Blog Posts Tagged with Advertising and Marketing

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Judge issues Initial Decision in POM Wonderful case

An FTC Administrative Law Judge ruled that POM Wonderful LLC and related parties made misleading claims that POM Wonderful 100% Pomegranate Juice and other products would treat, prevent, or reduce the risk of heart disease, prostate cancer, and erectile dysfunction.  Although the remedy in the case wasn’t everything the FTC staff had asked for, the ALJ concluded that POM had engaged in false and deceptive advertising.

What your ads say and what the science supports: If the shoe doesn't fit...

According to the FTC, Skechers made false and deceptive claims about the benefits of Shape-ups and other Skechers brands.  If you’re in the fitness or health business, the $40 million settlement should grab your attention.  But the underlying principles apply to all advertisers.  If you're looking to get a leg up on substantiation, here are some footnotes to take from the case.

A closer look at the Myspace Order: Part 2

Social network site Myspace promised users it wouldn’t share their personally identifiable information in a way that was inconsistent with the reason people provided the info, without first notifying them and getting their approval. The company also said that information used to customize ads wouldn’t identify people to third parties and that Myspace wouldn’t share browsing activity that wasn’t anonymous.

FTC's Myspace case: Part 1

Have you reviewed your company’s privacy policy lately? The FTC’s proposed settlement with social network Myspace serves as a timely reminder to make sure what you tell people about your privacy practices lines up with what actually happens in the day-to-day operation of your business. While you’re at it, double-check to make sure you’re giving customers the straight story about third-party access to their information.

Close-up on disclosures

The FTC just released the preliminary agenda for the May 30, 2012, workshop to consider the need for new guidance for online advertisers about making disclosures. If that’s a topic of interest to your business (and it’s tough to imagine a company not involved in those discussions), you’ll want to stay up on the latest. What’s on the schedule for May 30th? After a kick-off presentation on usability research, the workshop will feature four panels: 9:30 – Panel 1: Universal and Cross-Platform Advertising Disclosures

6(b) or not 6(b): That is the question

Does the IRS have a Form 1039?  Do drivers ever get their kicks on Route 67?  And does 3.14158 ever feel unappreciated because pi gets all the attention?

Most attorneys and business executives are familiar with Section 5 of the FTC Act, which outlaws unfair or deceptive trade practices.  But Section 6 also plays a critical role in protecting consumers.  Specifically, Section 6(b) authorizes the FTC to get information from companies — “special reports” — about certain aspects of their business.

Salient green?

Earth Day is approaching and it’s great when businesses decide to go green.  But if the “green” they have in mind is the hard-earned cash of consumers interested in making wiser environmental choices, companies should remember that well-settled truth-in-advertising principles apply.  The FTC’s law enforcement action against the people behind the “Green Millionaire” promotion emphasizes that point.

Paper, Plastic . . . or Mobile? FTC announces agenda for April 26th workshop

Mobile devices are changing how people go about their daily lives, and that includes how they pay for stuff. As announced in January, the FTC is hosting a workshop on April 26, 2012, to examine the use of mobile payments in the marketplace and their effects on consumers. The workshop — which will be held at the FTC’s Conference Center at 601 New Jersey Avenue, N.W., in Washington, D.C. — is free and open to the public.  The agenda is now available.

Financial literacy makes good business $en$e

Imagine for a moment your ideal customer.  They consider their choices carefully before buying.  They keep their accounts current.  When service is top-notch, they spread the word to friends and family.  If there’s a glitch, they give you a chance to correct the problem before posting thumbs-down reviews.  Now imagine you could “create” your own cadre of contented customers.  Fantasy Land?  It’s more real than you might imagine.

2LEGIT2QUIT?

Last week saw FTC announcements involving allegations of foreclosure rescue fraud, deception aimed at people trying to resell their timeshares, complaints against payday lenders, and lawsuits against outfits claiming to help consumers behind on their car payments.  Is there a theme here?  You bet.  But the message isn't just for companies engaged in practices targeting consumers struggling to stay afloat.  There are words to the wise for businesses of any size and every stripe.

Do Not Call Compliance: Don't take it for granted

www.donotcall.govThere are lots of good reasons for businesses to comply with the National Do Not Call Registry:  It ensures your marketing message will be heard by a more receptive audience and it protects your company from the ire of consumers who don’t want to be disturbed.  But in a case involving calls pitching "free" government grants, a federal judge in Rochester, New York, just added 30 million more reasons not to call people on the list.

Data security & COPPA: RockYou like a hurricane

Are there hotter topics these days than data security and kids’ privacy?  An FTC law enforcement settlement with the social networking site RockYou ticks both of those topical boxes and challenges a course of conduct the FTC says made it easier for hackers to access the personal information of 32 million users.  The complaint also alleges the company collected info from kids in violation of the Children’s Online Privacy Protection Act.

Network news

Through a series of recent law enforcement actions, the FTC has articulated what should be apparent:  that truth-in-advertising principles apply to affiliate marketers and to the companies that use them to promote their products.  A settlement announced today by the FTC makes a similarly obvious point: The law applies to affiliate marketing networks, too.

Buyers burned by BurnLounge

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.

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