the ftc chair edith ramirez gave her explanation of what this case is all about and why the ftc broughtapple. take a listen. >> the ftc alleges that apple failed to tell parents that when they entered their apple password they were authorizing a charge for a virtual item to be used in the app as well as opening a 50-minute window during which their child could make unlimited additional purchases without further action by the parent. >> and that window of time seems to be part of the issue here, allowing children to go in there and run up some huge bills. ramirez says in some cases the children ran up millions of dollars worth of bills overall. interestingly here from the ftc's perspective, this is an important press conference for them. this is the first time that ramirez has participated in a press conference in about the year that she's been on board at the ftc. that gives you a sense of how high profile they feel this case is for them. scott? >> any time apple is involved in anything, eamon, high profile. >> you bet. >> yep. eamon javers for us there. >>> all right. let's get back to

tracking what the ftc calls "operation failed resolution." brian?porter: christine, the federal trade commission says four companies sold weight-loss powders creams and other products that don't work and the ftc says those companies were shameless and deceptive in their ad campaigns. >> it's called sensa. >> reporter: and it seems enticing for that new year's resolution you might have made to lose weight, but as they say, if it sounds too good to be true -- >> without dieting. simply sprinkle sensa on. eat all the foods you love, and watch the pounds come off. >> reporter: sensa markets a powder to enhance the smell and taste of food, which the company says makes you feel full faster. $59 for a month's supply. >> i may not have gone to a fancy ivy league school, but i sure understand that that is good old-fashioned horse manure. >> reporter: senator claire mccaskill is launches a campaign into those ads asking those to flag potential scams. sensa is one of four supplement dietmakers the ftc charged with deceptive advertising saying there's no proof

. >> one agency to watch is the fcc -- the ftc. the ftc is the first and last line of defense with respect to consumer privacy, and they have been able to negotiate with some of the largest tech companies biggest privacy settlements ever. they got twitter to implement its first information security privacy practice. i would say that the ftc will continue to be aggressive on this front, using their section five authority under the federal trade commission act. while many people want the ftc to be a stronger regulator, to actually have very clear authority to be a privacy and , theyecurity regulator might not get that authority from congress right now, but they will continue to use their section five authority the best they can. >> a couple of court cases that are related to this world -- net neutrality and potentially, the aereo case. who wants to start? >> i will take it. for the last few years, net neutrality has been the perennial issue. no one really knows what is going to happen. people have long been saying the court could mak

. >> the sad part is the ftc, the federal trade commission, says some diet products on the market today are about just as effective as what michael phelps was pitching in his "snl" sketch. the federal trade commission fined four companies this week, sensa, l'occitane, diet direct and hgb, accused of making bogus claims. joining me is the associate director of the division of advertising practices for the federal trade commission. mary, thanks for being here. what sparked this crackdown? >> well, we've been seeing bogus weight loss ad claims for a long time. >> forever. >> forever, basically, ever since the ftc has been around. but this time of year when people are looking to lose weight it's a popular new year's resolution. we had a variety of different products being advertised -- cream, pills, drops. and we really wanted to send a message to both the advertisers that you can't make false claims of weight loss and for consumer s to be aware. >> this is hundreds of millions of dollars. >> a billion-dollar business. >> one method they use is relying on celebrity endorsements. >> the fren

abogados dicen que marca pausa para otras compañías . >> tendrán que cambiar metodos de pagos . >> la ftco en pantalla más información . >> la fecha limite el 14 de febrero así si el acuerdo es definitivo , lo pueden hacer ya a esta compañía . >> consumidores tendrán 12 meses, para 32 millones de dólares y medio apple deberá de dar la diferencia en washington univisión . >> en estos momentos hay audiencia para ver si se aprueba petición de escuela charter en morgan hills padres del distrito escolar juntan más de mil firmas para cerrar las brechas en santa clara . >> estudiantes del distrito escolar fallan a niños de bajos recursos que muchos son latinos nosotros queremos que niños del distrito escolar, vayan al mismo nivel . >> en 2012 la institución presento índices más altos del primer año de escuela en california en 5 años . >> en el dorado donde el gobernador se hace a un lado y no habrá cuarta vez , con 76 años que es gobernador dijo que no buscara ser presidente de los estados unidos como en 1976 1980 y 1992 no dice si quiere ser reelegido del esado dorado . >> le dice que si estudi

