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As we reported Friday, the FTC has proposed a rule to ban misleading and hidden fees. While that initiative is pending, California Governor Gavin Newsom signed similar legislation, SB 478, into law. Effective July 1, 2024, the California statute prohibits advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction, or postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
Continue Reading California Passes Legislation Banning Junk Fees

The FTC announced a Notice of Proposed Rulemaking (NPRM) targeting misleading and hidden fees, commonly known as “junk fees,” and how businesses may advertise and market prices to consumers. The NPRM was drafted based on over 2,000 public comments to the FTC’s Advance Notice of Proposed Rulemaking published in November 2022.
Continue Reading FTC Proposes Rule Banning “Junk Fees”

BBB National Programs’ Children’s Advertising Review Unit (CARU) has released new Guardrails for Child-Directed Advertising and Privacy in the Metaverse. As explained in a BBB press release, the Guardrails are intended to provide companies with best practices as they navigate the complexities of engaging with children in metaverse experiences.
Continue Reading CARU Releases Guidelines for Advertising to Children in the Metaverse

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

As reported on Hunton’s Privacy and Information Security Law Blog, on May 31, 2023, the Federal Trade Commission announced a proposed order against home security camera company Ring LLC for unfair and deceptive acts or practices in violation of Section 5 of the FTC Act.
Continue Reading FTC Issues Proposed Order Against Home Security Camera Company Ring

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