California Governor Gavin Newsom recently signed into law AB1305, another in the line of bills that reflect California’s efforts to tackle climate change. AB1305 amends California’s Health and Safety Code to require certain disclosures from companies that affect claims such as carbon neutral, net zero, and the like, in reliance on voluntary carbon offsets (VCOs).
Advertising
FTC Proposes New Rule Targeting “Junk Fees”
“Service fees.” “Convenience fees.” Whatever a business calls them, consumers don’t like them, and neither does President Biden. The President has repeatedly pledged to end the practice of imposing what he calls “junk fees.” The Federal Trade Commission (FTC) has now issued a new proposed rule (proposed Rule) requiring more transparency in imposition of these…
CA Court Blocks Enforcement of Controversial Children’s Online Privacy Law
On September 18, 2023, the United States District Court for the Northern District of California granted a preliminary injunction to NetChoice, a tech umbrella group, against California Attorney General Rob Bonta from enforcing the California Age-Appropriate Design Code Act (CAADCA). The court found the CAADCA, which was slated to take effect on July 1, 2024…
The FTC and the Mere Mention of AI
The FTC recently announced an enforcement action involving generative artificial intelligence (AI). The most interesting part: it hardly involves AI at all. There is no alleged misuse of AI, and not even allegations of AI actually being used. Rather, the case is a business opportunities case.
The FTC alleges that three individuals and several inter-related…
FTC Publishes Updated Endorsement Guides
After an extended public comment period, the Federal Trade Commission (FTC) adopted revised Guides Concerning the Use of Endorsements and Testimonials in Advertising (Endorsement Guides) on June 29, 2023. As we previously posted, the FTC voted to publish proposed revisions for public comment in May 2022. The updated Endorsement Guides and companion FAQs, which…
FTC Hosts Workshop on Recyclable Claims
On May 23, 2023, the U.S. Federal Trade Commission (FTC) held a public workshop to examine recyclable claims as part of its review of the Guides for the Use of Environmental Marketing Claims (Green Guides). The workshop was split into three panels, discussing current trends, consumer perception, and potential updates to the Commission’s current guidance…
FTC Cracks Down on Another “Made in USA” Claim
The FTC has said it numerous times: If your products – including their components – are not actually “all or virtually all” made in America, marketers should not label them as “Made in USA (MUSA).” The FTC’s latest enforcement action for false MUSA advertising against North Carolina-based motocross and ATV parts company, Cycra, is a…
The FTC Notices on Claim Substantiation: A Reminder of a Nearly 15-Year-Old Trend
Late last week, the Federal Trade Commission (FTC) announced that it had sent a “Notice of Penalty Offenses” on claim substantiation to around 670 companies. While this notice tactic is not a new tool, it has been reinvigorated following the 2021 Supreme Court decision in AMG Cap. Mgmt., which led to the FTC losing its…
FTC to Hold Workshop on “Recyclable” Claims
On December 14, 2022, the Federal Trade Commission (FTC) announced that it would be reviewing its Green Guides for the Use of Environmental Claims (Green Guides) to assess the need for updates and changes to the Guides. First published in 1992, the Green Guides address a number of environmental marketing claims, reflecting the FTC’s interpretation…
FTC Starts Long-Awaited Green Guides Review
Update: The formal Federal Register notice was published on December 20, 2022, and comments are due on February 21, 2023.
On December 14, 2022, at an open meeting of the Federal Trade Commission (“FTC” or “Commission”), FTC Commissioners voted unanimously to publish a Notice in the Federal Register announcing a Request for Public Comments on…