Today, the FTC announced it had sent “Notices of Penalty Offense” to over 700 businesses, including top consumer products companies, large retailers, tech platforms, media and gaming companies, and ad agencies, warning them against engaging in deceptive and unfair practices when it comes to using endorsements and testimonials in ads.
Continue Reading FTC Issues Notice of Penalty Offenses to Over 700 Retailers: Companies Now on “Notice” of Civil Penalty Jeopardy
Children’s Advertising Review Unit Issues Revised Guidelines for Advertising to Children
The Children’s Advertising Review Unit, a part of BBB National Programs, released its revised Children’s Advertising Guidelines earlier this month. These new Guidelines will go into effect in January 2022 and contain some notable changes.
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NAD Clarifies Stance on “All Natural” Claims
In response to a challenge by animal rights organization Animal Outlook, the NAD has determined that Butterball, LLC should discontinue several ad claims and slogans for its “all natural” turkeys.
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FTC Changes Course and Retains Care Labeling
On July 21, 2021, during an open Commission meeting, the Federal Trade Commission voted to retain its longstanding Care Labeling Rule.
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FTC Finalizes “Made in USA” Rule in Partisan Split
At the Federal Trade Commission’s July 1 meeting, it finalized a new “Made in USA” Rule that was almost two decades in the making. The FTC issued a notice of proposed rulemaking in June 2020 and received 700 comments from stakeholders. During that time, the FTC has aggressively policed Made in USA claims (through an enforcement policy statement), settling a historic, million dollar follow-on Made in USA enforcement action and obtaining a six-figure settlement with an online retailer.
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Now Playing at the FTC: MoviePass Data Security Case and ROSCA Settlement
This week, the FTC voted 3–1 to accept a settlement agreement with MoviePass, Inc., its parent company, and two of the now-defunct company’s former employees, after allegations of data security issues and deceptive trade practices.
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In a Rebuke to Longstanding FTC Approach, Supreme Court Rules FTC Cannot Rely on “Injunction” Provision to Obtain Equitable Monetary Relief
In 1973, Congress amended the FTC Act by adding §13(b), giving the Federal Trade Commission equitable powers to remediate any violation of any law under its purview. Using that power, the FTC has sought equitable monetary relief, including restitution and disgorgement. The lower courts routinely authorized such relief and Congress seemingly acknowledged the FTC’s power when it reauthorized the FTC Act.
Continue Reading In a Rebuke to Longstanding FTC Approach, Supreme Court Rules FTC Cannot Rely on “Injunction” Provision to Obtain Equitable Monetary Relief
Retailers Beware: “You can’t say your products are made in the USA when [they are] made elsewhere.”
Gennex Media LLC, a customizable product online marketplace, and its sole officer and shareholder Akil Kurji, have agreed to an FTC consent decree resolving allegations the company falsely claimed its Brandnex novelty products were “Made in USA,” “USA MADE,” and “Manufactured Right Here in America!” when, in many instances, they were wholly imported from China.
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FTC Brings First BOTS Act Case Against Online Ticket Brokers
Last week marked a double milestone for the FTC: Rebecca Slaughter assumed the role of Acting Chair, and the agency brought its first enforcement action under the Better Online Ticket Sales Act, 15 U.S.C. § 45c(a)(1).
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FTC Pursues Advertising Network that Failed to Deliver In-Game Rewards in Exchange for Payment or Personal Information
The FTC settled charges with mobile advertising company Tapjoy, Inc., on allegations that the company failed to provide promised rewards in exchange for completed activities such as the payment of money, disclosure of sometimes-sensitive personal information, or registration for “free trial” marketing offers.
Continue Reading FTC Pursues Advertising Network that Failed to Deliver In-Game Rewards in Exchange for Payment or Personal Information