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Google News:  World Cup officials: Women were dressed to shill 

More than 30 women showed up at the Netherlands-Denmark match wearing orange mini-dresses emblazoned with the name of a Dutch brewery — earning them a red card from World Cup officials who acted to quash what they called an ambush marketing scam.

InformationWeek:  75% Of U.S. Households Use Social Networking

A Nielsen study shows Internet users spent an average of more than 6 hours a month on sites such as Facebook, MySpace, and Twitter during May.

U.S. consumers are spending more time online -- and devoting a growing percentage of those hours to social networking sites -- a trend expected to create a surge in spending on advertising to this audience.

Environmental Leader:  Marcal Adds Environmental Facts Panel on Paper Goods Packaging

Marcal Manufacturing claims to be the first U.S. paper goods brand to add an environmental facts panel on its packaging. The manufacturer of 100 percent recycled paper now highlights environmental data critical to its products manufacturing process on every Marcal Small Steps package.

FTC.gov:  Coming in 2011: New Labels for Light Bulb Packaging

Labels Will Emphasize Lumens, Not Watts, as a Measure of Bulb Brightness

Starting in mid-2011, the Federal Trade Commission announced today, consumers shopping for light bulbs will notice new labeling on packaging designed to help them choose among the different types of bulbs on the market – traditional incandescent bulbs, and newer high-efficiency compact fluorescent (CFL) and light-emitting diode (LED) bulbs. The new labels will enable consumers to save money by selecting the most efficient bulbs that best fit their lighting needs.

CNET:  FTC says current privacy laws aren't working

A U.S. Federal Trade Commission representative delivered a stern indictment of current privacy laws on Monday, saying they fail to protect American consumers and instead place too much of a "burden" on them.  

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This post was written by Dan Jaffe.

ANA and the entire marketing community won a major victory on the day after we celebrated our 100th anniversary!

At 3:05 AM this morning, Senate and House conferees approved the final version of the Wall Street reform legislation. Fortunately for us, that bill does not include the sweeping new enforcement powers for the Federal Trade Commission (FTC) that were included in the House version. Those changes would have serious implications for every ANA member.

The House passed its version of the financial regulatory reform bill last December. Buried in that bill were three critical changes in FTC authority:

• Repealing the Magnuson Moss rulemaking procedures (including the requirement that an activity be “prevalent” in an industry before Commission action) and allowing the FTC to promulgate broad industry-wide rules on any consumer protection matter in a highly expedited procedure – all done with a lower standard of judicial review;
• Expanding the FTC’s authority to immediately impose civil monetary penalties for any violation of the FTC Act without the involvement of the Department of Justice;
• Providing new liability for “aiders and abettors” of companies that violate the FTC Act, potentially putting thousands of companies at risk by running ads.

These changes were not limited to the authority of the FTC over financial products and services. They would have applied to the broad regulatory authority the FTC has over almost every segment of our economy, including anti-trust.

These expanded powers were not included in the Senate’s version of the financial reform bill. ANA and our member companies and other industry groups met with all of the conferees and more than a hundred other members of both the Senate and House to argue that these sweeping changes should be separately considered as part of FTC reauthorization rather than being added to the Wall Street reform bill.

House Energy and Commerce Committee Chairman Henry Waxman aggressively pushed for these changes at several points during the conference. Each time, Senate Banking Committee Chairman Chris Dodd and other Senate conferees held firm in opposition to these provisions.

While our victory in the conference committee is important, it is clear that these issues will not go quietly into the night. ANA and other industry groups met earlier this week with Senate Commerce Committee Chairman Jay Rockefeller to discuss these issues. Chairman Rockefeller stated that he will continue to aggressively push for new enforcement powers for the FTC during this Congress. We expect Chairman Waxman to join that effort and it is likely to begin very soon.

We believe this was one of the most concerted across-the-board efforts of the ad community. Throughout the past several months, we have worked closely on these issues with virtually every segment of the ad community. We continuously alerted our members to developments and got a number of member companies actively involved in the fight. We should feel very proud of this success which was not certain until the final minutes of the conference committee.

If you have any questions about this matter, please contact Dan Jaffe (djaffe@ana.net) or Keith Scarborough (kscarborough@ana.net) in ANA’s Washington, DC office at (202) 296-1883.

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Today, Twitter and the Federal Trade Commission settled charges that the micro-blogging site had engaged in unfair and deceptive trade practices because of “serious lapses in the company’s data security.” The FTC began an investigation into Twitter after hackers obtained administrative control of the service, accessed tweets that consumers had designated private, and sent out phony tweets (from then-Presidential candidate Barack Obama, Fox News, and others).