sec, the ftc, they know all the allegations out there. is the securities & exchange commission going to just launch into an investigation is or the ftc, federal trade commission launch into investigation whether this is pyramid scheme, illegal sort of company -- david: which mark can i said a couple of his constituents lost their fortune. that is what is moving him. >> let me ask you this. if there is ftc investigation the stock will go down tremendously f you're an investor, just know that you have to bet on that, that they have to really do an investigation. for the long term you have to bet that they close it down. and, you know, those are interesting bets. i will say this. this is where carl couldn't really answer or he didn't and i asked him. bill ackman is the short. he has hedged the short. he is out of it. he is in puts. you can't really short squeeze him now. but guess what? who is the biggest holder? well it is carl icahn. how does he if he had to unwind his long position? david: tough to do. >> he did say he was a long-term sha

for years before the ftc finally caught up with them.se vitamin and nutrition stores and see all these supplements. is anybody really regulating this stuff? >> the ftc does regulate. but just as you said they are everywhere. so the ftc really can't keep up with every single product that's making a crazy weight loss claim. that's one reason. the other reason is that let's say they do pick a product they are going to go after like they did today. it takes years of legal back and forth before they can find them. while they're doing this legal back and forth with the company they can still make these claims on their products. >> it's crazy to me like how many supplements are out there making all these claims. why can't the ftc hire more people? what happens to them now? >> what happens to them now is that they've been fined. these fines are huge. millions and millions of dollars. and what's interesting is they can still sell the products, they just now can't make the claims that they will give you this incredible weight loss. >> elizabeth, t

when you had an iphone or you had an ipad, the ftc is saying they racked up quite a bill. we know now, and this just happened moments ago. apple will pay out to consumers a refund of at least $32.5 million to settle this ftc complaint that is charged for kids in app purchases without parents even knowing about it. apple also says they plan on changing their billing practices. so what does this all mean? so apple has an in-app purchase feature. it can be disabled. but when it is enabled, it means that you just need to put your password in once, you download that app, and for a 15-minute window, you can download as many apps as you want without having to reenter that password. ftc says that meant that children were racking up a huge bill on their parents' dime without their parents even knowing. >> you know, it's interesting, because a lot of times, you know, parents will give their phones, you know, for kids to play with, just to keep them occupied or busy, have no idea they're hitting buttons and potentially buying things. i understand there were tens of thousands of compl

he has suggested they drafted legislation to give the ftc that power. the u.s. trails other countries in switching from magnetic credit card strips to embedded chips that are harder to compromise. the current target for switching over is not until the year 2020, so we could see that sped up in mind of the breach. there are a few options congress can take without tackling the bigger issue of cybersecurity. in the meantime, we will be waiting for hearings like the one being called for and those ongoing investigations. >> thank you so much for that update. they have warned riders about higher prices this year, but it did not stop the backlash over its surge in pricing: see -- pricing policy. you can also watch us streaming on your tablet, phone, and on bloomberg.com. ♪ to "bloombergk west." i'm emily chang. read 433eessen did not months but he has been big-time in the new year. year,rst tweet this hello, is this on? he also called 2013 the best year in human history and talked about education. of course, we will keep monitoring his account, looking to more entertai

>> the ftc does regulate them, but as you said, they are everywhere, so the ftc can't keep up with every single product that's making a crazy weight loss claim. so, that's one reason. the other reason is that let's say they pick a product they're going to go after like they did today. it takes years of legal back-and-forth before they can actually find them. so, while they're doing this legal back-and-forth with the company, they can still make these claims on their products. >> it's crazy to me how many, like, supplements are out there making all these claims. i mean, i don't know, why can't the ftc hire more people? what happens to them now? >> what happens to them now is that they've been fined, and these fines are huge, millions and millions of dollars. and what's interesting is they can still sell the products, they just now can't make the claims that they can give you this incredible weight loss. >> all right. elizabeth, thanks very much. >> thanks. >> huge profits, though, they've already made, no matter what the fine is. let's get caught up with the other stories and susan hendri

that is one of the things that ftc report will show. there is a lot of good that so- called patent trolls are doing, giving people access to intellectual property who would not have it. may you only have four minutes. >> i will be brief. i will start with the two predictions i will make. over the course of the next year, data security and cyber security issues will be increasingly coming to the fore in the popular mindset. ordinary consumers will be concerned about these issues. the situation with target is a great example of how this will happen. that is production number one. as part of that, or result of increasingly be on a trend towards the end of what we called tech exceptionalism. technology firms being exempt from liability. been able to get away without security. been able to facilitate this up -- the development of the internet of things built on a week security protocol. consumers will become aware that there are -- there is very little ability to control how the protocols are used. very little of the dictation -- authenticat

