Tag Archives: Advertising

Eggs-aggeration: Goop Settles With California District Attorneys Over Misleading Health Claims

The California Food, Drug, and Medical Device Task Force announced a settlement this week with Goop, the lifestyle brand founded by Gwyneth Paltrow, which we’ve written about here and here. The complaint alleges that Goop made false and misleading representations regarding the effects or attributes of three products—the Jade Egg, Rose Quartz Egg, and Inner … Continue Reading

FTC Cries Foul On Breathometer Accuracy Claims

The FTC recently announced a settlement with Breathometer, Inc., a company that marketed a smartphone accessory that it claimed could detect blood alcohol levels.  Users could simply plug the accessory into the headphone jack, open the Breathometer app, blow, and receive a reading of their blood alcohol content within five seconds.  Breathometer marketed the products … Continue Reading

Announcing the Advertising and Privacy Law Webinar Series

Please join Kelley Drye in 2017 for the Advertising and Privacy Law Webinar Series. Like our annual in-person event, this series will provide engaging speakers with extensive experience and knowledge in the fields of advertising, privacy, and consumer protection. These webinars will give key updates and provide practical tips to address issues faced by counsel. … Continue Reading

Protected: 2016 Advertising and Privacy Law Summit Attendee Follow up

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FTC Settles with Health App Marketers for Unsubstantiated Melanoma Detection Claims

The Federal Trade Commission announced this week that it has reached settlements with two marketers for “deceptively claiming their mobile apps could detect melanoma, even in its early stages.” MelApp and Mole Detective claim to have the ability to accurately screen for a mole’s analyzed melanoma risk despite the absence of clinical testing. The FTC … Continue Reading

Google to Refund at Least $19 Million Over Kids’ In-App Purchases

On September 4, 2014, the FTC announced a settlement with Google Inc., which requires the search giant to pay at least $19 million in refunds to consumers that the Commission alleges were billed for unauthorized in-app charges incurred by kids.  The settlement follows a similar settlement in January with Apple (which required Apple to pay … Continue Reading

Plastic Lumber Company Nailed Over “Green” Claims

The FTC announced last week that it had reached a settlement with N.E.W. Plastics Corp., d/b/a Renew Plastics, over allegedly improper recyclability and recycled content claims.  The company manufactures plastic lumber products – including its Evolve and Trimax brands – used primarily in outdoor decking and furniture.  According to the FTC’s complaint, the company claimed … Continue Reading

NY Attorney General Takes Action Against Fake Online Reviews

This morning, New York Attorney General Schneiderman announced that his office had concluded a year-long undercover investigation into the reputation management industry and the practice of posting fake reviews online. Many search engine optimization (“SEO”) companies offer customers online “reputation management” services. During the investigation, the AG learned that some SEO companies perform these services … Continue Reading

Ninth Circuit Holds That Class Member Declarations Do Not Support Finding of Commonality in Class Action

On September 3, 2013 in Thomasson v. GC Services, LP, — Fed. Appx. –, No. 11-56100, 2013 WL 4713560 (9th Cir. Sept. 3, 2013), the U.S. Court of Appeals for the Ninth Circuit reversed and remanded with instructions to de-certify a class action alleging violations of the federal Fair Debt Collection Practices Act (“FDCPA”). This … Continue Reading

A Higher Bar to Class Certification in the Third Circuit?

The Third Circuit recently ruled to reverse the certification of a class of consumers who alleged that Bayer falsely advertised the metabolism-boosting benefits of its WeightSmart dietary supplement. The court held that the class members were not ascertainable, rejecting the plaintiff’s contention that it could look to retailers’ customer-loyalty card records or affidavits to determine … Continue Reading

Breaking Bad Class Action: Is Apple Really Breaking Promises?

The onslaught of consumer class actions against advertisers continues with Apple’s marketing of certain “Season Passes” on iTunes being challenged. Noam Lazebnik, an Ohio physician, filed a complaint on behalf of consumers who purchased an iTunes Season Pass last year for Season 5 of the AMC series, Breaking Bad. According to the plaintiff, Apple marketed … Continue Reading

Advertising the Price Right

All advertisers need to exercise caution in advertising special prices or discounts. Car dealerships need to be especially careful, right now. The FTC announced preliminary settlements with two car dealerships – one in Maryland and one in Ohio – over allegations of deceptive price advertising. The FTC alleges that the two dealerships violated the FTC … Continue Reading

