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.
Blog Posts Tagged with Advertising and Marketing
At the FTC, we consider policy developments or proposed rule changes one rung at a time. An integral step in that process is the public comment period. If you have clients interested in two matters pending at the FTC, they have more time to put pen to paper.
A. This company just settled a case with the FTC for Do Not Call violations and deceptive promises that its purported educational products would improve kids’ grades and standardized test scores.
Q. What is WordSmart?
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.
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.
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.
History buffs – and fans of the series “Deadwood” – know that promises of riches lured many prospectors west. Now imagine if the general store in Deadwood advertised state-of-the-art shovels, pans, and pick axes necessary for mining, but never delivered the gear or delivered it long after others had mined the prime parcels. That’s pretty much what the FTC says Kansas City-based Butterfly Labs is up to, except that what today’s prospectors are mining are bitcoins.
An online high school that bypasses the pep rallies, proms, and the principal’s office? Under the right circumstances, that might be an innovation in education. But what if it skips the classes and coursework while falsely promising a valid sheepskin from an accredited institution?
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.
Companies that sign settlements with the FTC need to know that those documents contain consumer protection provisions enforceable in court. That’s the message of a motion for contempt just filed against Bayer Corporation by the Department of Justice and the U.S. Attorney’s Office for the District of New Jersey, with the assistance of the FTC.
“Get High School Skinny!” That was one pitch Georgia-based HealthyLife Sciences made for its Healthe Trim line of diet products. The company’s radio ads, TV commercials, and website promised it all. Just a couple of capsules in the morning would burn fat, boost metabolism, and suppress the appetite, leading to the fast and easy loss of as much as 19 pounds the first week. But according to a proposed FTC settlement, the real result was the fast and easy loss of b
Just as Helen of Troy has gone down in history as The Face that Launched a Thousand Ships, a seriously flawed study purporting to show that green coffee bean extract is scientifically proven to cause weight loss may be remembered as The Fake that Launched a Thousand Slips. An FTC settlement with Applied Food Sciences, Inc. – whose ingredient has been promoted everywhere from diet pill ads to The Dr.
The polar bears and penguins sold within kids’ apps offered in the Google Play Store may have been virtual, but the unauthorized charges Moms and Dads got stuck with were all too real. A proposed FTC settlement will refund at least $19 million to parents whose accounts were charged illegally, according to the complaint, and will implement enforceable changes in how Google handles in-app purchases. Of course, the order applies just to Google, but the case of
If it were a 50s scifi movie, we’d call it “Invasion of the Serenity Snatchers” – illegal and annoying robocalls that disturb consumers’ peace and quiet. The battle continues, of course, but we’re happy to announce the winners of the FTC’s “Zapping Rachel” contest held just a few weeks ago at DEF CON 22.
The contest challenged participants to design a robocall honeypot, a system for attracting robocallers. It’s a critical tool for helping law enforcers, researchers, and others enhance our understanding of robocallers’ tricky tactics.
With a product name like “Your Baby Can Read!” – exclamation point in the original – it didn’t take long for consumers to figure out what the marketers were promising. The company’s massive ad campaign featured 14-month-olds mastering vocabulary flashcards, two-year-olds reading books, and an array of charts, graphs, and studies purporting to show that Your Baby Can Read! was scientifically proven to work.
For some athletes and fans, September is the equivalent of the start of the sports “new year.” From the FTC’s perspective, it’s a good time to remind retailers that they need appropriate proof to support concussion protection claims for athletic mouthguards. That’s why FTC staff has sent letters to five major retailers, alerting them to concerns about what they’re promising on their websites.
"A-B-C. Always be closing."
"As you all know, first prize is a Cadillac El Dorado. Second prize is a set of steak knives. Third prize is you're fired."
"These are the new leads. The Glengarry leads. To you, they're gold. But you don't get them. Why? Because they're for closers."
Whether by click, tap, swipe, or scan, apps now offer a variety of beneficial services that can enhance consumers’ shopping experience. These services help consumers compare prices in-store, load the latest deals, and make purchases – all from the convenience of their phone. To better understand the consumer protection implications of this ever-changing environment, FTC staff recently issued a report, What’s the Deal?
In 1995, the FTC built the Telemarketing Sales Rule from the ground up. Since then, we’ve done some remodeling – for example, including the provision to outlaw most robocalls.
Acc-cen-tuate the positive.
Eliminate the negative.
Latch on to the affirmative.
And don't mess with Mr. In-Between.
That's how the catchy Bing Crosby-Andrews Sisters number went in the 40s. When it comes to negative options now, the message for marketers is to explain things positively.