These scams have impacted nonprofit associations through sale of trade show attendee lists and fraudulent use of logos. The FTC is seeking feedback for a hearing on the rule through April 14.
04/11/2023 11:15 A.M.
2.5 minute read
ACA International is part of a coalition of more than 200 trade associations and professional organizations supporting an expedited final rule from the Federal Trade Commission to stop government and business impersonation scams.
Scammers impersonating businesses impact nonprofits and trade show hosts by improperly using organizations’ logos or selling false discounted badges, for example, according to the coalition’s letter to the FTC (PDF).
The FTC proposed the rule in September 2022 to make impersonation scams a violation of the FTC Act, according to a news release.
The rule would allow the FTC to charge fines or seek civil penalties “against scammers who harm consumers in violation of the rule.”
The FTC reports it saw a sharp increase in these scams at the beginning of the COVID-19 pandemic and more than 2.5 million in total from 2017 through the middle of 2022.
As an example of an association impacted by a scam connected to its trade show, the Consumer Technology Association (CTA), which owns and produces CES, “has received at least a half dozen reports of impersonation scams using the CES logo, during and in the two months following this year’s show. These impersonation scams varied from the sale of false discounted badges to fraudulent websites offering hotel bookings for CES,” according to the coalition’s letter.
“We commend the [c]ommission for its proposed rule targeting government and business imposters, and were pleased that the NPRM included nonprofit organizations in the proposed definition of ‘business,’” the letter states. “With millions of Americans expected to attend in-person conferences and events this year, continued impersonation scams such as those involving hotel bookings, the sale of attendee lists, and event space fraud, remain an ongoing threat to the reputations of each of our organizations.”
Avoid Impersonation Scams
ACA signed on to the letter to ensure continued protection for its members attending ACA and state unit events throughout the year.
“We have been fortunate in that we have not had any members impacted by this—at least none that we know of—and we hope to keep it this way by continuing to make everyone aware of it,” said ACA’s Director of Meetings and Events Mary Thao. “Always book directly with the links provided by ACA and the units. No third party is ever authorized to take reservations for our events on behalf of ACA or the hotels that we use.”
Find registration links to ACA’s events through our online events calendar or through ACA Daily, email notices of events and education opportunities and member alerts (you can subscribe to these right here). Make sure you are logged in to ACA’s website to register for events or submit email subscriptions.
FTC Hearing on Impersonation Fraud
The FTC will hold a virtual hearing on impersonation fraud at 1 p.m. EST May 4, 2023. Interested parties have the opportunity to request to speak by submitting comments here by April 14, 2023.
Write “Impersonation Informal Hearing, R207000” on your submission when filing online.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.
