On December 22, 2020, the Federal Trade Commission’s (FTC) announced adoption of a final rule requiring the use of the EnergyGuide labels on portable air conditioners (ACs). Effective October 1, 2022, portable AC manufacturers must attach yellow EnergyGuide labels on the principal display panel of their packaging and include an image of the required label
Data Analytics Company Settles with FTC Over Alleged Data Security Violations
Third-party service providers are vital to many companies and they handle a wide range of business activities essential for companies to deliver their own offerings. But a company is not adequately protecting consumers if it fails to perform proper due diligence on service providers and contractually require them to employ appropriate security measures to protect
FTC Imposes Record $1.2 Million Penalty for a “Made in USA” Case
For the second time since 2016, glue producer Chemence, Inc. (Chemence) has found itself adverse to the Federal Trade Commission (FTC) for making allegedly deceptive claims that its products are American made. And this time it cost them $1.2 million – the highest settlement amount ever paid in a “Made in USA” case.
In 2016,
FTC Finalizes Settlement with Sunday Riley Skincare Over Alleged Fake Reviews
Online opinions – and not just from celebrities – are big business. Consumer reviews can be highly influential in convincing other shoppers to buy a product. In fact, the founder and CEO of Sunday Riley Modern Skincare LLC (Sunday Riley Skincare) was so convinced about the power of those starred reviews on cosmetics chain Sephora’s
FTC Finalizes Settlement with Service Provider over Alleged Privacy Shield Misrepresentations
The EU-U.S. Privacy Shield Framework, which provided a mechanism to legally transfer personal information from the EU to the United States, was invalidated on July 16, 2020, but the Federal Trade Commission (FTC) has made it clear that companies that claimed to be participants must still make good on their word. A case in point
FTC Targets Negative Option Schemes in Two Multimillion Dollar Settlements
The Federal Trade Commission (FTC) recently announced settlements with two online companies for allegedly misleading customers about automatic membership renewal costs. On September 2, 2020, the FTC announced that Age of Learning, Inc., d/b/a ABCmouse, will pay $10 million to settle charges that the company enrolled thousands of consumers in a negative option scheme to
Interested in Environmental Marketing?
Interested in environmental marketing? Do you make and sell plastic products? Partner Sheila Millar and Counsel Boaz Green discuss a bill likely to become law in California that further restricts environmental marketing claims for plastic products sold in California. AB 2287 would expand restrictions on plastic degradability claims by effectively banning marine degradable claims. Read
FTC Staff Perspective Paper Offers Key Takeaways on Loot Box Workshop
More than 160 million Americans play video games. Originally designed as single-use purchases for consoles or computers, video games are now downloadable, making them more accessible to consumers than ever. One important development for the video game industry has been the creation of “micro purchases” – in-game transactions such as “loot boxes” that players can
FTC Targets False Energy Performance Claims
Marketing products as environmentally friendly can induce customers to pay higher prices than they would for other goods. But when promises of lower emissions or higher insultation ratings prove false, that hurts consumers, and the Federal Trade Commission (FTC) steps in. The FTC recently concluded its four-year long false advertising case against Volkswagen and Porsche
Washington State AG Settles with Online Platform Over Alleged COPPA Violations
Protecting the online privacy of children by enforcing the Children’s Online Privacy Protection Act (COPPA) continues to be of paramount importance to federal and state regulators. In addition to the Federal Trade Commission (FTC), several state attorneys general (AGs) have brought COPPA actions recently, including the New Mexico and California AGs, and, most notably, the