News & Analysis as of

Endorsements Enforcement Actions

Lathrop GPM

Understanding the Proposed IRS Settlement Regarding the Johnson Amendment and Churches’ Political Speech Rights

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To settle a case challenging the Johnson Amendment, the IRS has proposed to allow at least two churches to endorse candidates from the pulpit. This proposal has received widespread attention, but many questions remain...more

Eversheds Sutherland (US) LLP

Film Room: House approved; College Sports Commission goes live

In today’s special edition of Film Room, we note immediate action items and flag the critical open issues to track in order to stay ahead during the busiest summer in recent memory. House settlement approved - On...more

Venable LLP

Paid Partnership Problems: Uptick in Influencer Class Actions and NAD Scrutiny

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As influencer marketing continues to dominate social media, the legal risks are catching up. In two recent class action lawsuits, companies and their social media influencers are facing allegations of deceptive advertising....more

BakerHostetler

NAD Provides More Guidance on Obligations with Influencers Who Are Gifted Free Product

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The National Advertising Division (NAD) has focused a good deal of its monitoring enforcement this year on cosmetics cases and influencer cases, including lots involving the use of beauty influencers....more

Kelley Drye & Warren LLP

NAD Decision Focuses on Influencer, in Addition to the Brand

Earlier this month, we posted about a decision in which NAD determined that influencer Brittany Mahomes had not adequately disclosed her relationship to Skims Body – a fashion brand that specializes in underwear and...more

Cozen O'Connor

Unpacking Dark Patterns

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“Dark patterns” have increasingly been the focus of legislative and regulatory scrutiny. Yet the phrase is never used in business. No business designs a website, mobile app, or business process with the instruction, “let’s...more

Venable LLP

Foul! SEC Faults Investment Adviser for Inadequate Disclosures on Professional Athlete Endorsements

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The Federal Trade Commission (FTC) isn’t the only regulator in town when it comes to endorsements and testimonials. The Securities and Exchange Commission (SEC) regulates investment adviser marketing under its “Marketing...more

Carlton Fields

FINRA and SEC Float Concerns Over Social Media Finfluencers

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Social media marketing is an important form of advertising in our digital world, particularly with a target audience of younger investors. This has caught the eye of FINRA and the SEC....more

BCLP

Part 6: What the FTC’s Final Rule on Reviews and Testimonials Means for Enforcement, Penalties

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In this post, the final part of our six-part series, we explore the nuances of the “teeth” of the FTC’s Final Rule on consumer reviews and testimonials—the money the FTC can recover for violations of the Final Rule....more

Venable LLP

FTC Fines Car Companies $10 Million Calling Out Influencers and Endorsers

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This summer the Federal Trade Commission (FTC) has turned up the heat on two companies that provide extended car repair coverage, CarShield and American Auto Shields, for deceptive and misleading advertising and telemarketing...more

Perkins Coie

Top Advertising Law Trends for 2024

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With the first quarter of 2024 in full swing, it is a good time for brands to revisit marketing compliance strategies to minimize the risk of potential class actions, regulatory enforcement actions, and competitor challenges....more

Holland & Knight LLP

Fake It Until You Make It: FTC Targets Fake Reviews and Testimonials

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Consumers often research a product or service before they make a purchase. Now more than ever, consumers rely on the reviews and testimonials they see online. This creates a breeding ground for deception. Enter the Federal...more

Hudson Cook, LLP

FTC Snares Deceptive Apartment Reviews, Issues New Marketing Guides and Proposed Rule

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The Federal Trade Commission and six state attorneys general on August 28 resolved an enforcement matter against apartment listing platform Roomster over fake reviews and listings. Brought under Section 5 of the FTC Act and...more

Verrill

Never Have I Ever

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We’ve all at least once (and maybe only once) played the surprisingly revealing drinking game “Never Have I Ever”. You know, you go around the table with one person asking, “Never have I ever [fill in the blank]” with the...more

Carlton Fields

Social Media Influencers Take Center Stage

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Securities products and social media don’t always mix. Just ask any of the celebrities who in recent years have faced SEC charges for unlawfully touting crypto asset securities. In March, the SEC settled charges against six...more

Holland & Knight LLP

FTC Takes Action Against Principals and Celebrity Endorsers of Real Estate Training Program

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The Federal Trade Commission (FTC or Commission) and the Utah Division of Consumer Protection (DCP or Division; collectively with the FTC, Plaintiffs) brought law enforcement actions against defendants Nudge LLC, Dean...more

BakerHostetler

Endorsements and Actual Usage - A Deep Dive into the FTC and State Attorneys General Lawsuits Against Google

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Texas Attorney General Ken Paxton recently announced his office has reached an $8 million settlement with Google of its lawsuit alleging deceptive radio disc jockey advertisements for the Google Pixel 4 smartphone. You might...more

Goodwin

SEC Brings Suit Against Owner of BitTorrent, Inc., and Settles Claims With Celebrity Endorsers of Certain Crypto Tokens

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On March 22, 2023, the US Securities and Exchange Commission (SEC) filed a complaint in US District Court for the Southern District of New York against Justin Sun, the owner of BitTorrent, Inc., a file-sharing platform; three...more

Fenwick & West LLP

“Review Hijacking” to Boost Reviews? Think Again, as the FTC Weighs In

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On February 16, 2023, the Federal Trade Commission (FTC) announced an enforcement action against The Bountiful Company (Bountiful) for a practice the FTC dubbed “review hijacking.” Bountiful, a vitamin and supplement company,...more

Nelson Mullins Riley & Scarborough LLP

March Madness: “The Truth” Fined by the SEC for Not Shooting Straight in Crypto Promotion

NBA Hall of Famer Paul Pierce, known by basketball fans as “The Truth,” has run afoul of the SEC. No, not that SEC—Pierce played college basketball at Kansas in the Big 12. No, this would be the U.S. Securities and Exchange...more

Goodwin

SEC and FINRA to Securities Influencers: Disclose the Truth of Your Compensation, or Else!

Goodwin on

The SEC has settled several cases of improper celebrity crypto endorsements over the past several years. The most recent example involved NBA hall of famer Paul Pierce, also known as the “Truth.” The crux of the SEC’s...more

McDermott Will & Schulte

Customer Reviews: Five-Star Enforcement and the Expanding Regulations

Does your company sell to consumers or businesses that can leave reviews or rate your products? Whether your customers can leave reviews on your website or another public-facing review platform, companies should be aware of...more

BakerHostetler

It’s Shark Week at the FTC!

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We all know Mark Cuban has got it going on. One of the original tech bros, he made his fortune investing in early online streaming services. And is super famous for being rich, owning the Dallas Mavericks, being on Shark...more

Faegre Drinker Biddle & Reath LLP

Under Review: The FTC’s Focus on the Fakes

You are thinking about buying a new laptop, or you want to try a new restaurant that’s been open a few months, so what do you do first? You check the online reviews, of course. Most consumers rely heavily on online reviews to...more

Venable LLP

FTC Sues Advertising Behemoths Google and iHeartMedia for Deceptive Endorsements by Radio Personalities

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Last week, the Federal Trade Commission and state attorneys general in Arizona, California, Georgia, Illinois, Massachusetts, New York, and Texas settled with advertising giants Google and iHeartMedia for deceptive...more

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