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NARB Gives FTC an Opportunity to Apply New Endorsement Guides

Smile Prep operates a website that provides reviews of clear aligners (otherwise known as ​“invisible braces”) based on an ​“extensive five-point analysis.” Because Smile Prep’s sole source of revenue consists of commissions...more

Retailer to Pay $10 Million to Settle Pricing Claims

Lawsuits challenging how companies advertise sales are on the rise. In this year alone, we’ve posted about a lawsuit over a grocer’s BOGO offers, a lawsuit over a major retailer’s frequent sales, and a large settlement over...more

10/20/2023  /  Advertising , Marketing , Retailers , Settlement

FTC Recommends Sharpening Blurred Lines When Advertising to Kids

In October, we posted about the FTC’s day-long workshop on “Protecting Kids from Stealth Advertising in Digital Media” and wondered what the FTC might be planning. Last week, we got an answer when the FTC released a “Staff...more

FTC and Six States Announce Settlement Over Fake Reviews and Claims

A year ago, the FTC and six states filed a lawsuit against Roomster and its owners, alleging that they had posted “tens of thousands of fake positive reviews to bolster their false claims that properties listed on their...more

NAD Addresses Apples and Oranges in Price Claims

Google recently ran two commercials for its YouTube TV service, each of which ended with the following tagline: “More than cable. For $600 less than cable.” A disclosure at the bottom of the screen explained: “Annual average...more

FTC Assesses Primary Purpose of Emails in CAN SPAM Enforcement

As most people know – either from professional or personal experience – the CAN SPAM Act requires companies who send “commercial” email messages to give consumers an opportunity to opt-out of receiving those messages in the...more

NAD Reads into Emojis 

Earlier this year, Coca-Cola reformulated its Powerade beverage to include more electrolytes. In some ads, it boasted that the beverage now contained “50% more electrolytes vs. Gatorade Thirst Quencher.” One social media post...more

8/11/2023  /  Advertising , Emoji , NAD , Social Media

NARB Decision Holds Lessons for Claim Substantiation

NARB recently announced a decision in a case involving various claims that Shark Ninja made in an infomercial for its Shark Stratos Powered Lift-Away vacuum cleaner, including claims about how well the vacuum picks up hair...more

8/10/2023  /  Advertising , Marketing , NARB

NAD Reads Into WSJ’s “Cancel Anytime” Claims

Most NAD cases are brought by competitors, but NAD can also initiate a proceeding pursuant to its “responsibility for monitoring and reviewing national advertising for truthfulness and accuracy.” Looking at the cases NAD...more

New Endorsement Guides Include Big Changes, But Few Surprises

In May 2022, the FTC proposed changes to its Endorsement Guides. Among other things, those changes created more prescriptive disclosure requirements for endorsements, imposed various requirements for consumer reviews, and...more

Latest Made in USA Settlement Offers Lessons for Fashion Companies

This week, just a few days before the Fourth of July holiday, the FTC announced a settlement with three fashion companies (that operated together as a common enterprise) over patriotic claims that the companies made about...more

FTC Targets Publishing Clearing House “Dark Patterns” in Sweeping Order

Yesterday, the FTC announced an $18.5 million settlement with Publishers Clearing House (PCH), a marketing company known for using sweepstakes to sell magazine subscriptions. In its 52-page complaint, the FTC alleges PCH used...more

NARB Agrees Advertiser Can’t Support Aspirational Net Zero Claims

JBS – the second-largest food company in the world – made several aspirational claims about its commitment “to be net zero by 2040.” Those claims were challenged by a trade association, who argued that the claims were...more

6/22/2023  /  Advertising , Marketing , NARB

States Follow FTC Auto Renewal Settlement with a New $2.3 Million Settlement

In 2017, the FTC announced that Adore Me, 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. Almost...more

Lawsuit Questions Use of Carbon Offsets to Substantiate Green Claims

Plaintiffs recently filed a class action lawsuit against Delta, alleging that the airline’s “carbon-neutral” claims, such as: “Carbon Neutral Since March 2020,” and “travel confidently knowing that we will offset the carbon...more

NAD Takes Strict Position on Employee “Endorsements”

In 2019, the FTC announced a settlement with a retailer over allegations that it had encouraged employees to write favorable reviews of its products without disclosing they worked for the company. Most observers weren’t...more

6/8/2023  /  Advertising , Endorsements , Influencers , NAD

NAD Addresses Hyperlinked Disclosures

When a disclosure is necessary to prevent an ad from being misleading, the disclosure must be presented in a “clear and conspicuous” manner. Exactly what that means depends a lot on the context, but one question we get...more

Talking Trash at the FTC: Event Recap

This week, the FTC held its Talking Trash at the FTC workshop, a four-hour event intended to examine “recyclable” claims in ads. We’ve sifted through some of the trash and pulled out a few things worth noting....more

H&M Wins Dismissal in Greenwashing Suit

Abraham Lizama purchased a turquoise sweater from H&M’s “Conscious Choice” collection, a line of clothing “created with a little extra consideration for the planet” which generally include “at least 50% of more sustainable...more

Google to Pay $8 M to Settle with Texas Over DJ Endorsements

In January 2022, the Texas Attorney General filed a lawsuit against Google alleging that the company engaged iHeartMedia DJs to provide endorsements for its Pixel 4 phone, even though they had never used it. In November 2022,...more

Retailer to Pay $197 Million to Settle Pricing Claims

Over the past few weeks, we’ve posted about a few cases involving pricing claims, including a post discussing a lawsuit over a grocer’s BOGO offers, a post discussing a lawsuit over major retailer’s frequent sales, and a post...more

5/15/2023  /  Advertising , Marketing , Pricing , Retailers

Advertising Lessons from the Survival Industry

My Patriot Supply (or “MPS”) and 4Patriots both make long-term survival food kits and related products. If a natural disaster strikes, if AI-powered bots wreak havoc on humanity, or if you just want to binge-watch your...more

5/11/2023  /  Advertising , Made in the USA , Marketing , NAD

Promotions Lessons from the My Pillow Guy

Mike Lindell – the “My Pillow Guy” – makes pillows that are soft to touch and claims that are hard to prove. In 2021, Lindell announced that he had compiled evidence demonstrating that China had interfered in the 2020...more

Lawsuit Accuses Old Navy of Creating False Sense of Urgency

Last week, two Washington consumers filed a proposed class action lawsuit accusing Old Navy of spamming them with emails that included false or misleading information about the duration of sales. For example, the complaint...more

NAD Eyes Affiliate Marketing

NAD recently announced two decisions involving Biossance’s Squalane & Marine Algae Eye Cream. Neither of the decisions involved claims made by the company itself, though. Instead, the decisions involved mentions of the eye...more

4/20/2023  /  Advertising , Marketing , NAD , Sephora
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