breaking news on avalanche the ftc settlement.hington with what we learned from apple. >> apple has agreed to settle a complaint with the federal trade commission that it build consumers millions of dollars for charges in kurd, and without parents' consent. it will pay consumers $32.5 million, and the ftc is holding a press conference right now to announce the settlement but apple put out a press release confirming attendant to the terms of the settlement with the ftc apple will also be required to change its billing practices to insure it has obtained express informed consent from consumers before charging them for items sold in mobile apps. gerri: peter barnes out of washington with that news on apple and the ftc and i want to bring rob morgan in to react to this news because one of the thing that'll at ceo is saying according to reuters is we decided to settle with the government over this because we were already going to take this action with regards to the guy in parental control. >> $32 million in the grand scheme of things

we'll have to find out what the ftc says.t and we'll have to figure out how that is parsed because that will key here. >> eamon, are we seeing a trend here? kept help but notice we have the e-book monitor appointed by the court, apple is in a bit of a tussle with the court over that monitor. thinking it's too intrusive. now they've got this concert decree they're saying is a big too onerous but they're going to go along with it. is washington cranking up the heat on apple a bit here? >> clearly washington is cranking up the heat across the board. i think one of the interesting reasons for that might be the difference between the cfp, consumer protection financial bureau, consumer financial protection bureau, and the creation maybe sort of spurring the ftc along to take a little bit more aggressive action here in terms of protecting customers. but what we're not seeing here is an issue of privacy which has been such a hot button issue. what we're seeing here is a question of whether or not people are running up bills and who s

. >> the ftc says tens of thousands of customers in the u.s. have been affected. one mom said her child spent $2600 while playing the game. refunds,eed to full but settled a class-action suit last february on the same issue, giving out tens of millions to 23 million affected customers. apple ceo tim cook said it doesn't feel right for the ftc to sue over a case that had already been settled, however, we decided to accept it rather than take on a and distracting legal fight. under the settlement, apple will have to change its billing practices to make it more obvious the purchases are taking place. take a look at the headlines. historic trial is underway for four hezbollah suspects accused of assassinating the former lebanese prime minister nine years ago. this as a least three people are killed in a car bomb attack in a hezbollah stronghold near lebanon's border with syria. the vatican is under tough scrutiny by u.n. committee on children's rights. the catholic church has been slammed over allegations of child sex abuse by priests and an inadequate response from c

why can't the ftc hire more people? what happens to them now?at happens to them now is that they've been fined. these fines are huge. millions and millions of dollars. and what's interesting is they can still sell the products, they just now can't make the claims that they will give you this incredible weight loss. >> elizabeth, thanks very much. >> thanks. >> huge profits, though, they've already made no matter what the fine is. susan hendricks joins us with a 360 bulletin. >>> a monday judge widely condemned for sentencing a former high school teacher to a month behind bars for raping a 14-year-old girl says he will retire at the end of this year. g. todd baugh says he is not leaving the bench because of that controversy. >>> utah refuses to recognize same-sex marriage. the supreme court blocked that ruling on monday to allow the state to appeal. officials say more than 1,000 marriage licenses were issued before the injunction. >>> as many as 22 deaths in five states are blamed on that storm that turned most of the country into frigid misery.

and the products have been ordered to pay 34 million- dollars to the ftc. that would be made available to consumers who bought the products. >>> intel is facing out the mcafee name. it was developed by the billionaire. he made headlines escaping a lawsuit and even being jailed. and they will rebrand the product with the name intel security. the change was announced at the consumer electronic show in vegas. >>> and now trending, the big showcase for new devices and features companies as well as start-ups. many of the products that you sigh here are prototypes that never hit the market. others include new versions of cutting edge technology go. to www.ktvu.com to view a slide show of the gadgets and you will find it under our images tab. >>> and the first gain in the new year. health care and tech stocks lead the market higher. >>> as the 49ers prepare for the playoff game in north carolina, there is a new twist to the rivalry with the seahawks. and what started as won upmanship is being channeled to help children. >> reporter: and this child is in the hospit

outlet stores is often of lower quality than goods sold at non- outlet retail stores and urging the ftc to investigate deceptive and unfair marketing practices at outlet stores. this retail expert says outlet stores started out selling goods that were overstocked or defective but began manufacturing their own lower quality products to meet demand. >> i think what they do is they figure out the price point and work as hard as they can to produce products at that price point that's not inconsistent with their brand. >> reporter: he says the outlet stores could standing to more transparent. if not, they risk losing shoppers like this, who is now second-guessing the alan schwartz heels she bought. >> i'll think about it next time. >> reporter: congress wants the ftc could to come up with definitions for factory store and outlet store. in fremont, christin ayers, kpix 5. >> a san francisco internet cafe is getting ready to close and the owner promises not to open a similar business in the city for five years. the city says net stop in the excelsior had become a magnet for criminals and illeg

