News & Analysis as of

FTC Act Section 5 Marketing

Holland & Knight LLP

FTC Evaluating Deceptive Artificial Intelligence Claims

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The Federal Trade Commission (FTC) has shown a growing interest in scrutinizing deceptive claims related to artificial intelligence (AI). This interest stems from the agency's core mission to protect consumers and ensure fair...more

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

Venable LLP

Façade, Fraud: FTC Final Rule Banning Fake Reviews

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On August 14, the Federal Trade Commission (FTC) announced a final rule aimed at protecting American consumers against fake reviews and testimonials. The rule, approved through a 5-0 vote, comes after nearly two years of...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

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

Troutman Pepper Locke

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

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

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

McGuireWoods LLP

FTC Issues Largest Fine in Made in USA Enforcement, Stopping Motocross Parts Company in Its Tracks

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The Federal Trade Commission (FTC) continues to aggressively enforce its Made in USA Labeling Rule and Section 5 of the FTC Act and seek significant monetary penalties, this time in the market for motocross and all-terrain...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

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

BCLP

The FTC Steps Up its Game on Endorsement Enforcement

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As noted in this press release issued earlier this week, the Federal Trade Commission (“FTC”) has sent a Notice of Penalty Offenses to over 700 companies, in which the FTC cites a handful of past cases it has successfully...more

Beveridge & Diamond PC

Environmental Marketing Claims: Regulatory and Litigation Outlook

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As consumers, investors, and other stakeholders are focused more than ever on the impacts of their purchasing and investment decisions, companies are seeking to convey information on the environmental attributes of their...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

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

International Lawyers Network

1-800 Contacts Unlawfully Restricted Competitors’ Trademark Use in Search Engine Marketing

The Federal Trade Commission (FTC) recently decided that agreements reached by 1-800 Contacts, Inc. with a number of its competitors to settle claims that the competitors’ online search advertising infringed on 1-800...more

Fox Rothschild LLP

Importance Of Claim Substantiation

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Failing to have adequate substantiation for advertising claims can land companies in hot water. Case in point: The Federal Trade Commission (“FTC”) recently announced that it had settled charges against a company and its CEO...more

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