The National Advertising Division has recommended that Factor Nutrition Labs, LLC, discontinue its claim that its Focus Factor brain health supplement is “America’s #1 Clinically Studied and Patented Brain Health Formula.” NAD’s decision follows a challenge by Quincy BioScience, Inc., the maker of Prevagen brain health dietary supplement.
Continue Reading Making an Unsubstantiated Brain Health Claim? Think Again.
Responding to a challenge from Align Technology, Inc., maker of Invisalign, the National Advertising Division recommended that SmileDirectClub modify certain of its comparative advertising claims, while finding that others were sufficiently substantiated.
Continue Reading NAD Recommends SmileDirectClub Straighten Out Some of its Aligner Advertising Claims
On April 21, the FTC announced a record-setting $9.3 million settlement with online retailer Fashion Nova for violating the decades-old Mail Order Rule by failing to meet advertised shipping times and failing to adequately compensate consumers affected by the delays.
Continue Reading Will It Still be “In” When It Gets Here? Online Fashion Retailer Agrees to Largest Ever Settlement for Slow Deliveries
Listen as Phyllis H. Marcus, partner at Hunton Andrews Kurth and Co-Chair of the ABA Antitrust Law Section’s Privacy and Information Security Committee, speaks about the privacy concerns over using smart devices on the ABA’s Our Curious Amalgam podcast, Is Your Assistant Spying on You? Understanding the Privacy Law Issues Involving In-Home Assistants.
Continue Reading Is Your Smart Home Too Smart? Hunton Partner Featured in ABA Podcast on Privacy and Smart Speakers
Williams-Sonoma, Inc., has agreed to pay $1 million to the FTC in settlement of claims that the home furnishing company made false and unsubstantiated representations that certain products were made in the United States. In its complaint, the FTC alleged that Williams-Sonoma—also doing business as Pottery Barn, West Elm, Rejuvenation, Outward, Mark & Graham and other brands—deceptively claimed that the company’s Goldtouch Bakeware products, Rejuvenation-branded products and Pottery Barn Teen- and Pottery Barn Kids-branded upholstered furniture were made in the USA. In reality, many of these products were wholly imported or contained significant imported materials.
Continue Reading Home Furnishings Retailer to Pay FTC $1 Million to Settle “Made in the USA” Claims
On March 6, 2020, the FTC announced a settlement with Teami, LLC and its owners over allegations that the company falsely promoted its Teami brand tea products as capable of curing serious health conditions and causing significant weight loss, supported by endorsements by well-known social media influencers who did not adequately disclose that they were being paid to promote their products.
Continue Reading FTC targets Teami’s Unsupported Health Claims and Use of Social Media Influencers
On February 12, 2020, the FTC announced its intention to review its Endorsement Guides (formally known as the “Guides Concerning the Use of Endorsements and Testimonials in Advertising”). These guides, first enacted in 1980 and revised in 2009, provide guidance to businesses, influencers and endorsers on how to make sure endorsements or testimonials abide by the requirements of the FTC Act. While advisory in nature, the Commission can take action under the FTC Act if an endorsement or testimonial is inconsistent with the Guides.
Continue Reading With an Eye on Social Media Platforms and Influencer Marketing, the FTC Seeks Public Comment on Endorsement Guides
On February 5, 2020, the FTC announced two settlements totaling nearly $3.4 million against Quantum Wellness Botanical Institute, LLC and their principals for claims made to older adults that the “ReJuvenation” pill was an “anti-aging wonder drug.” For example, they represented that the pill could boost HGH levels and add stem cells to the body, thereby repairing age, cell, and heart attack damage; reversing deafness or blindness; and reversing damage from any disease, including Alzheimer’s, Parkinson’s, and Crohn’s disease.
Continue Reading FTC Ends Fountain of Youth Claims by Sellers of ReJuvenation Pills
On February 3, 2020, the FTC announced a $350,000 settlement with Shop Tutors Inc., d/b/a LendEDU, a website that ranks and rates consumer financial products such as student and personal loans. The FTC’s complaint alleged that LendEDU and its principals violated the FTC Act by misleading consumers into believing that their website offered consumers “objective,” “accurate” and “unbiased” information, despite the fact that the company was alleged to be selling rankings and ratings to the highest bidder.
Continue Reading FTC Stops Online Loan Comparison Service From Pay-to-Play Rankings and Falsifying Reviews
Responding to a challenge brought by HelloFresh (Grocery Delivery E-Services, USA), the National Advertising Division (NAD) affirmed that Home Chef (Relish Labs, LLC) offered reasonable grounds on which to base its claims that its meal kit delivery service offers consumers more flexibility than HelloFresh’s similar service. In particular, NAD noted that Home Chef’s “Customize It” feature provides ample variety, permitting consumers to upgrade or increase the amount of protein in their weekly meal selections, or even change recipes entirely by switching out the protein.
Continue Reading NAD Clears Comparative Claims for Home Chef Meal Kit