The Bottom Line The FTC continues to take action where it finds that marketers are engaging in misleading incentivized product review practices or enrolling customers in deceptive “free trial” negative option plans without providing the appropriate disclosures and obtaining the consumer’s Continue Reading
FTC Plans Workshop on ‘Loot Boxes’
The Bottom Line A strong push has come forth from the likes of Senator Hassan, other legislators, the FTC and consumer lawsuits regarding consumer protection issues related to “loot boxes” in video games. This year may see efforts at regulating loot boxes move forward to the extent they have not Continue Reading
Video Social Networking App Agrees to Pay $5.7 Million to Settle FTC’s COPPA Action
The Bottom Line The sheer size of the Musical.ly settlement illustrates that the FTC continues to have a strong interest in enforcing COPPA. Online services cannot hide behind language in their terms and conditions claiming not to be child-directed when they include numerous activities that Continue Reading
FTC Brings First Action Against Company for Posting Fake Reviews
The Bottom Line It should come as no surprise to companies that they should not be purchasing or posting fake reviews of their products as a way to improve sales to customers. The action against Cure Encapsulations and its owner shows that the FTC is interested in taking action to halt the Continue Reading
FTC and FDA Sent Warning Letters to Companies Advertising Products that Claim Treatment of Disease
The Bottom Line The FTC and FDA are aggressively reviewing companies’ websites and social media channels for false or unsubstantiated health claims and efficacy claims. Advertisements on company websites and in social media posts must avoid false or unsubstantiated health claims, and efficacy Continue Reading
New York and Florida AGs Settle Charges with Seller of Fake Social Media Accounts and Engagements
The Bottom Line Brands, marketers, and their agencies typically have the most to lose due to fraudulent social media traffic, in the form of wasted marketing dollars spent appealing to non-existent users. However, these settlements made clear that such practices also harm consumers and social Continue Reading
Mastercard Announces New Free Trial Rules for Merchants
The Bottom Line Companies that engage in negative option and subscription-based marketing must comply with various federal and state laws governing their practices. The proposed Mastercard rules will add another set of requirements to this compliance landscape. Marketers should prepare to comply Continue Reading
The FTC’s “Reasonable Basis” Standard Has Evolved for Disease Efficacy Claims
The Bottom Line The FTC made it clear many times in 2018 that disease efficacy claims must be supported by competent and reliable scientific evidence, including human clinical testing, and that expert opinions will help guide the kind of human clinical testing and the number of RCTs that is Continue Reading
Celebrity Endorsers of Initial Coin Offerings Settle with Securities and Exchange Commission
The Bottom Line Celebrities not only need to comply with the FTC Endorsement Guides but also need to comply with the SEC’s disclosure rules when endorsing ICOs, or risk facing charges similar to those brought against Khaled and Mayweather.These recent charges reflect the SEC’s concern around the Continue Reading