On April 13, 2023, the Federal Trade Commission (FTC) used its penalty offense authority to issue Notices to approximately 670 advertisers, warning that the FTC will not hesitate to use its authority to target those who cannot substantiate their claims, with large civil penalties of up to $50,120 per violation. The Notice does not suggest
Have Something to Add? The NAD Updates Evidentiary Procedures
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
FTC Takes Action against “iV Cocktails”
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
FTC Sends Warning Letters to Companies Making Zika Virus-Protection Claims
Last Friday, the Federal Trade Commission (“FTC”) sent warning letters to ten online marketers that were making Zika virus-protection claims. The Center for Disease Control believes that the Zika virus is spread primarily through the bite of infected Aedes species mosquitoes. The marketers in focus are currently advertising that their products repel Zika virus-carrying mosquitoes.
ASA delivers knock-out blow to UK mobile network
The Advertising Standards Authority (ASA) has ruled that Three’s Muppet-themed ad, featuring a character victoriously punching into the air, which claimed that the mobile company was the ‘undisputed’ market leader in terms of network reliability, can no longer be shown in its current form.
In addition to a complaint made by a member of the
ASA Administers First Aid Ad Ban
In a rare move, the ASA overturned at the end of last year its previous decision to reject a complaint about the accuracy of data used in a St John Ambulance ad, and has banned the ad in its current form, after an independent review. The ad (watch it here) was the 10th
Happy Days? Making Health Claims in Advertisements
Several ASA adjudications in recent months have highlighted the difficulties for advertisers in making any health claims about their products. The ASA have come down hard on those that fall foul of the CAP and BCAP Codes which require that, in relation specifically to health claims, advertisers must have evidentiary substantiation of any health claims made in advertisements, by way of documented scientific trials or otherwise. See our Ad Guide to Making Health Claims in Advertising for more detail.
The adjudications demonstrate that, despite the potential profitability in making health claims about their products, it is most probably not worth doing so if advertisers are unable to substantiate such claims when questioned.Continue Reading Happy Days? Making Health Claims in Advertisements