In its complaint, the FTC alleged that Twitter was vulnerable to these attacks because it failed to take certain reasonable steps to prevent unauthorized administrative control of its system. Those steps included:

• Requiring employees to use hard-to-guess administrative passwords that are not used for other programs, websites, or networks
• Prohibiting employees from storing administrative passwords in plain text within their personal e-mail accounts
• Suspending or disabling administrative passwords after a reasonable number of unsuccessful login attempts
• Providing an administrative login webpage that is made known only to authorized persons and is separate from the login page for users
• Enforcing periodic changes of administrative passwords by, for example, setting them to expire every 90 days
• Restricting access to administrative controls to employees whose jobs required it
• Imposing other reasonable restrictions on administrative access, such as by restricting access to specified IP addresses

Under the settlement, the FTC will require Twitter to set up a new security program to be assessed by a third party. It will also be prohibited from what the agency described as “misleading consumers about the extent to which it maintains and protects the security, privacy, and confidentiality of nonpublic consumer information, including the measures it takes to prevent authorized access to information and honor the privacy choices made by consumers.”

According to the FTC, this marks the 30th case brought as a result of lax security procedures, and the first against a social network.

Why This Matters:  As we have known for some time now, privacy is a hot-button issue at the FTC. To avoid an FTC investigation, you must consider whether your current privacy practices live up to both: (1) what the Commission considers “standard, reasonable” security procedures; and (2) your own privacy policy, which operates as a set of promises to consumers who use your service/patronize your business. If your security procedures fall short of either mark (or worse, both), the FTC could come calling. This then begs the question, when was the last time you audited your security and privacy procedures?

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California legislature recently passed a California bill (ABA 585) that extends California’s post-mortem right of publicity to people who became famous because of their deaths. Effective January 2011, the bill amends section 3344.1 of the California Civil Code, which already provides a descendible post-mortem right of publicity to “personalities.” “Personalities” are currently defined as “any natural person whose name, voice, signature, photograph, or likeness has commercial value at the time of his or her death.” The right extends for 70 years after the personality’s death. Currently, those people who are not “personalities” only have publicity rights during their lifetime. The new bill amends the definition of “personalities” to include those “whose name, voice, signature, photograph, or likeness has commercial value… because of his or her death” [emphasis added].

The bill was sponsored by Assemblyman Paul Cook, a former Marine Corps member, and was drafted in response to the emergence of websites selling T-shirts and other merchandise that contain the names of American soldiers killed in the Iraq War. The bill is intended to prohibit the unauthorized use of the names and likenesses of deceased soldiers; however, it would apply to anyone (not just soldiers) who might obtain celebrity (or notoriety) because of their death, such as those involved in shocking crimes or those whose death brought wide media coverage.

Why This Matters:  In 2011, California will join the short list of states that provide post-mortem rights of publicity to soldiers or others who become famous because of their deaths (see also Ariz. Rev. Stat. § 13-3726 (2009), Fl. Stat. § 540.08 (2009); La. Rev. Stat. § 102.21 (2009), Okla. Stat. tit. 21, § 839.1A (2009); Tex. Prop. Code Ann. § 26.001 et. seq. (2009)).

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MediaPost:  Ad Groups File Brief In Tobacco Act Appeal

Citing wide-ranging implications for commercial free speech rights under the First Amendment, the Association of National Advertisers (ANA), the American Association of Advertising Agencies and the American Advertising Federation have filed a "friends of the court" brief in support of tobacco companies appealing a lower-court ruling that upheld the constitutionality of most of the regulations in the Family Smoking Prevention and Tobacco Control Act of 2009.

MediaPost:  Zogby Poll: Web Users Troubled By Behavioral Targeting 

The vast majority of U.S. residents are concerned about online tracking and ad targeting, according to a new Zogby International poll commissioned by telecom consultant Scott Cleland.

Environmental Leader:  Burt’s Bees, Whole Foods Perceived as Greenest US Brands

A global study on consumer perceptions of green brands and corporate environmental behavior reveals global differences about their top environmental concerns. A key finding shows that while climate change is important across most countries, 30 percent of Brazilians and 26 percent of Indians cite deforestation as the top issue, and in Australia, 68 percent of consumers say it’s important that companies manage water efficiently.

Tech Daily Dose:  Panel Backs Bill Targeting Misleading Online Tactics

The Senate Commerce Committee approved three bills Wednesday aimed at curbing texting and cell phone use while driving, loud television commercials and misleading online marketing tactics.

