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FTC Staff Report on MLM Income Disclosures: Many Observations Lead to Many Questions

Yesterday, the Federal Trade Commission issued a staff report documenting its review of 70 publicly available income disclosure statements from a wide range of multi-level marketing (MLM) and direct selling companies...more

FTC Finalizes Rule on “Fake Reviews”

Yesterday, the Federal Trade Commission announced its final rule addressing consumer reviews and testimonials. With this rule, the Commission takes aim at ​“fake” reviews and testimonials by prohibiting their sale or purchase...more

CFPB Issues Interpretive Rule for Paycheck Advance or ​“Earned Wage Access” Products

Late last week, the Consumer Financial Protection Bureau (CFPB) released a proposed interpretive rule asserting that paycheck advance or earned wage access (EWA) products are considered consumer loans and therefore subject to...more

California ​“Junk Fee” Statute Now Fully In Play with New Twist from Last Minute Legislation

As we previously reported, the California AG’s office recently provided clarification through FAQs on the California ​“hidden fee” law that amended the Consumer Legal Remedies Act, SB 478. Those FAQs articulated the position...more

Supreme Court Upholds CFPB Funding Mechanism as Constitutional, Quelling Uncertainty and Reinvigorating the CFPB’s Docket

In a long-awaited decision with profound implications for the future of the agency, the Supreme Court held 7-2 today that the Consumer Financial Protection Bureau (CFPB) is constitutionally funded. CFPB officials can breathe...more

CFPB Report and Hearing with DOT Highlight Risks with Rewards Programs

On May 9, 2024, the CFPB released a report on rewards programs that traces the rise of such programs and warns that it views certain practices as unfair, deceptive, or abusive acts and practices ripe for investigation and...more

California Issues FAQs on Hidden Fee Law

This week, the California AG’s office released a set of FAQs on California’s law addressing hidden fees. As a reminder, the law states that the following practices will be unlawful under the Consumer Legal Remedies Act...more

FTC Staff’s Revised MLM Guidance—More Content, Less Clarity

Yesterday FTC Staff released updated Business Guidance Concerning Multi-Level Marketing that provides a detailed account of their current perspective on applicable standards governing the direct selling and multi-level...more

FTC Staff Doubles Down on Rejected Koscot Standard for Pyramiding Claims, Challenges DSSRC IDS Guidance

Over the past two years, we have seen FTC staff express its opinions on the state of the law in multiple ways. In December 2022, for example, staff issued its Health Products Compliance Guidance, intended to supersede the...more

Senate Confirms New FTC Commissioners Holyoak and Ferguson; Reconfirms Slaughter

After nearly a year without a Republican Commissioner after Christine Wilson’s resignation, the FTC will again have a full slate of five Commissioners – with two new Republican Commissioners in Melissa Holyoak and Andrew...more

Top Advertising Law Developments in 2023

If you follow our blog, you already know that there have been a number of significant developments in the world of advertising law over the past 12 months. In this post, we highlight ten of those developments and consider...more

CFPB Issues Proposed Rule to Expand Supervisory Authority, Conduct Examinations of Digital Wallets and Mobile Payment Apps

Yesterday, the Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking that would allow the agency to supervise and conduct examinations of certain non-bank providers of digital wallets and...more

FTC Alleges FinTech Provider Engaged in Dark Patterns, Concealed Fees for Cash Advances in Reaching $18 Million Settlement

The FTC yesterday filed a complaint and stipulated order against Bridge, It (dba ​“Brigit”), a fintech company that operates a personal finance mobile application that advertises cash advances to consumers. According to the...more

Neora Prevails In Landmark Decision For Direct Selling Industry

Big, BIG win for the direct selling industry, as Judge Barbara Lynn (N.D. Texas) grants judgment for Neora, LLC (formerly Nerium) on all of the FTC’s claims, including that the company was operating an illegal pyramid scheme...more

FTC Proposes ​“Junk Fees” Rule that Would Overhaul Pricing Practices and Disclosures across Industries

Today the FTC announced a proposed rule that could fundamentally alter how businesses across industries advertise prices and disclose fees to consumers. The proposed rule follows the FTC’s Advance Notice of Proposed...more

Texas Court Puts Hold on CFPB’s Use of Unfairness Authority to Include “Discrimination”

As the Supreme Court deliberates over the Fifth Circuit’s ruling that the CFPB’s funding method is unconstitutional, another court in the Fifth Circuit dealt a blow to the CFPB’s aggressive agenda. On Friday, the District...more

FTC’s Proposed Rule on “Fake Reviews” Covers Much More; Provides Clarity on Some Issues, Uncertainty on Others

On the Friday before a long 4th of July weekend, the FTC delivered some light beach reading in the form of a 100-page notice of proposed rulemaking (NPRM) “banning fake reviews and testimonials.” While banning fake reviews...more

FTC Proposes Massive Expansion of Negative Option Rule; Would Provide Redress and Civil Penalty Authority for Deceptive Practices...

If you’re offering any products or services involving a negative option or automatic renewal plan, pay close attention to the FTC’s announcement today of a proposed rule that would drastically alter requirements for negative...more

Two Firsts for FTC Civil Penalty Enforcement: ROSCA for Automatic Renewals and Penalty Offense Authority for Money-Making Claims

On Friday, the FTC announced what would ordinarily be an unremarkable enforcement action against a company for unsubstantiated earnings claims. The FTC alleges that WealthPress, an investment advice company purporting to...more

Next Stop on the FTC’s Rulemaking Train: Proposed Revisions to the Business Opportunity Rule

In today’s open meeting, the FTC voted unanimously to issue an Advance Notice of Proposed Rulemaking (ANPR) considering expansions to and revisions of the FTC’s existing Business Opportunity Rule (“BOR”). This will be the...more

The FTC and CFPB are Coming for “Junk Fees,” but What Does that Really Mean?

The FTC’s Advanced Notice of Proposed Rulemaking (ANPR) seeking comment on a potential rule prohibiting “junk fees” and related practices hit the Federal Register yesterday. The rule has the potential to fundamentally alter...more

“An Arrow Has Found its Target”: Federal Appeals Court Deems CFPB Funding Method Unconstitutional, Invalidating Payday Lending...

In a decision with potentially far-reaching implications for the CFPB, a three-judge panel of the U.S. Circuit Court of Appeals for the Fifth Circuit yesterday ruled that the Bureau’s funding structure is unconstitutional. ...more

FTC Proposes Changes to Endorsement Guides with Expanded Liability and More Onerous Disclosure Requirements

In addition to announcing a new COPPA policy statement and related “crackdown” on children’s privacy issues (discussed here) in its most recent open meeting, the FTC also proposed changes to the FTC’s Endorsement Guides. The...more

The FTC Seeks Comments and Signals Changes to Come in New Rulemaking on Earnings Claims

As we previewed last week here, the FTC released an Advanced Notice of Proposed Rulemaking (ANPR) on earnings claims as it embarked on a mission to adopt a rule that would give the FTC, in its own words, “an important new...more

Kick-Off Time for FTC Rulemaking on Earnings Claims

Last Thursday (February 10), the FTC announced that it “will vote” at its February 17 open meeting to issue an Advance Notice of Proposed Rulemaking (ANPR) on “deceptive earnings claims for business ventures, gig or other...more

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