News & Analysis as of

Misleading Statements FTC Act

Hinch Newman LLP

What Digital Marketers and Influencers Need to Know About the FTC Final Rule Banning Fake Consumer Reviews and Testimonials

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As previously blogged about here, following notices of proposed rulemaking in 2022 and 2023, on August 22, 2024 the Federal Trade Commission finalized a rule that will impose monetary civil penalties false and misleading...more

Venable LLP

What’s the FTC “Up To?” Arise Virtual Solutions and the Gig Economy

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Last month, in a joint effort with the Department of Labor (DOL), the Federal Trade Commission (FTC) settled an action against Arise Virtual Solutions, Inc. related to charges that the company regularly used misleading...more

Hinch Newman LLP

Ad Agency Liability and the FTC

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Advertising agencies are potentially liable to the Federal Trade Commission for deceptive acts or practices, along with their clients. The FTC will consider numerous factors, including, but not limited to, the extent to...more

Davis Wright Tremaine LLP

Claims Must Be Substantiated — It Seems So Obvious, but the Who, What, Where, and How Is Not Always So Clear

When we talk about advertising claims (e.g., on product labels, websites, social, etc.), we stress that "claims must be truthful, not misleading, and substantiated." The requirements to be "truthful and not misleading" seem...more

Mintz - Antitrust Viewpoints

Indecent Disclosure: FTC Slams Advertisers and Influencers for Failure to Divulge Material Connections

Last June, the Federal Trade Commission (FTC) released its revised Endorsement Guides, the handbook for business practices that may be unfair or deceptive in violation of the FTC Act. The Endorsement Guides had been last...more

Kohrman Jackson & Krantz LLP

Amazon Enacts Policies to Combat Fake Reviews that are Misleading Consumers

The third-party seller marketplace has exploded over recent years, as sales have risen by over 900% from what they were back in 2014. In fact, in 2022, Amazon’s largest revenue segment was online retail product sales with...more

Moritt Hock & Hamroff LLP

Publishers Clearing House: A Cautionary Tale on the Risks of ‘Dark Patterns’ Marketing

Publishers Clearing House (PCH) is well known for surprising major sweepstakes winners with a Prize Patrol knock on their doors. But the recent lawsuit filed by the Federal Trade Commission (FTC) against the company was...more

ArentFox Schiff

Leaked FTC Civil Investigative Demand to OpenAI Provides a Rare Preliminary View of the Future of AI Enforcement

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On July 13, 2023, The Washington Post broke the news that the Federal Trade Commission (FTC) had issued a Civil Investigative Demand (CID) — a sort of a pre-litigation subpoena as part of what is supposed to be a nonpublic...more

Davis Wright Tremaine LLP

In a One, Two, Three Punch, the FTC Issues Updated Endorsement Guides

The lead-up to the July Fourth holiday was a busy time for endorsement and testimonial watchers—the FTC issued (i) its final, updated Guides to the Use of Endorsements and Testimonials in Advertising, (ii) an updated version...more

Wiley Rein LLP

Wiley Consumer Protection Download (June 5, 2023)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Hinch Newman LLP

Advertising Law Alert: FTC Announces New Health Products Compliance Guidance

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In December 2022, the the Federal Trade Commission published new guidance regarding representations about the benefits and safety of health-related products: Health Products Compliance Guidance. Federal Trade Commission...more

Cozen O'Connor

FTC Settles with Online Alcohol Company Drizly Following Data Breach

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The FTC has settled with online alcohol vendor Drizly, LLC and its CEO James Rellas (collectively, “Drizly”), to resolve allegations that Drizly violated the FTC Act by failing to employ reasonable security practices to...more

Cozen O'Connor

FTC Wins Injunction Against Coating Company For Misleading R-Value Claims

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A federal District Court awarded the FTC summary judgment in a lawsuit against F&G International Group Holdings, LLC; FG International, LLC and J. Glenn Davis (collectively, “FG”) that enjoins FG from making deceptive claims...more

