Blog

If you or your clients work in the multi-level marketing (MLM) arena, a decision by a federal judge in the FTC's lawsuit against BurnLounge, Inc., merits your attention. The defendants — the company, the CEO, and top salesmen — used claims of hefty profits to sell opportunities to run online digital music stores. According to the FTC, the outfit masqueraded as a legitimate MLM program, but really was an illegal pyramid scheme. After a nine-day...

If you have clients in the auto industry, you’ve seen the ads: “We’ll pay off your trade no matter what you owe . . . even if you’re upside down.” It’s an attractive claim to people struggling with their finances. But law enforcement settlements announced by the FTC with five dealers from around the country demonstrate the importance of giving people the straight story when making promises about trade-ins where negative equity is involved. The...

Six online marketers have settled FTC charges stemming from their use of fake news websites to market acai berry supplements and other weight loss products. If you’re an affiliate marketer or you’re thinking about building an affiliate program into your business plan, the cases merit your attention. First, Affiliate Marketing 101. There are lots of ways to advertise on the Internet — email, search engine marketing, display ads, social network...

Of course, people are responsible for their debts. However, at a certain point, how much time has passed becomes an affirmative defense under state law and creditors can’t prevail in court. But what happens if a payment is made on a time-barred debt? A consumer can really get clocked — because in many states the debt can be revived if a person makes a payment or says in writing that they intend to. The FTC has announced a $2.5 million settlement...

We’re glad you’re visiting the BCP Business Center and thanks for your questions. Here are answers to some of your AQs. (Calling them FAQs on a site devoted to truth in advertising doesn’t seem quite right.) I’ve looked everywhere and can’t find the disclosure I’m supposed to add when companies send me products to write about on my blog. Can you tell me the magic words? No — and that’s because there are no magic words. Here’s how it works. Under...

When consumers comparison shop, cost is crucial. That’s why it’s so important for companies to make sure what they say about their prices is accurate. If businesses need a timely reminder, the FTC’s proposed $5 million settlement with CVS Caremark drives that point home. CVS Caremark offers Medicare Part D prescription drug plans through subsidiaries like RxAmerica, which CVS Caremark acquired in October 2008. When choosing their Medicare Part D...

The terms of an FTC settlement apply just to that business, of course. But clued-in companies know there’s a lot that can be learned from someone else’s alleged misstep. The FTC’s law enforcement action against Upromise is no exception. According to the complaint, the college savings membership program introduced a toolbar that collected users’ personal information without adequately disclosing the extent of what was going on. Under the terms of...

When the FTC brings a law enforcement action, we hope companies take notice. But sometimes there’s a nugget or two that businesses can glean from a decision by the FTC staff to close an investigation. A recent letter from the staff of the Bureau of Consumer Protection to Hyundai Motor America ticks a lot of timely boxes — bloggers, the Super Bowl, and the FTC’s Endorsement Guides — and is worth a read if your company has added social media to...

The FTC v. Lane Labs story started with shark cartilage and the latest chapter involves a contempt ruling from a federal judge. If the FTC’s advertising substantiation doctrine is relevant to your company or your clients — and it should be — you’ll want to keep tabs on the case. The FTC’s original action challenged allegedly deceptive anti-cancer claims for two products: BeneFin, a shark cartilage supplement, and SkinAnswer, a skin cream. In...

As anyone who’s watched TV in the past decade knows, Kevin Trudeau is — to use the term coined by the United States Court of Appeals for the Seventh Circuit — an “infomercialist.” The Seventh Circuit’s recent opinion in FTC v. Trudeau offers interesting insights into order enforcement and upholds a multimillion dollar judgment for consumers. A little history: As the Court recapped, Mr. Trudeau violated the terms of a court-approved settlement...