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FTC Staff’s Revised MLM Guidance—More Content, Less Clarity

Yesterday FTC Staff released updated Business Guidance Concerning Multi-Level Marketing that provides a detailed account of their current perspective on applicable standards governing the direct selling and multi-level...more

FTC Staff Doubles Down on Rejected Koscot Standard for Pyramiding Claims, Challenges DSSRC IDS Guidance

Over the past two years, we have seen FTC staff express its opinions on the state of the law in multiple ways. In December 2022, for example, staff issued its Health Products Compliance Guidance, intended to supersede the...more

Senate Confirms New FTC Commissioners Holyoak and Ferguson; Reconfirms Slaughter

After nearly a year without a Republican Commissioner after Christine Wilson’s resignation, the FTC will again have a full slate of five Commissioners – with two new Republican Commissioners in Melissa Holyoak and Andrew...more

Top Advertising Law Developments in 2023

If you follow our blog, you already know that there have been a number of significant developments in the world of advertising law over the past 12 months. In this post, we highlight ten of those developments and consider...more

CFPB Issues Proposed Rule to Expand Supervisory Authority, Conduct Examinations of Digital Wallets and Mobile Payment Apps

Yesterday, the Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking that would allow the agency to supervise and conduct examinations of certain non-bank providers of digital wallets and...more

FTC Alleges FinTech Provider Engaged in Dark Patterns, Concealed Fees for Cash Advances in Reaching $18 Million Settlement

The FTC yesterday filed a complaint and stipulated order against Bridge, It (dba ​“Brigit”), a fintech company that operates a personal finance mobile application that advertises cash advances to consumers. According to the...more

Neora Prevails In Landmark Decision For Direct Selling Industry

Big, BIG win for the direct selling industry, as Judge Barbara Lynn (N.D. Texas) grants judgment for Neora, LLC (formerly Nerium) on all of the FTC’s claims, including that the company was operating an illegal pyramid scheme...more

FTC Proposes ​“Junk Fees” Rule that Would Overhaul Pricing Practices and Disclosures across Industries

Today the FTC announced a proposed rule that could fundamentally alter how businesses across industries advertise prices and disclose fees to consumers. The proposed rule follows the FTC’s Advance Notice of Proposed...more

Texas Court Puts Hold on CFPB’s Use of Unfairness Authority to Include “Discrimination”

As the Supreme Court deliberates over the Fifth Circuit’s ruling that the CFPB’s funding method is unconstitutional, another court in the Fifth Circuit dealt a blow to the CFPB’s aggressive agenda. On Friday, the District...more

FTC’s Proposed Rule on “Fake Reviews” Covers Much More; Provides Clarity on Some Issues, Uncertainty on Others

On the Friday before a long 4th of July weekend, the FTC delivered some light beach reading in the form of a 100-page notice of proposed rulemaking (NPRM) “banning fake reviews and testimonials.” While banning fake reviews...more

FTC Proposes Massive Expansion of Negative Option Rule; Would Provide Redress and Civil Penalty Authority for Deceptive Practices...

If you’re offering any products or services involving a negative option or automatic renewal plan, pay close attention to the FTC’s announcement today of a proposed rule that would drastically alter requirements for negative...more

Two Firsts for FTC Civil Penalty Enforcement: ROSCA for Automatic Renewals and Penalty Offense Authority for Money-Making Claims

On Friday, the FTC announced what would ordinarily be an unremarkable enforcement action against a company for unsubstantiated earnings claims. The FTC alleges that WealthPress, an investment advice company purporting to...more

Next Stop on the FTC’s Rulemaking Train: Proposed Revisions to the Business Opportunity Rule

In today’s open meeting, the FTC voted unanimously to issue an Advance Notice of Proposed Rulemaking (ANPR) considering expansions to and revisions of the FTC’s existing Business Opportunity Rule (“BOR”). This will be the...more

The FTC and CFPB are Coming for “Junk Fees,” but What Does that Really Mean?

The FTC’s Advanced Notice of Proposed Rulemaking (ANPR) seeking comment on a potential rule prohibiting “junk fees” and related practices hit the Federal Register yesterday. The rule has the potential to fundamentally alter...more

“An Arrow Has Found its Target”: Federal Appeals Court Deems CFPB Funding Method Unconstitutional, Invalidating Payday Lending...

In a decision with potentially far-reaching implications for the CFPB, a three-judge panel of the U.S. Circuit Court of Appeals for the Fifth Circuit yesterday ruled that the Bureau’s funding structure is unconstitutional. ...more

FTC Proposes Changes to Endorsement Guides with Expanded Liability and More Onerous Disclosure Requirements

In addition to announcing a new COPPA policy statement and related “crackdown” on children’s privacy issues (discussed here) in its most recent open meeting, the FTC also proposed changes to the FTC’s Endorsement Guides. The...more

The FTC Seeks Comments and Signals Changes to Come in New Rulemaking on Earnings Claims

As we previewed last week here, the FTC released an Advanced Notice of Proposed Rulemaking (ANPR) on earnings claims as it embarked on a mission to adopt a rule that would give the FTC, in its own words, “an important new...more

Kick-Off Time for FTC Rulemaking on Earnings Claims

Last Thursday (February 10), the FTC announced that it “will vote” at its February 17 open meeting to issue an Advance Notice of Proposed Rulemaking (ANPR) on “deceptive earnings claims for business ventures, gig or other...more

FTC Settles with Company Over Failure to Post Negative Reviews

Companies often ask us whether they can highlight positive reviews without mentioning negative ones. The good news is that there are ways to do that, but when the conversation veers from highlighting positive reviews to...more

Next Up – Earnings Claims:  Notice of Penalty Offenses Sent to 1,100 Direct Selling Companies and Others in the Gig Economy

In its third recent Penalty Offense Authority notice, the FTC today notified more than 1,100 companies offering “money-making opportunities” that it intends to pursue civil penalties of up to $43,792 per violation for...more

FTC Threatens 70 Colleges with Civil Penalties in Attempt to Resurrect Penalty Offense Authority

Making good on promises to creatively explore all of its options for enforcement, the FTC yesterday notified 70 for-profit higher educational institutions that it intends to use its long dormant Penalty Offense Authority to...more

Privacy Expert Alvaro Bedoya Nominated to FTC

The future composition of the FTC became a bit clearer on Monday, as the White House announced that President Biden will nominate privacy expert and scholar Alvaro Bedoya as FTC commissioner. If confirmed, Bedoya would take...more

TINA.org Lobbies FTC to Use Penalty Offense Authority against Direct Sellers

TINA.org continues to aggressively beat the enforcement drum. Today, its leaders sent a letter to Acting Director of the Bureau of Consumer Protection Samuel Levine encouraging the FTC “to implement a penalty offense program...more

FTC Continues Push for Civil Penalties with Important Implications for Financial Institutions and MLMs

The FTC yesterday took two actions that on their face seemed part of the regular course, but that could signal notable changes for financial institutions and multi-level marketing companies. First, the FTC filed an amended...more

FTC Nominee Lina Khan Sails through Committee with Bipartisan Support While Chopra Awaits Senate Vote for CFPB Director

The Senate Commerce Committee today voted overwhelmingly to move forward with Lina Khan’s nomination as FTC Commissioner, signaling that Khan is likely to ultimately be confirmed as the youngest Commissioner ever at 32. As...more

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