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Made in USA claims: Three cheers for the said right and true

Julia Solomon Ensor and Lesley Fair
Two products sit side by side on the store shelf, but only one says “Made in USA.” For many consumers, that’s an important consideration in deciding what to buy. That’s why the FTC wants to make sure companies’ Made in USA claims – like all objective product representations – are true and backed by appropriate evidence. We asked FTC attorney Julia Ensor some of the questions we’ve heard from businesses about Made in USA claims. Does my company...

Order compliance: A behind-the-scenes look

James Kohm, Director, BCP Division of Enforcement
If the Commission is to attain the objectives Congress envisioned, it cannot be required to confine its road block to the narrow lane the transgressor has traveled; it must be allowed effectively to close all roads to the prohibited goal, so that its order may not be bypassed with impunity. That’s from the Supreme Court’s 1952 decision in FTC v. Ruberoid , but it also outlines part of the job description of the Bureau of Consumer Protection’s...

Calculating the value of stock under HSR rules

the Premerger Notification Staff, Bureau of Competition
The Hart-Scott-Rodino statute and rules contain a number of reporting thresholds for transactions subject to premerger notification filing with the FTC and DOJ. In this post, we are going to focus on how to value publicly traded stock in order to determine reportability under the various filing thresholds. Some of the most frequent questions we get involve how to value acquisitions of voting securities in 801.30 transactions, given the volatile...

FTC calls Sprint on $2.9 million risk-based pricing violation

Lesley Fair
Two people walk into a deli and both order a pastrami on rye. When the check arrives, one is charged $8. The other is surprised to get a bill for $15.99. That’s not the start of an old Henny Youngman joke. It’s an analogy that raises some of the issues in the FTC’s proposed $2.95 million settlement with Sprint for allegedly charging customers with lower credit scores a monthly fee without giving them the proper up-front notice required by law...

The when and what of active supervision

Debbie Feinstein and Geoffrey Green, Bureau of Competition
Earlier this year, the U.S. Supreme Court ruled that the North Carolina State Board of Dental Examiners violated the federal antitrust laws by preventing non-dentists from providing teeth whitening services in competition with the state’s licensed dentists. N.C. State Bd. of Dental Exam’rs v. FTC , 135 S. Ct. 1101 (2015). The Board had argued that, because it is a state agency, it is exempt from liability under the federal antitrust laws. The FTC...

Are you OK with the F-C-R-A?

Lesley Fair
The Fair Credit Reporting Act isn’t just about credit. If your company uses background checks in making personnel decisions, the FTC reminds you of your obligations under the FCRA. In honor of Throwback Thursday, here’s an unconventional old-school summary of key requirements under federal law. Spin the mirrored disco ball and join us on the dance floor for “F-C-R-A.” Employers, There’s a law that applies When a prospect’s Background you...

Performing seals

Lesley Fair
You don’t need to go to a water park to see performing seals. You can spot them on websites where they perform the function of conveying information about the purported environmental benefits of products. But do the groups offering those seals – and the companies that display them – have appropriate proof for the claims consumers take from them? If your clients use environmental seals or certifications, you’ll want to see the latest from the FTC...

Mything the point: 6 (OK, maybe 7) myths about endorsements

Lesley Fair
If there’s a material connection between a marketer and an endorser, disclose it. That’s been the FTC standard for decades and it didn't change when marketing moved to social media. The FTC’s proposed settlement with online entertainment network Machinima illustrates missteps that could land advertisers, ad agencies, and PR firms in testimonial turmoil. But what about endorsers, affiliates, influencers, brand ambassadors, etc.? It’s time to...

Why 603(y) doesn’t apply

Lesley Fair
Does your company use background checks in evaluating job applicants? If so, are you complying with the Fair Credit Reporting Act’s notice, consent, and disclosure requirements? A closing letter the FTC staff sent to California Health & Wellness elaborates on the applicability – or, in this instance, the in applicability – of a narrow FCRA exception. When it comes to background checks, the FCRA put a premium on notice, consent, and disclosure...

When buzz goes bad

Lesley Fair
It’s one thing to create buzz about a product. But fail to disclose a material connection between an endorser and an advertiser and that buzz can wind up stinging you. That’s the message of an FTC lawsuit against Machinima , a top entertainment network on YouTube that specializes in videogame culture and generates more than 3 billion (with a b ) views each month. The FTC says Machinima made undisclosed payments to influential gamers in exchange...