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
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
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
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
Jason Gordon and Andrew Levad published an article in Law360 this week titled, “6 Advertising Law Trends To Watch In 2019.” A copy of the article is available here. You may also view a PDF copy of the article here.… Continue Reading
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
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
Effective January 1, 2019, a new Vermont law imposes data security and annual disclosure obligations on data brokerage companies (e.g., Acxiom, Experian, Epsilon). The law requires data brokers to register annually with the Vermont Attorney General and pay an annual registration fee. Data brokers must disclose annually to the State Attorney General, among other things, information … Continue Reading
In a recent false advertising case, the court reminded everyone again that if you say something about your product, you had better mean it. Emson, which sells cookware products largely through direct response television spots, brought a false advertising claim against Masterpan and Smart & Eazy Corp. (“S&E”). According to Emson, both defendants made false … Continue Reading
PR firm Creaxion Corporation and Inside Publications, LLC settled with the Federal Trade Commission (FTC) this week regarding promotional practices for Creaxion’s mosquito repellent. In its complaint, the FTC alleged that Creaxion planned a media campaign around its launch of the mosquito repellent during the Zika virus outbreak tied to the 2016 Summer Olympics. They … Continue Reading
Last month, a class-action lawsuit was filed in federal court alleging that Kind, LLC (“Kind”) deceptively advertises certain Kind bars and fruit packets. Specifically, the plaintiffs allege that Kind uses images of fruit on its products, and employs fruit sounding names, when the products do not contain whole fruit (e.g., the product containing mango, apple … Continue Reading
Last month, the Federal Trade Commission (“FTC”) approved a final consent order settling deceptive advertising charges against Mikey & Momo, Inc. and its owners regarding claims that its Aromaflage sprays and candles effectively repel mosquitoes, including mosquitoes that may be carrying the Zika virus and other diseases. According to the FTC’s complaint, Mikey & Momo … Continue Reading
Over 430,000 consumers, who purchased and deposited money on NetSpend Corporation (“NetSpend”) prepaid debit cards will receive refund checks from the Federal Trade Commission (“FTC”), totalling more than $10,000,000 as part of NetSpend’s settlement with the FTC. In November 2016, the FTC charged NetSpend with violations of the FTC Act alleging NetSpend deceptively advertised that: … Continue Reading
The National Advertising Division of the Better Business Bureau (“NAD”) recently announced updates to its procedures. The change was announced by the Director of the NAD, Laura Brett, at the NAD’s Annual Conference and is the self-regulatory body’s response to a recommendation from the ABA Antitrust Section’s Working Group. The new procedural process is codified … Continue Reading
Last week, the FTC brought its first action against a company marketing and selling intravenously injected therapy products, or “iV Cocktails” as they are often called. In its Press Release, the FTC announced that it reached a settlement with A&O Enterprises Inc., d/b/a iV Bars, and its individual owner/operator, that prohibits iV Bars from making … Continue Reading
Several women and the Communications Workers of America have brought an Equal Employment Opportunity Commission (EEOC) complaint against Facebook and 10 employers who advertise on the social network, alleging that the companies are in violation of laws prohibiting sex-based job discrimination. By allowing employers to target job ads based on gender and seek only men … Continue Reading
Please join us for a complimentary webinar hosted by the Association of National Advertisers on the current issues related to influencer marketing, for industry experts. Jason Gordon, partner in the Entertainment & Media Group at Reed Smith, and Jennifer MacDougall, VP, associate general counsel and assistant corporate secretary & ethics officer at Jack in the … Continue Reading
The Federal Trade Commission (“FTC”) recently approved final revisions to its Jewelry Guides (formally, the “Guides for the Jewelry, Precious Metals, and Pewter Industries,” the “Guides”), aimed at helping prevent deception in jewelry marketing. Based on the overall record of FTC review over the past six (6) years, the FTC has approved revisions to the … Continue Reading
On July 19, 2018, it was announced that Operation Troop Aid (“OTA”) entered into a settlement with multiple states, including California, Delaware, New York, Pennsylvania, Virginia and Washington, for participating in an unlawful charitable commercial co-venture with Harris Originals of NY, Inc. (“Harris Jewelry”) a nationwide jewelry retailer for military personnel. In its simplest form, … Continue Reading
Operators of a get-rich-quick scheme have agreed to a permanent ban on the marketing or selling of certain types of software as part of a settlement with the Federal Trade Commission (“FTC”) over allegations that the defendants deceived consumers by falsely claiming consumers could earn large sums of money working online utilizing the defendant’s products. … Continue Reading
Apparently even the Food and Drug Administration (FDA) is on board with ‘90s nostalgia. This week, the agency effectively rebooted the nearly 20-year-old debate on whether alternative milk and plant-based drink products should fall within the definition of “milk”. The FDA governs the proper labeling of foods, including ensuring that foods conform to a certain … Continue Reading
The Federal Trade Commission (FTC) has been granted a temporary restraining order barring several online marketers from engaging in allegedly deceptive sales practices in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). The FTC’s complaint against Triangle Media Corporation, Jasper Rain Marketing LLC, Hardwire Interactive Inc., and Brian Phillips, the … Continue Reading
The Federal Trade Commission (“FTC”) approved a final consent order against Telomerase Activation Sciences, Inc. and Noel Patton (collectively, “TA Sciences”) following allegations that TA Sciences made certain substantiated claims regarding its supplement and topical serum products. FTC alleged that TA Sciences lacked sufficient evidence to support its health-benefit claims, including claims that its products … Continue Reading
Social media influencers are constantly competing for likes, partnerships, and ways to differentiate themselves from others. A surefire way to distinguish oneself in the ever-growing sea of social influencers? Being a robot. Computer generated social media influencers like Lil’ Miquela and Shudu have racked up millions of Instagram followers and likes and have secured several … Continue Reading
