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A Blog About FTC regulations and happenings

Does your company or its affiliate advertisers use celebrities or influencers  to market your services? Do you use customer reviews to promote your offerings? The Federal Trade Commission (“FTC”), energized by new Chairperson Lina Khan, just sent out notices to over 700 companies – including many household names (https://www.ftc.gov/system/files/attachments/penalty-offenses-concerning-endorsements/list-recipients-endorsement-notice.pdf)  warning them about using fake reviews and other misleading endorsements in advertising their products and services. The agency is using its “Penalty Offense Authority’ to remind advertisers that they could incur penalties of up to $43,791 per violation if they use advertisements in a manner that has already been ruled unlawful in a prior FTC order. As gaming industry companies and their affiliates, in particular, actively engage in advertising using influencers and reviews to capture market share in new markets, companies should carefully review their (and their affiliates’) use of reviews and endorsements.

What’s the Concern?

The FTC regulates unfair and deceptive business practices. As organizations’ use of social media for advertising has grown, the FTC has issued guidelines... Read more

Last October, we reported on the Third Circuit Court of Appeals’ decision in Federal Trade Commission v. AbbVie, Inc., in which the appeals court overturned a trial court’s decision ordering $448 million in disgorgement pursuant to Section 13(b) of the Federal Trade Commission (“FTC”) Act against a group of businesses accused of trying to monopolize… Read More

On July 6, 2020, the Federal Trade Commission announced a settlement with gaming app developer Miniclip S.A. The settlement addresses allegations that Miniclip falsely claimed membership in a Children’s Online Privacy Protection Act (COPPA) safe harbor program for the last several years. Miniclip boasts more than 1 billion downloads of its 45 “high-quality mobile games”… Read More

The FTC recently announced its settlement with Tapplock, Inc., a maker of smart padlocks (Internet-connected fingerprint-enabled padlocks that you can use in lieu of old-fashioned combo locks). The FTC investigated the Canadian-based company for its allegedly false claims that its Internet-connected smart locks were designed to be “unbreakable” and that the company took reasonable steps… Read More