On Monday, August 29, 2016, the Ninth Circuit Court of Appeals issued an opinion that may dramatically alter the boundaries between the Federal Trade Commission’s (FTC) and Federal Communications Commission’s (FCC) authority over phone companies, broadband providers, and other common carriers. The Ninth Circuit dismissed a case that the FTC brought against AT&T over its
NAD Worries Consumers Will Jump To Wrong Conclusions Over Trampoline Reviews
A growing number of consumers read reviews before they decide to purchase a product. Because of this – as we’ve posted various times – regulators and competitors are keeping a watchful on eye reviews that seem biased or inauthentic. The latest challenge comes from a world that isn’t known for its advertising challenges: the world
Rio, Swimming, Lies, and Morals Clauses
This week, four companies announced that they were cutting ties with Ryan Lochte after the swimmer
admitted to lying about being robbed at gunpoint during the Olympics. Speedo, for example, said that although they enjoyed the relationship they’ve had with Lochte for over a decade, “we cannot condone behavior that is counter to the values
Consumer Group Questions Kardashian Posts
On Monday, a consumer advocacy group announced that it had sent a letter to the Kardashian-Jenner family challenging how the sisters promote products on Instagram. The group contends that the sisters have engaged in deceptive advertising by failing to disclose that their posts are sponsored. The group states, “The law is clear – unless it’s
Adding Insult to Injury: Is There Coverage for a Data Breach or Hacking Event that Causes Physical Damage?
In an article published in the Bloomberg BNA Privacy and Security Law Report, Kelley Drye senior associate Ken Kronstadt analyzes the insurance coverage landscape for physical damage that results from a data breach or hacking event.
Internet-connected devices have become increasingly prevalent, and there is no sign that this trend is slowing. However, this soaring
CFPB Highlights Possible Approaches to Ramping up Regulation of Debt Collectors
The CFPB recently released an outline of proposals that it is currently considering to overhaul the debt collection market. The proposals under consideration would significantly expand current regulations governing debt collection, including by requiring collectors to maintain specified information to substantiate a debt before contacting consumers, limiting the number of times that a collector can
Lifestyle Blogging, Supplement Dust, and Third Party Liability
The NAD recently took a swipe at Goop, the lifestyle blog founded by Gwyneth Paltrow. To make “GP’s Morning Smoothie,” Goop had recommended using “dust” dietary supplements, such as Action Dust and Brain Dust, both sold by Moon Juice. With its usual mix of practical – if also luxurious – wisdom, Goop advised, “Choose your
Court Suggests Companies Can Be Liable as Soon as Claims Become Stale
It’s a common question. A company creates a product with a competitive advantage; it takes steps to substantiate a superiority claim; and, satisfied that it has met the legal standard, it bases an advertising campaign on that claim. Then, a competitor comes along with a new product, and the superiority claim is no longer accurate.
FTC Ponders Disclosures in Celebrity Posts
Last week, Bloomberg ran an article suggesting that the FTC is about to “crack down on paid celebrity posts” that aren’t labeled as ads. If you read this blog, you already know this is a big priority for the FTC. In fact, the agency has launched investigations against a number companies who used influencers to
This Week in Privacy Shield Developments
It’s been another exciting week of developments for U.S. companies on the EU data transfer front. From the first company to indicate that it will certify under Privacy Shield, to the first European Data Protection Authority (DPA) to suggest that it would like to challenge the validity of the new framework, here are this week’s