FTC

Feb 20 2021

Dietary Supplement Executive Sentenced in Alleged Fraud Scheme

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…

Nov 23 2020

How to Comply With UK Endorsement Guide and Online Review Compliance Standards

Social media endorsements: being transparent with your followers Influencer marketing and review websites have attracted a great deal of attention recently by states and federal regulatory agencies, including the FTC.  The FTC’s Endorsement Guides addresses the application of Section 5 of the FTC Act to the use of endorsements and testimonials in advertising. The FTC Endorsement Guides suggest…

Nov 7 2020

FTC Settlement of Fake Review Campaign Illustrates Agency Recognition of Litigation Risk Under FTC Act

As blogged about here and here, brands and intermediary agencies that they do business with are expected to train and monitor endorsers, utilize written social media policies, take appropriate remedial action and document all efforts to implement preventative advertising compliance measures, including those designed to ensure the clear and conspicuous disclosure of material  connections between advertisers and…

Nov 4 2020

FTC Urges Congress to Restore Section 13(b) of the FTC Act and Resurrect Penalty Offense Authority

As blogged about here, the FTC’s authority to seek monetary disgorgement relief from defendants in federal court is under assault.  Consequently, all five FTC Commissioners have recently forwarded a letter to the Chairs and Ranking Minority members of the Senate Commerce and House Energy & Commerce Committees urging the Committees to pass legislation that would…

Oct 18 2020

FTC Update: SCOTUS to Decide Agency’s Monetary Restitution Enforcement Authority

The Supreme Court has started its new term.  FTC defense practitioners are watching closely as the Court is considering issues that may dramatically impact FTC CID investigations and enforcement actions, particularly whether Section 13(b) of the FTC Act impliedly authorizes courts to award the FTC equitable monetary relief. The Supreme Court Has Already Limited Disgorgement…

Oct 11 2020

Is Your Conduct a Violation of the Consumer Review Fairness Act?

The Consumer Review Fairness Act passed both houses of Congress unanimously in December 2016.  It has been effective since March 2017. The CFRA generally makes provisions of form contracts between sellers and individual consumers void from inception if the provisions: (i) prohibit or restrict individuals from reviewing sellers’ goods, services, or conduct; (ii) impose penalties…