Yesterday the Federal Trade Commission (“FTC”) announced that it sent “Notices of Penalty Offense” (the “Notice”) to over 700 companies in nearly every industrial sector, ranging from leading retailers, tech platforms, top consumer product companies, and major advertising agencies, warning them that they could incur significant civil penalties – up to $43,792 per violation – if they use endorsements in ways that run counter to prior FTC administrative cases.
Continue Reading FTC Gone Viral: Commission Puts 700+ Companies on Notice About Deceptive Endorsements
Erika Auger
Mexico leads media transparency efforts with new law
On April 30, 2021, the Mexican Chamber of Senators and Deputies passed a new law on “Transparency, Prevention and Combating of Unfair Practices in Advertising Contracting.” The law seeks to eliminate and prosecute non-transparent media practices between advertisers, media owners, and agencies. The law will go into effect on September 1, 2021.
Continue Reading Mexico leads media transparency efforts with new law
FTC Seeks Monetary Penalties for Deceptive Marketing of COVID-19 Treatments in First Action under the COVID-19 Consumer Protection Act
Last week, the Department of Justice (“DOJ”) together with the Federal Trade Commission (“FTC”) announced a new civil lawsuit filed against St. Louis-based chiropractor Eric Anthony Nepute and his company, Quickwork LLC, alleging that they deceptively marketed products containing vitamin D and zinc as scientifically proven to treat or prevent COVID-19. This is the first…
FCC issues reminder to broadcasters on sponsorship IDs
Earlier this month, the Federal Communications Commission (FCC) issued an enforcement advisory to remind broadcasters of their sponsorship obligations.
What is the Sponsorship Identification Rule?
Under section 317 of the Communications Act of 1934 (the Sponsorship Identification Rule), when a broadcast station transmits any matter for which money, a service, or other valuable consideration is…
New Florida Law Gives College Athletes Right to Profit from their Name, Image and Likeness
Last month, Florida Governor Ran DeSantis signed a new bill into law allowing college athletes to be paid for use of their names, images and likenesses. The new law is set to take effect on July 1, 2021 with the hopes that not only will other states follow Florida’s lead, but such state legislation will…
Reese Witherspoon and her fashion line Draper James face a privacy class action and breach of contract over ‘free dress’ giveaway
Hollywood movie star Reese Witherspoon and her clothing line, Draper James, LLC, have found themselves the subjects of a public relations debacle, and now, a class action after running a promotion for teachers that has gone horribly wrong.
To read more about the implications of advertising and promotion rules and the impact of the California…
LA Sues Seller of “Must-Have” Radish Paste that Falsely Claims to Prevent COVID-19
Last week, the Los Angeles City Attorney’s office filed a civil lawsuit against KNature Co., Inc. d/b/a Insan Healing, Inc. (Insan), a Los Angeles-based herbal remedy retailer, for attempting to pass off an untested radish paste as an immune-boosting, “must-have product for the protection and prevention” of COVID-19.
The product is made from a combination…
The FTC Sends Additional Rounds of Warning Letters Over Health and Earnings Claims Related to Coronavirus
The Federal Trade Commission (“FTC”) announced it has issued twenty-one additional warning letters to marketers throughout the United States for making unsubstantiated claims that their products and therapies can treat or prevent coronavirus (COVID-19). Relatedly, the following day, the FTC announced it has issued ten warning letters to multi-level marketing companies (“MLMs”) to remove or…
April Warning Letter Showers: The FDA Issues Over Twenty Warning Letters to Companies Making Fraudulent Coronavirus Claims
Last month, the U.S. Food and Drug Administration (“FDA”) issued over twenty warning letters to companies located in both the United States and abroad for allegedly selling unapproved products that may violate federal law by making deceptive or scientifically unsupported claims about their ability to treat coronavirus (COVID-19).
The companies subject to the FDA’s warning…
Fash-Shunned: Selena Gomez Sues Fashion App for $10 Million for Allegedly Using Her Name and Likeness Without Permission
This month, actress and singer Selena Gomez filed a lawsuit in California state court against the makers of a fashion smartphone game for allegedly using her name and likeness without permission.
According to the complaint, Gomez claims that the makers of the “Clothes Forever – Styling Game” app, which lets players dress celebrity avatars, “blatantly…