Signaling an increased activism on consumer protection issues, newly appointed FTC Chair Jon Leibowitz appointed Georgetown Law Professor David C. Vladeck as the Director of the Bureau of Consumer Protection.
The New Jersey Attorney General filed suit against Verizon alleging that its marketing, sales, billing and customer service practices for its FiOS television, telephone and internet services are deceptive and misleading.
Chase offered some credit cardholders promotional rates for balance transfers that clearly included a one-time transaction fee.
There is a proposed Settlement of a consolidated class action lawsuit known as In Re: Webloyalty.com, Inc. Marketing and Sales Practices Litigation, MDL No. 07-01820-JLT, Lead Case No. 06-11620 JLT, that is pending in the U.S. District Court for the District of Massachusetts.
In January, 2009, the Ninth Circuit Court of Appeals ruled that Taco Bell is liable for the $42 million in breach-of-contract damages award to two Michigan admen who created the Chihuahua idea that served as the foundation for the fast-food chain's hit $500 million ad campaign in the 1990s. The campaign starring the talking dog as a beret-wearing revolutionary or sombrero-sporting bandit was a huge success.
Without the benefit of public comment, The FTC has announced that it is rescinding the agency's enforcement policy regarding the advertising of books and publications, known as the Mirror Image Doctrine.
In January 2007 the Federal Trade Commission (FTC) hosted a workshop to discuss negative option marketing. The workshop focused particularly on Internet-based negative option offers, because they were relatively new and presented distinct issues regarding the form, content, and timing of disclosures.
Six state and national environmental health groups, including the Sierra Club and the American Lung Association, lead by Earthjustice, a non-profit public interest law firm based in Oakland, California, filed a lawsuit in New York state court this month to force major U.S. manufacturers-Church & Dwight, Colgate-Palmolive and Proctor & Gamble as well as England-based Reckitt Benckiser Group-to disclose ingredients in their household cleaning products.
On March 4, 2009 the U.S. Supreme Court decided the controversial case of Wyeth v. Levine in favor of patient-plaintiff Diana Levine. The Court rejected Wyeth's argument that the FDA's approval of its labeling pre-empted a claim for personal injury arising from a failure to warn.
The New York Attorney General's Office has entered into a settlement agreement with AT&T Mobility that will require the company to pay up to $2.63 million dollars to consumers who were entitled to rebates but instead were given "rebate cards" that expired in just 120 days and were difficult to use.
President Barack Obama has appointed FTC Commissioner Jon Leibowitz as the Chairman of the Commission, who is expected to bring about a significant increase in the FTC's enforcement activities, particularly in the area of online advertising and privacy protection.
The FTC has extended the current public comment period related to proposed revisions of its Guides Concerning the Use of Endorsements and Testimonials in Advertising until March 2, 2009.
On December 15, 2008, the United States Supreme Court issued a decision in Altria Group, Inc. v. Good, the latest in a series of cases over the last two decades addressing pre-emption under the Federal Cigarette Labeling and Advertising Act ("Labeling Act").
The FTC recently proposed significant revisions to its endorsement and testimonial guides that if implemented, will greatly impact advertising utilizing testimonials.
We are proud to announce that our Advertising Law Blog has been included on e-Justice Law Blog's top 100 free do it yourself legal resources on the web.
The FTC continues to crack down on Free Trail Offers sold on the Internet. The most recent settlement with Ultralife Fitness, Inc. is similar to the FTC's settlement with Think All Publishing and NextClick Media that we reported on back in June 2008.
Court imposes three year ban on marketer for participation in production or publication of any infomercials, for products including any books or publications in which he has an interest.
In FTC v. Direct Marketing Concepts, Inc., et al., the FTC obtained summary judgment against the marketers and its supporting firms relating to disease treatment, and weight loss infomercials, "Coral Calcium" and "Supreme Greens."
A Magistrate Judge in the United States District Court, Northern District of California, recently rendered an important decision with potential implications for (1) any website that hosts user-supplied content; and, (2) owners of copyrighted material that is placed by others on such websites.
A business owner has just been convicted of defrauding customers seeking sexual enhancement drugs as well as a variety of other dietary herbal supplements. Steve Warshak, CEO of Berkeley Premium Nutraceuticals ("Nutraceuticals"), was sentenced last week to 25 years in federal prison. Eight other former executives and employees also received sentences ranging from one month to one year for their roles in assisting the fraud.
The Pennsylvania Department of Banking will require Internet payday lenders and other out-of-state companies that make consumer loans to Pennsylvania residents to be licensed by the Department of Banking and comply with state laws.
A Nassau County auto dealer will pay consumers for persistently using misleading promotions intended to lure them into the dealership. The consumers, once baited into the dealership, were also subject to other fraudulent and unfair sales practices.
