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
Advertising
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…
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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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…
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,…