News & Analysis as of

False Advertising Section 5

Venable LLP

FTC Commissioner Claims Agency Creates Favorable Precedent Through Venue Selection

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During the dog days of August, the Federal Trade Commission (FTC) brought two complaints against auto companies involving alleged deceptive and discriminatory price advertising....more

Perkins Coie

FTC Order Bans Anonymous Messaging App from Serving Minors

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The Federal Trade Commission (FTC) and the Los Angeles County District Attorney on July 9, 2024, announced a complaint and proposed stipulated order against NGL Labs, LLC, and two NGL co-founders concerning the “NGL: ask me...more

Ballard Spahr LLP

Vehicle Services Company CarShield Settles Complaint with FTC

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CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31....more

Venable LLP

What’s the FTC “Up To?” Arise Virtual Solutions and the Gig Economy

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Last month, in a joint effort with the Department of Labor (DOL), the Federal Trade Commission (FTC) settled an action against Arise Virtual Solutions, Inc. related to charges that the company regularly used misleading...more

Hinch Newman LLP

FTC Order Will Ban U.K.-Based Software Provider from Selling Browsing Data for Ad Purposes and Require It to Pay $16.5MM Over...

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On February 24, 2024, the Federal Trade Commission announced that it will require software provider Avast to pay $16.5MM and prohibit the company from selling or licensing any web browsing data for advertising purposes to...more

Troutman Pepper

FTC Judge Rules That Intuit’s “Free” Service Ads Violated the FTC Act

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On September 8, the Federal Trade Commission’s (FTC) Chief Administrative Law Judge D. Michael Chappell issued an initial decision ruling that Intuit Inc. (Intuit) “engaged in deceptive advertising in violation of Section 5...more

Nelson Mullins Riley & Scarborough LLP

FTC Looks to Revise Green Guides, Requesting Public Comments on “Organic” and “Sustainable”

The Federal Trade Commission (“FTC” or the “Commission”) is requesting public input on possible revisions to the Guides for the Use of Environmental Marketing Claims (“Green Guides” or “guides”). The Green Guides are...more

A&O Shearman

The FTC Abandons (The Rule of) Reason

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On November 10, 2022, the Federal Trade Commission (FTC) issued a policy statement (the “Policy Statement”) radically expanding the FTC’s interpretation of prohibited “unfair methods of competition” under Section 5 of the FTC...more

Sheppard Mullin Richter & Hampton LLP

Court Orders Injunctive Relief Against Tech Company for Deceptive Advertising, Unfair Fee Practices

On August 9, the US District Court of Georgia ruled that the FTC had provided “broad and detailed evidence” for its allegations that a tech company and its CEO engaged in deceptive advertising and unfair fee practices in...more

Proskauer - Advertising Law

On Notice: Procedural Overview of the FTC’s Section 5 Penalty Offense Authority

As discussed in our earlier post, on October 13, 2021, the FTC issued “Notice of Penalty Offenses” letters to more than 700 companies, placing them on notice of civil penalties up to $43,792 per violation if they use...more

Ballard Spahr LLP

FDIC Proposed Rule and Information Requests Target False Advertising, Use and Misuse of FDIC Name and Logo

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The Federal Deposit Insurance Corporation (FDIC) recently issued a notice of proposed rulemaking (NPR) and request for information (RFI) addressing “False Advertising, Misrepresentation of Insured Status and Misuse of the...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

MarkIt to Market® - July 2020: Made in the USA: The Federal Trade Commission Proposes a New Rule to Protect U.S. Manufacturers and...

On June 22, 2020, the Federal Trade Commission (FTC) announced a Notice of Proposed Rulemaking pertaining to “Made in USA” claims, which applies to labels and marketing that fraudulently asserts that products are made in the...more

Sheppard Mullin Richter & Hampton LLP

“Good Genes?”: Maybe Not. FTC Takes Action Against Sunday Riley and Sunday Riley Modern Skincare, LLC For Employees False Reviews

Sunday Riley launched her skincare firm Sunday Riley Modern Skincare, LLC (“SRMS”) in 2009 and its skincare products, including Good Genes, Power Couple, U.F.O., C.E.O., Luna and Tidal, have enjoyed tremendous success, having...more

Hudson Cook, LLP

Online Reviews Become a Focus of the FTC

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Who doesn't love an online review? My family rarely buys anything of consequence without checking the reviews first. Online reviews allow us to get the skinny on anything and everything. In fact, my husband even reads reviews...more

Manatt, Phelps & Phillips, LLP

Organic Marketer Settles for $1.76M With FTC

To settle charges of falsely advertising its bath and beauty products as organic and vegan, a Miami-based company and its owner agreed to a $1.76 million deal with the Federal Trade Commission (FTC)....more

Manatt, Phelps & Phillips, LLP

Tech Scam Costs Office Depot, Software Company $35M

For tricking consumers into spending millions of dollars on computer repairs and technical services by falsely claiming their software uncovered malware symptoms on consumers’ computers, Office Depot Inc. and its software...more

Manatt, Phelps & Phillips, LLP

Fake Reviews, Real FTC Action

In the first case challenging a marketer’s use of fake paid reviews on an independent retail site, the Federal Trade Commission settled with Cure Encapsulations, Inc., and its owner over dozens of phony product reviews posted...more

Skadden, Arps, Slate, Meagher & Flom LLP

FTC Enforcement Trends in Consumer Protection

A comprehensive review of recent Federal Trade Commission (FTC or Commission) consumer protection actions shows that the FTC continues to be one of Washington’s most aggressive regulators. While the number of enforcement...more

Manatt, Phelps & Phillips, LLP

FTC Settles Sound Amplifier False Advertising Claims

Claims for a sound amplifier were too loud for the Federal Trade Commission, which settled charges of deceptive advertising in violation of Section 5 of the FTC Act with the Florida-based entities that manufactured the...more

Ballard Spahr LLP

FTC settles Section 5 claims against company promoting schools to military servicemembers

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The FTC has entered a proposed consent order with Victory Media, Inc. (VMI) to settle the FTC’s charges that VMI violated Section 5 of the FTC Act by engaging in deceptive acts or practices in connection with its promotion of...more

Manatt, Phelps & Phillips, LLP

Prepaid Card Company to Pay $53M to Settle FTC Charges

A prepaid card company agreed to pay the Federal Trade Commission $53 million to settle charges that the company tricked consumers about access to their funds....more

Foley Hoag LLP - Making Your Mark

Environmental False Advertising: An Earth Day Green Guide Review

Earth Day is coming up on April 22, which means that a lot of consumers are going to be reminded to think green, and to buy green. What if your company is looking to access this vast market of environmentally-minded shoppers,...more

Foley Hoag LLP - Making Your Mark

Court Issues Temporary Restraining Order Against Invention Patenting and Promotion Company for Unfair and Deceptive Trade...

There are many businesses focused on helping inventors develop and monetize their ideas. There are companies that, for instance, help people seek patents on their inventions, license their inventions, turn their ideas into...more

Manatt, Phelps & Phillips, LLP

Advertising Law - February 2017 #4

Not-So-Smart TV: Vizio Settles Over Data Collection - For installing software on smart TVs and collecting viewing data on 11 million consumers without their knowledge or consent, Vizio, Inc. will pay the Federal Trade...more

Kelley Drye & Warren LLP

Not a Passing Grade: FTC Settles with Company Over Alleged False Advertising for High School Diploma Program

On February 3, 2017, the Federal Trade Commission (FTC) announced a new settlement against Stratford Career Institute alleging that Stratford’s advertising for its high school diploma program (claiming that it provided the...more

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