On December 17, 2015, the Federal Trade Commission (FTC) announced that Lifelock, Inc. (LifeLock), agreed to pay a record-breaking $100 million to settle charges that it violated an earlier consent agreement related to flawed data security practices issued in March 2010. The LifeLock settlements implicate both the “fairness” of the company’s data security practices and
In a closely watched case where the Federal Trade Commission (FTC) pursued Wyndham Worldwide Corporation for several data breaches that led to millions of dollars in fraudulent charges on customers’ payment cards, the U.S. Court of Appeals for the Third Circuit on Monday agreed with the Commission’s broad interpretation of its “unfairness” authority (opinion here
In a 4–1 vote, the Federal Trade Commission (FTC) has issued its long-awaited Statement of Enforcement Principles outlining the Commission’s approach to “unfair methods of competition” prohibited by Section 5 of the Federal Trade Commission Act (FTCA) but not necessarily by the Sherman or Clayton Act. The statement is brief, and those awaiting the type
A federal appellate court will consider early next month whether the Video Privacy Protection Act (VPPA) makes an “Android ID” – a device identifier used in Google’s smartphones –personally identifiable information (PII). The Eleventh Circuit has scheduled oral argument in the case, Ellis v. Cartoon Network, Inc., for June 3, 2015.
The plaintiff in
On April 23, 2015, the Federal Trade Commission (FTC) announced that retail tracking company Nomi Technologies has agreed to settle FTC charges that it misled consumers. The FTC alleged that the company, which develops technology to allow retailers to track consumers’ movements through their stores, misled consumers by failing to uphold promises to provide a
Technology is advancing fast, but would you use an app to figure out if you had cancer? According the Federal Trade Commission (FTC), that’s just what two app developers were recommending, but the FTC said they lacked the evidence to back their claims up. The FTC entered into consent agreements with two companies, MelApp and
The Federal Trade Commission (FTC) is proposing updates to its labeling and packaging requirements under the Fair Packaging and Labeling Act (FPLA), including deleting specific requirements for commodities advertised using terms such as “introductory offer,” “cents off,” and “economy size.” The proposed changes would also modernize place-of-business requirements,
The name of POM Wonderful, LLC (“POM”) will now forever be linked to some important advertising rulings that are not only of central significance to the food industry, but have broader advertising significance as well. We are reminded of those actions today because POM’s advertising claims touting health benefits of pomegranate juice resulted in a ruling by the D.C. Circuit Court of Appeal upholding in part a January 2014 Federal Trade Commission (“FTC”) decision on POM’s health claim advertising, but rejecting one of the remedies of most concern to industry as a whole: a requirement that claims be supported by two (not one) well controlled, randomized clinical trials.
A statement by FTC Chairwoman Edith Ramirez rejected the notion that the Commission would be precluded from requiring two clinical trials in other circumstances. Chairwoman Ramirez explained that this court decision affirmed the January 2014 FTC decision that the marketers of POM Wonderful 100% Pomegranate Juice and POMx supplements deceptively advertised that the products could treat, prevent, or reduce the risk of heart disease, prostate cancer, and erectile dysfunction, and were clinically proven to have such benefits. She noted that the court did not uphold the FTC order requirement for two randomized well controlled human clinical trials by POM in that case. However, she explained that the court did affirm the FTC’s order requiring POM to have at least one such study before making disease prevention or treatment claims, and held out the possibility that two might be warranted in other cases.
POM of course was not just the recipient of a claim about allegedly false advertising claims. POM previously challenged successfully a competitor making “pomegranate” juice claims, resulting in an important 8 to 0 U.S. Supreme Court ruling in POM Wonderful LLC v. The Coca-Cola Company, 133 S. Ct. 2224 (Jun. 12, 2014). In that case, the Court ruled that regardless of whether a 100% juice product complies (or not) with Food and Drug Administration (“FDA”) labeling regulations under the federal Food, Drug and Cosmetic Act (“FDCA”), a competitor’s false advertising case under the federal Lanham Act could still proceed. Continue Reading POM-eled: POM Wonderful, The FTC and Competitor Challenges (Hint – It’s All About Consumer Deception)
The Federal Trade Commission (FTC) applies a couple of cardinal rules for advertisers playing in the social media space: tell the truth and disclose endorsement arrangements. Sony Computer Entertainment America LLC and its advertising agency Deutsch LA, Inc. apparently broke those rules in advertisements launching Sony’s PlayStation Vita (PS Vita) in 2012. Each agreed to
Since new requirements under the updated Children’s Online Privacy and Protection Act (COPPA) entered into force in July, 2013, the Federal Trade Commission (FTC) has moved into an active enforcement phase, while also fielding requests to recognize new parental consent methods and safe harbor programs. Those interested in children’s online activities can draw some important