Wilson Sonsini Goodrich & Rosati

Gig Economy, Dark Patterns, and Impersonation Scams: FTC Signals Priorities in Open Commission Meeting

On September 15, 2022, the Federal Trade Commission (FTC) held an open Commission meeting that covered three agenda items: 1) a rulemaking on impersonation scams, 2) a policy statement on enforcement related to gig work, and...more

Goodwin

The Federal Deposit Insurance Corporation (FDIC) Issued Guidance Regarding FDIC Insurance and Crypto Assets - August 2022 #2

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FDIC Takes Action Against False or Misleading Crypto-Related Representations - On August 19, the FDIC issued letters (the Letters) to five companies demanding that they cease and desist from making false and misleading...more

Wiley Rein LLP

Wiley Consumer Protection Download (August 8, 2022)

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Regulatory Announcements- FTC Commissioner Phillips Plans to Leave the Agency in the Fall, Per Media Reports. On August 8, several media outlets reported that FTC Commissioner Noah Phillips informed his staff through a memo...more

Venable LLP

Gig Platforms, Wake Up. All Eyes Are Upon You.

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Constant connectivity through smartphones has ushered in a new way for small businesses to connect with potential customers and gig workers looking for flexible employment. The emergence of companies like Uber, GrubHub,...more

International Lawyers Network

Don’t Be Bamboozled by Environmental Benefit Claims

$5.5 Million FTC Settlements for Bamboo Textile and Environmental Benefit Claims Under Penalty Offense Authority - The FTC recently announced that it has reached a $2.5 million settlement with Kohl’s and a $3 million...more

Wiley Rein LLP

Wiley Consumer Protection Download (May 2, 2022)

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Regulatory Announcements- FTC Holds April 2022 Open Commission Meeting and Launches Rulemaking Proceedings on Telemarketing. On April 28, the FTC held a virtual Open Commission Meeting to consider a Notice of Proposed...more

Cozen O'Connor

FTC Fines Warrior Trading for Misleading Day-Trading Customers

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The FTC reached a settlement with online day-trading companies Warrior Trading, Inc. and Warrior Operating, Inc., and the company’s owner and operator (collectively “Warrior”) to resolve allegations that Warrior misled...more

Harris Beach PLLC

FTC Steps Up Enforcement of Allegedly Deceptive Online Review Practices

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\Once a fairly loosely scrutinized space, online reviews have become an area of increased interest to and enforcement by the Federal Trade Commission (FTC). A recent FTC order is particularly telling...more

Cozen O'Connor

FTC Sues Fuel Card Marketer Over Alleged Misleading Marketing And Unexplained Fees

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The Federal Trade Commission (FTC”) filed an administrative complaint against fuel card marketer FleetCor Technologies, Inc. and its CEO (collectively “FleetCor”), alleging that it misled its business customers with...more

Locke Lord LLP

FTC’s New Rule on Made in USA Labels Precludes Advertisers from False and ‎Misleading Statements About ‎Products’ Origin

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On July 1st, the Federal Trade Commission (FTC) issued a new rule to deter what ‎the Commission characterized as “rampant fraud” in the use of Made in USA ‎labels. The effective date of the new rule will be thirty days from...more

Cozen O'Connor

Anti-Discrimination Clarification From CFPB | $110 Million Charity Scam | Deceptive Claims re: CBD Cures

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2022 AG Elections- Kansas Attorney General Eyes Governor’s Mansion- •Kansas AG Derek Schmidt announced his candidacy for the Republican nomination for Governor in 2022. •Schmidt, who first assumed the AG’s office in...more

Orrick, Herrington & Sutcliffe LLP

Pending U.S. Supreme Court Cases May Restrict FTC’s Pursuit of Monetary Relief in Privacy and Cybersecurity Matters

Earlier this month, the U.S. Supreme Court agreed to hear a pair of cases that provide it with the opportunity to severely restrict the Federal Trade Commission’s (“FTC’s”) authority to obtain equitable money relief in...more

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