ftc chairman edith ramirez explained how the hidden charges added up. >> the ftc alleges that apple failed to tell parents that when they entered their apple password, they were authorizing a charge for a virtual item to be used in the app as well as opening a 15-minute window during which their child could make unlimited additional purchases without further action by the parent. >> apple will be also required to change its billing practices to make sure parents give the okay before getting charged for those in-app fees. >>> meanwhile, apple is gearing up to hit it big in the world's largest smartphone market. starting this friday, apple iphones will be sold at china mobile stores for the first time ever. we sat down with the heads of both companies. the chiefs of apple and china mobile are gearing up for a big day on friday, when the iphone will be a available to chinese customers at china mobile stores. >> it's a watershed day for apple. it's a huge announcement. >> up until now, iphones were only sold at its rivals, limiting apple's market share. after a long courtship, the tech titan s

and the ftc has essentially said they are. some of the ads we're talking about. company call sensa that advertises a powder you can put on your food, quote, get a gym body without going to the gym. a powder you can put on your food that makes you feel fuller faster. locke satan, an almond scented cream where they advertise you can significantly slim your thighs in a matter of weeks by putting this cream on your oh thighs. ftc saying it's too good to be true, not supported by skin scientific evidence, deceptively marketing these products and unfounded promises, these weight loss products. and they're going to pay a total of $34 million in fines and refunds to customers for these products. and, again, we talked about the sensa product that's a powder, supposed to be sprinkled on food to make you feel fuller, the two skin creams. these are things we all see, and that dieticians and nutritionists will tell you, it really is too good to be true. >> if it sounds too good to be true, it usually is. basically one company you put some cream on your thigh, your thigh is go

sent letters to the sec and ftc, as well as the herbalife ceo. in a statement, he says -- continued -- he is serious. bill ackman is not the only activist making out today. >> this whole business of the divorce between ownership and management, i think it is hurting our economy greatly. to shelf. in the big picture, not micromanaging, we have got a lot of work on ebay p without question, it is a no-brainer that paypal should be spun off. >> carl icahn telling us yesterday that he wants to split up ebay and its electronic payment child paypal. >> there is no reason they should be together at this point. in fact, it would be helped by a management team that is separate and can go their own way. the multiple would go up dramatically and also the health of the company would be better. >> ebay ceo john donahoe says the company should stay together. he said a unified entity helps their expansions into mobile. the question is, is that a good idea? >> when you have these conglomerates, one person benefits, the ceo. they get to smooth out earnings and div

some people wanted this to shift from the fcc to the ftc. interestingly, that would have very few implications in the senate because the senate commerce science and transportation committee has jurisdiction over both. on the house side, it would have shifted jurisdiction of which committee was responsible from the energy and commerce committee to the judiciary committee which would have been a big change in terms of how to process would have happened here. as of now, that didn't happen. it remains within the jurisdiction of energy and commerce which the leadership on the house has indicated we need to start rethinking the laws and moving forward. so if i had to guess, there's two possible outcomes. one is the traditional narrative, what you hear outside the beltway right now which is we have split government where the different houses of congress are controlled by different parties, and it's an election year, so, therefore, after about june everything's just a campaign. and this is a very difficult time to get something done, and it's very u

we will have snow showers southeast ftc tonight. nothing to be terribly concerned about. if you are tired about the cold -- of the cold, warmer temperatures are expected and i will have more details in the .elfort furniture center let's check in with amanda at wtop. .> we are doing pretty well give yourself a couple of minutes to warm up the car. get prepared for the drive. we have a live shot of the and youat the connector can see light traffic in both directions. that is par for the course around the beltway in virginia and maryland. ahead, we have warnings in effect and you were warned yesterday that the wind would pick up along the bay bridge. through to use caution that stretch. it is not too bad on the beltway. 295 is moving in. it is southbound towards the 11th street ridge. past malcolm x and into the 11th street bridge looks good as well. virginia, allin the way through woodbridge and newington, you are delay-free at that time. we have light traffic and moderate conditions through centreville towards the beltway. >> thank you. it is 4:03. a crash seriously injure

. >>> now to the ftc cracking down on companies for claiming the products helped shed pounds.the biggest targets the maker of the product sensa. abc's jim avila has that story. >> reporter: if only it was this easy. >> simply sprinkle sensa on, eat all the foods you love. and watch the pounds come off. >> reporter: the federal trade commission says that claim by sensa, which led to more than $350 million in business over a four-year period is deceptive forcing the company into a settlement to stop claiming -- >> it's that easy. >> the claims simply aren't supported by the evidence. >> reporter: the ftc says sensa quietly paid for consumer endorsements in its commercials and used junk science to back its claims, but now has agreed to stop making false claims and refund $26 million to its customers. sensa told abc news in a statement "sensa stands behind its product, but is making changes in advertising, investing millions in studies to substantiate their claims and will keep selling their product." the ftc also cracked down on the luxury bath product company l'occitane, which a

