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
Retailers Must Be Careful With Private Label Credit Card Advertising
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.
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Google, iHeartMedia Pay $9.4 Million to Settle FTC and State Allegations of Deceptive Endorsements
The FTC and Attorneys General from seven states announced settlements with Google and iHeartMedia for disseminating thousands of allegedly deceptive endorsements, with the two companies being required to pay $9.4 million in state-levied penalties.
Continue Reading Google, iHeartMedia Pay $9.4 Million to Settle FTC and State Allegations of Deceptive Endorsements
FTC Brings Action Against Company Calling its Chinese-Produced Mattress Pads “Made-in-America”
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”
Children’s Advertising Rules Apply in the Metaverse Too, CARU Says.
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.
FTC Uses Civil Penalty Authority in Rayon-as-Bamboo Cases
Several retailers recently settled cases with the FTC over allegations they deceptively marketed “bamboo” textiles. These cases come as some of the first, if not the first, instances of the FTC using its revived civil penalty authority to punish initial offenses by retailers.
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Challenges for “Buy Now, Pay Later” Industry May Affect Retailers
“Buy now, pay later” companies have exploded in popularity over the past year, largely through integration into retailers’ online checkout platforms. Often presented during checkout next to traditional payment methods like credit and debit cards, BNPL companies invite consumers to make purchases over a few payments with zero interest. There are, however, fees for missed payments, late payments, or payments rejected for insufficient funds. Moreover, BNPL offerings may occupy a gray zone apart from typical credit transactions or loans which could exempt them from all sorts of laws and regulations.
Continue Reading Challenges for “Buy Now, Pay Later” Industry May Affect Retailers
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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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.
Continue Reading Now Playing at the FTC: MoviePass Data Security Case and ROSCA Settlement
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).
Continue Reading FTC Brings First BOTS Act Case Against Online Ticket Brokers