When the FTC Tried to Sue a Company for Scams

question 207

Multiple Choice

When the FTC tried to sue a company for scams advertised on the Internet:

• A) the appeals court held the FTC had no jurisdiction on Internet commerce
• B) the appeals court held that there could be no suit because of First Amendment rights
• C) the appeals court held that there could be no suit because jurisdiction over the Internet belongs to the Federal Communications Commission, not the FTC
• D) the appeals court held that there could be no suit because this exceeded the powers of the agency; Congress would have to amend the FTC Act
• E) none of the other choices

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Definitions:

Professional Indemnity Insurance

Insurance that protects professionals against legal costs and claims for damages from clients due to acts of professional negligence.

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Professional Indemnity Insurance

A type of liability insurance that protects professionals and businesses against claims made by clients for errors, omissions, or negligence in services provided.