. >> three weeks later no investigation by the ftc, what is going on here?charge. >> jessica wrench, whose office has the authority. >> i can't comment on the investigation. >> you can't comment on whether the are having an investigation? >> no, i can't. >> they are having an investigation and the results will take months. >> they need to do it now. >> they will investigate and do that. >> target is offering credit monitoring and that to those customers affected and target is offering more and that should be out next week but in the time target is offering credit monitoring and that where it is accessible and more help. >>> new rules go into effect today that effect lenders. they cannot offer interest like that but the new rules do not require a minimum down payment so first time buyers have a better chance of getting a loan. >>> interstate 580 is open this noontime after being partially should down for hours in he morning commute after a deadly accident involving a motorcycle of the. he was hit and killed this morning. several lanes lanes were blocked for h

the ftc complaint says apple build folks when kids made purchases without their parents consent. apple ceo tim cook reportedly telling employees he settled with the sec because the deal does not require us to do anything we don't already do. you saw the shares popping on the news. with the ftc out of the way, apple is hitting a major milestone tapping into the biggest smart phone market. jo ling kent is here with more. >> this deal is six years into the making. apple ceo tim cook is in china with the launch of the world's biggest mobile carrier expected on friday and we expect to see record sales. cook said in an interview we haven't announced numbers but i can tell you last quarter we sold more iphone in greater china tha than anytime in the p. it was a record quarter. analysts are expecting a new deal launching friday could increase apple iphone shipments by 15 to 30 million units. more importantly for apples long game, cook said he wants to broaden the deal they have with china mobile beyond the iphone. he did not elaborate on what exactly, but ringing the iphone to 3000 new l

and the ftc, that's fun noble our liberties, it's one of our .liberties, to do what guest: no mattert issue you care about today, whether it's loans, health care, economy, banking, all of those amount ofed by the money flowing into our political system. and more americans need to be paying attention to this and making this a first priority issue. every few months democrats and members of congress receive a party from their committee saying how much money they have raised, but recently these lengthy documents have an extra column that a number of members said they've never seen before. raiding their fun system,on a new point another quote from a congressman. it reflects a hard truth about ofrican politics, the cost campaigning as continuing to rocket. here's a quote from george california democrat who is going to retire. members of congress would not find it unusual to spend two, four hours out of a day making fund raising calls. guest: that's right and i think the low end, i think it's more than that. if you are running for congress, win one day and the very next day you're back out

. >> how long before we see the ftc get involved?e trying to order 50 million bloggers if they say something nice about nike. they have to disclose. won't the feds say they don't like the blurred lines? >> that's a great point. i think eventually you're going to see the ftc come in. as the rules get developed. you have to realize it's a newer thing. i start to think when you start seeing a beats by dre or another company that actually they -- i don't want to say terrorist a loophole associated with this. but dr. dre will go in and a lot of athletes and i deal with a lot of professional athletes, they're drawn to him and jay-z. i think that over time, you're going start to see that the fcc will kind of want to look at this a little more harder. >> chris, last question. if the fcc a backlash from fans and feel, hey, you suckered me. i didn't know it was an ad. >> i think in this case, fans are omfortable with it. it's in the cases there's a deception. i think that's -- ironically it's one of the reason it is makes it effective. many of

ftc reached settlement was lean spa and almond beautiful cream. >> in business news, apple says it made $10 million in app sales last year. co-founder of twitter has a project announcing details of the search engine called jelly. letting users ferret out information. what makes it different? it awill yous people to use images and uses new algorithms. >> so many creative things out there wow. new year may have you thinking about buying a new mattress. >> do you know which is best? >> this is something to try. can be one of the toughest purchases to make. there seems to be a blowout sale going on somewhere. courts put two dozen mattresses through tests to help you find just the right consumer reports put 24 queen sized mattresses through tests smchlt have inner springs. others, foam. >> it's a matter of personal preference. so make sure you're comfortable. >> the key is how well it supports you. and this test checks for support when you sleep on the side. your spine should northbound a straight line. >> people sleed on their side or back. we want to make sure that is going to support the

the ftc, basically grandmothers that teach piano and violin lessons the ftc is attacking them for theirr. they are not noncompetitive behavior, just a bunch of music teachers and the ftc says our proposed remedies are not going to interfere with a legitimate function of the organization but they always do because they require reams of past documents to be submitted to regulatory organizations. that takes time and money and distracts people from doing their business. charles: is part of it because it is a great way to grab money? great way to fund those coffers for an administration that will spend every nickel that has and doesn't have? dave: yes but more than that the president and all this regulatory -- in the administration, notnicks think the new rules will make america a safer and better place. all they do is make it more complex and expensive. liz: the new control bowling ball down the government hallway and not hit anybody. politicians are in love with reforms no matter what it looks like and we know d.c.'s per-capita income is higher than silicon valley. what i love about the st

