News & Analysis as of

Misrepresentation Disclosure Requirements

Mayer Brown

The Misrepresentation of Moths – Lessons from a Yarn

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It is the stuff of nightmares. Dr Yevhen Hunyak, described by the Judge in the case as "a cautious person", and Iya Patarkatsishivili were careful to visit their prospective home more than half a dozen times between Spring...more

DLA Piper

ASA Rulings Summary, 13 November 2024 - investment tipples and risqué posters

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In recent rulings we have seen the ASA: (i) issue multiple rulings on the advertising of unregulated investments and (ii) reinforce its stance on gender stereotyping and sexual imagery in ads. The ASA has recently been taking...more

Wiley Rein LLP

FTC Announces Rule on “Junk Fees” and Pricing Disclosures in Certain Industries

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On December 17, 2024, the Federal Trade Commission (FTC or Commission) released its final Trade Regulation Rule on Unfair or Deceptive Fees, also called the “Junk Fees Rule” by the Commission. For companies involved in...more

Davis Wright Tremaine LLP

FTC Issues FAQs To Clarify Recently Finalized Rule on the Use of Consumer Reviews and Testimonials

Earlier this month, the Federal Trade Commission (FTC) issued guidance in the form of FAQs on its recently finalized Rule on the Use of Consumer Reviews and Testimonials (the "Rule"), which Rule took effect on October 21,...more

BCLP

Are You Preparing to Comply with the FTC “Click-to-Cancel” Rule?

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The Federal Trade Commission (FTC) published its final “Click-to-Cancel” Rule in the Federal Register on November 15, 2024, meaning that companies should ensure that they comply with the rule’s requirements within the next...more

Jones Day

SEC's and Private Litigants' Continued Focus on "AI Washing"

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On September 4, 2024, U.S. Securities and Exchange Commission ("SEC") Chair Gary Gensler reiterated concerns about artificial intelligence-related ("AI") disclosures and the need for companies to communicate accurately about...more

Hinch Newman LLP

FTC Announces Final “Click-to-Cancel” Recurring Subscriptions and Memberships Rule

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On October 16, 2024, the Federal Trade Commission announced a final “click-to-cancel” rule that will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign-up. Most of the final rule’s...more

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

Fox Rothschild LLP

Federal Court Will Hear Auto Dealers Challenge to New FTC Regulations

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On Oct. 7, the 5th Circuit Court of Appeals will hear arguments in a case that could significantly reshape how auto dealerships operate. The National Automobile Dealers Association is arguing that the Federal Trade...more

Holland & Knight LLP

Novel Settlement Reached in Generative AI Deceptive Trade Practices Healthcare Investigation

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The state of Texas, by and through its Attorney General Ken Paxton, reached a first-of-its-kind settlement agreement with Pieces Technologies Inc. (Pieces) following an investigation into Pieces' alleged violations of the...more

Husch Blackwell LLP

Texas Attorney General Reaches Generative AI Settlement

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Keypoint: The Texas Attorney General reaches a first-of-its-kind settlement with a healthcare company that provides generative AI products. On September 18, 2024, the Texas Attorney General announced that it had reached a...more

Akin Gump Strauss Hauer & Feld LLP

Cybersecurity After SolarWinds: Practical Guidance for CISOs Under the New Rules

Judge Engelmayer’s 107-page dismissal of most of the U.S. Securities and Exchange Commission (SEC)’s claims against SolarWinds provides valuable guidance, and some comfort, for public companies and Chief Information Security...more

Hinch Newman LLP

FTC Announces Final Rule Banning Fake and False Consumer Reviews and Testimonials

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On August 14, 2024, the Federal Trade Commission announced a Final Rule combatting bogus consumer reviews and testimonials by prohibiting their sale or purchase. The Rule allows FTC lawyers to strengthen enforcement, seek...more

Bradley Arant Boult Cummings LLP

FHA Changes its Defect Taxonomy for Originators and Services

Over the past month, the Federal Housing Administration (FHA) has enacted and proposed several changes to its Defect Taxonomy. The Defect Taxonomy is contained in Appendix 8 to FHA Handbook 4000.1. The Defect Taxonomy was...more

Hinch Newman LLP

1MM FTC Settlement With Online Used Car Dealer Over Alleged Misrepresentations and Failing to Deliver on Time

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On July 2, 2024 the Federal Trade Commission announced that it initiated action against online used car dealer Vroom for allegedly misrepresenting that it thoroughly examined all vehicles before listing them for sale and...more

Holland & Knight LLP

SEC Cyber Enforcement Update: Which Way Are the SolarWinds Blowing?

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The SEC has been aggressively pursuing cybersecurity investigations and enforcement actions against public companies and foreign private issuers. In these actions, the SEC often alleges one of two theories: 1) that the...more

BCLP

The Supreme Court Considers Item 303 Violations as Basis for Securities Fraud Claims

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Corporate executives know they must disclose in their companies’ financial statements trends or uncertainties affecting their business. Such disclosure is a requirement of Item 303 of SEC Regulation S-K....more

Husch Blackwell LLP

FTC Finalizes—and Then Pauses—CARS Rule Impacting Dealers, Auto Finance Companies

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On December 12, 2023, the Federal Trade Commission (FTC) announced it has finalized the Combating Auto Retail Scams Rule (CARS Rule), which imposes various obligations affecting dealers’ sales practices and will also impact...more

Cozen O'Connor

One Year with the Listed Issuer Financing Exemption

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It has been one year since the Canadian Securities Administrators (the CSA) introduced the listed issuer financing exemption (the LIFE Exemption) under Part 5A of National Instrument 45-106 Prospectus Exemptions, which is...more

Kohn, Kohn & Colapinto LLP

Using Whistleblower Laws to Hold Polluters Accountable

Global political and business leaders have purported ambitious climate-focused goals for the decades ahead, such as eliminating landfill waste by 2030, transitioning to 100% renewable energy use by 2035, and achieving...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - November 2023

...SEC Adopts Amendments to Fund Names Rule - On September 20, 2023, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Rule 35d-1 under the Investment Company Act of 1940 (the Fund Names Rule) as well...more

Kohn, Kohn & Colapinto LLP

SEC Issues Record Penalty for ESG Greenwashing Violations

In recent years, the U.S. Securities and Exchange Commission (SEC) has increasingly made Environmental, Social, and Governance (ESG) issues a central element of the agency’s enforcement priorities and on September 25, the...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

Latham & Watkins LLP

Greenwashing: Key Drivers, Risks, Enforcement, and Litigation

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LIDW23 member-hosted event provided insights into current and future trends in the greenwashing space. Latham & Watkins recently hosted a panel discussion during London International Disputes Week on the topic of...more

Nutter McClennen & Fish LLP

M&A in Brief: Q2 2023

Chancery Court Provides Additional Guidance on Disclosure Requirements for Corwin Analysis - One of the most significant decisions of the Delaware Chancery Court in the last 15 years was the court’s ruling in Corwin v....more

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