Consumer Protections Posts

In Nutella Advertising Case, Whom Is the System Protecting?

May 13, 2012

In Nutella Advertising Case, Whom Is the System Protecting?

The world is full of surprises, like the fact that Nutella chocolate spread is loaded with saturated fat and sugar and is not itself healthy. Ferrero USA, Inc., the company that makes Nutella, learned the hard way that many American parents could not survive (nor perhaps could their children) without the aid and intervention of…

Prepaid Phone Companies Dial a Wrong Number at the FCC

Sep 12, 2011

Prepaid Phone Companies Dial a Wrong Number at the FCC

Companies marketing prepaid phone cards should be on the lookout: the Federal Communications Commission is threatening more-severe penalties for deceptive advertising. The prepaid phone card business is pretty profitable, with the industry raking in billions every year. Plastering phone cards with names like “Africa Magic” and “Hola Amigo,” prepaid calling card companies target immigrant populations,…

Google Agrees to Forfeit $500 Million: What Does This Mean for Affiliate Marketers?

Aug 29, 2011

Google Agrees to Forfeit $500 Million: What Does This Mean for Affiliate Marketers?

In an unusual and little-noticed recent settlement, Google Inc. has agreed to pay a forfeiture of $500 million because it permitted Canadian pharmacies to advertise to United States consumers on its site using Google AdWords, resulting in the illegal sale of prescription drugs through online channels into the United States between 2003 and 2009. The…

Does Google Need to Police Its Ads for Fraud?

Mar 21, 2011

Does Google Need to Police Its Ads for Fraud?

Do Google and other search engines have an obligation to screen their advertisers for those who may be perpetrating consumer fraud? Google has said in the past that its AdWords Content Policy will reject advertisements for sites that make false claims and that it investigates and removes any ads that violate Google’s internal policies, but…