Retail & Consumer Products Law Observer

Retail & Consumer Products Law Observer

Legal Insight for the Retail and Consumer Products Industry

Tag Archives: Federal Trade Commission (FTC)

Court Dismisses FTC’s Unfairness Claims Against D-Link

Posted in Advertising & Product Risk Management
Earlier this month, the Northern District of California dismissed FTC’s unfairness claims against D-Link, a manufacturer of routers and IP cameras, while allowing most of FTC’s claims rooted in deception to survive, suggesting that traditional false advertising actions may be FTC’s most effective means of addressing suspect data security practices. Further, the Northern District of… Continue Reading

FTC Announces First Enforcement Action Against Social Media Influencers and Updates FAQs Rejecting Common Disclosure Practices

Posted in Advertising & Product Risk Management
The FTC is closely watching influencers to remind them to clearly disclose material connections to brands. In June 2017, the Commission settled with a trampoline manufacturer for relying on misleading endorsements and, in March, the Commission sent more than 90 letters to influencers and brands to remind them to clearly disclose relationships. The FTC has… Continue Reading

FTC Focusing on Privacy Risks of Interconnected Toys

Posted in Advertising & Product Risk Management, Product Liability & Torts
Fuzzy talking toys are no longer the annoying, yet benign Christmas gifts they used to be. Many of today’s toys, like refrigerators, cars, and televisions, are “smart,” and may come gift-wrapped with all of the emerging cybersecurity risks the internet has to offer. And as various government agencies grapple with the regulation and enforcement of… Continue Reading

This Week in Digital Advertising: Fake News, Bots, and Implications for Digital Trust

Posted in Advertising & Product Risk Management
Last December, authorities arrested Edgar Welch, a 28-year old man from Salisbury, North Carolina, who had entered Comet Ping Pong, a Washington, D.C. pizza parlor, armed with a shot gun. Mr. Welch reportedly came to Comet Ping Pong on a self-described mission to free child sex slaves that he believed might be imprisoned there at… Continue Reading

Trampoline Manufacturer Can’t Bounce Away From FTC Trouble

Posted in Advertising & Product Risk Management, Product Liability & Torts
FTC Moves Ahead Enforcing Endorsement Cases A few months ago, acting Federal Trade Commission Chairwoman Olhausen stated that the FTC should shift focus to cases of actual harm, leaving many to wonder whether FTC would still actively enforce endorsement cases. However, in April, the FTC sent out ninety letters to brand influencers and marketers reminding… Continue Reading

Long Live the King (Bio)

Posted in Advertising & Product Risk Management
Ninth Circuit Follows King Bio Decision in Confirming Private Plaintiffs May Not Challenge “Lack of Substantiation” Under California Law To view the full version of this article, visit the latest version of our Recent Happenings in Advertising & Product Risk Management newsletter. When it comes to prosecuting false advertising, what is the appropriate division of… Continue Reading

Failure to Obtain Viewer Consent Leads to $2.2 Million Settlement for Vizio

Posted in Advertising & Product Risk Management, Privacy & Data Protection
Vizio Reaches $2.2 Million Settlement With FTC, New Jersey, For Failing to Obtain Viewer Consent to Track and Sell Viewing Habits to Third Parties Traditionally, advertisers purchase ad inventory during television programs based on basic demographic information regarding viewer attributes. Thus, while ads may reach viewers of a particular gender and age range, those ads… Continue Reading

Join us! 2017 FBA Fashion Law Conference

Posted in Advertising & Product Risk Management, Events
On February 10, 2017, the Federal Bar Association will host a day-long Fashion Law Conference at Parsons School of Design (Starr Foundation Hall in the New School’s University Center) during New York Fashion Week! Please join Crowell & Moring’s Frances Hadfield and Preetha Chakrabarti, as well as a host of other speakers and experts, for our cutting-edge… Continue Reading

Webinar: Consumer Protection 2.0 — C&M’s First 100 Days Series

Posted in Advertising & Product Risk Management, Events
The incoming administration promises big changes to federal consumer protection administration and enforcement. On January 5, 2017, Crowell & Moring’s Advertising & Product Risk Management Group hosted a webinar in which they discussed likely changes on the horizon to the Federal Trade Commission, Federal Communications Commission, and Consumer Financial Protection Bureau. Please click here to access… Continue Reading

Consumer Review Fairness Act of 2016 — Beware of the Negative Online Review

Posted in Advertising & Product Risk Management
Retailers and consumer products companies need to be aware of a new law affecting negative online reviews. On December 14, 2016, President Obama signed the Consumer Review Fairness Act of 2016 (H.R. 5111) into law. The Act voids “non-disparagement clauses” in form contracts designed to prevent consumers from posting negative comments and online reviews of… Continue Reading

The FTC’s Latest Warning Letter Barrage Targets Misuse of Environmental Seals and Certifications.

