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
FTC
Bedoya Confirmed as Fifth FTC Commissioner; Congress Debates FTC Act Revisions



Alvaro Bedoya, a Democrat, was confirmed on May 11, 2022, to serve as the fifth Commissioner of the Federal Trade Commission (FTC). With the Senate deadlocked at 50-50 along partisan lines, Vice President Kamala Harris cast the tie-breaking vote. Bedoya replaces former Commissioner Rohit Chopra, who left the FTC last October to lead the Consumer…
FTC Brings First MUSA Rule Complaint Against Battery Manufacturer


In a complaint dated April 12, 2022, the Federal Trade Commission (FTC) brought its first action under the new Made in USA Labeling Rule (the Rule) against Lithionics Battery LLC (Lithionics) and its owner, Steven Tartaglia, for falsely advertising Lithionics’ lithium-ion batteries as USA-made.
According to the FTC’s complaint, from at least 2018 until at…
WW International to Pay $1.5 Million Civil Penalty for Alleged COPPA Violations


In 2014, with childhood obesity on the rise in the United States, tech company Kurbo, Ltd. (Kurbo) marketed a free app for kids that, according to the company, was “designed to help kids and teens ages 8-17 reach a healthier weight.” When WW International (WW) (formerly Weight Watchers) acquired Kurbo in 2018, the app was…
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…
President Biden Nominates Alvaro Bedoya for FTC Commissioner


On September 13, 2021, President Biden nominated Alvaro Bedoya for Commissioner of the Federal Trade Commission (FTC) to replace outgoing FTC Commissioner Rohit Chopra. Earlier this year, President Biden nominated Chopra to head the Consumer Financial Protection Bureau (CFPB). If confirmed, Bedoya would round out the slate of FTC commissioners and solidify the agency’s Democratic…
Could COPPA Safe Harbor Changes Be in Store?


The Federal Trade Commission (FTC) took the unprecedented step of removing one of the approved Safe Harbor organizations under the Children’s Online Privacy Protection Act (COPPA) for failing to provide effective monitoring and assessment of its member companies’ websites, as required under the COPPA Rule. Earlier this year, Commission staff warned Aristotle International, Inc., whose…
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…