassley (R-Iowa) was skeptical as to Twitter CEO Parag Agrawal keeping his job if Zatko’s allegations prove to be true, saying the executive “rejected this committee’s invitation by claiming that it would jeopardize Twitter’s ongoing litigation” with Musk. Twitter has categorically denied Zatko’s claims, which include foreign agents infiltrating Twitter’s workforce. Continue reading Twitter Investors Back Musk Offer as Whistleblower Testifies

As part of a settlement with the Securities and Exchange Commission, Tesla CEO and co-founder Elon Musk has agreed to pay a $20 million fine and step down as chairman of the California-based electric automaker for three years. The SEC accused Musk of securities fraud after he tweeted from his personal Twitter account that he had secured enough funding to take Tesla private. Musk has admitted to no wrong-doing. In addition to Musk’s significant personal fine, Tesla has agreed to develop leadership reforms and pay $20 million for not properly vetting the CEO’s tweets. Continue reading Series of Tweets Cost Elon Musk Chair Position, Major Fine

AT&T will pay $105 million to settle accusations that it billed hundreds of millions of dollars in bogus third-party charges to its wireless subscribers. The settlement is the latest in a number of similar moves by regulators to curtail mobile “cramming” — the practice of charging fees for third-party services that subscribers did not order. A similar case against T-Mobile is still pending. The AT&T settlement marks the largest to-date against a specific carrier for cramming. Continue reading AT&T to Pay $105 Million to Settle Accusations of ‘Cramming’

The Federal Trade Commission announced yesterday that Google will refund consumers at least $19 million for unauthorized charges that resulted from their children making in-app purchases on Android mobile devices. The FTC alleged that Google was guilty of unfair commercial practices since 2011 by making it relatively simple for children to make purchases from the Google Play store without permission. As part of the settlement, Google will also be required to modify its billing practices. Continue reading Google Settles with FTC, Will Refund $19 Million to Customers

Following an investigation by the Federal Communications Commission regarding the use of customer information for marketing campaigns, Verizon has agreed to pay a settlement to the federal government. The FCC investigated allegations that Verizon used personal information without notifying customers or obtaining their consent. To end the investigation, Verizon will pay $7.4 million to the U.S. Treasury and notify its customers of their opt-out rights on every bill for the next three years. Continue reading Verizon Settlement is Largest in FCC History Involving Privacy

Last week, the FTC sued Amazon for allowing kids to make unauthorized in-app purchases from their parents’ smartphones. Like other tech giants, Amazon has settings to prevent kids’ accidental charges. When confirming the first in-app purchase, users can select a setting to require a password for future purchases from the Amazon App store. Apple has a similar policy, while Google offers an option to let users enter a password once to make purchases for the next 30 minutes. Continue reading The Purchasing Policies That Regulate Kids’ In-App Purchases

The Federal Trade Commission filed a lawsuit against Amazon, accusing the online retailer of allowing children to make unauthorized purchases in its app store. The lawsuit comes after the company refused a proposed settlement that would have refunded customers and made changes to the app store. The FTC believes Amazon needs to require passwords for consumers to buy products, make purchase notices more prominent, and make refunds easier and simpler. Continue reading Amazon Faces FTC Lawsuit Over Children’s In-App Purchases

Apple has ended its civil class-action lawsuit over the price of e-books with a settlement that is worth an estimated $100-$300 million. Last year, a federal judge ruled that Apple broke antitrust laws by driving up the prices of e-books in cooperation with five major U.S. publishers. If Apple’s appeal of last year’s case is unsuccessful, the tech giant may be paying out millions to e-book customers. The terms of the settlement also cancel a damages trial set for July. Continue reading Apple’s Settlement in E-Book Case Will Likely Pay Consumers

The Federal Trade Commission recently charged Snapchat of deceiving users about the privacy of their personal data and their image and video messages. Under the terms of a new settlement with the FTC, Snapchat will be required to implement a privacy program that will be independently monitored for the next 20 years. If Snapchat violates the agreement, the company may be subject to fines. Snapchat has reportedly resolved most of the privacy issues over the past year. Continue reading Snapchat Agrees to Settle with FTC Over Deceptive Marketing

The long-running legal battle between Viacom and Google over YouTube has been resolved. Viacom has been suing Google since 2007, arguing that the online video site violated copyrights. The two companies announced yesterday that they have settled out of court. Specific terms of the settlement were not disclosed, but people familiar with the matter suggest that both sides are now free to explore potential business partnerships, including the possibility of collaboration on advertising technology. Continue reading Viacom and Google Resolve Copyright Litigation Over YouTube

Prominent file-sharing cyberlocker Hotfile has agreed to shut down and pay $80 million in a settlement with the Motion Picture Association of America. The move follows an August decision by a federal judge in Florida who agreed with the MPAA that Hotfile did not qualify for safe harbor protection under the Digital Millenium Copyright Act. The settlement was initiated in order to avoid a jury trial that was scheduled to begin this week. Continue reading Settlement: Hotfile to Pay $80 Million and Cease Operations