Advertising and Marketing
FTC Alleges Facebook Resorted to Illegal Buy-or-Bury Scheme to Crush Competition
By Richard B. Newman |
On August 19, 2021, the Federal Trade Commission filed an amended complaint against Facebook in the agency’s ongoing federal antitrust case. The complaint alleges that after repeated failed attempts to develop innovative mobile features for its network, Facebook instead resorted to an illegal buy-or-bury scheme to maintain its dominance. According to the FTC, Facebook unlawfully acquired innovative…
FTC Announces More Aggressive Use of ROSCA to Obtain Monetary Relief
By Richard B. Newman |
On June 7, 2021, the Federal Trade Commission (FTC) announced a proposed settlement with MoviePass. Interestingly, FTC staff attorneys used the used the proposed settlement to announce a completely new and original way of obtaining monetary relief. The case raises legitimate concerns for digital marketers that offer negative option programs because it indicates that the FTC now…
Advertising Claim Substantiation Mistakes Made by Internet Marketers
By Richard B. Newman |
The Federal Trade Commission requires advertisers to possess a “reasonable basis” for express and implied claims. The failure to do so constitutes an unfair and deceptive act or practice in violation of Section 5 of the FTC Act. Substantiation is a key FTC enforcement priority. Advertisers should be intimately familiar with FTC substantiation investigation and…
U.S. Supreme Court Halts FTC’s Ability to Obtain Ill-Gotten Gains
By Richard B. Newman |
On April 21, 2020 in the matter of AMG Capital Management, the U.S. Supreme Court effectively made it more difficult for the Federal Trade Commission to force those that engage in deceptive business practices to return ill-gotten gains obtained from consumers. The unanimous ruling was written by Justice Stephen Breyer and is a victory of…
CFPB Rescinds “Abusive” Policy Foreshadowing More Aggressive Enforcement
By Richard B. Newman |
The Consumer Financial Protection Bureau recently announced its intention to rescind its 2020 “abusive acts and practices” policy statement. The CFPB’s authority to prevent such practices stems from the Dodd-Frank Act, which also created the CFPB. In 2020, the CFPB set forth narrow principles that should be considered when applying its “abusive” authority. The first,…
Dietary Supplement Executive Sentenced in Alleged Fraud Scheme
By Richard B. Newman |
On February 19, 2021, the U.S. Department of Justice announced that a federal court in Texas sentenced a former dietary supplement company executive to prison for his role in fraudulently selling popular workout supplements. A U.S. District Judge sentenced the former corporate vice president to 41 months’ imprisonment and one year of supervised release. The…