. >> three senators calling on ftc to look into outlet stores. in a letter they called for a federal investigation into potentially misleading marketing practices following claims merchants may be selling lower quality items produced for outlet stores advertised as higher quality products found in regular stores >> u.s. department of labor is now investigating oakland raider treatment of its cheerleaders raideretts. a lawsuit filed on behalf of members accusing raiders of failing to pay minimum wage and saddling the squad with fines and travel expenses the labor department says it will examine the squad not just claims by the woman who filed the suit last week. >> a bay area congressman putting drivers on notice. assemblyman jim frasier has introduce add a bill mandating jail time for driver who's crash into someone while talking or texting with out a hands free set up n 2012 distracted driving killed 3300 people across the united states. half a million people were injured n california, cell phone use while driving is the leading cause of distrac

urging the ftc to investigate unfair marketing practices at outlet stores. >> it's not clear that consumers can't understand what's going on. >> retail expert says outlet stores started out selling goods that were over stocked or defective, but began manufacturing their own lower quality products to meet demand. >> i think they figure out what that place printed and work out as hard as they can to produce product at the price point. >> the outlet stores could stand to be more transparent. if not, they risk losing shoppers like this one, who is second guessing the ones she met tonight. the members of congress want her to come up with definitions. kpix5. >> there are roughly 300 outlet malls nationwide. $25billion in sales last year. >> a crockdown on internet gaming has led to a san francisco cafe shutting its doors. the city says netstop have become a magnet if r criminals and illegal gambling was taking place. the first year it was open, police responded to over 2 00 calls. >> people were coming out at 2:00 a.m., yelling, getting in fights. i can't tell you how many times i have seen polic

the ftc says those companies were shameless and deceptive in their ad campaigns. >> it's called sensater: and it seems enticing for that new year's resolution you might have made to lose weight, but as they say, if it sounds too good to be true -- >> without dieting, simply sprinkle sensa on, eat all the foods you love and watch the pounds come off. >> reporter: sensa markets a powder to enhance smell and taste of food which the company says make us feel full faster. $59 for a month's supply. >> i may not have gone to a fancy ivy league school, but i sure understand that that is good old-fashioned horse manure. >> reporter: senator claire mccaskill is launching an investigation into those ads asking people to help by flagging potential scams. sensa is one of four diet supplementmakers the ftc has charged with deceptive advertising saying there's no proof those products work. other targets, hcg diet direct, distributorses of hormone drugs. place them under your tongue, the company says, and you'll lose weight fast. lean spa, the company shut down by using fake websites to market fake c

the ftc is seeing a growing number of fraud complaints related to obamacare, 194 complaints about possiblees and more than 1,000 do not call complaints they think are directly linked to the aca. >> if there's any good news, i think people are very skeptical because there's so many folks trying to defraud other people. >> reporter: the ftc says the simplest way to spot potential fraud is the website itself. if you're being directed somewhere other than healthcare.gov or a state exchange site, be wary. also any navigators or assistors legitimately hired by a state or federal government won't ask you for any money. in washington justin gray, ktvu channel 2 news. >>> a little surprise was found in a new statue of nelson mandela in south africa and not everyone is pleased. look if you can spot a little sculpted rabbit actually in the leader's ear. you can barely see it, but this is about the best picture we have. the sculptors reportedly put the bunny there because the government wouldn't let them sign their names around the base of the statue. the government is not happy. >> we are at the depa

we're joined my mary engle from the ftc. >> happy to be here. >> first of all, why these products inuse they're the only four or the most agregregi to you are? >> they're certainly not the only four and we have more investigations under way but they represent the range of products that are making deceptive weight loss claims and also in the case of sensa it was a very widespread advertising campaign. couldn't miss it if you watch tv, looked at magazines, and the sales were very large. >> so for you guys, it does matter how big the scope of these advertising campaigns is? in other words, if it's going to reach several million consumers as opposed to just a few, it's more likely to catch your attention. >> well, that's right. we want to put a stop to large-scale deceptive advertising campaigns, but we may also look at smaller ones as well on the internet that may be preying on particularly vulnerable consumers. >> what do these companies as soon as you come out and say they've made deceptive claims, they do not have to cease selling the product, but they have to immediately cease the a

