Advertising News & Analysis - December 15, 2011

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In this issue;

- CALM Act Rules Turn Down the Volume on Commercials

- Mobile Marketing Association Unveils Standard Sizes for Mobile Ads

- Advocacy Group Targets Webkinz with COPPA Complaint

- Court Sides with FTC in Lane Labs Contempt Case

- FTC Wins Trudeau Case in Seventh Circuit

- Upcoming Events

An excerpt from " FTC Wins Trudeau Case in Seventh Circuit"

In a recent post to the FTC’s "Business Center" Blog, FTC attorney Lesley Fair analyzed the Seventh Circuit’s recent decision in FTC v. Trudeau. The court affirmed a $37.6 million judgment against Trudeau for violating a previous settlement with the FTC by misrepresenting the content of his book, The Weight Loss Cure “They” Don’t Want You To Know About. The Seventh Circuit had previously remanded the case and asked the lower court to explain its calculation of the judgment. In its recent decision, the Seventh Circuit concurred with the lower court, agreeing that it was appropriate to calculate the judgment based on the amount of consumer loss instead of the amount of Trudeau’s unjust enrichment. The Circuit Court also dismissed Trudeau’s argument that the lower court’s ruling violated his First Amendment right to engage in commercial speech by requiring him to post a two million dollar bond before participating in any infomercial. The Circuit court noted “misleading commercial speech gets no Constitutional protection,” and that "The government is not impotent to protect consumers – nor is the court powerless to enforce its orders – by imposing narrowly tailored restrictions on commercial speech."

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