FTC

FTC Announces More Aggressive Use of ROSCA to Obtain Monetary Relief

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

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

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…

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…

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…

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…