The First Amendment's constitutional protection of speech loomed large in a recent Second Circuit Court of Appeals decision.
Two payday loan lead generators have agreed to settle FTC charges that their Internet advertising stated payday loan costs and repayment periods without disclosing annual percentage rate (APR) information as federal law requires.
Chances are you've gotten offers to try a product or service through a "free trial." Companies use these offers to sell a variety of items, from books and CDs to videos, magazines, and pills. But as part of a trial offer, a company also must tell you if any conditions are attached to the deal.
The UK recently enacted sweeping new consumer protection rules that provide civil and criminal penalties for a variety marketing practices.
A website that offered "free trials" of its herbal products, including smoking cessation patches, has agreed to halt its allegedly deceptive practices, pending trial.
Parents who purchased Gerber "Fruit Juice Snacks" brought a class action against Gerber alleging that its Fruit Juice Snacks product contained no fruit juice from oranges, peaches, strawberries or cherries as illustrated on the packaging. Instead it contained only grape juice from concentrate.
Competitors Sanderson Farms and Perdue Farms sued Tyson for nationally advertising its chicken as "Raised Without Antibiotics" and "Raised Without Antibiotics that impact antibiotic resistance in humans."
In FTC v. Seasilver USA, Inc., et. al. (CV-S-03-0676-RLH) (D. Nevada) defendants entered into a standard settlement agreement providing for injunctive relief and a monetary judgment, representing the approximate gross sales of the product, which was one hundred twenty million dollars.
The FTC announced on December 11, 2007, that it along with seven state attorneys general filed suit in federal court against Your Money Access, LLC, a payment processor and its principals with violating federal and state laws by debiting, or attempting to debit from consumers' bank accounts on behalf of alleged fraudulent telemarketers and Internet-based merchants.
As of yesterday, there are now a limited number of spaces at a substantial discount at the 11/27/07 e-mail law and self-regulation half-day conference in lower Manhattan that I'm chairing and that The Lustigman Firm is sponsoring.
The Response Magazine article "New FDA Dietary Supplement Rule Presents Challenges" is now available here.
On August 15, 2007, New York Governor Elliot Spitzer signed into law an amendment to the New York General Business Law in relation to selling and manufacturing of fur-bearing articles of clothing.
Todays follow up NY Times Story 2 Firms Tied to Phone Lists Will Review Their Policies on direct marketing suppliers involved in supporting fraudulent marketers highlights the current regulatory quagmire suppliers find themselves in.
The FTC recently announced a settlement with defendants Crystal Ewing and David Ewing along with affiliated companies relating to the marketing of sweepstakes reporters to residents of the United States, Canada, and the UK.
A Georgia class action filed by an individual who played "Get Rich With Trump"-- a companion game to the popular "The Apprentice" television show -- by entering via a premium SMS, illustrates potential risks utilizing entry methods that have a fee associated with the use.
In the wake of growing legislation restriction payday lending, the Community Financial Services Association of America (CFSA) recently announced voluntary changes to its industry best practices.
On February 7, 2007 the Federal Trade Commission issued its annual report, Consumer Fraud and Identity Theft Complaint Data on fraud complaints consumers have filed with the agency during 2006.
As previously discussed in this blog, the FTC held a workshop on negative option marketing. Now, the panelists' presentation materials from the FTC's workshop analyzing marketing of goods and services utilizing negative options are online.
As previously discussed in this blog, advertisers' growing reliance on rebates to offer sale prices is leading state lawmakers to consider legislation governing how rebates can be advertised and handled resulting in a mish mash of legislation that is confusing to both businesses and consumers.
On January 29, 2007 the New York Attorney General announced separate settlements with three major online advertisers for promoting products and services on the Internet through deceptively installed programs known as "adware." The agreements, with Priceline, Travelocity, and Cingular Wireless mark the first time an Attorney General has held advertisers responsible for ads displayed through adware.
FTC Requests Public Comments on Endorsement Guides
A recent lawsuit (Gorran v. Atkins Nutritionals, Inc.) decided in federal court in New York City rejected the claim of a fed-up dieter who blamed the diet he followed for causing him heart problems in part, on First Amendment grounds.
After much debate, including concerns raised by the Federal Trade Commission that the prior proposal would restrict truthful advertising and ultimately harm consumers, the New York State Unified Court System has announced the new attorney advertising regulations that will go into effect February 1, 2007.
The FTC has announced a January 25, 2007 workshop on marketing programs with negative option features.
Sixteen state attorneys general, led by California, jointly announced $14.5 million dollar settlement agreements on December 12, 2006 with Chase Bank and Trilegiant Corp. concerning their direct mail practices.
As the holiday shopping season kicks into full gear, many businesses seek to offer consumers rebates on the product's purchase price.
