The Federal Trade Commission published an Advanced Notice of Proposed Rulemaking (ANPR) on October 20 seeking public comment on a potential regulation aimed at curbing deceptive consumer reviews and endorsements. In its announcement, the FTC highlighted the prevalence of false and misleading reviews online and the harms they cause consumers and competitors.
Continue Reading FTC Exploring Rule to Crack Down on Deceptive and Fake Consumer Reviews
The SEC instituted settlement proceedings against Kim Kardashian on Monday, alleging that the reality television star and entrepreneur violated the SEC’s anti-touting statute when she failed to disclose compensation that she received in exchange for an Instagram post endorsing cryptocurrency tokens.
Continue Reading Kim Kardashian Ordered to Pay Over $1.26 Million for Securities Violation Arising Out of Crypto Endorsement
The FTC unanimously agreed to an enforcement action against American textile manufacturer Electrowarmth Products, LLC and the company’s owner for deceptively marketing its heated “bunk warmer” mattress pads products as Made in the USA.
Continue Reading FTC Brings Action Against Company Calling its Chinese-Produced Mattress Pads “Made-in-America”
The Federal Trade Commission and six states have filed suit against Roomster Corp. and two corporate executives, accusing the residential rental listing platform of using fake reviews and unverified listings to generate tens of millions of dollars in business. According to the complaint, these practices often occur at the expense of vulnerable customers who rely on Roomster to find safe low-cost housing within expensive housing markets.
Continue Reading Retailers Have No Room to Manipulate Reviews: FTC and States Sue Rental Listing Platform Roomster for Bogus Listings
CARU, the Children’s Advertising Review Unit of BBB National programs, issued a compliance warning last week, reminding industry that the self-regulating body on children’s advertising and privacy intends to enforce its advertising guidelines in the metaverse, just like in the real world.
Continue Reading Children’s Advertising Rules Apply in the Metaverse Too, CARU Says.
The Children’s Advertising Review Unit of BBB National Programs (CARU) has issued two recommendations this summer addressing negative social stereotypes in children’s advertising. The first decision involves fashion retailer Primark and the second decision, involved Moose Toys.
Continue Reading CARU Recommends Companies Modify Advertising that Perpetuates Gender and Cultural Stereotyping
The FTC, through the Department of Justice, has entered a settlement with two companies and the joint corporate President for falsely claiming that the LED lighting products and personal protective equipment they sold were “Assembled in the USA,” “Buy American Act Compliant,” “Manufactured in the USA” and “100% Made in the USA,” despite having been imported from China.
Continue Reading FTC Sues Importer of LED Bulbs and COVID-19 PPE for “Made in USA” Violations
The FTC has announced that it is taking a fresh look at its guidance for online disclosures, in part because, according to its Consumer Protection Director, “some companies are wrongly citing the guides to justify practices that mislead consumers online.”
Continue Reading FTC Taking Another Look at Online Disclosures
The FTC voted today to issue revised proposed Guides Concerning the Use of Endorsements and Testimonials in Advertising, aka, the “Endorsement Guides.” In a 5-0 vote, including a yes vote from the FTC’s newest Commissioner, Alvaro Bedoya, the FTC agreed to publish their proposal in the Federal Register and will take comment on the updates from the public. In addition, the FTC announced that it will hold a virtual event on October 19, 2022, in which it will consider the special challenges presented by advertising to children, especially children under 12 years of age.
Continue Reading FTC Votes to Issue Revised Endorsement Guides for Public Comment
The FTC continues its pursuit of deceptive Made in USA claims, this time with allegations that company Lions Not Sheep and its owner, Sean Whalen, marketed apparel as being “Made in USA,” “Made in America,” “100% AMERICAN MADE,” and “BEST DAMN AMERICAN MADE GEAR ON THE PLANET” when in fact the products were made in China.
Continue Reading Beware the Wolf in Sheep’s Clothing: FTC Takes Action Against Apparel Retailer Who Bragged He Could Rip Off Consumers by Ripping Out Made in China Tags