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
Advertising
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…
FTC Orders E-Cigarette Manufacturers to Provide Advertising and Sales Information
The Federal Trade Commission (FTC) has issued orders to five e-cigarette manufacturers (JUUL Labs, Inc., R.J. Reynolds Vapor Company, Fontem US, LLC, Logic Technology Development LLC, and NJOY, LLC) seeking information about the companies’ 2019 and 2020 sales, advertising, and promotions. The FTC sent similar orders to the same companies in October 2019 seeking information…
FTC Announces Workshop to Explore Internet “Dark Patterns”
On April 29, 2021, the Federal Trade Commission (FTC) will host a virtual public workshop to examine the nature and effects of “dark patterns” on online user behavior. “Bringing Dark Patterns to Light: An FTC Workshop” is expected to explore ways in which user interfaces can have the effect, intentionally or unintentionally, of obscuring, subverting,…
Mobile Ad Company Settles FTC Charges Over Misleading In-Game Rewards
Tapjoy, Inc., the operator of a mobile advertising platform that appears in certain mobile gaming applications, has settled Federal Trade Commission (FTC) allegations that the company deceived consumers by failing to provide them with promised rewards. Tapjoy’s platform allows mobile app users to interact with third-party advertisers and gain rewards, such as virtual currency, for…
FTC Approves Final Amendments to Energy Labeling Rule for Portable ACs
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…
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…