Jason Howell, Amanda Beane and guest Lindsey Buckner from 7-Eleven discuss common challenges for in-house legal, including how to seamlessly integrate with in-house marketing teams and how to create work-life boundaries while working from home during the pandemic. Listen here.
Coronavirus (COVID-19)
NAD Recommends Modifications to Blueland’s Environmental and Comparative Claims
Key Takeaways:
- Marketers should strive to advertise the specific environmental product benefits that are well-supported in order to avoid communicating an overbroad “general environmental benefit” claim that cannot be supported, consistent with the FTC’s Green Guides.
- Environmental claims and comparative advertising claims are subject to scrutiny by regulators, competitors, and consumers, so consult with legal counsel when developing such claims.
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NAD Refers Implied COVID-19 Claims to FDA and FTC When Marketer of Dietary Supplement Fails to Respond to Inquiry
Key Takeaways:
- Marketers should continue to ensure that all health claims are supported by competent and reliable scientific evidence. While the scientific community’s understanding of COVID-19 is still relatively new, marketers should be particularly careful making any express or implied advertising claims related to COVID-19.
- NAD continues to monitor and challenge misleading health claims related to COVID-19. NAD will refer these claims to the FTC and FDA as needed.
The AMP Moment Podcast
The co-chairs of Perkins Coie’s Advertising, Marketing & Promotions (AMP) group are excited to launch their podcast titled The AMP Moment. Meant to be easily digestible for busy in-house marketing and litigation counsel, the podcast focuses on where advertising, marketing, and promotions law meets practicing in the moment. On the first episode, COVID-19 and…
NAD Uses Monitoring to Discourage Misleading COVID-19 Health Claims
As part of its routine monitoring program, the National Advertising Division (NAD) recently announced several decisions involving social media posts that advertised products as having health benefits that could help protect against COVID-19. The NAD’s inquiries are consistent with similar efforts by the Federal Trade Commission (FTC) intended to combat false and misleading advertising in connection with the pandemic. In its decisions, the NAD noted that it shares the FTC and FDA concerns related to advertising that touts a product can treat or protect consumers from COVID-19 and is therefore using its monitoring resources to identify misleading health claims.
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FTC’s COVID-19 Response: Latest Developments
Last week, the FTC sent another 50 warning letters related to COVID-19 advertising claims, adding to the growing list of FTC warnings and actions intended to address false and deceptive marketing during the pandemic. The latest round of letters targets companies advertising their products and services as effective in preventing or treating COVID-19 without adequate scientific support, including acupuncture, intravenous (IV) therapies, ozone therapy, stem cell treatments, sound frequencies, air-purifiers, and immune-defense supplements.
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More FTC Civil Enforcement for COVID-19 and CBD Cancer Treatment Claims
On April 28, 2020, the FTC announced a preliminary order in a civil enforcement action against a supplement manufacturer that allegedly made false and unsubstantiated claims regarding COVID-19 and cancer. Specifically, the FTC alleged that Whole Leaf Organics had marketed its “Thrive” product as an “anti viral wellness booster” that treated, prevented, or reduced the risk of COVID-19. The FTC also alleged that Whole Leaf Organics marketed three products containing cannabidiol (CBD) as effective cancer treatments.
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Industry Insights: Consumer Products Companies Reconfiguring Production Lines to Meet New COVID-19 Needs
Consumers’ response to COVID-19 has led to increased demand for personal protective equipment and other much-needed supplies to aid consumers and healthcare professionals in the fight against the disease. Alcohol-based hand sanitizer is one such product, with the U.S. Centers for Disease Control and Prevention recommending hand sanitizers when soap and water are not available. The FDA has issued recent guidance intended to provide “flexibility” for manufacturers and increase the supply of alcohol-based hand sanitizer in the marketplace.
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FTC Sends More Warning Letters Regarding Unsupported Coronavirus Prevention and Treatment Claims
The FTC recently sent another round of warning letters to ten sellers related to advertising claims that their products treat or prevent COVID-19. Consistent with prior warning letters jointly issued by the FDA and FTC, the FTC’s letters allege that the sellers are falsely claiming that the products are proven to prevent or treat coronavirus when, in fact, there is no competent and reliable scientific evidence that is currently known to exist for products that prevent or treat COVID-19.
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Private Companies and Government Regulators Crack Down on Coronavirus-related Price Gouging
Two brothers in Tennessee made national news in early March after cleaning out local stores of products in high demand because of COVID-19 in order to sell them for exorbitant prices on online marketplaces. In the end, however, both Amazon and eBay implemented policies resulting in some or all listings involving price gouging being pulled from their platforms, so the pair was left with a garage full of nearly 18,000 bottles of sanitizer and an investigation into their activities by the Tennessee Attorney General’s. …
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