FTC:  At FTC's Request, Court Halts Massive Robocall Operation

Firm Delivered Tens of Millions of Prerecorded Calls and Used Offshore Shell Company

The Federal Trade Commission’s work to stop deceptive pre-recorded “robocalls” took another step forward today as a federal court halted a major telemarketing operation that made millions of illegal phone calls pitching worthless extended auto warranties and credit card interest rate-reduction programs. At the request of the FTC, a federal court judge in Chicago has entered an order stopping the operation’s calls, temporarily freezing its assets, and appointing a receiver to take control of the operation.

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Led by Joe Rosenbaum and Adam Snukal, Reed Smith has embarked on a new, exciting and groundbreaking initiative on cloud computing, entitled Transcending the Cloud: A Legal Guide to the Risks and Rewards of Cloud Computing. In addition to the some of the classic topics that have been extensively discussed in the context of cloud computing like privacy and data security, we’ll also be covering a broad array of other issues such as tax, e-discovery, government contracts, financial services and much more. Please follow the link to Joe’s introduction and the articles which follow. Also, please check back each week for the next article or two on cloud computing.

Questions about cloud computing -- feel free to contact Joe, Adam and/or one of our many contributing authors.

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Europe Says Search Firms Are Violating Data Rules

European Union officials on Wednesday said Google, Microsoft and Yahoo had violated rules by keeping data on individual computer users for too long.

The Internet: That's Entertainment

Web's days as the 'information superhighway' are long gone

Remember when the Internet was the "information superhighway," putting the world's knowledge at your fingertips? Now, consumers are as likely to regard it as an entertainment medium. A survey released this month by Edelman examines some of the implications of this transformation for the ways in which consumers regard entertainment more broadly -- including the factors they value and are inclined to pay for.

Judge Rules for Don Henley in Ad Flap

Calif. senate candidate Chuck DeVore had used rocker's tunes as basis for campaign spots

A federal judge has tentatively ruled that California senatorial candidate Chuck DeVore violated rocker Don Henley's copyrights on two songs when he used them as the basis for campaign commercials posted on YouTube. In addition, the judge said that DeVore's infringement was likely willful.

E-Mail Named Tops for 'Targeting'

A newly released Datran Media survey of executives at Fortune 500 companies, publishing companies, media agencies and ad agencies finds e-mail and search regarded as the digital channels that worked best last year.

IAB: Boucher Bill Strikes At 'Heart And Soul Of Today's Internet Offerings'

Potential privacy legislation being floated by Rep. Rick Boucher "would fundamentally change online information and online advertising practices to the detriment of consumers," the Interactive Advertising Bureau said Friday in written comments to lawmakers.

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Will Ad Industry Self-Regulate Behaviorally Targeted Ads?

How will behavioral ad targeting work in the long term? First-party ad targeting will have full disclosure on Web sites. Third-party targeting, ad targeting across multiple Web sites, should require disclosure in the ad. In absence of that disclosure, an opt-in feature, instead of opt-out, should appear on sites. This means the consumer would have to opt in to targeting. This scenario comes courtesy of Russell Glass, chief executive officer at Bizo, a business to business audience-targeting platform and advertising network.

Survey: More See Mobile Phones As 'Retail Tool Kit'

U.S. consumers are becoming increasingly comfortable with purchasing items from mobile phones, even those that have no direct connection to said devices.

According to an online survey of 1,000 adults conducted by the Mobile Marketing Association, 17% used their mobile phones to purchase applications, ringtones and other content. Additionally, 6% used their phones to receive coupons or discounts on items, and 6% used their phones to purchase physical goods or non-mobile content or services.

Parents group angry at title of CBS series

A parents group is threatening CBS affiliates with challenges to their broadcast licenses if they air the network's new comedy with a title that alludes to an obscenity.

Public Distrusts Social Networks

There's widespread concern about privacy on these networks, according to a new survey

The presence of one's near and dear on an online social network doesn't stop people from being wary of the network itself, according to the findings of a Vision Critical survey released this month.

Facebook adjusts privacy controls after complaints
 
In Facebook's vision of the Web, you would no longer be alone and anonymous. Sites would reflect your tastes and interests - as you expressed them on the social network - and you wouldn't have to fish around for news and songs that interest you.

Standing in the way is growing concern about privacy from Facebook users - most recently complaints that the site forced them to share personal details with the rest of the online world or have them removed from Facebook profiles altogether.

McDonald’s Recalls ‘Shrek’ Drinking Glasses Tainted with Cadmium

McDonald’s has voluntarily agreed to recall about 12 million “Shrek” drinking glasses after federal regulators reported that they found the toxic metal cadmium in them, reports the Los Angeles Times.

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