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.
Continue Reading FTC Targets Lasik Eye Correction Promotional Pricing With $1.25 Million Settlement Order

Key Takeaways:

  • On September 15, 2022, California Governor Gavin Newsom signed into law the bipartisan California Age-Appropriate Design Code Act (CAADCA or the Act), Cal Civ. Code 1798.99.28 et seq., which goes into effect on July 1, 2024.
  • The Act places new obligations on companies with online products, services, or features that are “likely to be accessed by children” under the age of 18.
  • The Act is notable for its strict obligations applying to a broad spectrum of businesses, including those whose digital products and services are used by a significant number of minors, even if the business does not directly target children. It is also notable for applying to all minors under 18, rather than distinguishing between those under 13 and those aged 13-18.
  • A recent lawsuit brought by a technology trade group claims the Act violates free speech and is preempted by the Children’s Online Privacy Protection Act (COPPA), which sets website operator requirements for online interactions with children 13 and under, and the Communications Decency Act (CDA).
  • At least five other states are considering children’s privacy-related legislation.
Continue Reading Building Blocks – Lawmakers Are Increasingly Focused on Children’s Privacy

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.

The Federal Trade Commission (FTC) announced that it is seeking public comment on the Green Guides for the Use of Environmental Claims (Green Guides) as it considers potential updates. Last updated in 2012, the Green Guides serve as the FTC’s guidance for environmental marketing claims. The FTC is seeking public feedback on various green advertising topics, including whether to make the Green Guides independently enforceable and their interaction with other environmental marketing laws. The FTC is interested in hearing what industry stakeholders and consumers think about environmental claims generally, including those that are not currently covered by the guidelines.

Continue Reading FTC Invites Comments for Green Guides Review

Key Updates

  • The Federal Trade Commission (FTC) settled with internet phone service provider Vonage for allegedly using dark patterns to make it difficult for customers to cancel their phone service, charging unnecessary fees, and continuing to charge customers who had canceled their service. Dark patterns are design practices – often for a website or software app – that harm consumers, typically by manipulating or tricking them into making choices that they might not otherwise have made.
  • Under the settlement terms, Vonage is required to obtain express consent before charges, simplify its cancellation procedure, and pay $100 million in refunds.
Continue Reading Vonage To Pay $100 Million To Settle FTC Action Regarding Dark Patterns and Junk Fees

Key Update:

  • The FTC seeks comments on the effects of such fees and the methods companies may employ to impose them.
Continue Reading FTC Explores Potential Regulations To Prohibit “Junk” Fees

U.S. Senator Tammy Duckworth and U.S. Representative John Sarbanes have jointly introduced a new bill—the Websites and Software Applications Accessibility Act (the Act)—to address barriers that Americans with disabilities encounter when attempting to use websites and apps. The Act proposes to codify digital accessibility requirements for websites and apps, set schedules for continuous accessibility-related rulemaking to keep up with technological changes, and establish organizations to serve as support structures to facilitate digital accessibility. If enacted, the Act would fill a hole left open by the Americans with Disabilities Act (ADA), which has been interpreted by some (but not all) courts to apply to websites and apps.

Continue Reading New Bill Seeks To Establish Digital Accessibility Requirements for Websites and Apps

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 to the FTC, dark patterns undermine the consumer’s ability to make informed decisions and are therefore misleading or deceptive.

The FTC documented what it considered dark patterns in a variety of online businesses, including in cookie consent banners, apps aimed at children, and subscription sales. According to the Dark Patterns Report, four common tactics are:

  • Design elements that induce false beliefs. These include ads made to look like editorial content, false claims that other shoppers are currently viewing the same product to encourage a purchase, and paid consumer review websites claiming to be impartial.
  • Design elements that lead to unauthorized charges. These include techniques that trick someone into paying for products or services they did not want or intend to buy, free trials followed by an unexpected subscription, and hard-to-cancel recurring subscriptions.
  • Design elements that hide or delay disclosure of material information. These include concealing key terms and material information, including hidden fees, or only disclosing mandatory fees at the end of the purchasing process.
  • Design elements that obscure or subvert privacy choices. These include techniques that dupe consumers into sharing data by disguising options for privacy settings or presenting hard-to-understand language when seeking consent to share, collect, and use personal data.

The FTC stated that it “will continue to take action” against companies that deploy dark patterns. In light of the FTC’s ongoing attention towards the issue, brands should carefully assess their websites and ads with their marketing, design, and legal teams.

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.
Continue Reading FTC and CARU Target Advertising to Children in the Digital Age

Key Takeaways:

  • 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.
Continue Reading Sticker Shock: FTC Enforces “Made in USA” Labeling Rule