I am amazed by a front-business page New York Times story - Why Short Sellers Want to Crash The Tupperware Party -- reporting that investors are short selling positions in companies such as Avon Products, Herbalife, and Pre-Paid Legal because of pending Federal Trade Commission rulemaking on business opportunity programs. Wall Street is not only seeking to read tea leaves, but some investors are going so far as to try to influence the promulgation of the regulation in order to advance the value of their short positions.
Jane Pauley, the television news anchor has sued The New York Times and DeWitt Publishing, alleging she was misled to believe she was being interviewed for an article on mental health when she actually was being featured in a special advertising supplement.
Promotions are constantly embracing the latest technology and trends in an effort to capture the public's attention. Currently, Web 2.0 is shaping the Internet and is a driving force behind many promotions. Creating a "Web 2.0 Promotion" presents many new legal challenges that must be considered and carefully evaluated.
In a major boost to food nutrition and responsible marketing, Disney announced that it was moving to only permit its licensed properties (such as Mickey Mouse, Buzz Lightyear, and Ariel the Little Mermaid) to be utilized on food products that meet prescribed nutritional standards.
After previously obtaining a consent order with retail-drug store chain CVS regarding the availability of a free alternative method of entry in sweepstakes promotions, on October 16, 2006, the New York Attorney General announced that CVS had breached the order. In the breach challenge, CVS Corporation agreed to pay $152,000 in civil penalties.
The Connecticut Attorney General announced that GEICO insurance company has said it will no longer run a false and misleading television advertisement in Connecticut that claims the company repairs cars in a few days or less.
Following a trial this past summer, an Illinois federal court recently ruled for the Federal Trade Commission in its case against the marketers of the Q-Ray ionized bracelet.
On Friday, September 15, 2006, NBC's Dateline aired a one-hour expose on creating an infomercial for a bogus product.
On September 14, 2006 the New York Attorney General reached a series of settlements with companies that failed to obtain licenses for "going-out-of-business" sales.
The Washington Post reports that the Center for a New American Dream is promoting October 1-7th as "Junk Mail Awareness Week". The principle behind the week is purported environmental concerns regarding direct mail, particularly catalogs.
The Michigan Attorney General announced a settlement regarding the "Save Our Heritage Sweepstakes" that had been operated by the Citizens for Wildlife Conservation.
On August 17, 2006, the FDA announced that the United States District Court for the District of New Jersey has adopted an $8 million consumer redress program for purchasers of certain products from Lane Labs-USA, Inc.
Vonage recently settled with the New Jersey Attorney General by agreeing to pay $45,945 in penalties. The Consumer Affairs Division received 167 consumer complaints against Vonage concerning the company's business practices.
The State of Wisconsin announced that it was suing telephone-billing aggregator ILD Telecommunications, Inc. based on alleged cramming activities by its customer, ILD's customer Radical Persson, Inc., who marketed Internet services billed under the names Echurch Network and ILab Technologies. The state's lawsuit seeks refunds for all affected Wisconsin consumers, as well as penalties for the company's violations of Wisconsin law.
The National Association of Attorneys General (NAAG) announced its list of the Top 10 consumer complaints for 2005.
Ckrush Digital Media Inc. launched "LiveMansion the Movie", the first feature film by an online community - starring and directed by its members.
E-mail marketing remains a hot topic for both legislators and law enforcement officials. One recent development involved an update to an existing anti-spam law in Florida.
On July 17, 2006, U.S. prosecutors announced that they had arrested David Carruthers, the CEO of BetOnSports, PLC at Dallas-Fort Worth International Airport. BetOnSports is a publicly traded widely advertised online gambling portal that owns a number of offshore Internet Sports books and casinos. BetOnSports counts U.S. bettors as the overwhelming majority of its customers. The federal government has taken the position that "commercial gambling across state and international borders is a crime."
Regulators and law enforcement officials are increasingly using a new tactic against allegedly false or deceptive marketing practices. Instead of challenging the marketers themselves, they are focusing enforcement efforts against the service providers and suppliers of the marketers.
Virgin Mobile recently announced a new program called SugarMama, which lets cell phone users earn one minute talking time by receiving text messages on their phones, then answering questions to prove they were alert to the content or by watching 30-second commercials on a computer. The company plans to make the SugarMama program available to Virgin Mobile users in a few weeks.
The Direct Marketing Association (DMA) issued its report today on its Ethics Committee actions for the first quarter of 2006. The Ethics Committee is a self-regulatory body that reviews direct marketing advertising and marketing programs for compliance with governing laws and DMA guidelines.
Foreign fraudsters - watch out. The regulatory world continues to get more organized on combating global frauds. This week authorities in five countries arrested 565 people in fraud schemes that netted more than $1 billion.