Posted in Advertising & Product Risk Management
On Monday, September 14, the FTC announced that it had sent letters to five providers of environmental seals and certifications and 32 individual companies using such seals and certifications, warning them against potentially overbroad, deceptive uses. The latest edition of the FTC’s Green Guides contains a section dealing with the use of environmental seals and certifications.… Continue Reading

Paper Warranties a Thing of the Past?

Posted in Product Liability & Torts
On Tuesday, September 8, 2015, the House passed the E-Warranty Act of 2015, which, if enacted, would require the FTC to revise the Magnuson-Moss Warranty Act to allow manufacturers to satisfy the Act’s requirements by digitally posting consumer product warranties on their websites. The E-Warranty Act would permit manufacturers to provide warranty information online only, if… Continue Reading

FTC Data Security Authority Confirmed

Posted in Advertising & Product Risk Management, Privacy & Data Protection
The Third Circuit’s Monday decision in FTC v. Wyndham Worldwide confirmed the Federal Trade Commission’s (FTC) statutory authority to pursue enforcement actions for allegedly “unfair” data security practices under Section 5 of the FTC Act. Many believe that the decision will embolden the FTC to continue aggressively regulating what it considers to be unreasonable data security… Continue Reading

Recent FTC Safe Harbor Enforcement Takeaways

Posted in Advertising & Product Risk Management, Privacy & Data Protection
The Federal Trade Commission (FTC) has struck again in the data privacy world, this time at 13 companies that allegedly misrepresented in their privacy statements that they were U.S.-EU or U.S.-Swiss Safe Harbor certified. This latest enforcement sweep demonstrates the FTC’s privacy focus and reinforces the need for companies to make accurate public representations. The… Continue Reading

Marketing hocus pocus – Etsy says witches and Wiccans must substantiate their claims

Posted in Advertising & Product Risk Management
If you think only corporate America needs to worry about claims substantiation, think again.  As reported in the Washington Post, popular handicrafts sale site Etsy is cracking down on witches and Wiccans for lack of advertising substantiation regarding their claims about potions, charms, magic wands and the like sold on the site. Etsy, a $1.8-billion… Continue Reading

Holy Moly! FTC Says Smartphone Apps Don’t Detect Skin Cancer

Posted in Advertising & Product Risk Management
  The FTC continued its campaign against deceptive health and disease claims with enforcement actions against the marketers of “MelApp” and “Mole Detective,” smartphone apps that claimed to detect melanoma. These enforcement actions follow earlier FTC actions against smartphone apps that claimed to cure acne. The Commission voted 4-1 to settle deceptive advertising claims against… Continue Reading

FTC Warns Retailers to Police Their Products’ Deceptive Concussion Prevention Claims

Posted in Advertising & Product Risk Management, Product Liability & Torts
As the storm of concussion-related litigation continues to churn, the Federal Trade Commission is once again wading into its turbulent waters. In August, the FTC sent warning letters to five undisclosed “major” retailers, expressing concerns that athletic mouthguards are being advertised deceptively on the retailers’ web sites as helping to prevent concussions. These FTC letters… Continue Reading

Stricter Rules for Fuel Economy Advertising Are on the Horizon, But Are Unlikely to Put the Brakes on Consumer Class Actions

Posted in Advertising & Product Risk Management, Consumer Class Action, Environment & Natural Resources
The Federal Trade Commission (FTC) and U.S. Environmental Protection Agency (EPA) are both considering tightening rules governing the advertising of vehicle fuel economy. New federal regulations, however, may not stem the recent tide of consumer class actions alleging that auto manufacturers have misled consumers with inaccurate miles-per-gallon (MPG) claims. Since 1975, the FTC has published… Continue Reading