Following its report to Congress in 2021 on what it characterized as unlawful repair restrictions, Nixing the Fix, the Federal Trade Commission (FTC or Commission) announced that it would prioritize investigations into limits on consumer repair rights pursuant to its authority under the Magnuson-Moss Warranty Act (Warranty Act) and Section 5 of the FTC
Advertising
FTC Requests Comments on Proposed Changes to Endorsement Guides and .com Disclosures Guidance


The Federal Trade Commission (FTC or Commission) has issued several new proposals or policy statements affecting advertisers recently, including resurrection of its Penalty Offense Authority and an Enforcement Policy Statement Regarding Negative Option Marketing (which we previously reported on here). The FTC is now seeking public feedback on a proposal to enhance and strengthen…
Keurig Agrees to Pay $10 Million to Settle Class Action Over Charges of Misleading Recyclable Claims



On February 24, 2022, Keurig Green Mountain, Inc. (Keurig) agreed to pay $10 million to settle a long-running class action that alleged the coffee company deceptively advertised its K-Cups pods’ recyclability by misleadingly labeling and marketing them as “recyclable” when the pods were in fact not accepted for recycling in many areas. The settlement follows…
Fashion Nova Settles with FTC for $4.2 Million Over Charges it Omitted Negative Reviews


You might think that paying more than $9 million to settle charges of violating the Federal Trade Commission’s (FTC) Mail Order Rule would have spurred clothing retailer Fashion Nova, LLC to review its consumer protection compliance posture. But for the second time in two years, Fashion Nova has found itself in trouble with the FTC,…
Major COPPA Settlements Close Out 2021


Two important settlements involving alleged violations of the Children’s Online Privacy Protection Act (COPPA) were announced in December 2021. Actions by both federal and state regulators reinforce that COPPA remains on the regulatory radar screen, particularly when it comes to ad tech. Efforts to more broadly limit programmatic advertising are also underway.
FTC and OpenX…
FTC Takes Aim at Negative Option Marketing with New Enforcement Policy Statement


“Dark patterns” – user interfaces that are designed, intentionally or unintentionally, to influence user decision making – have been increasingly on the Federal Trade Commission’s (FTC or Commission) radar. As we previously reported, the FTC held a workshop earlier this year to examine, among other things, how dark patterns affect online user behavior and…
FTC Resurrects Penalty Offense Authority as Possible Civil Penalty Vehicle


Following the U.S. Supreme Court’s April 22, 2021 decision in AMG Capital Management, LLC v. Federal Trade Commission, which put the brakes on the ability of the Federal Trade Commission (FTC or Commission) to use its Section 13(b) authority to seek monetary penalties for violations of the FTC Act, the Commission has sought another…
California Governor Newsom Signs Laws Affecting Environmental Marketing Claims



On October 5, 2021, California Governor Gavin Newsom signed a package of environmental legislation into law, including two bills aimed at environmental marketing claims. SB 343, Truth in Labeling for Recyclable Materials, which we previously wrote about here, will significantly affect how recyclability claims can be made. Under AB 1201, compostable and…
CARU Issues Updated Guidelines for Children’s Advertising

The Children’s Advertising Review Unit (CARU), a division of BBB National Programs, recently updated its Self-Regulatory Guidelines for Children’s Advertising. Important updates include:
- To align with the Children’s Online Privacy Protection Act (COPPA), the Guidelines now apply to national advertising primarily directed to children under the age of 13 instead of under 12, regardless
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The Changing Face of Environmental Marketing Claims



The circular economy. Sustainability. Single-use plastics bans. Marine litter. Microplastics. Climate change. These are only some of the issues driving the demand for more “environmentally friendly” products. In recent years, we have seen a surge in product and raw material innovations designed to improve environmental performance, and companies around the world are pledging to take…