Update The FTC is postponing the effective date of the CARS Rule while a legal challenge brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association is pending. The trade groups have stated that the rule is “arbitrary, capricious, an abuse of discretion, Continue Reading
Whose Ad is it Anyway? NAD Finds “Sponsored” Insufficient Disclosure of Material Connection in Social Posts
The Bottom Line The FTC recently updated its Endorsement Guides, in part to provide clarity and guidance on sufficient disclosure of material connections (i.e., a connection between the endorser and the seller of an advertised product that might materially affect the weight or credibility of Continue Reading
FTC Names Senior Executives in Suit Against Amazon for Use of “Dark Patterns” in Prime Enrollment Scheme
The Bottom Line While the FTC has named individual defendants in prior cases, the amended complaint shows that the FTC is willing to do so in challenges to large, publicly traded companies.Companies should closely review their consumer experience flows and cancellation policies, to ensure that Continue Reading
Blurred Lines: FTC Report Finds Blurred Advertising Can Harm Kids
The Bottom Line Children and teens are spending a considerable amount of time in immersive environments, where advertising content can be difficult to distinguish from entertainment, educational or other content.Following a wave of recent Children and Teens’ Online Privacy Protection Act (COPPA) Continue Reading
PLI | One-Hour Briefing | “The FTC’s Updates to the Endorsement Guides: What Marketers Need to Know”
Quick Details Date | September 18Location | Webinar Session Overview On June 29, 2023, the FTC announced its newly revised and long-awaited Endorsement Guides, which aim to update and clarify previous guidance regarding the use of endorsements and testimonials in light of market trends Continue Reading
The Deep Dive: FTC Updates Endorsement Guides for Modern Marketing and Advertising
The Bottom Line The FTC has revised its Endorsement Guides to take into account how businesses reach modern consumers in the digital era. Brands, agencies and influencers should revisit their standard policies and practices now to ensure they comply with the FTC’s new guidance.Many commonly used Continue Reading
A Prime Example of Dark Patterns? FTC Sues Amazon for Use of “Dark Patterns” in Prime Enrollment
The Bottom Line: The FTC’s lawsuit is likely to be the first of many alleging the use of “dark patterns” in e-commerce and is instructive as to the specific types of practices the FTC will find deceptive in the future.Against the backdrop of the FTC’s revisions to the Negative Option Rule, the Continue Reading
The Warnings Were Real: FTC Takes Action Against Ed Tech Company for COPPA Violation
The Bottom Line The legal responsibility for complying with COPPA remains with the ed tech provider — not schools, students or parents.Ed tech providers may rely on schools to authorize data collection in lieu of parental consent only if the information collected from children is used solely for Continue Reading
Talking Trash: Takeaways from FTC Workshop on Recyclable Claims
The Bottom Line The FTC is continuing its review of the Green Guides and companies should stay tuned for further updates.The FTC is accepting public comments on "recyclable" claims through June 13, 2023. The FTC is in the process of reviewing – and potentially revising – its Guides for the Continue Reading
FTC Orders The Bountiful Company to Pay $600,000 in Fines in First Case Challenging “Review Hijacking”
The Bottom Line Review hijacking can result in a misperception that consumers have reviewed and endorsed products that they have not actually used. Brands should be mindful when creating relationships between products or integrating new products or formulations onto webpages for existing Continue Reading