Key Update:
- The Federal Trade Commission (FTC) has used a $1 million settlement with NutraClick to reimburse customers who allegedly believed they were receiving free products but were actually enrolled in an unwanted monthly subscription program.
FTC Targets Lasik Eye Correction Promotional Pricing With $1.25 Million Settlement Order
Key Updates:
- LCA-Vision, d/b/a LasikPlus and Joffe Medicenter, has agreed to pay $1.25 million to settle the Federal Trade Commission’s (FTC) allegations that it misrepresented the price of eye surgery to entice prospective customers.
- According to the FTC’s allegations, only a small percentage of patients qualified for the promotional rate.
- In addition to the monetary fine, the clinics are prohibited from misrepresenting the cost of surgery or omitting restrictions on advertised services.
Keep Your New Year Happy and Bright With These Ad Law Tips
Another new year begun, so it’s time for retailers to revisit advertising and marketing law compliance strategies to avoid class actions, regulatory enforcement actions, and competitor challenges. We share our picks for the top five U.S. marketing law topics that deserve your attention in 2023.
FTC Issues New Dark Patterns Report and Signals Further Enforcement
The Federal Trade Commission (FTC), on September 15, 2022, published Bringing Dark Patterns to Light (Dark Patterns Report), which stemmed from an FTC workshop. The Dark Patterns Report highlights common dark patterns—design practices that trick or manipulate consumers into making choices that they might not otherwise have made and that may cause harm. According
FTC and CARU Target Advertising to Children in the Digital Age
Key Update:
- The Federal Trade Commission (FTC) will host a virtual event on October 19, 2022, titled “Protecting Kids From Stealth Advertising in Digital Media.” The FTC is also seeking public feedback on how digital advertising and marketing affect children.
- The Children’s Advertising Review Unit (CARU) of BBB National Programs issued a compliance warning reminding advertisers that the Self-Regulatory Guidelines for Children’s Advertising (Advertising Guidelines) apply to advertising directed to children in the metaverse.
- Brands should be aware of this increased scrutiny by the FTC and CARU when engaging in advertising to children in digital media.
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Sticker Shock: FTC Enforces “Made in USA” Labeling Rule
Key Takeaways:
- On August 5, 2022, the Federal Trade Commission (FTC) announced a $2.8 million settlement with the marketers of Patriot Masks for allegedly deceiving consumers about the efficacy and country of origin of their personal protective products (PPE). Days earlier, in a similar action finalized on July 28, 2022, the FTC imposed over $200,000 in fines against the owner of a patriotic apparel company for swapping “Made in China” tags with “Made in USA” tags.
- These two cases are the latest in an ongoing push by the FTC to curb false and deceptive “Made in USA” or COVID-19-related representations by individuals capitalizing on a pandemic-fueled demand for American-made products.
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FTC Seeks to Enforce “Made in USA” Labeling Rule in Complaint Against Battery Seller
Key Takeaways:
- On April 12, 2022, the Federal Trade Commission (FTC) used its authority under the new Made in USA Labeling Rule to bring a complaint against a battery seller for allegedly misrepresenting that its lithium ion cells were made in the USA, seeking over $100,000 in penalties.
- The Made in USA Labeling Rule codified pre-existing Made in USA guidance and was enacted in August 2021 to allow the FTC to more easily seek monetary penalties in connection with Made in USA violations.
Ad Law Resolutions for 2022
‘Tis the season for retailers to set best practices to avoid class actions, regulatory enforcement actions, and competitor claims. Ring in the new year with these top five U.S. advertising and marketing law takeaways.
California Passes Updated Automatic Renewal Law
Key Takeaways:
- On October 4, 2021, California passed an amended automatic renewal law that will require businesses to follow stricter cancellation and notice requirements for subscription-based products and services.
- The updated law goes into effect on July 1, 2022.
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