FTC
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…
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…
How to Comply With UK Endorsement Guide and Online Review Compliance Standards
By Richard B. Newman |
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
By Richard B. Newman |
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…
FTC Urges Congress to Restore Section 13(b) of the FTC Act and Resurrect Penalty Offense Authority
By Richard B. Newman |
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…