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Enforcement Actions Civil Monetary Penalty False Advertising

Troutman Pepper Locke

Alaska Obtains Six-Figure Civil Penalty in Product Labeling Case

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Alaska’s Department of Law’s Consumer Protection Unit recently announced it obtained a Superior Court order issuing a $250,000 civil penalty against B. Merry Studio, which the state alleged to have marketed products as being...more

Troutman Pepper Locke

Colorado Hemp Company Settles With AG Over Alleged Violations of Consumer Protection Law

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The Colorado Attorney General’s (AG) Office recently entered into a settlement agreement with Bee’s Knees Enterprises, LLC, dba Bee’s Knees CBDs, addressing allegations of violations of the Colorado Consumer Protection Act...more

Womble Bond Dickinson

Federal Trade Commission Strikes Against “Crafted in America” Language

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As previously reported by Home Textiles Today, the Federal Trade Commission (FTC) has announced a “record civil penalty” of $3.175 million against a retailer who failed to tell the truth about whether the products it sells...more

Venable LLP

New York Attorney General Says JBS Net Zero Claims Are Greenwashing

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Last week, New York Attorney General Letitia James filed a lawsuit against the world’s largest beef producer JBS USA Food Company and JBS USA Food Company Holdings (JBS Group). The lawsuit challenges the company’s claim that...more

Venable LLP

FTC Issues Record-Breaking Civil Penalty in “Made in USA” Case

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Tractor maker Kubota North America Corporation will pay a $2 million civil penalty for falsely labeling its replacement parts as “Made in USA,” the largest civil penalty ever in a Federal Trade Commission (FTC) Made in USA...more

BakerHostetler

FTC Reverts to Penalty Letters, Threatening 670 Companies with Penalties for Unsubstantiated Health Claims and Maybe More

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Advertisers likely recall that back in 2021, the Federal Trade Commission (FTC) created quite the stir when it sent to more than 700 companies warning letters that threatened penalties if companies engaged in deceptive...more

Venable LLP

In AWAREmed Settlement FTC Says Opioid and Chronic Disease Ad Claims Must Be Backed by Science

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The Federal Trade Commission’s recent settlement with Dalal A. Akoury and AWAREmed Health & Wellness Resource Center provides a good overview of how today’s FTC approaches medical claims it believes are unsubstantiated. The...more

Venable LLP

FTC Debunks Claim That Trunk Bunk Pads Were Made in the USA

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​​​​​​​On August 30, the Federal Trade Commission announced a complaint and proposed order for Ohio-based Electrowarmth Products, LLC and its owner, alleging they improperly claimed that their heated fabric truck bunk...more

Hinch Newman LLP

FTC Made in USA Lawyer Discusses Latest Agency Enforcement Matter

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A proposed FTC settlement that involves alleged false Made in USA representations and alleged deceptive COVID claims was recently filed by the Department of Justice on the FTC’s behalf against an individual and the two...more

International Lawyers Network

Don’t Be Bamboozled by Environmental Benefit Claims

$5.5 Million FTC Settlements for Bamboo Textile and Environmental Benefit Claims Under Penalty Offense Authority - The FTC recently announced that it has reached a $2.5 million settlement with Kohl’s and a $3 million...more

Ervin Cohen & Jessup LLP

FTC Seeks $5.5 Million Penalties for Deceptive Environmental Claims

On April 8, 2022, the Federal Trade Commission (“FTC”) announced that it was using its Penalty Offense Authority to seek a $5.5 million penalty for deceptive environmental claims against Kohl’s, Inc. ($2.5 million) and...more

BakerHostetler

Bamboozling Part II: The FTC Brings Back Retro Penalty Offense Letters like Bell Bottoms and Big Hair

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What do bamboo fabric and green claims have to do with toys, weight loss, car rentals and fur coats? Sounds like the start of a Dad joke, but unfortunately this is no laughing matter. It is the FTC reaching back to bygone...more

Farrell Fritz, P.C.

