Yesterday, the FTC announced that online retailer Fashion Nova had agreed to pay a record $9.3 million to settle charges that it violated the Mail Order Rule by failing to properly notify customers and give them the chance to...more
This week, the FTC announced that Federal-Mogul Motorparts had agreed to settle a complaint alleging that the company made unsubstantiated claims that its aftermarket Wagner OEX brake pads could help a driver stop a vehicle...more
This morning, the FTC announced that Teami – a company that sells teas and skincare products – agreed to settle charges that it promoted its products using deceptive health claims and endorsements by influencers who failed to...more
This morning, the FTC announced that it is seeking public comment on whether to make changes to its Endorsement Guides as part of the agency’s systematic review of all current rules and guides. ...more
Yesterday, the FTC announced that it had reached a settlement with LendEDU and three of its officers over misleading ratings and reviews.
LendEDU runs a website that compares student loans and other financial products....more
Last week, the FTC announced that AT&T had agreed to pay $60 million to settle litigation over allegations that the company misled customers by advertising “unlimited” data plans that were subject to significant limitations....more
Yesterday, the FTC released a new guide and video designed to help influencers understand when and how they should disclose the relationships they have to the brands they endorse. The guidance doesn’t break new ground, and...more
In the world of social media, a person’s power is often measured in terms of followers. Because more followers generally means more reach, companies who engage influencers often base their compensation on this metric. But...more
This week, the FTC announced a settlement with Sunday Riley Modern Skincare and its CEO, Sunday Riley, over allegations that company managers and employees posted fake reviews on Sephora.com....more
Over the past few years, a number of retailers have been challenged over their promotional pricing practices. Those challenges have been brought, primarily, by plaintiffs’ attorneys in class action suits and, occasionally, by...more
The Electronic Retailing Self-Regulation Program (or “ERSP”) recently announced a decision involving Alo Yoga’s influencer campaign. The decision centers around how the company’s influencers disclosed – or, in some cases,...more
The Consumer Review Fairness Act was enacted in 2016 to protect consumers’ ability to share their opinions about businesses. In general, the law prohibits companies from using form contracts that: (a) prohibit or restrict...more
This week, the FTC announced a settlement with UrthBox and its president that addresses two topics that we frequently cover on this blog: (1) free trials; and (2) incentivized reviews....more
This week, the FTC announced its first case involving fake reviews on an independent website.
Cure Encapsulations sells a weight-loss product exclusively on Amazon. When the company wanted to boost its sales, its owner...more
Earlier this week, Truth in Advertising (or “TINA.org”) sent a letter to the FTC urging the Commission to investigate Diageo’s use of influencers to market Ciroc vodka on Instagram. According to the letter, TINA.org collected...more
Two companies and their principals have agreed to settle FTC allegations that they misled consumers by presenting paid endorsements as independent consumer reviews and ads as independent news stories....more
As part of its routine monitoring, the NAD requested substantiation for various statements that a BuzzFeed staff member had made about a moisturizer in one of the site’s shopping guides. The NAD’s decision in the case sheds...more
Last week, a California court granted a temporary restraining order against Triangle Media, a company that sells various types of products using “risk free” trials. According to the FTC, though, the trials were very risky,...more
Earlier this week, the FTC announced its first settlement involving internet-connected toys. The FTC alleged that the Kid Connect app used with some of VTech’s toys collected personal information from hundreds of thousands of...more
Last week, the FTC announced that an online lingerie company had agreed to return more than $1.3 million to customers who enrolled in a negative-option membership program offering discounts and other benefits....more
In June, we posted that Instagram users would start seeing a new “Paid partnership with” tag on certain posts. The company explained that this was part of a tool designed to “help creators more clearly communicate to their...more
11/13/2017
/ Advertising ,
Celebrity Endorsements ,
Disclosure Requirements ,
Endorsements ,
Federal Trade Commission (FTC) ,
FTC Endorsement Guidelines ,
Influencers ,
Instagram ,
Online Endorsements ,
Popular ,
Social Media
Yesterday morning, the FTC announced that it had reached a settlement in its first-ever complaint against individual social media influencers and that it had sent warning letters to other prominent influencers. In addition,...more
In November, we posted that four consumer groups had sent letters to FTC, encouraging the agency to investigate and bring enforcement actions regarding the use of influencers on Instagram. In April, the FTC responded by...more
Last year, we posted that four consumer groups had sent letters to FTC, encouraging the agency to “investigate and bring enforcement actions related to the practice of non-disclosed advertising through influencer user...more
Last year, we wrote about an NAD case involving trampoline marketing. The Trampoline Safety website featured reviews designed to help buyers purchase a trampoline. But unless website visitors looked closely at a disclosure at...more