News & Analysis as of

Unfair or Deceptive Trade Practices Marketing Section 5

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

Kelley Drye & Warren LLP

Chargebacks911 Settlement Highlights FTC and AG Scrutiny of Chargeback Mitigation Practices

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This week, the FTC and Florida AG announced a settlement with Chargebacks911, a chargeback mitigation company that touted its ability to help companies respond to and reverse consumer credit card disputes. The FTC and Florida...more

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

MarkIt to Market® - September 2023: FTC Guidelines Influence How Influencers Influence

While social media influencers were showing off pictures from the Amalfi Coast this summer, the Federal Trade Commission (FTC) was finalizing its guidelines regarding the endorsements that paid for their vacations in Italy....more

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

MarkIt to Market® - September 2023

Thank you for reading the September 2023 issue of Sterne Kessler's MarkIt to Market® newsletter. This month, we discuss the significant revisions to the FTC's guidelines for endorsements and examine the benefits of design...more

Epstein Becker & Green

The FTC Finalizes Changes to Endorsement Guides

In a previous blog, we discussed the Federal Trade Commission’s (“FTC”) proposed changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”). The Endorsement Guides are...more

Wyrick Robbins Yates & Ponton LLP

The Next Post They Write Might Be About You: The FTC’s Business Blog Calls Out Health Data Practices That Can Violate Section 5

In another example of the agency’s practice of regulation by blog, the FTC published last week a Business Blog Post about protecting consumer health information. The post, which summarizes key points from several recent...more

Woods Rogers

FTC Opens Consumer Protection Investigation of OpenAI, Creator of ChatGPT

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The Investigation - The Federal Trade Commission (FTC) recently opened an investigation into OpenAI, creator of ChatGPT, to determine whether the artificial intelligence company violated consumer protections laws. According...more

Venable LLP

FTC Finalizes Updated Endorsement and Testimonial Guides

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Thirteen months after proposing sweeping changes to its Endorsements and Testimonial Guides (Guides), the Federal Trade Commission (FTC) has finalized its revised guidelines and released an updated set of FAQs to help guide...more

Hinch Newman LLP

FTC Explores Recycling Claims, Updates to Green Guides and Pending Rulemakings

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On May 23, 2023, the Federal Trade Commission hosted a national workshop designed to consider the current state of recycling practices and recycling-related advertising. This follows an FTC announcement in December 2022 that...more

BakerHostetler

FTC Issues Warning on Use of Biometric Information

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On May 18, 2023, the Federal Trade Commission (FTC) issued a Policy Statement on Biometric Information and Section 5 of the FTC Act (Policy Statement). Section 5 of the FTC Act, 15 U.S.C. § 45, prohibits “unfair or deceptive...more

Faegre Drinker Biddle & Reath LLP

'Greenwashing' Claims Strike Consumer-Facing Companies: How to Avoid the Increasing Threat of Litigation

Consumers are increasingly conscious of how the products they buy impact the environment. Due to this heightened focus on environmental issues, consumer-facing companies frequently highlight the environmentally friendly...more

Orrick, Herrington & Sutcliffe LLP

The FTC's Green Guide Updates: What Companies Need to Know

What’s Happening? The U.S. Federal Trade Commission (FTC) has requested comment on whether to retain, modify or rescind the Green Guides, which were originally issued in 1992 and last revised in 2012. Comments are due April...more

Cadwalader, Wickersham & Taft LLP

FTC Considering Updates to Environmental “Green Guides”

On December 14, 2022, the Federal Trade Commission (FTC) announced that it is seeking public comment “on potential updates and changes to the Green Guides for the Use of Environmental Marketing Claims” (the Notice). The...more

Morgan Lewis

FTC Settles Consumer Review Charges against Fashion Nova and Signals More Action to Come - Retail Did You Know?

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The US Federal Trade Commission (FTC) has settled charges brought against Fashion Nova, LLC (Fashion Nova) under Section 5(a) of the FTC Act for failure to publish negative product reviews on its website. This edition of...more

Proskauer - Advertising Law

On Notice: Continued Use of Endorsements

Continuing our series on the FTC’s Notice of Penalty Offenses Concerning Endorsements, this post considers the FTC’s statement that it is unlawful under Section 5 of the FTC Act “for an advertiser to continue to advertise an...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

Manatt, Phelps & Phillips, LLP

FTC Puts Advertisers and Agencies on Notice for Fake Online Reviews and Other Deceptive Endorsements

The Notice was sent within a week of another notice to 70 for-profit higher education institutions, which focused on “false promises they make about graduates’ job and earnings prospects and other outcomes.”...more

Jenner & Block

FTC Warns Companies It Will Impose Civil Penalties for Misleading Online Reviews

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Shoppers in online marketplaces, or customers checking reviews before dining or retaining a service, have become increasingly reliant on internet testimonials. Mark P. of Hoboken, NJ rates Hank’s Burger Depot 5 out of 5...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

Knobbe Martens

Misleading Ads are Not a Jeweler's Best Friend: The FTC's Crackdown on Diamond Ads

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It’s been 70 years since Carol Channing first sang “Diamonds Are a Girl’s Best Friend” on Broadway, with Marilyn Monroe singing the more famous rendition four years later on the silver screen. Around the same time as Monroe’s...more

Ballard Spahr LLP

Fed issues consent order for bank’s alleged deceptive practices involving balance transfer credit cards

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The Federal Reserve Board announced that it had issued a Consent Order against Mid America Bank and Trust Company (Bank) for alleged deceptive marketing practices in violation of section 5 of the FTC Act related to balance...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

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

Nossaman LLP

The FTC's Crackdown on Social Media #Ads

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In the ongoing effort to reach the hearts and minds of consumers, brands are increasingly looking beyond the traditional media outlets of radio, print and television. The recent meteoric rise and diversity of social media...more

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