Last year, we posted about how some companies had retroactively changed their refund policies after COVID-19 hit, and we noted some of the potential pitfalls associated with that strategy. Lawsuits and regulatory...more
This summer, a plaintiff filed a class action lawsuit against Allbirds, alleging (among other things) that the company’s environmental claims – including claims about its “sustainable” practices, the “low carbon footprint” of...more
In February, we posted that the Children’s Advertising Review Unit (or “CARU”) was in the process of updating its Guidelines for ads directed to children. The Guidelines had last been updated in 2006, and advertisers often...more
Earlier this year, Prose – a company that makes customized haircare products – brought an NAD challenge against Function – a competitor in the same business – over Function’s claims that it had over 110,000 5-star product...more
Last week, NAD announced a decision involving a series of AT&T Fiber ads that holds important lessons for companies that make comparative performance claims.
Each of the ads depicts a funny scene in which a cable user is...more
Earlier this month, the nonprofit Earth Island Institute filed a lawsuit against Coca-Cola, alleging that the company falsely and deceptively represents itself as “a sustainable and environmentally friendly company, despite...more
In recent years, plaintiffs’ attorneys have found that filing website accessibility cases can be a lucrative business model. By doing a quick scan of a website and then copying and pasting from other complaints, these...more
When it comes to the legal side of working with influencers, smart companies focus on ensuring that influencers clearly disclose that they are working with the company. After all, that’s where regulators have focused most of...more
Function claimed that it had “over 110,000 5-star product reviews” for its hair care products, the majority of which come from its “shampoo and conditioner” category. A competitor filed an NAD challenge pointing out that the...more
As part of its routine monitoring program, NAD asked ACT to provide substantiation for statements the company made online about its standardized college entrance test. NAD was concerned about whether ACT sufficiently...more
The American Association of Orthodontists ran a series of social media ads for Happy Mouth Now, a fictional teledentistry company, which showed consumers struggling with the company’s products. The ads are funny, unless you...more
This week, NAD released five tips on influencer marketing. Here are the tips, followed by some of our own observations.
1. When working with influencers or incentivizing consumers to review your product, you may be...more
The Children’s Advertising Review Unit (or “CARU”) has guidelines that apply to ads directed to children who are under 12 years old. A lot has changed since the guidelines were last updated in 2006, and CARU recently...more
In the days leading up to the Super Bowl, Penn State Football tweeted a graphic claiming that “a Penn Stater has appeared in every Super Bowl.” Below that bold claim, in much smaller letters, appeared an important qualifier:...more
When the FTC decides not to pursue an investigation, it often issues a short closing letter to the company explaining why FTC staff decided not to recommend enforcement. The letters are just a few paragraphs long and don’t...more
Because consumer reviews are so important in today’s marketplace, many companies go to great lengths to increase their number of favorable reviews. Sometimes, they go too far. We’ve written about FTC and NAD cases in which...more
In recent years, a number of states have passed laws governing automatic renewals. New York is the latest state to jump on this trend. Its current law only applies to certain contracts “for service, maintenance, or repair to...more
Comcast recently challenged a number of claims that AT&T made about its Wi-Fi services in two blog posts on the AT&T website. The posts claimed that the company provided the “best possible Wi-Fi experience,” the “best...more
Peloton Interactive sells exercise bikes and treadmills that can stream live and on-demand fitness classes. For a while, the company advertised that its library of classes was “ever-growing.” Although that may have been true...more
Stokely-Van Camp (or “SVC”), the makers of Gatorade, recently challenged claims made by BodyArmor about its SuperDrink and Lyte sports drinks, including banners with the following text...more
Continuing its intense focus on internet platforms’ role in political debate and the liability protections they receive under the Communications Decency Act (CDA), 47 U.S.C. § 230, the Trump Administration this week submitted...more
Companies get excited when they find pictures of celebrities wearing (or using) their products, and often wonder whether they can post those pictures to their social media accounts. In addition to the right of publicity...more
In its Disclosures 101 for Social Media Influencers guide, the FTC recommended that when an influencer promotes a brand in a video, the influencer should disclose any connection it has to the brand in the video itself. In...more
We’ve written about automatic renewals before, but the $10 million price tag in the FTC’s settlement with the operators of ABCmouse should grab your attention.
The FTC alleged that over a three-year period, the company...more
A recent NAD decision that focuses on detergent claims touches on some issues – including implied claims and disclosures – that are relevant to all advertisers. The decision covers a lot of ground, but we’ll focus on a few...more