The FTC stayed busy during the beginning of August. The agency announced a host of proposed settlements with companies and individuals engaged in deceptive and fraudulent business schemes. All this and more after the jump:Continue Reading FTC Updates (August 5-9, 2024)
As we’ve previously reported, FTC practitioners and businesses alike have been anxiously awaiting details about the rule that will prohibit purportedly deceptive practices in connection with reviews and testimonials. Our readers likely recall the FTC’s advance notice of proposed rulemaking from November 2022, the notice of proposed rulemaking from June 2023, and the informal hearing on the proposed rule which occurred in February 2024. The wait is finally over: just yesterday, August 14, 2024, the agency announced the “Rule on the Use of Consumer Reviews and Testimonials” (the “Rule”). The final Rule, which the Commissioners unanimously approved, is a formal step to address alleged ongoing non-compliance with Section 5 of the FTC Act and the agency’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”), particularly in the consumer review space.Continue Reading Final Rule Announced: The FTC Strengthens Its Enforcement Capacity Against “Deceptive” Reviews and Testimonials
The first week of June brought two votes on final rules from the FTC, including the Amplifier Rule and Racetrack Safety Rule. Further, the FTC finalized a proposed settlement and consumer redress regarding Lurn, Inc.’s deceptive advertisings. All this and more after the jump:Continue Reading FTC Updates (June 3-7, 2024)
As we move forward our clocks to adjust for daylight saving time and enter the season of spring, the FTC is keeping quite busy. The FTC held multiple events, proposed various settlement orders, and issued new rules covering a host of industries and topical areas, including healthcare, privacy, and telemarketing. Most importantly, the FTC welcomed Commissioners Ferguson and Holyoak.Continue Reading FTC Updates (February 26 – March 11, 2024)
As we enter 2024, the FTC is pushing forward on all fronts. The Bureau of Consumer Protection announced both settlements and actions, especially related to telemarketing and robocalls, as well as automotive industry junk fees and illegal uses of consumer location data. And, the FTC has scheduled a summit on Artificial Intelligence on January 25. This, and more, after the jump.Continue Reading FTC Updates (January 1 – January 19, 2024)
Crowell & Moring’s Holly Melton, Roy Abernathy, and Helen Ogunyanwo discuss what brands need to know about consumer reviews, testimonials, and endorsements in 2024. Read more in Law360: Link to Full Article
Since the Federal Trade Commission (“FTC”) published its updated 2023 Guides Concerning the Use of Endorsements and Testimonials in Advertising earlier this year, consumer reviews have been front of mind. This guidance covers, in part, the treatment of consumer reviews, and companies have been (or should be) preparing for an uptick in FTC enforcement. But it’s not just the FTC to watch out for. A recent wave of class actions arising under California Civil Code § 1670.8 related to a customer’s right to make statements about their experience with a seller has raised the bar for retailers to another level.Continue Reading I Can’t Say What? New Wave of Class Actions Target Consumer Review Terms & Conditions
As we enter November and turn our clocks back, the FTC has not slowed its enforcement efforts. The Bureau of Consumer Protection announced multiple settlements resulting in millions in consumer refunds with an apparent focus on the credit, loan, and debt collection industries. Further, the FTC released multiple annual reports including its Do Not Call Registry Data Book. This and more, after the jump.Continue Reading FTC Updates (October 30 – November 3, 2023)
As the summer closes and fall arrives, the FTC has been busy resolving a variety of actions within both the Bureau of Consumer Protection and Bureau of Competition, related to either purported false advertising or anticompetitive mergers. This and more, after the jump.Continue Reading FTC Updates (August 28 – September 8, 2023)
On June 29, 2023, the Supreme Court vacated the 10thCircuit’s decision in Abitron Austria GmbH et al. v. Hetronic International Inc. (“Hetronic”). The Supreme Court principally held that the Lanham Act does not have extraterritorial application. As Crowell previously discussed, the Supreme Court sought briefing on Hetronic from the U.S. Solicitor General, signaling an interest in addressing the Tenth Circuit’s decision, the extraterritoriality of the Lanham Act, and the complex circuit split that has at least three distinct tests. Although the Court agreed 9-0 that the lower court’s decision should be vacated, Justice Alito’s majority opinion and Justice Sotomayor’s concurring opinion disagreed on the second step of the extraterritoriality test, specifically regarding whether foreign conduct can have domestic implications. The majority disagreed with both the Tenth Circuit and the Solicitor General, concluding that the Lanham Act cannot apply to foreign defendants’ foreign conduct.Continue Reading The Unanimous, but Contentiously Fractured, Supreme Court Decision on Extraterritoriality of the Lanham Act