Advertising Law -- March 30, 2012


In This Issue:

A Poor Trade: FTC Settles with Car Dealers Over Trade-Ins; FDA Releases Regs on TV Ads; Product Claims Can’t Be Based on Ingredient Testing, Says the NAD; The Latest in “Natural” Suits: Frozen Food, Fruit Drinks and Deodorant; If the Settlement Fits: Payless ShoeSource Settles Text Suit For Up to $6.25M; and Noted and Quoted...Edward Glynn’s Comments at ABA Antitrust Meeting Featured in False Advertising Law Blog.

Excerpt from A Poor Trade: FTC Settles with Car Dealers Over Trade-Ins

The Federal Trade Commission has reached settlements with five national car dealers that allegedly deceived consumers with ads about car trade-ins.

According to the Commission, the defendants ran ads on their Web sites and YouTube that falsely conveyed to consumers that even if their trade-in cars had negative equity, they would not be responsible for paying off the loan balance. Instead, the dealers rolled the negative equity into the new vehicle loan taken out by the consumer.

Please see full issue below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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