Did FTC Complaint Just Turn Online Terms Into Federal Law?

Law360, New York (April 29, 2014, 1:11 PM EDT) -- The Federal Trade Commission's announcement earlier this month that it had filed a complaint against Jerk LLC and its websites like "jerk.com" looks at first glance like a run-of-the-mill FTC Section 5 enforcement action involving allegedly deceptive practices online. But hidden in the facts of Jerk's alleged misbehavior is a potentially significant expansion of the FTC's use of its deception authority.

According to the FTC's complaint, Jerk allegedly led consumers to believe that the profiles on its websites were created by other users of the website. The company also allegedly sold "memberships" for $30 a month that supposedly included features that...

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