Are paid search terms about to receive a lot more Federal Trade Commission (FTC) attention? That’s the question you could be asking after the FTC last week announced a settlement with Nourish Life LLC. Defendants marketed a dietary supplement called Speak that contains among other things omega-3 and omega-6 fatty acids, vitamin E and vitamin K. According to the FTC, defendants lacked adequate substantiation for the claim that Speak would help children develop and maintain normal speech, including children who suffer from autism and verbal apraxia (a speech disorder).
The FTC’s complaint cites claims made on websites and social media as well as in direct mail, brochures, and displays at medical conferences. In addition, the complaint makes reference to paid search terms and sponsored links as one of the mechanisms by which the defendants marketed their product. The paid search terms cited included “toddler speech problems,” “help my child talk,” “autism treatment,” and “verbal apraxia treatment.”
Does this mean that paid search terms and sponsored links are now fair game for FTC scrutiny? Well like any good lawyer, we think the answer is “it depends.”
Continue Reading The FTC Speaks Softly But Carries a Big Stick – Do Paid Search Terms Go Under the Microscope?