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The FTC's TRUSTe case: When seals help seal the deal

Lesley Fair
People who aren’t into marketing jargon might not know a “credence claim” from a Creedence Clearwater Revival, but experts tell us it’s a representation about a product that consumers aren’t in a position to evaluate for themselves. One example is what websites say about their privacy practices. Because consumers can’t test the accuracy of those claims, they often rely on third-party seals trusted for their expertise and independence. The FTC...

FTC Milestones: Shared beginnings in the Circle Cilk case

Lesley Fair, Bureau of Consumer Protection
In celebration of the FTC’s 100th anniversary, we’ve been examining the leaves on our family tree. The FTC’s founding is often associated with turn-of-the-century trust busting, but a closer look – including a study of the very first case published in Volume 1 of Federal Trade Commission Decisions – proves that the intertwined roots of consumer protection and competition run deep. That’s one of the themes of the FTC@100 Symposium on Friday...

FTC settlement challenges deceptive claims by patent assertion entity

Lesley Fair
Patent assertion entities have been the subject of much debate in antitrust and intellectual property circles. But there’s one proposition we hope that parties on all sides of the issue can agree on: It’s illegal to falsely threaten patent suits against small businesses or make unfounded claims that other companies have paid for patent licenses. That’s the misconduct alleged in a settlement the FTC just announced with patent assertion entity MPHJ...

Dating advice from the FTC? Not really, but read on.

Lesley Fair
How’s this for a profile on a dating site? “Enjoys travel, long walks on the beach, fake potential dates that really are subscription solicitations, and illegal negative option programs, in violation of the Restore Online Shoppers’ Confidence Act (ROSCA).” If that’s your idea of a dream date, have we got a site for you! No, the FTC isn’t playing matchmaker, but we are settling a law enforcement action against UK-based JDI Dating. JDI operates a...

From the antitrust mailbag: manufacturer-imposed requirements

Alan Friedman, Bureau of Competition
Here’s another common question we receive from retailers: A manufacturer is placing restrictions on the way I price its products. I think this is anticompetitive. Is it a violation of the antitrust laws for a manufacturer to tell me what price to charge? In most situations, a manufacturer’s requirements imposed on retailers are legal, so long as they are limited to the sale of that supplier’s products. Such requirements are usually legal because...

First FTC ROSCA case challenges bogus BOGO and "free" claims

Lesley Fair
It’s called ROSCA – the Restore Online Shoppers’ Confidence Act – and it prohibits marketers from charging consumers for an online transaction unless the marketer has clearly disclosed all material terms of the deal and received the consumer’s express informed consent. Your e-commerce clients will want to know about the FTC’s first ROSCA case, filed recently in Nevada. According to the lawsuit, Health Formulas, LLC and a tangle of related...

Law and (Un)ordered

Harris Senturia
A box of light bulbs. A case of cleaner. Another box of light bulbs. Ordinary supplies that businesses and nonprofits of all sizes use every day. If these things arrive at your office doorstep, someone in your company or organization must have ordered them, right? And when the bill comes, you have to pay it, right? Well, not necessarily. The FTC went to federal court in Maryland against a group of companies the agency says relied on these...

Shape up your shapewear claims

Lesley Fair
We can’t vouch for the accuracy of Shakira’s representation that “Hips Don’t Lie.” But the FTC says anti-cellulite and slimming claims for caffeine-embedded underwear sold by lingerie company Wacoal and catalog retailer Norm Thompson were deceptive. As for Norm Thompson's statement that Dr. Oz endorsed its products, the complaint challenges that as false. (And no, we’re not kidding about the caffeine-embedded underwear part.) Wacoal advertised...

Full Disclosure

Lesley Fair
If the disclosure of information is necessary to prevent an ad from being deceptive, the disclosure has to be clear and conspicuous. That shouldn’t be news to any advertiser and certainly not to the 60+ companies – including 20 of the 100 biggest advertisers in the U.S. – that received warning letters as a part of the FTC’s Operation Full Disclosure. But whether your company heard from us or not, there are lessons to learn from our latest effort...

FTC to fitness company ICON: We’ll exercise our right to enforce our orders

Lesley Fair
Some things you can do in 3 minutes: Drink a glass of water. Send a short email. Feed the dog. According to ICON Health and Fitness, in just 3 short minutes a day, consumers could drop pounds, inches, and clothing sizes by using its Pro-Form ab GLIDER line of exercise equipment. As a result of a settlement with the FTC, one thing ICON will be doing in just 3 short minutes is paying a civil penalty of $3 million for deceptively advertising the ab...
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