While the Federal Trade Commission (FTC)’s recent action against Williams-Sonoma for allegedly false “Made in USA” claims garnered headlines for its $1 million penalty, FTC staff continue to offer insights into the Commission’s enforcement position on such claims through its closing letter process. For example, the FTC sent a closing letter to epoxy manufacturer J-B
Advertising
Williams-Sonoma Pays $1 Million to Settle “Made in USA” Claims
Home furnishings giant Williams-Sonoma – whose brands include Pottery Barn, Le Creuset, and West Elm – invokes an upscale, modern American lifestyle. Many of its products are marketed not only as “quality” but also “crafted in America.” Consumers who received mattress pads from the Pottery Barn Teen and Kids were therefore surprised to see labels…
FTC Seeks Input on Energy Labeling for Portable Air Conditioners
In a notice approved for publication in the Federal Register, the Federal Trade Commission (FTC) advised on March 27, 2020 that it is soliciting feedback on proposed new EnergyGuide label requirements for portable air conditioners. The FTC’s Energy Labeling Rule requires manufacturers to attach yellow EnergyGuide labels to major home appliances and other consumer products…
FTC and FDA Warn Companies About Coronavirus Treatment Claims
As fears escalate over the spread of coronavirus (COVID-19), scared consumers may be more susceptible to claims by companies offering cure-all remedies. The Federal Trade Commission (FTC) and Food and Drug Administration (FDA) are aware and looking out for consumers. The two agencies sent joint warning letters to seven companies – Vital Silver, Quinessence…
FTC Seeks Comments on Revamping its Endorsement Guides
At a time when influencers are making a living – and sometimes millions of dollars – for promoting everything from eye shadow to the latest smartphone, the Federal Trade Commission (FTC) is reassessing its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the Guides). The Guides provide direction to businesses that use influencers…
Maker of Purell Draws FDA Warning and Lawsuit for Hand Sanitizer Disease Prevention Claims
GOJO Industries, the maker of Purell hand sanitizer, needs to clean up its advertising act according to the U.S. Food and Drug Administration (FDA). The FDA sent GOJO a letter on January 17, 2020 warning the company to stop making unsubstantiated claims about its hand sanitizers to avoid giving consumers the impression that they are…
FTC Publishes Practical Guidance for Influencers
From beauty gurus on Instagram to product reviewers on YouTube, influencers are big business for brands. However, the intentions aren’t always clear when reading the advice of a celebrity fitness trainer who was paid for his endorsement or watching a video of a fashionista who just received a new wardrobe from the clothing company she…
What’s Next After Facebook’s Record $5 Billion Fine and Cambridge Analytica?
Facebook is facing some big changes after the Federal Trade Commission (FTC) settled with the social media giant over charges that it violated an earlier consent agreement. The company will pay a penalty of $5 billion, which is not only the biggest privacy fine in history, but also, according to FTC commissioner Noah Phillips, “almost…
Equifax to Pay Largest-Ever Data Breach Settlement
The Equifax data breach was one of the most massive data breaches of all time, and it has resulted in the biggest settlement for a data breach to date. After two years of investigations at the state and federal levels, credit reporting agency Equifax has agreed to a $675 million – up to possibly $700…
FTC Continues Focus on “Made in America” Claims
Making the same false country-of-origin claims that initially resulted in a Federal Trade Commission (FTC) consent order is a good way to land a company with substantial civil penalties and corrective advertising obligations. iSpring Water Systems LLC found this out the hard way. Instead of complying with its earlier promise not to falsely advertise its…