Consumer Protection or Legal Extortion?
Daily Article by
S.M. Oliva | Posted on 7/10/2008
On April Fool's Day of this year, New Mexico resident Mark Hershiser received a letter from Erika Wodinsky, a San Francisco attorney, demanding Hershiser turn over all revenue from Native Essence Herb Company, a small business co-owned by Hershiser and his wife Marianne. The letter was not a joke or a mistake. It was a premeditated act of extortion by Ms. Wodinsky. She had never met or spoken with Hershiser; her staff discovered Native Essence through its modest website.
Internet scams and predators are commonplace. What distinguishes Erika Wodinsky from a Nigerian banker or a pedophile is that she's the assistant director of the Federal Trade Commission's San Francisco office. Her staff spends their days trolling the Internet for small business owners, like the Hershisers, who sell herbs and herbal remedies to willing customers. The FTC routinely targets such businesses as part of its "consumer protection" mission — which in practice has nothing to do with actual consumers.
Ms. Wodinsky's demand letter said that her office had conducted a "non-public investigation" of Native Essence and determined that the company's website contained "false and/or unsubstantiated claims" that "induced" customers to buy certain herbal products. This itself was a false statement. Ms. Wodinsky and her staff never interviewed any of Native Essence's customers. Indeed, many of the website statements deemed illegal by Ms. Wodinsky offered firsthand customer testimony praising Native Essence's products and customer service.
But in "consumer protection" cases, the FTC does not have to allege or prove any actual consumer injury. Instead, midlevel bureaucrats like Ms. Wodinsky merely substitute their own judgment for that of a business's customers. Since she wouldn't buy Native Essence's products based on the company's website, neither should anyone else. Anytime an FTC official disagrees with the content of a commercial website, it logically follows that the website operator is making "false and/or unsubstantiated claims" in violation of the Federal Trade Commission Act of 1917.
Story Continued in link below.......
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