Key Takeaways:
FTC
FTC Finalizes Updated Guidance for Influencer and Consumer Review Programs
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…
FTC’s Secures $18.5 Million Settlement With Publishers Clearing House for Alleged Dark Pattern Sweepstakes Tactics
By Amanda Beane, Wonji Kerper & Nathan Kosnoff on
Posted in FTC
Key Update:
- Publishers Clearing House (PCH), a direct marketing company known for its sweepstakes, has agreed to pay $18.5 million as part of a settlement with the Federal Trade Commission (FTC).
- The settlement follows allegations of deceptive practices, such as the use of “dark patterns” to encourage sweepstakes entries and purchases.
- As part of the settlement, PCH agreed to redesign its user interface in order to avoid confusion and ensure transparency.
FTC Proposes New Rules for Subscription Services—Public Comments Now Open!
By Jason Howell, Amanda Beane, Wonji Kerper & Nathan Kosnoff on
Posted in FTC
The FTC published the proposed Negative Option Rule (Rule) to the Federal Register on April 24, 2023, with the goal of preventing unfair and deceptive practices related to recurring subscriptions for products and services. The FTC has invited the public to comment on proposed changes to the Rule. Written comments must be submitted by June…
Another Round of Notice of Penalty Offenses—The FTC Targets Health Claims
By Amanda Beane, Tim Carter & Nathan Kosnoff on
Posted in FTC
Key updates:
- Under its Penalty Offense Authority, the Federal Trade Commission (FTC) warned almost 700 marketers with a Notice of Penalty Offenses (Notice) that certain advertising claims must be proven or substantiated with reliable evidence, especially those related to health products, or they may face civil penalties.
- Advertisers should have a reasonable basis for health claims, including complying with recognized scientific standards when making claims about the effectiveness of their products in curing, mitigating, or treating significant conditions such as cancer or heart disease.
- The Notice comes on the heels of the FTC updates to Health Products Compliance Guidance (the Health Guides) and indicates the FTC continues to scrutinize health claims.
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FTC To Hold Workshop on “Recyclable” Claims as Part of Continuing Green Guides Review
By Amanda Beane, Jason Howell, Tim Carter & Nathan Kosnoff on
Posted in Environmental Claims, FTC
As part of its assessment of the Guidelines for the Use of Environmental Marketing Claims (Green Guides), the Federal Trade Commission (FTC) will hold a workshop on May 23, 2023, to consider “recyclable” advertising claims and issues related to environmental claims. The workshop is titled “Talking Trash at the FTC: Recyclable Claims and the Green Guides.”…
FTC Proposes Rulemaking for Recurring Subscription Programs
By Amanda Beane, Mark S. Goodrich, Jason Howell, James G. Snell, Wonji Kerper, Kim Ng & Kirk A. Soderquist on
Posted in FTC
The Federal Trade Commission (FTC) recently announced a notice of proposed rulemaking to expand its “Negative Option Rule” to apply to all recurring subscription programs (Proposed Amendment). The Proposed Amendment would have a sweeping effect on recurring subscriptions, requiring—similarly to some state laws—clear and conspicuous disclosure of material terms, double opt-ins for sign-ups, a simple cancellation method, and an annual renewal reminder. If approved, the Proposed Amendment would set a nationwide floor by requiring specific practices for subscriptions, but it would not supplant existing state laws addressing recurring subscriptions. The amendment would also greatly expand the FTC’s ability to seek penalties and consumer redress for violations.…
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FTC Settlement With NutraClick Reimburses Customers Nearly $1 Million for Recurring Subscription Practices
By Amanda Beane, Jason Howell, Wonji Kerper & Nathan Kosnoff on
Posted in Automatic Renewal Programs, FTC
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 Issues Updated Guidance for Advertising Health Products
By Amanda Beane, Jason Howell, Perkins Coie, Tim Carter & Nathan Kosnoff on
Posted in FTC
The Federal Trade Commission (FTC) recently issued Health Products Compliance Guidance (the Health Guides). The Health Guides replace prior FTC guidance issued in 1998 that largely focused on dietary supplements. The new guidance addresses advertising practices for a broader range of products, namely “any health-related product,” including foods, over-the-counter drugs, homeopathic products, devices, health equipment…
FTC Targets Lasik Eye Correction Promotional Pricing With $1.25 Million Settlement Order
By Amanda Beane, Jason Howell, Wonji Kerper & Nathan Kosnoff on
Posted in Consumer Protection Program, FTC
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.