The FTC voted today to issue revised proposed Guides Concerning the Use of Endorsements and Testimonials in Advertising, aka, the “Endorsement Guides.” In a 5-0 vote, including a yes vote from the FTC’s newest Commissioner, Alvaro Bedoya, the FTC agreed to publish their proposal in the Federal Register and will take comment on the updates from the public. In addition, the FTC announced that it will hold a virtual event on October 19, 2022, in which it will consider the special challenges presented by advertising to children, especially children under 12 years of age.
The FTC continues its pursuit of deceptive Made in USA claims, this time with allegations that company Lions Not Sheep and its owner, Sean Whalen, marketed apparel as being “Made in USA,” “Made in America,” “100% AMERICAN MADE,” and “BEST DAMN AMERICAN MADE GEAR ON THE PLANET” when in fact the products were made in China.
Continue Reading Beware the Wolf in Sheep’s Clothing: FTC Takes Action Against Apparel Retailer Who Bragged He Could Rip Off Consumers by Ripping Out Made in China Tags
The FTC entered into a consent order with Lithionics Battery LLC and its General Manager, settling allegations the company misrepresented its lithium ion cells are made in the United States. This is the first case the FTC has brought under its new civil penalty authority provided in the Made in USA Labeling Rule, which we wrote about last summer.
Continue Reading FTC Brings First Civil Penalty Action Under New “Made in USA” Rule
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.
Continue Reading FTC Uses Civil Penalty Authority in Rayon-as-Bamboo Cases
In the first FTC case to challenge a company’s failure to post negative reviews, the FTC has reached a proposed settlement agreement with the online fashion retailer, Fashion Nova, LLC, prohibiting the retailer from suppressing negative reviews and requiring the company to pay $4.2 million for harm suffered by consumers.
Continue Reading FTC Holds Online Fashion Brand Accountable for Suppressing Negative Reviews, Issues Updated Guidance for Marketers, and Warns Review Platforms
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
On July 21, 2021, the Federal Trade Commission increased scrutiny on purported restrictions of consumers’ “right to repair.” The statement, approved unanimously by the Commissioners, comes on the heels of the FTC’s released to Congress earlier this year. That report asserted that some manufacturers use “anticompetitive practices” to limit the ability of consumers and independent repair shops to fix and maintain products. According to the FTC, those limitations “may increase costs, limit choices, and impact consumers’ rights under the Magnuson-Moss Warranty Act.” …
Continue Reading FTC Announces Increased Support for “Right to Repair”
On July 21, 2021, during an open Commission meeting, the Federal Trade Commission voted to retain its longstanding Care Labeling Rule.
Continue Reading FTC Changes Course and Retains Care Labeling
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.
Continue Reading FTC Finalizes “Made in USA” Rule in Partisan Split
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