Gain with Less Pain: Ending Your Competitor’s False or Misleading Advertising Claims Without Having to Litigate

The best marketers train one eye on their marketing message and the other on their competitors’.  And when a competitor’s claim is deemed to go too far, it is the legal department that must consider its options in trying to end the claim or campaign before it threatens the company’s market position.  In this context, … Continue Reading

FTC Announces Settlements on “No VOC” Claims

The Federal Trade Commission (“FTC”) announced settlements with three mattress manufacturers last week that prohibit the manufacturers from making claims that their products are free from volatile organic compounds (“VOCs”) absent competent and reliable scientific evidence. The companies involved – Relief-Mart, Inc., Essentia Natural Memory Foam Company, Inc., Ecobaby Organics, Inc. – are all alleged … Continue Reading

New York Times Article Discusses Potential Liability for Celebrity Endorsements

A recent New York Times article discussed the FTC’s scrutiny of companies who engage celebrities to endorse their products in social media. The article serves as a timely reminder that this form of advertising, unless conducted carefully, can result in liability and monetary penalties for the celebrity and the advertiser. The FTC is concerned that … Continue Reading

FTC Seeks Public Comment on Proposed Amendments to the Telemarketing Sales Rule

On May 21, the Federal Trade Commission (“FTC”) issued a Notice of Proposed Rulemaking (“NPRM”) regarding proposed amendments to the Telemarketing Sales Rule (“TSR”). Notably, the proposed changes would: (1) expressly state that the seller or telemarketer bears the burden of demonstrating an existing business relationship with a customer whose number is listed on the … Continue Reading

NAI Releases Updated Code of Conduct for Online Behavioral Advertising

The Network Advertising Initiative (“NAI”) recently announced final updates to its 2013 Code of Conduct (“NAI Code”). The NAI Code is one of the leading industry self-regulatory codes of conduct governing online behavioral advertising (“OBA”) for third party digital advertising companies. While prior versions of the NAI Code were focused on advertising networks, the 2013 … Continue Reading

Kansas AG Action Offers Reminder That States Monitor Do-Not-Call Compliance

A few days ago, a Kansas state court entered a default judgment against Bullseye Target Marketing, a Missouri telemarketing company that solicited roofing business in Kansas, in an action brought by the Kansas Attorney General alleging violations of the Kansas No-Call Act (the state analogue to the federal Telemarketing Sales Rule). The court ordered the … Continue Reading

FCC Opens the Door to Vicarious Liability for Third-Party Telemarketing Under Certain Conditions

On May 9, 2013, the Federal Communications Commission ruled that sellers may be held vicariously liable under the Telephone Consumer Protection Act (“TCPA”) for unlawful telemarketing by third parties under certain circumstances. The FCC’s Declaratory Ruling addresses third-party liability for violations of the Do Not Call and prerecorded message restrictions of the Communications Act. The … Continue Reading

Washington Attorney General Settles with T-Mobile Over Ad Claims

The Washington Attorney General recently announced a court-ordered agreement with T-Mobile over the company’s new advertising campaign. T-Mobile has been promoting a new service plan that offers “no restrictions,” “no annual contract,” and no requirement that customers “serve a two-year sentence.” The plan, however, does not include a phone. Instead, T-Mobile offers consumers an option … Continue Reading

So You Want to Self-Regulate? The NAD As Standard Bearer

The Federal Trade Commission has been an active proponent of industry self-regulation, recognizing that industry cooperation can lead to efficiency, innovation, and the dissemination of useful information, which can benefit both consumers and competitors. Self-regulation allows the FTC to conserve resources and direct them to high priority competition and consumer protection policy matters, while deferring … Continue Reading

FTC Closes Investigation Involving a Social Media Promotion

As we’ve posted before, if a company provides incentives to a consumer in order to encourage the consumer to promote the company’s products, the consumer is required to disclose those incentives. It’s not just the consumer’s problem, though. The FTC has stated that a company can be held liable for a consumer’s failure to make … Continue Reading

FTC Updates .com Disclosures Guide to Address Mobile Viewing and Space-Constrained Ads

On Tuesday, the Federal Trade Commission announced final revisions to the guidance it gives to advertisers on how to keep endorsement, testimonial, and other digital ads in compliance with the FTC Act, ".com Disclosures, How to Make Effective Disclosures in Digital Advertising." The Revised Guide expands on the initial version released in 2000 by providing … Continue Reading