Blog Posts Tagged with Advertising and Marketing

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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.

$9.3 million FTC settlement suggests Mail Order Rule compliance is always in style

Trend-conscious buyers want the latest styles ASAP and online retailer Fashion Nova reinforced those expectations by promising “Fast Shipping,” “2-Day Shipping,” and “Expect Your Items Quick!” But according to the FTC, the California company’s shipment delays violated the Mail, Internet, or Telephone Order Merchandise Rule and left consumers haute under the collar. The $9.3 million settlement is the largest ever in a case of its kind.

No pain (relief), no gain? FTC challenges claims aimed at older consumers

“Oh, my achin’ . . . .” It’s a common refrain for many older Americans and others who experience chronic pain. Some businesses respond with ads heavy on puffed-up promises, but light on the scientific evidence necessary to support serious health claims. That’s the FTC’s allegation against a company that sold a pill called Isoprex. The complaint also challenges the undisclosed use of compensated friends and family as purported consumer endorsers.

Thinking about making Coronavirus claims? Read the latest FTC warning letters first.

It’s FTC Advertising 101: Don’t make claims about serious medical conditions unless you have solid proof in hand to substantiate what you say. It’s been the law for decades and now more than ever, it’s essential for advertisers to honor that fundamental principle. And yet companies continue to market everything from facial brushes to IV drips with promises to prevent, treat, or cure Coronavirus – claims the FTC calls into question in a new round of warning letters.

Joint letters take new steps to stop illegal Coronavirus robocalls

Consumers hate illegal robocalls. And as the thousands of reports pouring into the FTC indicate, they also hate robocalls that exploit concerns about Coronavirus. In recent months, the FTC has taken innovative steps to take on not only illegal robocallers, but also companies that “assist and facilitate” their conduct.

Where small businesses can turn for accurate information about financial relief

As a business owner, you’ve seen the headlines about financial relief that may be available to some companies through the Small Business Administration (SBA). But you’ve also heard about scammers who extract a grain of truth from the news and distort it in an effort to cheat small businesses. Now more than ever it’s critical for small business owners to go straight to the source for accurate information about what’s happening at the SBA. And that source, of course, is the Small Business Administration’s dedicated page, sba.gov/coronavirus.

FTC pans Made in USA claims for certain Williams-Sonoma products as deceptive

If your company has made misleading Made in USA claims and represents that the inaccuracies have been corrected, it’s unwise to put ongoing compliance on the back burner. Conduct like that can move an advertiser out of the frying pan and into the fire. Case in point: the FTC’s proposed complaint alleging that kitchen and home notable Williams-Sonoma falsely represented its signature bakeware line as Made in USA.

FTC takes on unproven health claims and “own-dorsements”

It’s a disturbing trend. Companies are targeting older consumers, claiming to have easy answers for serious diseases for which there may not be a proven cure. That’s one allegation in the FTC’s action against Nevada-based telemarketer Health Center, Inc.  Another count challenges what we call “own-dorsements.”

Signed, sealed, delivered: Shipping basics for your business

If your business sells online, the price of the product is only one comparative calculation that consumers consider. Shipping matters, too. Does your business deliver to their location? How much will it cost? When will they get their stuff? Here are some practical principles to apply – and some myths to bust – about shipping products to customers from sea to shining sea.

FTC, FDA warn companies making Coronavirus claims

When public health concerns hit the headlines, some companies rush to the market with products advertised to prevent or treat the problem. We’re seeing the same thing with the Coronavirus. But do those businesses have proof for their advertising claims, as the FTC requires? And have their products been approved, cleared, or authorized by the FDA? The FTC and FDA just sent warning letters to seven companies raising concerns about their Coronavirus-related products.

FTC’s Teami case: Spilling the tea about influencers and advertisers

The “what” of the FTC’s settlement with Teami, LLC, shouldn’t come as a surprise. The complaint alleges the defendants took in more than $15 million by deceptively claiming their array of teas could cause rapid and substantial weight loss, “fight against cancerous cells,” decrease migraines, unclog arteries, and prevent colds and flu. What’s different is the “how.” The defendants advertised primarily through a massive social media campaign.

FTC challenges claims for Quell pain relief device

Real estate professionals say it’s all about “location, location, location.” For health-related claims, the FTC says it’s all about “substantiation, substantiation, substantiation.” Marketers of an electric device called Quell claimed their product could treat chronic and severe pain throughout the body caused by conditions as diverse as arthritis, nerve damage, sciatica, shingles, and fibromyalgia. And they said all that could be accomplished by placing their product on one single location below the knee.

FTC challenges Online Trading Academy’s money-making claims

Ads for health products often target Boomer Consumers, but those aren’t the only claims pitched to people looking toward retirement. An FTC action alleges a company called Online Trading Academy has taken in more than $370 million by gearing its deceptive representations to that demographic. In addition, the complaint alleges violations of the Consumer Review Fairness Act.

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