. >> one agency to watch is the ftc. they are the first line of defense when it comes to consumer privacy. they have work would the largest temp companies and the big settlements every. they got twitter to implement their first privacy practice. so they will continue to be aggressive on this front using the section five under the federal trade commission act. and why many people want the fcc to be a stronger regulation in this area and be a privacy and security data regulator. they will continue to use the section five authority as best best as they go. >> a couple court cases related to this world. the aereo case and net neutrality. >> no one knows what is going to happen with net neutrality. we have been saying the court can make a decision at any time and that is true. today, tomorrow, next week or sometime soon. the court is struggling whether the fcc's open internet order that prohibits blocking and price discrimination is too close to what is known as common carriage. if they have the right to regulate the phone co

. >> it is not. [ bleep ] >> but others say -- >> that was very close to an ftc fcc violation. violation. >> others say when you use humor, swearing can be a good stress reliever. i think it probably can. how are you feeling? >> any who. >> maybe it is because of your bra. >> it could be. >> we have to talk about it tomorrow. we'll bring it up. there is a bra that apparently can tell you whether you're in love or not. >> if you're turned on. >> yes. if you're so excited about your bra just pops open on its own. >> yeah. on its own. and if you're not, it stays locked up, you know what i'm saying? a good relationship. >> we'll tell you about that tomorrow. >>> we want you to answer a question for us, if you wouldn't mind, what keeps you up at night. if you're having trouble sleeping, we want to hear about it. we're going to have dr. robert oxman, director of sleep in joplin, missouri, he'll come in to answer your questions. we want to know if you're worried about something, if there are sounds, if your husband is snoring. >> or your wife. >> or your wife,eah. >> go to klgandhoda.

ftc. >> reporter: there is a pleas place on the internet so deep, so dark, so utterly anonymous it hasbecome a black market for crime. >> you have everything there, hits for hire, you can kill people, you can buy drugs you can buy people, there is everything that we in society say shouldn't exist in civilized society is there. if it's not there ask for it and somebody might provide it. >> reporter: for a price, you can offer up false i.d.ness, real u.s. citizen ship and murder for hire. >> you can pay a assassin, for $6,000 plus. >> just don't ask him to videotape it. this killer has standards. there are teenagers for sale. unregistered guns you can make on your 3d printerrer or have delivered to your door, or che checkout carts from happy customers. >> drug world where you can go through and purchase whatever you would like. cannabis, still larchts. stimulants. >> it's unbelievably easy. onion router masks the computer's address. >> you've connected through a bunch of machines in the world. >> and by bitcouncil, a digital currency experts say is untraceable. there have been arrested a

then you file a complaint with the ftc and print your identity theft affidavit. that to file a police report and create your identity theft report. now, i know it sounds complicated. there's a lot of information on the ftc website. it's very easy. consumer.ftc.gov. we have to be vigilant, guys. i know it stinks. it's one more thing we have to do ourselves but we have to. >> it's a big nightmare if it happens. >> jill schlesinger, thank you. >>> 5:41 now. coming up, cutting down on craigslist crimes. the new service that promises to keep you safe during your transactions. >> how do you cope in a world with fewer cops and dwindling city services? the folks of hammond park in san jose have figured it out. i'm kiet do, we have that story coming up. and a totally new way to score! now you can shop online at tjmaxx.com check it out... and let us make a maxxinista out of you. t.j.maxx for ovnights can feel califolong and lonely.dren, i miss my sister. i miss my old school. i miss my room. i don't want special treatment. i just wanna feel normal. to help, sleep train is

. >>> apple will refund 32 million to consumers part of a settlement with the ftc involving cases wherets discovered their kids had bought stuff online but actually spending real money. their parents real money. c. jcpenney is close stores. it follows similar cuts last week by macy's. >> is this a good combination? rand paul and snap chat. scrambled politics is next. purina dog chow. isn't it time you discovered the lighter side of dog chow. purina dog chow light & healthy. this is the creamy chicken corn chowder. i mean, look at it. so indulgent. did i tell you i am on the... [ both ] chicken pot pie diet! me too! [ male announcer ] so indulgent, you'll never believe they're light. 100-calorie progresso light soups. >>> new jersey governor chris christie is still digging himself out of the skacandal bridgegate. some experts are saying he could be in heat. when hearing that, christie said, heat. >> now here is your first look at this morning's scramble politics. no problem on the way to splitville for eliot spitzer. a spokeswoman says he and his wife parted ways after 26 years of marria

