Archives: Industry

Subscribe to Industry RSS Feed

FTC Settles Case For $25 Million With Dietary Supplement Sellers Over Cognitive Claims

Last month, the Federal Trade Commission (“FTC”) settled charges against 12 companies who deceptively marketed “cognitive improvement” supplements by using sham news websites containing false and unsubstantiated efficacy claims, referencing non-existent clinical studies, and advertising fraudulent consumer and celebrity endorsements. According to the FTC’s complaint, the defendants falsely claimed that their dietary supplements could enhance … Continue Reading

iSpring Water Settles Case With FTC For “Made In The USA” Claims

The Federal Trade Commission (“FTC”) announced that it reached a settlement with iSpring Water Systems, LLC for allegedly making false claims that its wholly imported Chinese water filtration systems were made in the U.S.A – in violation of a 2017 FTC consent order. In 2017, the company made certain claims that its water filtration systems … Continue Reading

New York AG Declares War on Fake Followers, Likes, and Online Deception

Earlier this year, the New York Attorney General reached a “precedent-setting” settlement with Devumi LLC, a third-party website, over its sale of fake followers, “likes,” and views to customers on all major social media platforms. Devumi utilized computer-operated “bot” accounts and “sock-puppet accounts” (where an online user pretends to be one or many other people) … Continue Reading

The FTC “Intravenes:” Final Consent Order Approved Against iV Cocktails

Last month, the Federal Trade Commission (“FTC”) approved a final consent order settling deceptive advertising charges against A&O Enterprises, Inc., d/b/a iV Bars regarding deceptive and unsupported health claims that iV Bars’ intravenously injected therapy products, or “iV Cocktails,” can safely and effectively prevent and treat such serious diseases as cancer, multiple sclerosis, and cardiovascular … Continue Reading

The FTC Takes a Bite out of Free Trials and Incentivized Reviews

This month, the Federal Trade Commission (“FTC”) announced a settlement with San Francisco-based food delivery service UrthBox, Inc. and its principal, Behnam Behrouzi, regarding the company’s failure to adequately disclose key terms of its “free trial” automatic renewal programs and its misrepresentation of customer reviews. According to the FTC’s complaint, from October 2016 to November … Continue Reading

2019 SAG-AFTRA Commercials Contracts MOAs Breathe New Life into Decades-Old Contract

The Joint Policy Committee, LLC (“JPC”) reached an agreement with the Screen Actors Guild-American Federation of Television and Radio Artists (“SAG-AFTRA”) on the 2019 Commercials Contract and Audio Commercials Contract on April 2, 2019. The deal, led by Reed Smith partner and Chief Negotiator, Stacy Marcus, now moves into its next stages and will be … Continue Reading

Reed Smith to Lead the ANA’s newly formed, Trust Consortium

On March 19, 2019 the Association of National Advertisers (ANA) launched the Trust Consortium. A copy of the press release can be found here. The ANA Trust Consortium is an alliance among ANA members and their partners and a voice for brands on transparency, measurement, auditing, digital fraud, brand safety, and more through ongoing reporting … Continue Reading

FTC Continues Enforcement Actions To Stop Deceptive Free-Trial And Negative Option Schemes

The Federal Trade Commission (“FTC”) recently filed another case in a series of recent enforcement actions targeting allegedly deceptive online “free-trial” offers that tricked consumers into enrolling in negative option plans. The FTC charged Gopalkrishna Pai and eight (8) companies he owns and operates as a common enterprise with violating the FTC Act and the … Continue Reading

FTC Stops Fake Job Opportunity And Resume Repair Operation

The Federal Trade Commission (“FTC”) recently charged two companies, Worldwide Executive Job Search Solutions, LLC and PrivateEquityHeadhunters.com and their owner Craig Chrest with violating the FTC Act and the FTC’s Telemarketing Sales Rule and swindling hundreds of thousands of dollars annually from consumers for fake job placement and resume repair services. At the FTC’s request … Continue Reading

NAD Refers Advertising Claims Made By Mattress Maker To FTC

The National Advertising Division of the Better Business Bureau (“NAD”), the investigative unit of the advertising industry’s system of self-regulation, recently referred advertising claims made by Nectar Sleep, LLC for its Nectar Mattress to the Federal Trade Commission (“FTC”) after Nectar Sleep failed to respond to the NAD’s request to provide substantiation for its claims. … Continue Reading

Join Reed Smith at the 2019 ANA Advertising Law & Public Policy Conference

On March 19-20, 2019, the Association of National Advertisers will be holding its annual Advertising Law & Public Policy Conference. This year’s conference will feature the best legal minds in the business and top regulators at the federal and state level who will be providing best practices, strategies, and tactics to counteract the current state … Continue Reading

