Disclosure Requirements Federal Trade Commission

News & Analysis as of

FTC Ponders Disclosures in Celebrity Posts

Last week, Bloomberg ran an article suggesting that the FTC is about to “crack down on paid celebrity posts” that aren’t labeled as ads. If you read this blog, you already know this is a big priority for the FTC. In fact, the...more

Advertising Law - July 2016 #4

Sen. Franken Hits Pause on Pokémon GO - After the Pokémon GO app was downloaded approximately 7.5 million times in the United States alone in its first week of release, Sen. Al Franken (D-Minn.), the chairman of the...more

Learning from Venmo’s Compliance Issues: How to Avoid Inadequate Privacy Disclosures

PayPal, the company responsible for the popular mobile payments app, Venmo, recently agreed to voluntarily bolster its privacy and security disclosures—and pay a $175,000 penalty—in response to an enforcement action brought...more

Manatt Digital - July 2016

A message from our Chair: We are pleased to bring you this month's newsletter as the first edition under our new brand—"Manatt Digital." Our new name, which replaces Manatt Digital Media, is reflective of our...more

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

FTC Continues to Scrutinize Social Media Influencer Programs

This week, as part of its ongoing focus on influencer programs, the Federal Trade Commission (FTC) settled charges against Warner Brothers Home Entertainment, Inc. regarding its use of such a campaign to market the video game...more

Game Over: Warner Bros. Settles FTC Charges Relating to Video-Based Influencer Campaign

Earlier this week, the FTC announced that Warner Brothers entered into a consent order as a result of a complaint charging failure to adequately disclose that the video game publisher paid influencers to promote a new video...more

Warner Bros.’s “Paid to Play” Disclosures Draw FTC Action

Earlier this year, the Federal Trade Commission (FTC) went after Warner Bros. Home Entertainment Inc. for not clearly representing that several digital influencers were paid as part of a marketing campaign for the video game...more

UPDATE: FTC’s Proposed Amendments to the Magnuson-Moss Disclosure and Pre-Sale Availability Requirements

In October of 2015, President Obama signed into law the E-Warranty Act of 2015, an amendment to the Magnuson-Moss Warranty Federal Trade Commission Improvement Act (the “Magnuson-Moss Warranty Act” or the “Act”), which...more

More Guidance for Advertisers and Influencers to Navigate Online Reviews and Endorsements

Late last week, the International Consumer Protection and Enforcement Network (“ICPEN”) published three sets of guidelines covering online reviews and endorsements. Why does this matter? ICPEN is an informal network of...more

FTC Settles Charges with Misleading Websites: Another Native Advertising Enforcement Action

Following on the heels of the FTC’s March 2016 settlement with Lord & Taylor concerning a deceptive native advertising campaign, the FTC just announced that it has reached a settlement with SmartClick Media LLC over its phony...more

Practice Fusion and FTC Settle Complaint Over Deceptive Statements About the Privacy of Consumer-Generated Online Content

Last week, the Federal Trade Commission (FTC) announced (press release) that Practice Fusion, the largest cloud-based electronic health company in the United States, has agreed to settle FTC charges over deceptive practices...more

Subscription-Based Business Models: An Overview of Auto-Renewal Regulations

The demand for subscription-based and recurring revenue business models is growing faster than ever. According to a 2014 report by The Economist Intelligence Unit, 80 percent of customers are demanding new consumption models...more

The FTC’s Analysis of Lord & Taylor’s Social Media Marketing Campaign

New ways of monetizing digital media has brought challenges in regulating advertising. The FTC has recently issued guidelines to provide businesses and advertisers with insights as to how to comply with the FTC Act. Despite...more

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Its Formatting

Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Formatting

Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

A New “Wrinkle” in Native Advertising: NAD Embraces FTC’s “Deceptive Door Opener” Theory

Last week, the National Advertising Division (“NAD”) issued a decision in the realm of online native advertising. In the action against Joyus, Inc., the NAD was concerned that the company’s advertising for certain products...more

Recent FTC Settlements Spotlight Hidden Ways to Hook Unwary Consumer

Brands of all kinds are increasingly using “influencers” or “brand ambassadors” to promote their brand’s products in blog posts and on social media platforms. But no matter whether they are style influencers with a fierce...more

Native Advertising: Recent FTC Cases Require Disclosure of Paid Endorsements on Social Media

Two recent cases by the Federal Trade Commission (“FTC”) demonstrate its position that paid endorsements in social media must be disclosed. These cases reinforce the FTC’s stance on transparency in native advertising, which...more

Going Native - What You Need to Know about the FTC's Recent Guidance on Native Advertising

Digital advertisers innovate new techniques to reach customers at a speed that, for the most part, outstrips the ability of the US government to regulate. Every now and then, however, the Government lurches forward to provide...more

Having The “Are You Operating an (Illegal) Franchise System Without Knowing It?” Conversation

Franchising laws are very broad in scope and may inadvertently encroach upon standard licensing or distribution agreements. The repercussions for operating an illegal (or more likely inadvertent) franchise system can be very...more

#Ad! — Lessons from the FTC’s First Case since the Release of its Enforcement Policy on Native Ads

As was widely reported, the Federal Trade Commission entered into a settlement in March with Lord & Taylor over charges that the retailer allegedly deceived consumers through a native advertising campaign run on Instagram and...more

National Retailer Settles FTC Native Advertising Complaint

The potential pitfalls of native advertising were on display this month at the Federal Trade Commission (FTC). The agency reported that national retailer Lord & Taylor settled with it on charges that the company improperly...more

FTC Complaint Highlights the Need to Disclose Material Connections in Ads

The recent complaint highlights the importance of clearly and conspicuously disclosing material connections between advertisers and paid influencers, including in social media posts or in native ads. ...more

Good Lord, & Taylor! Of Course You Need to Disclose Native Ads

On March 15, 2016, national retailer Lord & Taylor agreed to settle FTC charges that it “deceived consumers by paying for native advertisements.” The settlement is the first of its kind following the December 2015 guidance...more

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