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,
Advertising
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…
FTC Finalizes Made in USA Labeling Rule
Goods advertised as “Made in the USA” (MUSA) are potential money-makers for manufacturers tapping into the market of consumers who seek home-grown products. In recent years, however, the Federal Trade Commission (FTC) has investigated companies that deceptively marketed their goods as American-made, sending out warning letters, closing out investigations of companies that quickly change their…
FTC and FDA Team Up to Halt Fake Fertility Supplements
The Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) recently sent warning letters to five dietary supplement companies– LeRoche Benicoeur/ConceiveEasy; EU Natural Inc.; Fertility Nutraceuticals LLC; SAL NATURE LLC/FertilHerb; and NS Products, Inc. – warning them that advertising their products as treatments that could cure or treat…
Addressing Dark Patterns in Online Marketing
The Federal Trade Commission (FTC) has released the final agenda for its first workshop on the use of “dark patterns” online, Bringing Dark Patterns to Light: An FTC Workshop, which will be held virtually on April 29, 2021. The workshop will explore how to define “dark patterns,” their prevalence, possible harms (including to vulnerable…