Denver Club “Stripped” Carmen Electra and Others of Compensation, Suit Says

Carmen Electra, joined by models Dessie Mitcheson and Lucy Pinder, sued a Colorado strip club over the club’s allegedly unauthorized use of its photographs on its website and social media in late January of this year. The aggrieved trio claims that the Denver club “Shotgun Willie’s” posted photos of the models in online advertisements for … Continue Reading

“Fiji Water Girl” Made Waves But Got Soaked, Alleges New Lawsuit

Model and meme icon Kelleth Cuthbert (real name Kelly Steinbach) became an overnight sensation as “Fiji Water Girl” after photobombing celebrities on the Golden Globes red carpet in January. Now, she is seeking to recover against Fiji Water Company and its parent company, The Wonderful Company, for allegedly misappropriating her likeness and violating her right … Continue Reading

Model Misbehavior? Gigi Hadid Faces Copyright Suit Over Instagram Post

Gigi Hadid found herself sued for copyright infringement by New York photo agency Xclusive-Lee, Inc. over a photo the fashion model posted to her Instagram account. The disputed photo was of Hadid herself, smiling at the camera while wearing a blue denim jacket and matching shorts with silver heels, and was snapped by paparazzi. Xclusive-Lee … Continue Reading

Webinar: What You Need to Know About Auto-Renewal Provisions in 2019

Jillian Petrera and Bretta Oluyede will be speaking on Tuesday, March 12th to the Association of National Advertisers. The free one-hour webinar, titled “What You Need to Know About Auto-Renewal Provisions in 2019” will explore the legal requirements for utilizing automatic renewals under the patchwork of federal and state laws and provide you with tools to mitigate … Continue Reading

Federal Court Tosses False Advertising Suit Against Trader Joe’s Alkaline Water

A California federal court granted Trader Joe’s motion to dismiss a false advertising lawsuit with regards to Trader Joe’s alkaline water, finding that all but one of plaintiff’s claims were non-actionable puffery, and granting plaintiff leave to amend the single remaining claim. Plaintiff alleged that Trader Joe’s alkaline water product labelling, which included numerous plus … Continue Reading

Douglas Wood, Reed Smith Partner and General Counsel to the Association of National Advertisers, Discusses Growth Issues Facing Brands For 2019

Douglas Wood published an article for the Association of National Advertisers on January 2nd titled “Growth in 2019: A Legal Perspective.” In the article, Doug discusses how legal issues will affect brands and growth in years to come and provides an outlook on legal challenges marketers who care about growth need to keep in mind … Continue Reading

Federal Court Tosses TCPA Suit Over Hotel Booking Text Messages

A California federal court granted Singapore-based hotel booking firm Agoda Company Pte. Ltd.’s (“Agoda”) motion for summary judgment in a case involving alleged violations of the Telephone Consumer Protection Act (“TCPA”). The plaintiff alleged that the confirmation text he received after booking travel on Agoda’s website [“Good news! Your Agoda booking [number] is confirmed. Manage … Continue Reading

Federal Court Tosses False Advertising Suit Over Angie’s List Rankings

A Kansas federal court granted Angie’s List’s motion to dismiss a class action lawsuit alleging false advertising, finding that most of plaintiff’s claims were time-barred and the rest were not properly pled. The owner of a tree trimming business spent over $200,000 in advertising on Angie’s List from 2005 and 2013. According to the plaintiff, … Continue Reading

Litigation in the Forecast for Weather Channel App

On January 3, the city of Los Angeles accused TWC Product and Technology, LLC (“TWC”) (an International Business Machines Corporation subsidiary) of violating millions of American consumers’ privacy. In the civil lawsuit, Los Angeles City Attorney Michael Feuer alleged TWC misled users of its Weather Channel app to turn on precise location tracking by suggesting, … Continue Reading

Five Companies Settle Privacy Case With NY AG Over Apps

The New York Attorney General settled cases with five companies – Equifax, Western Union, Priceline.com, Spark Network and Credit Sesame – for having mobile apps that failed to keep sensitive user data secure when transmitted over the Internet. The companies’ mobile apps suffered from a well-known security vulnerability that could have allowed hackers to intercept … Continue Reading

Washington D.C. Proposes Auto-Renewal Bill

Washington D.C. is seeking to impose new burdens on businesses offering goods and services with automatic renewal provisions. The bill was submitted to the Mayor’s office, and we expect a response around January 14, 2019. If passed, the bill would require businesses to disclose the automatic renewal provisions and cancellation procedure in contracts with consumers. … Continue Reading

Ready Tech Settles Privacy Shield Case with FTC

Late last year, the Federal Trade Commission (“FTC”) settled another enforcement action over false claims under the EU-U.S. Privacy Shield framework (the “Privacy Shield”). The FTC alleges that Ready Tech Corporation, a provider of online and instructor led training (“Ready-Tech”), falsely claimed in its privacy policy on its website that it was in the process … Continue Reading
LexBlog