In February, we posted that the California Attorney General and state Senator Hannah-Beth Jackson had announced a bill that would have materially expanded legal exposure for businesses under the CCPA. The most concerning parts of the bill were the attempts to expand the private right of action to cover privacy practices, while simultaneously removing companies’
FTC Settles with Companies that Sought to Prevent Bad Reviews
The Consumer Review Fairness Act was enacted in 2016 to protect consumers’ ability to share their opinions about 
businesses. In general, the law prohibits companies from using form contracts that: (a) prohibit or restrict consumers from reviewing a business’ goods, services, or conduct; (b) impose penalties or fees on consumers for those reviews; or (c)
NAD Opines on “Favorite” Claims
The line between what’s an objective claim (which does require proof) and puffery (which does not require proof) isn’t always clear, and reasonable minds can differ as to on which side of the line a claim belongs. When the Eighth Circuit held in 2004 that “America’s Favorite Pasta” was puffery, many people were surprised and
FTC Settlement Addresses Free Trials and Incentivized Reviews
This week, the FTC announced a settlement with UrthBox and its president that addresses two topics that we frequently cover on this blog: (1) free trials; and (2) incentivized reviews.
Free Trial
The FTC alleged that Urthbox offered a “free” trial of its snack boxes for a nominal shipping and handling fee. 
For some consumers,
FTC Announces Settlement Involving Fake Amazon Reviews
This week, the FTC announced its first case involving fake reviews on an independent website.
Cure Encapsulations sells a weight-loss product exclusively on Amazon. When the company wanted to boost its sales, its owner turned to Amazon Verified Reviews (or “AVR,” for short), a website that offers Amazon sellers services designed to “push your product
New Bill Could Increase CCPA Headaches
Last week, the California Assembly’s Standing Committee on Privacy and Consumer Protection held a hearing to discuss the California Consumer Privacy Act. While many panelists from the private sector pointed out problems with the law, a few panelists defended the law, and some suggested that it didn’t go far enough. For example, Stacey Schesser, the
NAD Examines When Companies may be Liable for Consumer Reviews
We frequently get questions about whether companies can be held liable for claims that appear in consumer reviews. Although it’s clear that there are instances in which a company can be held liable if it has a connection to the person who wrote the review, it has been less clear to what extent a company
NY AG Announces Settlement Over Fake Followers
In the world of social media, a person’s power is often measured in terms of followers. Because more followers generally means more reach, companies who engage influencers often base their compensation on this metric. But follower counts may not always be what they seem. According to a New York Times report last year, influencers can
Dumpster Fyre of Advertising Issues
The recent Netflix and Hulu documentaries about the Fyre Festival have thrust the failed event back into the spotlight. That was a few scandals ago, so for those of you who don’t remember it, here’s a short recap.
Billy MacFarland and Ja Rule wanted to host a luxury festival on a deserted island. They found
DC Enacts Law Governing Automatic Renewals
Subscription plans that automatically renew at the end of a term are becoming more popular with companies. They’re also getting more scrutiny from regulators. As we’ve posted before, some states regulate how these plans can be structured, and there have been both lawsuits and regulatory investigations targeting companies that have failed to comply. This week,