News & Analysis as of

Section 5 False Advertising Unfair or Deceptive Trade Practices

Hudson Cook, LLP

FTC Takes Action against AI Company over Deceptive Accuracy Claims about AI Content Detection

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On April 24, 2025, the Federal Trade Commission (FTC) finalized a Decision and Order against an Artificial Intelligence (AI) Company (the "Company"), alleging that it made false and unsubstantiated claims about its AI Content...more

Venable LLP

Some Hints About and Clues to the FTC’s Consumer Protection Priorities

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We’ve written previously about the Trump administration’s effort to increase his influence over independent agencies such as the FTC and to review regulations promulgated by these agencies. The White House is also reportedly...more

Troutman Pepper Locke

FTC and Illinois AG Secure $20M Settlement with Leader Automotive Group Over Allegedly Deceptive Practices

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In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over...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

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...

Hinch Newman LLP on

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

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

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

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

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

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

Sheppard Mullin Richter & Hampton LLP

FTC Grants Summary Judgment Against California Naturel, Inc. Falsely Advertising “All Natural” Sunscreen Products

In its opinion in In re California Naturel, Inc., the Federal Trade Commission held that the California Naturel, Inc. advertising promoting its “all natural” sunscreen on its website as containing “only the purest, most...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

Ballard Spahr LLP

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

Ballard Spahr LLP on

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

Akerman LLP

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Its Formatting

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Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

Stinson LLP

An Honest Struggle to Advertise "Natural" Products

Stinson LLP on

On February 12, 2016, two consumers brought a proposed New York state class action lawsuit against The Honest Company, Inc., a personal care products company co-founded by actress Jessica Alba. The lawsuit alleges that The...more

Robinson+Cole Data Privacy + Security Insider

FTC files suit against Devry University for deceptive advertisement from data

The FTC filed suit against Devry University on January 27th, alleging that its ads, stating that 90 percent of its graduates obtained jobs in their field of study, and were making 15 percent more than graduates from other...more

Morrison & Foerster LLP - Social Media

Socially Aware: The Social Media Law Update Volume 6, Issue 4

Five social media law issues to discuss with your clients - The explosive growth of social media has clients facing legal questions that didn’t even exist a few short years ago. Helping your clients navigate this...more

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