Blog Posts Tagged with Advertising and Marketing

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Lights out on unsubstantiated pain relief claims and deceptive native advertising

For consumers struggling with severe or chronic pain, ads for a product called Willow Curve appeared to offer light at the end of the tunnel. But the FTC alleges the marketers made false and unsubstantiated claims for the product, a device that applied low-level light and mild heat to the site of pain – and set people back between $599 and $799 in the process. The proposed settlement also sheds light on the FTC’s ongoing concern with deceptive native advertising.

FTC-SBA warning letters caution against misleading loan program claims

In the face of COVID-19, many small businesses are looking for help from the CARES Act’s Paycheck Protection Program. They may apply for PPP loans through Small Business Administration-authorized lenders and others the SBA has determined to be eligible. But there are concerns that some companies have falsely claimed an affiliation with the SBA or approved PPP lenders, or have represented untruthfully that people can get PPP or other SBA loans by applying on their sites.

New FTC COVID-19 warning letters take total to 250

Saunas, IV vitamins, pulsed electromagnetic field (PEMF) devices, and licorice – yes, licorice – are among the subjects of the latest round of FTC staff warning letters sent to 30 companies promoting their products and services with COVID-19 prevention or treatment claims. Who got the latest letters and what representations raised concerns?

They use a COVID-19 pitch to sell WHAT?!

The beige envelope says IMPORTANT COVID-19 ECONOMIC STIMULUS DOCUMENT ENCLOSED. Inside – next to what appears to be the Great Seal of the United States – is the phrase COVID-19 STIMULUS (INDIVIDUAL) and a 16-digit serial number. The mailer also includes a check purporting to be from the “Stimulus Relief Program.” Is it official information affiliated with a COVID-19 economic stimulus program? We won’t leave you in suspense. It’s a car ad.

FTC again warns multi-level marketers about unproven health and earnings claims

Dear Multi-Level Marketer. Stop it. Stop all promotions that push your products by claiming they prevent or treat COVID-19. Stop all misleading or unsubstantiated promotions that push your business opportunity by claiming people can earn substantial income peddling your products. The claims are unproven and deceptive. Whether you or your distributors are making them, you’re responsible. That means you could be breaking the law.

The letters of the law: 35 more companies warned about questionable COVID claims

FTC staff sent the latest round of warning letters to 35 businesses alleged to have made unsubstantiated coronavirus prevention or treatment claims. What they sold diverges widely – IV vitamin treatments, products containing silver, patches purporting to block electromagnetic radiation, etc.

FTC says Bronx Honda discriminated against African-American and Hispanic consumers

The FTC’s complaint against Bronx Honda alleges the company jacked up what consumers had to pay by fabricating fees, inflating charges, and sneaking in stealth add-ons. The lawsuit also alleges the defendants discriminated against African-American and Hispanic consumers by charging them higher financing markups and fees, in violation of the Equal Credit Opportunity Act and Reg B.

50 more FTC warning letters say “Enough!” to questionable coronavirus claims

Elderberry, hydrogen peroxide, iodine, mushrooms, and horse milk. (Horse milk?) The FTC just sent 50 more warning letters to companies promoting products or services advertised to prevent or treat coronavirus. Here’s the latest list of who’s been warned, what they’re selling, and some of what they’re saying.

$40.2 million reminder about the importance of due diligence and monitoring

Companies that deceive consumers often don’t act alone. Pull back the curtain and you may find behind-the-scenes businesses that lend a hand. The FTC alleges that Atlanta-based First Data Merchant Services and its former vice president, Chi “Vincent” Ko, engaged in conduct that helped scammers rake in megabucks at consumers’ expense.

Fighting Coronavirus scams: Taking stock

Since the beginning of the COVID-19 crisis, the FTC has released dozens of warning letters against people trying to make an illegal buck off the Coronavirus. More than a month in, it seems like a good time to look back at what’s happened. If you follow this blog, you’ll know these have been busy weeks – with advice about spotting the many scams we’re all facing, news of the warning letters sent on a wide range of scams, and some enforcement actions filed.

What’s at the intersection of COVID-19, cancer claims, and CBD? This FTC case

It’s a case that brings together eight capital letters that are making headlines: COVID and CBD. A California marketer of a product advertised to prevent or treat COVID-19 has agreed to a preliminary order that prohibits him from making those claims. Pending the resolution of a parallel FTC administrative action, the proposed order also bars the defendant from representing that three CBD-based products he sells are effective cancer treatments.

21 more companies warned about questionable COVID claims

FTC staff just sent 21 more warning letters to companies that have used allegedly unsubstantiated coronavirus prevention and treatment claims to promote products and services. Many of the latest letters focus on questionable representations for high doses of vitamins, intravenous treatments, ozone, and purported stem cell therapies.

FTC in action

In these unprecedented times, the Commission is working on all fronts to stop pandemic-related scams or deception – and to warn consumers and businesses about them. But our work in other areas continues, too. Today, we’re taking a minute to take stock of some of the highlights from 2019.

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