Herbal COVID Remedy Is Not The Government’s Cup of Tea

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Last week, the EDNY and the DOJ Consumer Protection Branch brought a civil enforcement action against defendants who manufacture and sell an herbal tea product called B4B Earth Tea Extra Strength (“Earth Tea”).  Earth Tea...more

Sheppard Mullin Richter & Hampton LLP

FTC Cracks Down On Violations of Newly-Codified “Made in USA” Claims Rule

The Federal Trade Commission (“FTC”) recently settled an enforcement action against an advertiser for $753,000 for deceptive “Assembled in USA” product claims, the first such settlement following the FTC’s recent adoption of...more

Dorsey & Whitney LLP

FTC to Brands: We Will Not Tolerate Fake Reviews and Other Misleading Endorsements - Monetary Penalties Are Coming

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The FTC announced that it had sent more than 700 Notice of Penalty Offense letters to major advertisers, leading retailers, large consumer product companies and major ad agencies to put everyone on notice that fake consumer...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

MarkIt to Market® - July 2020: Made in the USA: The Federal Trade Commission Proposes a New Rule to Protect U.S. Manufacturers and...

On June 22, 2020, the Federal Trade Commission (FTC) announced a Notice of Proposed Rulemaking pertaining to “Made in USA” claims, which applies to labels and marketing that fraudulently asserts that products are made in the...more

Morrison & Foerster LLP - Class Dismissed

California Supreme Court: Civil Penalty Claims Brought By Government Under UCl And FAL Should Be Determined By Court—Not Jury

The California Supreme Court has confirmed that claims for civil penalties brought by government entities under California’s Unfair Competition Law (“UCL”) and False Advertising Law (“FAL”) should be decided by a judge—not a...more

Skadden, Arps, Slate, Meagher & Flom LLP

Enforcement Spotlight: US Prosecutors Continue To Target Medical Technology Companies

Health care fraud continues to be a top enforcement priority for U.S. prosecutors, and nowhere is this more true than for the medical technology sector. From 2014-2019, the U.S. Department of Justice (DOJ) brought enforcement...more

BCLP

Don’t Get TARRed: FTC Continues to Scrutinize Misleading Marketing and Sales Methods

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The Federal Trade Commission has taken Tarr, Inc. and 18 other entities to task for fake news, unsubstantiated advertising claims, and fake celebrity endorsements. A stipulated order for permanent injunction and monetary...more

Goodwin

CFPB Secures $7.9 Million Trial Verdict Against Mortgage Loan Servicer

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On September 8, a federal judge in California ordered a national mortgage services company to pay a $7.9 million civil penalty based on false or misleading marketing statements it allegedly made to consumers about its...more

Perkins Coie

How Big Retailers Can Avoid Newest Wave of Deceptive Price Advertising Lawsuits

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Los Angeles City Attorney Mike Feuer last week announced the filing of four lawsuits against some of the largest retailers in the United States, accusing them of misleading customers by advertising a “sales price” alongside...more

McGuireWoods LLP

Consumer Financial Protection Bureau Takes Action Against Payment Processing Company and Mortgage Servicer

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The Consumer Financial Protection Bureau (CFBP) recently took action against a payment processing company, Paymap Inc. (Paymap), and mortgage servicing company, LoanCare, LLC (LoanCare), for deceptive conduct in connection...more

Ballard Spahr LLP

CFPB Targets Another Mortgage Lender for Deceptive Advertising

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The CFPB has announced the settlement of an enforcement action against a California-based mortgage lender for alleged deceptive advertising practices, including the use of advertisements that the CFPB claimed falsely led...more

Ballard Spahr LLP

FTC Announces Settlement of First Actions against Auto Title Lenders

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The Federal Trade Commission recently announced that it has entered into proposed settlements with two auto title lenders that were charged with deceptive advertising in violation of Section 5 of the FTC Act and the Truth in...more

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