and yet, you've got the ftc looking into it. you have members of congress looking into it.here have been--privacy groups have lodged formal complaints. you've hired a lobbyist in washington to deal with this, so you know it's a problem. >> that's ahead when 60 minutes on cnbc returns. [ticking] [ male announcer ] start the engine... and shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection. will shift your perception. and it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as

in fact, the ftc has an act that says that these retailers have to adhere to it.d the end of january, the ftc and the s.e.c., they haven't confirmed or denied that there's an investigation going on on target, but that if they do find that they were in violation of this, it's another set of fines that target may have to pay. >> should they be discussing how banks work in this system? it's really the banks that say hey, you, target and other retailers, you need to use my equipment and my processes in order for you to be my customer so i process your credit card transactions. >> exactly. it's called the point of sale. part of the reason why these systems are getting hacked is because these hackers know how to go in there. the buzz word here is called "ram scraping." that's not a procedure. >> i know what you're talking about. it's random access memory scraping. these hackers go in there and go into the point of sale devices -- >> the cash registers. >> where you swipe your card. and they get access to that information. so retailers and banks change the way that they

i'm sorry. >> privacy data security, leave it to the ftc and the fcc focus on its core mission or what is your thought on that? >> i think so. >> you think so? >> i would agree with that. >> okay. mr. powell, coming back to you, 706. we're hearing a lot about that today. and you may have others who think that, you know, the fcc -- that this is an invitation, 706 is an invitation to come in and regulate internet services. as you look at 706, do you agree that the provision was intended to give the fcc the ability to forebear from regulations that would stifle broadband investment and innovation? >> i agree that the decision certainly gives them the power to forebear and for many years many people interpreted 706 as principally deregulatory. it speaks of removing barriers and obstacles, less so about introducing them. i certainly was serving at a time where the commissions have held that was not a separate basis of authority. and in fairness to the fact, every commission had so held until recently. so, that was the position of the law when i was there, at least. i will say, though, that

but just the talk of the fact that the ftc is now moving forward, they're going to have an announcement next week. and doing a new initiative against deceptive claims made by national marketers of fad weight loss products. and this will now be, move into next tuesday. that's when this initiative will occur and we'll find out some more then. that's when the press conference is. and the press conference may give us a glimpse into some problems or maybe everything is perfect. in the meantime, herbalife has been to the downside. we're also watching new skin and some of the other names, sometimes you think of it as personal care, but they also have nutritional supplements in their umbrella as well. so we are seeing them coming under pressure with this one. but i looked at weight watchers. slightly different, but that one's doing great today. cheryl: and we should say new skin had a great 2013 even though the stock's been down today, it's been a high flier. i don't know, nicole, can you eat six doughnuts and lose weight? that's what i was told. >> reporter: i think, yeah. cheryl: nicole, than

outlet stores the often of lower quality than goods sold at nonoutlet retail locations and urging the ftcinvestigate this unfair marketing practice. outlet stores started out selling goods that were overstock or defected but began manufacturing their own lower quality product to meet demands. >> they figured it out and produced the product. >> reporter: the outlet stores could stand to be transparent. if not, they risk losing shoppers like this one who is now second guessing the allan schwartz she bought tonight they also want to come up with definitions for factory store and outlet stores. christin ayers, kpix5. >>> we have been waiting for this. and now it is back. >> bonus rainfall tonight. one more coming. we are not done yet. the hits keep coming. is it really bonus rainfall? well yes, because it wasn't in the forecast yesterday. let's take it. kpix5 high definition doppler. most of the rain down in santa cruz county. light to moderate rain showers elsewhere. it is raining. mountain view, sunnyvale. fremont. san jose getting rain. steadiest rainfall is right across the bay bridge ove

for the kids to get in there but left a window of opportunity for kids to buy other things but the ftc is on the parents' side? >> this is an amazing story. i'm a parent with two small children. the phrase inept purchases sends a chill down my spine. but my daughter comes and asks permission, my oldest. in this case it seems a lot of children have been able to buy these things without their parents knowing. apparently 32.5 million dollars will now be paid back by apple, at least one mother is going to get 2,600 dollars because she says her daughter spent at pet store, the game, without her approval. but i don't know about you, thomas. but i think there has to be an element of parental responsibility here. >> yeah. >> okay, this is inept store purchasing but not like they have gone to the cash and carry for a bottle of vodka, but i think you'd want to know what your child is doing, wouldn't you? >> well, yeah, if the parents are letting the kids use the phone as a babysitter in a way. >>> still ahead, 49er fans are serious about their football team and one radio host is learning how he