Category Archives: Disclosures

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Sweeping New Federal Regulations for the Prepaid Industry

Note: We have revised the description of the terms of the settlement in our recent blog post on the Carribean Cruise Line TCPA matter. Click here to read the corrected post. Having trouble sleeping and need something to read? Lucky for you the Consumer Financial Protection Bureau (the Bureau) recently released its 1700+ page final rule … Continue Reading

FTC Aims To Understand Disclosures Through Consumer Testing – Announces Workshop Agenda

The Federal Trade Commission (FTC) just released its agenda for its September 15th workshop, “Putting Disclosures to the Test,” a full-day event aimed at improving the testing of disclosures by industry, academics, and the FTC. The workshop will review testing methodologies and examine how consumers perceive disclosures. Information will also be presented on how to … Continue Reading

Celebrity Endorsement Disclosures on Social Media

We’ve blogged several times about the need to disclose when social media posts by endorsers, particularly celebrities, have been paid for. And there has been lots of guidance and discussion about how best to do that, particularly in shorter form media such as Twitter. For example, “The FTC’s Endorsement Guides: What People Are Asking” provides … Continue Reading

Recent Opinion Highlights – The Risk of Unhealthy Telemarketing Practices

Last month, the U.S. District Court for the Southern District of Florida issued an opinion that serves as a powerful reminder of the risks of not taking telemarketing compliance seriously. In August 2014, the FTC sued the Partners in Health Care Association (“PIHC”), its principal Gary Kieper, and others for deceptively telemarketing medical discount cards.  … Continue Reading

FTC Settlement Sheds Light on Claims of Increased Cognition

It doesn’t take a genius to know that health claims are on the FTC’s radar.  In fact, at last year’s NAD conference, Commissioner Brill said that the FTC will prioritize enforcement of unsubstantiated health claims, such as cognitive claims.  We have blogged about learning claims before, including the Word Smart case.  However, Lumosity, which created … Continue Reading

Court Attempts to Smooth out ROSCA Violations

As we’ve mentioned before, and as this year is unfolding, it looks like the Federal Trade Commission (“FTC”) is even more desperate to enforce the Restore Online Shoppers’ Confidence Act (“ROSCA”) than we are to find good skin care products.  The FTC has begun expanding its enforcement of ROSCA into various industries, including now the … Continue Reading

FTC’s New Guidance on Implied Tying Claims Under the Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act (MMWA), is one of many vehicles that plaintiffs use to bring lawsuits over warranty claims.  It is a federal statute that governs warranties on consumer products.  The Federal Trade Commission has enacted regulations governing the disclosure of written consumer product warranty claims. Just this month, the Federal Trade Commission completed a … Continue Reading

Tough Pill to Swallow: Court Imposes Over $3 Million in Civil Penalties on Dietary Supplement Company

On March 31, 2015, the United States District Court for the District of Columbia issued an opinion, granting the Department of Justice’s (DOJ) motion for a final order providing injunctive relief, monetary relief, and civil penalties against Daniel Chapter One and James Feijo for making claims that Daniel Chapter One’s dietary supplements could treat, cure, … Continue Reading

FTC Throws the Works at iWorks and Obtains Partial Summary Judgment on Online Advertising Issues

Last week, the United States District Court for the District of Nevada granted partial summary judgment for the Federal Trade Commission (“FTC”) against Jeremy Johnson and a number of related corporate entities collectively referred to as “iWorks,” offering a glimpse into how the FTC and the courts analyze certain online advertising issues. The FTC first … Continue Reading

FTC Shines High Beams on Warranty Claims

A recent Federal Trade Commission (“FTC”) settlement with BMW serves as a good reminder to take a fresh look at Mag-Moss compliance for all companies offering warranties. The FTC’s business guidance provides a helpful checklist to make sure your warranty program is all tuned up. BMW for its MINI Coopers offered a 4-year or 50,000-mileage … Continue Reading

FTC Dishes Out ROSCA Complaint with Focus on Disclosures

The Federal Trade Commission (“FTC” or “the Commission”) has clearly subscribed to enforcing ROSCA recently.  On Tuesday, the FTC filed a complaint against DIRECTV’s negative option program and contract pricing structure under Section 5 of the FTC Act and ROSCA. In the complaint, the FTC alleged that DIRECTV required customers to agree to a mandatory … Continue Reading

And the Oscar Goes to . . . the FTC?

February 22, 2015, marked the 87th Academy Awards ceremony.  Some people tuned in because they love the movies, others for the fashion and celebrities, but, as for me, I watched it with my wife and was simply counting the minutes until “The Walking Dead” came on.  As I watched the celebrities work the red carpet, … Continue Reading

BBB Updates Advertising Code to Keep Pace with Technology

The Better Business Bureau (BBB), known for being the home of NAD, CARU and other advertising self-regulatory forums, is now also the proud owner of an updated advertising code.  The BBB announced earlier this month significant updates to its Code of Advertising for the first time since 1985 (when the number one single was “Careless … Continue Reading

Compliance Trends for Online Marketers

Looking back 2014 was a year of increased government scrutiny and compliance obligations for lead generators and online marketers, and so, for 2015, advertisers will need to ramp up compliance.  Avoiding banned terms, better use of disclosures, and other web and contact center compliance enhancements – with at least some reports of 66% of website … Continue Reading

Do Not Shoot Yourself in the Foot by Making Admissions in Your Disclaimer

There may come a time (but hopefully not) where you need to write a website disclaimer, email, Facebook post, whatever trying to dispel consumer confusion and head off an advertising lawsuit.  How might you do that?  Keep editing if your first draft looks something like this:  “We have learned that some customers are confused and … Continue Reading

Your Websites Terms of Service are Unenforceable

The vast majority of Terms of Service (TOS) on websites are unenforceable. Companies spend a great deal of time and money in crafting what they believe to be appropriate website specific TOS which they hope will provide them with the various protections, safe harbors and advantages needed in dealing with the public or in transacting … Continue Reading

FTC: Unlimited Means Unlimited

Defining unlimited is a metaphysical exercise worthy of a Cosmos or at least a Big Bang episode.  We have blogged before about the meaning of “lifetime supply” and “free.”  But the FTC is very literal when it comes to defining the bounds of limitless and concludes that, well, unlimited means unlimited. The FTC has just … Continue Reading

Live (almost) from New York, It’s the NAD Annual Conference

We are close to live blogging from the annual NAD Advertising Law Conference and for those who could not join us, we wanted to share highlights from its opening — keynote speaker FTC Chairwoman Edith Ramirez.  The FTC typically uses this conference to lay out its enforcement priorities relevant to national advertisers and gives us … Continue Reading
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