False Advertising Federal Trade Commission

News & Analysis as of

Don’t Forget About FTC Compliance: Substantiating Claims to Avoid Misleading Consumers

Life sciences companies regularly review their labeling and promotional materials to ensure compliance with Food and Drug Administration requirements. FDA makes its Warning Letters publicly available, and failure to correct...more

Stuck in the Middle with the FTC

Legal actions regarding “Made in the USA” claims, whether prosecuted by the Federal Trade Commission (FTC) or through various state unfair trade practices acts, often settle early in the proceedings. For example, in 2014,...more

No Protection for Network Marketing Provider That Had Knowledge and Authority to Control Deceptive Conduct of Affiliates

In Federal Trade Commission v. LeadClick Media, LLC, 2016 U.S. App. LEXIS 17383 (2nd Cir. 2016), the Second Circuit recently held that an affiliate marketing network provider could be subjected to liability under the Federal...more

Marketers of Health Supplement Settle FTC Charges Over Deceptive Advertising

Recent FTC action, and $150 million judgment, is a reminder that advertising rules must be followed and health claims need to be backed by scientific evidence. ...more

Advertising Law - October 2016 #2

No Shades of Gray in Order Banning Supplement Claims - In a case based on a referral from the National Advertising Division, the Federal Trade Commission obtained summary judgment and a final order against an advertiser...more

FTC Targets Auto Dealers, Alleges Deceptive Financing Practices

The Federal Trade Commission (FTC) has filed an action against nine auto dealerships and their individual owners in a California federal court that the FTC described as its "first action against an auto dealer for 'yo-yo'...more

Retail and Consumer Products Law Roundup - October 2016

Supreme Court to Review Credit Card Surcharge Statutes - Why it matters: In an effort to resolve a conflict between Circuits, the Supreme Court has agreed to hear arguments in a challenge to New York’s credit card...more

FTC Settles Supplement Maker Over Unsubstantiated Claims and Expert Endorsement

On October 5, 2016, the Federal Trade Commission (FTC) settled its case with Supple, LLC over certain advertising claims regarding its Supple joint supplement. Between 2011 and 2015, the company advertised (via social media,...more

Advertising Law - October 2016

Suit Over Block Voting on Reviews Moves Forward - A Lanham Act suit brought by a competitor over a company's efforts to minimize negative consumer reviews will move forward, a Utah federal court judge has...more

FTC Wins Health Benefit-Related Deceptive Advertising Lawsuit

The Federal Trade Commission (“FTC”) recently prevailed in a deceptive advertising lawsuit against COORGA Nutraceuticals Corporation (“COORGA”) and its principal. The judgment provides for, among other things, a monetary...more

Marketing your brand with influencers? Make sure the FTC hits the “Like” button

Brand owners and their attorneys are grappling with an important question: how to disclose their connections to luminaries like PewDiePie. If you haven't heard of PewDiePie, don't worry—he's a 26-year old Swedish...more

Judge Approves LifeLock’s $68M Proposed Settlement with Class and $10.2M with Lawyers

On Tuesday, September 20, 2016, a federal judge in California granted approval of the $68 million settlement between LifeLock and a class of plaintiffs that alleged it made false statements about the services it provides to...more

The Honest Company Faces False Advertising Class Action

Last Tuesday, a class action lawsuit was filed against The Honest Company, Inc. (“THC”) alleging that the “natural” products manufacturer has violated numerous California State false advertising laws. Specifically, the class...more

FTC Cracking Down on Influencer Marketers and Their Clients

In recent months, the media has been reporting on increased regulatory activity involving the Federal Trade Commission (the “FTC” or “Commission”) and the sellers that hire non-compliant influencer marketers. What can...more

Advertising Through Social Media: Ten Tips For FTC & NAD Compliance

Most modern advertising campaigns include social media components. In fact, it is not uncommon today to see products advertised exclusively on social media. For the most part, the same rules that govern traditional...more

I May Not Be Able To Pronounce Acai But I Know It Doesn’t Burn Fat Cells: 5 Recent Over-the-Top Weight Loss Advertising Claims And...

Some say “ah-sigh;” I say “ah-kai;” but apparently the proper pronunciation of “acai” — the so-called super berry — is actually “ah-sigh-ee.” Who knew? Acai berries are native to the Amazon rainforest and have been hailed...more


When members of Team USA walked into the 2016 Olympic Opening Ceremony wearing uniforms embroidered with the letters "USA," the uniforms did more than just designate the team members' identity as representatives of the USA....more

Can Using Social Media Lead to a Lawsuit? (Part 2)

In part 1 of this blog series, I discussed the potential legal implications of social media as it pertains to defamation, privacy rights, and ownership rights. As we pick back up with our discussion, I want to address the...more

FTC Announces Dog Food False Advertising Settlement

Last Thursday, the Federal Trade Commission (“FTC”) announced that it had settled with Mars Petcare US, Inc. (“Mars Petcare”) concerning allegedly false advertising claims relating to its Eukanuba brand dog food. ...more

Lifestyle Blogging, Supplement Dust, and Third Party Liability

The NAD recently took a swipe at Goop, the lifestyle blog founded by Gwyneth Paltrow. To make “GP’s Morning Smoothie,” Goop had recommended using “dust” dietary supplements, such as Action Dust and Brain Dust, both sold by...more

Advertising Law - August 2016

Court Awake To Plaintiff’s Deceptive Sleep-Tracking Claims Against Fitbit - A challenge to Fitbit’s claims that certain models of its exercise monitoring device tracked users’ sleep patterns will move forward after a...more

The FTC Social Media Consent Order Against SmartClick

The FTC continues its efforts to combat deceptive social media advertising. In June 2016, the FTC brought an enforcement action against SmartClick Media LLC and its owner. The FTC alleged that SmartClick engaged in the...more

Advertising Law - July 2016 #3

Wikipedia Link Trips up Ninth Circuit False Ad Suit - Ruling that a California federal court incorrectly relied upon a Wikipedia link when considering a summary judgment motion in a false advertising suit, the Ninth...more

FTC Acts Against Warner Brothers’ YouTube Promotion Campaign: Disclosure of Affiliation Below the “Fold” Is Not Enough

Last week, the FTC announced an agreement containing a consent order, subject to final approval, resolving its claims against Warner Bros. Home Entertainment Inc. (“Warner Bros.”) for the company’s misleading use of social...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

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