The FTC teamed up with the U.S. Food and Drug Administration, sending warning letters to three companies: NutraPure, LLC, PotNetwork Holdings, Inc., and Advanced Spine and Pain LLC (d/b/a Relievus) that advertised CBD supplements as treatments for serious diseases such as cancer, Alzheimer’s disease, fibromyalgia and “neuropsychiatric disorders.”
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In a case signaling that the FTC intends to continue its crackdown on review manipulation, snack company UrthBox, Inc. has reached a settlement with the FTC after allegedly misrepresenting that its customer reviews were independent, despite the fact that reviewers had been incentivized with free products and other goodies.
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The FTC has announced that it will host a workshop on July 16, 2019, called Nixing the Fix: A Workshop on Repair Restrictions, aimed at examining manufacturer restrictions on consumer and third-party product repairs and the extent to which such restrictions implicate consumer protection. The announcement lists covered topics, including the interplay between repair restrictions and consumer protection laws like those in the Magnuson-Moss Warranty Act; the impact of repair restrictions on extended warranties and service agreements; the types of repair reductions in the United States and extent to which these restrictions are used; and consumers’ understanding about the existence and effects of repair restrictions, among other subjects.
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On February 26, the FTC announced a settlement with a weight-loss pill company that is alleged to have purchased 5-star Amazon reviews from a third party. The settlement includes a judgment of $12.8 million (which will be suspended upon payment of $50,000 to the FTC and payment of outstanding taxes), and ongoing compliance requirements for 10 years.
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In a challenge brought by Aquasana, Inc., the NAD determined that Advanced Purification Engineering Corp. (APEC), a manufacturer of water filtration systems, was not responsible for substantiating or correcting “Made in USA” claims made in customer reviews posted on third-party sites.
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On January 30, 2019, the US Court of Appeals for the Ninth Circuit issued a unanimous 11-judge opinion striking down San Francisco’s ordinance mandating health warnings on ads for sugary drinks. The judicial panel found that San Francisco’s proposed law violated beverage companies’ First Amendment rights to free speech.
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The National Advertising Division of the Council of Better Business Bureaus (“NAD”) has settled competing challenges between Kraft Heinz, the maker of Heinz Real Mayonnaise, and Unilever, the maker of Hellmann’s REAL Ketchup.
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