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The Federal Trade Commission recently finalized updates to its Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address the FTC’s latest thinking about how the truth-in-advertising standards under the FTC Act apply to endorsement and review-related issues.

The updated Guides expand or clarify guidance related to (1) who can be considered…

On June 3, 2022, the FTC made a request for comments about .com disclosures, including the increased use of dark patterns, manipulative user interface design, and other forms of digital deception that pose unique risks to consumers online and in the mobile space. The FTC is considering updating and reissuing its guidance document “Dot Com Disclosures: Information about Online Advertising,” last revised in March 2013.…

Continue Reading FTC Seeking Public Input to Modernize Digital Advertising Guidance

To encourage transparency and compliance with the Federal Trade Commission (FTC) Act and address current practices and trends, the FTC first published the Guides Concerning the Use of Endorsements and Testimonials in Advertising (Guides) in 1980 and then amended them in 2009. The Guides reflect the FTC’s position on applying the FTC Act to endorsement-related issues.…

Continue Reading FTC Proposes Updated Guidance for Influencer and Consumer Review Programs

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.

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Continue Reading FTC Seeks to Enforce “Made in USA” Labeling Rule in Complaint Against Battery Seller

Key Takeaways:

  • The FTC’s Jewelry Guides require marketers to make clear and conspicuous disclosures to truthfully represent the origin of lab-grown diamonds and gemstones (i.e., distinguishing mined diamonds and gemstones from man-made substitutes) and otherwise comply with the Jewelry Guides (see below for additional compliance considerations).
  • Advertising claims for lab-grown diamonds and gemstones are subject to scrutiny by regulators, competitors (including adverse trade associations), and consumers, so companies should consult with legal counsel when developing any such claims.

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Continue Reading National Advertising Division Weighs in on Advertising Claims Related to Lab-Grown Diamonds

The ESRB, and it’s European equivalent PEGI, have issued new labeling requirements for video games containing loot boxes or other types of in-game purchases with randomized elements. The new labeling designation of “In-Game Purchases (Includes Random Items)” includes, but is broader than, loot boxes. Failure to adhere to this requirement may result in fines. Read…

The National Advertising Division recently revealed its plans to launch a fast-track resolution process to resolve certain false advertising claims in a mere 2-4 weeks. This fast-track process will provide a useful tool for companies that want to quickly and efficiently challenge certain competitor advertising practices.
Continue Reading NAD Reveals Initial Plans for 2020 Fast-Track Process

In November, the FTC issued a new resource for online social media influencers, titled “Disclosures 101 for Social Media Influencers,” which provides compliance tips for influencers disclosing payment, free products, and other “material connections” in their social media posts.  This new guide is the latest development in an ongoing effort by the FTC to educate influencers on when disclosure obligations apply and how to make effective disclosures.  A few takeaways from the new guide…
Continue Reading FTC Publishes “101” Disclosures Guidance for Social Media Influencers