The Bottom Line As the FTC appears focused on seeking monetary penalties in response to product claims, brands and marketers should ensure that their practices are lawful.While a response to a Notice of Penalty Offenses is not required by the FTC, any entity receiving such notice should conduct a Continue Reading
Faced with Increasing Pressure, Roblox Adopts New Advertising Standards
The Bottom Line Brands are restricted from showing advertising content to Roblox users under 13 years old and must use the platform’s PolicyService API to ensure only users aged 13 or older can view their advertising content.Brands should consult with legal counsel if they are unsure whether Continue Reading
What’s the Harm? Second Circuit Requires Proof of Irreparable Harm to Enjoin Restrictive Covenant Violations
The Bottom Line When companies seek a court injunction for a restrictive covenant violation, they often focus on the covenant’s enforceability. They do this by arguing that the non-compete and customer non-solicitation covenants protect legitimate business interests — and is narrowly tailored Continue Reading
Court Rules New York City’s ‘Guaranty Law’ is Unconstitutional
The Bottom Line The Guaranty Law provided protection to personal guarantors of commercial leases in New York City. However, a New York federal court decided on March 31, 2023, that the Guaranty Law violates the U.S. Constitution’s Contracts Clause.Commercial landlords and tenants in New York City Continue Reading
Iowa Becomes the 6th State to Pass Comprehensive Consumer Privacy Legislation
The Bottom Line Iowa has become the sixth state to enact a comprehensive privacy law, but certainly will not be the last.Similar to Utah’s forthcoming law, Iowa’s statute has many features that are more business-friendly than the laws in California, Virginia, Colorado and Connecticut. Not to Continue Reading
The Risks and Rewards of Generative AI
From generating sophisticated music, artwork, text and video to having a conversation, passing complex standardized tests and, even, as one hapless New York Times journalist chronicled in a now-viral article, professing love for humans, “generative AI” is revolutionizing the way that we create and Continue Reading
From Record Clubs to Retail Subscriptions: FTC Proposes Significant Expansion of Negative Option Rule
The Bottom Line Negative option offers – such as prenotification plans, continuity programs, automatic renewals and free-to-pay conversions – allow a seller to interpret a customer’s silence, or failure to take an affirmative action, as acceptance of an offer. The FTC created the Negative Continue Reading
The SEC Takes on Lindsay Lohan, Jake Paul and Six Other Celebrities Over Paid Crypto Posts
The Bottom Line The SEC is continuing to make good on its repeated warnings that it will aggressively enforce Section 17(b) of the Securities Act against influencers, including mainstream celebrities, who fail to disclose the nature, scope and amount of compensation received in exchange for their Continue Reading
Utah’s First-of-its-Kind Social Media Laws Impose Sweeping Protections for Kids and Teens
The Bottom Line Two new Utah laws will require social media companies to get parental consent for all users under 18, re-verify the age of existing users, prohibit advertising to such minors, and more.These onerous requirements may lead social media companies to avoid Utah altogether. Both Continue Reading
It Could Happen Again: What to Know If There is Another Bank Failure
Prompted by the collapse of Silicon Valley Bank (SVB) on March 10, 2023, depositor fear has spread to thousands of other regional and community banks across the nation, despite extraordinary measures taken by the federal government to stabilize the U.S. banking system. Should additional Continue Reading