FTC workshop looks into loot boxes
By: Lesley Fair | Apr 8, 2019 11:14AM
Gamers call them loot boxes – in-game rewards players can buy that contain a random assortment of virtual items. The loot may help players advance in an online game or allow them to customize their avatars. The rewards may be virtual, but they’ve become a very real revenue stream for game developers.
FTC-FDA warning letters ask: Is it a kids’ treat – or a tobacco product?
By: Lesley Fair | May 1, 2018 10:47AM
Sometimes a picture really is worth a thousand words. According to warning letters from the FDA and FTC, certain sellers of e-liquids – flavorings for e-cigarettes – are using packaging that imitates foods or beverages popular with children. Little kids who ingest what’s inside boxes that appear to be apple juice, cookies, candy, etc., risk acute nicotine toxicity, poisoning that can result in seizure, coma, cardiac and respiratory arrest, and death.
Continue Reading FTC-FDA warning letters ask: Is it a kids’ treat – or a tobacco product?
So You Received a CID: FAQs for Small Businesses
By: Thomas B. Pahl, Acting Director, FTC Bureau of Consumer Protection | Jan 19, 2018 6:34PM
So you’ve received a Civil Investigative Demand (CID) from the Federal Trade Commission related to a consumer protection matter. Now what? We appreciate that it can be daunting for any company – especially a small business – and we want to be as transparent as possible about the process.
Continue Reading So You Received a CID: FAQs for Small Businesses
FTC says company didn’t have support for “organic” mattress claims
By: Lesley Fair | Sep 28, 2017 12:09PM
Dads and Moms want what’s best for their babies, so some companies feature adjectives like “organic” or “natural” in ads for infant gear. Those are among the terms Illinois-based Moonlight Slumber used to sell its baby mattresses online and at some of the nation’s biggest retailers. But according to an FTC complaint, when it came to backing its mattress claims with proper support, the company was asleep at the switch.
Continue Reading FTC says company didn’t have support for “organic” mattress claims
Paint settlements suggest caution with broad-brush VOC, safety claims
By: Lesley Fair | Jul 11, 2017 10:15AM
If marketing claims are any indication, “green” paint is popular with consumers, but not just in the sense of emerald, mint, or avocado. Companies are advertising that their paints are emission-free, VOC-free, and without chemicals that could harm consumers, including pregnant women, babies, and people with asthma. Some brands even feature seals and certifications touting purported environmental benefits.
Continue Reading Paint settlements suggest caution with broad-brush VOC, safety claims
FTC settlement with Amazon yields $70 million for consumers, advice for business
By: Lesley Fair | May 30, 2017 12:07PM
The FTC’s law enforcement action against Amazon for unauthorized billing recently settled, leaving two key takeaways: 1) Consumers are eligible for more than $70 million in refunds; and 2) Businesses need to get customers’ express consent before placing charges on their credit or debit cards.
Continue Reading FTC settlement with Amazon yields $70 million for consumers, advice for business
7 quotes of note from the Amazon decision
By: Lesley Fair | May 3, 2016 12:23PM
In Amazon’s Appstore, many apps geared toward kids prompted them to use fictitious currency, like a “boatload of doughnuts” or a “can of stars,” as part of game play. But a federal district court recently agreed with the FTC that Amazon’s practice of charging cold, hard cash for those imaginary items and billing parents and account holders without their express informed consent violates Section 5 of the FTC Act.
A videogame scientifically proven to boost kids’ school performance - and other fairy tales
By: Lesley Fair | Jan 20, 2015 11:22AM
A chocolate cake that causes weight loss? A recliner that tones your abs while you watch TV? They’re in our pantheon of products we’d buy in a second. Here’s something to add to that list: a videogame scientifically proven to help kids focus, enhance memory, boost attention, and improve behavior and school performance. That’s what Focus Education promised in infomercials and other ads for its ifocus System Jungle Rangers videogame.
