Phyllis H. Marcus

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The FTC announced an enforcement action against online shoe seller Hey Dude, Inc. (a subsidiary of Crocs, Inc.) alleging Hey Dude suppressed more than 80% of consumer reviews that provided less than four out of five stars. The complaint also alleges multiple violations of the FTC’s Mail Order Rule between 2020 and 2022. A proposed consent order would require Hey Dude to pay nearly $2 million and take certain steps to prevent future violations.
Continue Reading Hey Dude: Review Suppression is Illegal and You’re Obligated to Ship Goods on Time

The FTC took action last week against a group of New England-based clothing accessories companies for making false claims that certain of its products were “Made in USA.”…
Continue Reading Made in the USA-ish: FTC Charges Clothing Accessories Companies for False “Hand Crafted in USA” Claims

The FTC announced a settlement with Cycra, Inc., a manufacturer of motocross and ATV parts, and the company’s owner for falsely claiming their products were made in the USA while importing parts from Asia and Europe. …
Continue Reading FTC Brings Action Against Motocross and ATV Parts Manufacturer for False “Made in USA” Product Claims

Nearly 700 companies (670 to be exact) are recipients of a letter from the Federal Trade Commission, putting the companies on formal notice that failing to have proper substantiation for health claims (the Substantiation Notice) or engaging in misleading use of testimonials or endorsements (the Endorsement Notice) could result in civil penalties.
Continue Reading FTC puts nearly 700 companies on notice of potential penalties for deceptive health claims

The FTC has announced the next step in its ongoing review of the “Green Guides.” According to the FTC’s most recent announcement, it is zeroing-in on “recyclable” claims and will be hosting a workshop titled “Talking Trash at the FTC: Recyclable Claims and the Green Guides.”…
Continue Reading FTC is “Talking Trash” and Zeroing-in on “Recyclable” Claims

The FTC unanimously approved a consent order this week requiring Credit Karma, LLC to pay $3 million dollars for allegedly advertising to consumers that they were “pre-approved” for credit card offers, when in reality, the customers were not pre-approved, and in fact, were frequently rejected.
Continue Reading Retailers Must Be Careful With Private Label Credit Card Advertising