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A Blog About FTC regulations and happenings

  In this health-conscious age, consumers are always on the lookout for new products which will improve wellness and quality of life.  Marketers attuned to this trend may be tempted to increase sales by extolling the virtues of their products, even if health claims are unsubstantiated by scientific testing.  A recent FTC case, however, demonstrates the price that advertisers pay for overstating health claims. The FTC filed a case against TriVita Inc., a dietary supplement company, for its marketing of the Nopalea cactus juice drink.  The beverage was widely advertised in television infomercials and online as an “anti-inflammatory wellness drink.”  Nopalea includes juice from the nopal cactus, also known as the “prickly pear.” TriVita’s “Chief Science Officer” stated that the nopal cactus is proven to reduce inflammation, which he linked to Alzheimer’s disease, allergies, diabetes, and heart disease.  TriVita sold each 32-ounce bottle of Nopalea for $39.99, plus shipping and handling. According to the FTC’s complaint, the Nopalea infomercial was one of the most frequently aired commercials in the United States. The... Read more
Capital One Gets an Unwanted Wake Up Call
August 8, 2014

Capital One Gets an Unwanted Wake Up Call

By: Ifrah Law

In what could become the largest ever settlement in a case brought in the 22 year history of the Telephone Consumer Protection Act (“TCPA”), Capital One and three collection agencies agreed to pay over $75 million into a settlement fund to settle a consolidated class action lawsuit alleging that the companies used an automatic telephone… Read More

Recently, the Maryland Attorney General’s Office announced that it reached a settlement with Snapchat, Inc. over alleged deceptive trade practices in violation of Maryland law and violations of federal laws that are intended to protect children’s online privacy.  This is another reminder that state attorneys general’s offices will continue to be vigilant in addressing consumer… Read More

Weight Loss Claims and Dr. Oz Gain Congressional Interest
June 20, 2014

Weight Loss Claims and Dr. Oz Gain Congressional Interest

By: Michelle Cohen and Ifrah Law

We’ve all heard the statistics showing obesity rates rising in the U.S. year after year. Most of us are well aware of the billion dollar diet and weight-loss supplement industry to which millions turn with the hope of finding that one “miracle pill” to help them lose that stubborn belly fat or get rid of… Read More

Higher Ed False Claims Act Suits – Pass or Fail?
June 10, 2014

Higher Ed False Claims Act Suits – Pass or Fail?

By: Nicole Kardell

Career Education Corporation, like a host of other for-profit education companies, has found itself spinning on the courthouse revolving door. The latest legal challenge for CEC: a False Claims Act suit filed in federal court in New Jersey on May 16. The lawsuit alleges that CEC defrauded the federal government by (1) falsifying job placement… Read More

Yesterday, the Federal Communications Commission (“FCC”) announced a consent decree with Sprint Corporation for federal do not call violations. Specifically, under the terms of the agreement, Sprint will make a $7.5 million “voluntary contribution” to the United States Treasury.  This payment represents the largest do not call settlement reached by the FCC.  Sprint also agreed… Read More

In a recent case in the U.S. District Court for the Eastern District of Missouri, the district court held that the plaintiff’s Telephone Consumer Protection Act (“TCPA”) claim should be dismissed. The court ruled that the plaintiff gave prior express consent when she agreed to the terms of her health insurance plan, which stated that… Read More

The Internet Corporation for Assigned Names and Numbers (ICANN) continues to make significant progress with its implementation of the New generic Top–Level Domain (gTLD) Program. Under the new program, ICANN has added more than 250 new gTLDs to the Domain Name System (DNS) and could add hundreds more in the next several years. ICANN is… Read More

In an effort that Food and Drug Administration (FDA) officials say was motivated by the (Big Brother?) desire “to correct a misperception by consumers that tobacco products not regulated by FDA are safe alternatives to currently regulated tobacco products,” the FDA released proposed regulations this morning that would regulate the rapidly growing e-cigarette market. (The… Read More

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