By: Lesley Fair | Jan 9, 2015 2:13PM
Silence may be golden, but not for the parents of kids with speech disorders. Illinois-based NourishLife marketed two dietary supplements, Speak and Speak Smooth, advertised as the answer for kids with a broad range of speech disorders, including those associated with autism. But the FTC says the company’s claims were long on talk and short on scientific substantiation.
FTC challenges Gerber baby formula claims in court
By: Lesley Fair | Oct 30, 2014 11:20AM
Parents want to make the best choices for their babies’ health. But between diaper changes and 2 AM feedings, they aren’t in a position to spend much time surveying the scientific literature for ways to reduce the chance their kid will develop the allergies they suffer from. So when Gerber (also doing business as Nestle Nutrition) advertised Good Start Gentle baby formula as a way to “reduce the risk of developing allergies” – and featured a gold seal on products suggesting FDA approval – it’s understandable that parents would take note.
Continue Reading FTC challenges Gerber baby formula claims in court
WordSmart’s claims and telemarketing practices don’t make the grade
By: Lesley Fair | Oct 9, 2014 11:17AM
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?
Continue Reading WordSmart’s claims and telemarketing practices don’t make the grade
4 tips businesses can take from the FTC’s $19+ million Google settlement
By: Lesley Fair | Sep 4, 2014 12:39PM
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
Continue Reading 4 tips businesses can take from the FTC’s $19+ million Google settlement
The final chapter in the FTC’s “Your Baby Can Read!” case
By: Lesley Fair | Aug 22, 2014 11:14AM
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.
Continue Reading The final chapter in the FTC’s “Your Baby Can Read!” case
From the sports page to the front page
By: Lesley Fair | Aug 21, 2014 11:04AM
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.
By: Lesley Fair | May 28, 2014 12:10PM
Dare us to describe the legal ramifications of a recent advertising settlement involving health claims in the style of a cringeworthy rap from 1990? Cue up the bass line ‘cause here we go.
15 minutes of game: Getting to the core of the FTC's $32.5 million settlement with Apple
By: Lesley Fair | Jan 15, 2014 12:30PM
Update (3/27/14): Apple will notify people about how to get refunds by April 15. The settlement requires Apple to provide full refunds for in-app charges made by kids without parental permission.
Entertainment ratings: How do retailers rate?
By: Lesley Fair | Mar 26, 2013 10:47AM
If you want to know which flix’s tix made for major boffola at the box office, you’ll have to consult the entertainment trade press. But a recent FTC “mystery shopper” survey offers other insights for your clients in the movie, music, or videogame industry.
Continue Reading Entertainment ratings: How do retailers rate?
Survey says: What FTC follow-up report on kids' apps means for your business
By: Lesley Fair | Dec 10, 2012 11:00AM
Next time you’re in a long line at the grocery store, watch how parents distract a kid who's feeling cranky. They used to jangle keys or offer a favorite toy. But now a lot of Moms and Dads hand them a smartphone with an app designed for children. As the kids' app market continues to grow, FTC staff issued a report detailing survey results showing that neither app stores nor app developers were giving parents the information they need to figure out what data is being collected from their kids, how it’s shared, and who has access to it. The report recommended that members of the app indu
Continue Reading Survey says: What FTC follow-up report on kids' apps means for your business
Good night. Sleep tight. Be sure to get your ad claims right.
By: Lesley Fair | Sep 13, 2012 11:24AM
No one is going to amend the nursery rhyme, but if you market products aimed at fighting bed bugs or head lice and are itching to keep your promotions in line with the law, two FTC lawsuits merit your attention. Even if bugs aren’t your bag, the cases are a reminder of the need to back up your claims with solid science.
Continue Reading Good night. Sleep tight. Be sure to get your ad claims right.
By: Lesley Fair | Aug 28, 2012 11:03AM
Tell people your baby is adorable and no doubt you have the photos to back it up. But market a product called “Your Baby Can Read!” and you better have real proof. According to a lawsuit filed by the FTC, ads for the “Your Baby Can Read!” program made false and deceptive claims that the product could teach infants and toddlers to read.
