The Bottom Line Effective immediately, the SAG-AFTRA Commercials Contract has been modified to include a waiver allowing for "free bargaining" of economic terms for digital productions with a budget of $50,000 and under. A mid-contract waiver of this magnitude is rare and signals a clear Continue Reading
FTC Settles with Mobile App Developer Over Unauthorized Charges
The Bottom Line The Pact case demonstrates that marketers can incur liability even when consumers affirmatively agree to be charged on a recurring basis. Unlike other negative option cases, there is no allegation here that consumers did not knowingly enter into a continuity plan – on the contrary, Continue Reading
FTC Charges Online Negative Option Marketing Scheme with Deceiving Shoppers
The Bottom Line The FTC’s complaint, and the district court’s response, highlight the continuing regulatory scrutiny into negative option marketing practices and the importance of disclosing the material terms of an offer in a clear and conspicuous manner to consumers before they pay or incur a Continue Reading
Local Challenges to Automatic Renewal Programs Continue in California: Now, the Beachbody Case
The Bottom Line As the Beachbody case illustrates, businesses must clearly disclose to consumers the terms of auto-renewal programs and should obtain their express, affirmative consent before collecting any payments. Many states, as well as the federal government, have laws that address this Continue Reading
First Circuit Requires Identifiable Injury for Claims Asserting Deceptive Retailer “Compare At” Prices
The Bottom Line Recent decisions from the First Circuit reign in consumers' ability to bring actions alleging false advertising in retailers' "Compare At" pricing, unless a consumer can demonstrate actual, identifiable harm separate from the mere purchase of a good in order to claim damages. Continue Reading
FTC Brings First Ever Enforcement Action Against Individual Social Media Influencers; Updates Warnings and Guidance for Influencers and Marketers
The Bottom Line The FTC’s action against Martin and Cassell and the new round of FTC warning letters make clear that the FTC will bring actions against influencers who violate the Endorsement Guides. Consequently, all parties involved in influencer marketing, from marketers, agencies, influencer Continue Reading
FTC Reviews Rules, including CAN-SPAM, to Keep Pace with Changing Times
The Bottom Line The FTC has announced its plans to review the Picture Tube Rule, the Textile Rules, the Energy Labeling Rule and the CAN-SPAM Rule. These rules aim to protect consumers while promoting healthy competition between businesses. The FTC's regulatory review is part of its ongoing effort Continue Reading
Instagram Adds Paid Partnership Tool for Transparency
The Bottom Line The new Instagram branded content tool is intended to provide greater transparency in the social media space by disclosing relationships between influencers and brands.Implementing this tool appears to be Instagram’s response to the FTC’s growing concern about paid endorsements on Continue Reading
Trampoline Sellers Settle FTC Charges Over Alleged Fake Logos, Websites and Reviews
The Bottom Line As evidenced by the FTC's action against the Le brothers, companies should not use fake review sites or misleading third-party endorsements or seals to sell their products or disparage competing products.Instead, they should clearly and conspicuously disclose material connections Continue Reading
Amazon, FTC Withdraw Appeal of Decision Holding Amazon Liable for Billing Parents for Children’s Unauthorized In-App Charges
The Bottom Line The district court's decision, no longer subject to appeal, is a clear statement that the unauthorized billing of parents for in-app purchases made by their children without informed parental consent violates the FTC Act. This case serves as a reminder that companies need to ensure Continue Reading