News & Analysis as of

False Advertising Settlement Federal Trade Commission (FTC)

Cozen O'Connor

FTC and Match Strike $14M Deal over Alleged Deceptive Practices

Cozen O'Connor on

The FTC has reached a settlement with Match Group, Inc. and Match Group, LLC (collectively, “Match”)—the owners and operators of online dating services Match.com, OkCupid, PlentyofFish, The League, and other dating sites—to...more

Hinch Newman LLP

FTC Announces Another Action Against Alleged eCommerce Business Opportunity Violators

Hinch Newman LLP on

In 2024, FTC compliance lawyer wrote about the first case where the Federal Trade Commission charged a gig work company for allegedly misleading consumers about the money they could make on the company’s platform and...more

Venable LLP

FTC Settles with NextMed Over Deceptive Pricing, Hidden Material Terms, and Fake Reviews and Testimonials in Telehealth Membership...

Venable LLP on

This week, the Federal Trade Commission (FTC) announced a settlement with NextMed parent company Southern Health Solutions, Inc., in response to allegations that the telemedicine platform offered deceptive claims and fake...more

Troutman Pepper Locke

FTC and Nevada AG Accuse ILM of Deceptive Advertising

Troutman Pepper Locke on

Nevada Attorney General (AG) Aaron D. Ford recently announced that the State of Nevada and the Federal Trade Commission (FTC) have filed a suit against IYOVIA. IYOVIA currently operates under the brand names IM Mastery...more

Wiley Rein LLP

Wiley Consumer Protection Download (June 17, 2025)

Wiley Rein LLP on

Wiley also has launched a Trump Administration Resource Center and Resource Guide to track Executive branch priorities during the second Administration of President Trump. With Wiley’s deep-rooted understanding of Washington...more

Venable LLP

Marketing in Sensitive Sectors: The FTC Prescribes a $1.9 Million Lesson to Evoke Wellness

Venable LLP on

Federal Trade Commission (FTC) chairman Andrew Ferguson has promised vigorous law enforcement under his leadership. Consistent with that promise, on June 10, 2025, the Commission announced a $1.9 million settlement with...more

Venable LLP

AI Detection or AI Deception? FTC Says Be Ready to Back It Up

Venable LLP on

Last week, the Federal Trade Commission (FTC) issued a proposed order requiring Workado, a company specializing in artificial intelligence (AI) detection tools, to stop advertising the accuracy of its AI detection tools...more

Robinson+Cole Data Privacy + Security Insider

Workado Settles With FTC Over Alleged Misrepresentations of AI Accuracy

The Federal Trade Commission (FTC) issued a press release this week announcing that it settled with Workado over alleged misrepresentations of its ability to detect whether content was generated by artificial intelligence...more

Sheppard Mullin Richter & Hampton LLP

Lessons from the FTC: The Cleo AI Settlement

The FTC’s settlement with Cleo AI gives some indication as to what we might see from the agency in the coming months. The FTC alleged, among other things, that Cleo AI’s actions violated Section 5 of the FTC Act. In...more

Hudson Cook, LLP

FTC Takes Action against AI Company over Deceptive Accuracy Claims about AI Content Detection

Hudson Cook, LLP on

On April 24, 2025, the Federal Trade Commission (FTC) finalized a Decision and Order against an Artificial Intelligence (AI) Company (the "Company"), alleging that it made false and unsubstantiated claims about its AI Content...more

Robinson+Cole Data Privacy + Security Insider

FTC Settles With accessiBe For Misleading Statements About WCAG Compliance

The Federal Trade Commission (FTC) announced on April 22, 2025, that it has approved a settlement entered into a Final Order with accessiBe, which claimed its plug-in product, accessWidget, “can make any website compliant...more

Lathrop GPM

Transparency and AI: FTC Launches Enforcement Actions Against Businesses Promoting Deceptive AI Product Claims

Lathrop GPM on

Numerous businesses today deploy artificial intelligence (AI) innovatively across various industries, with many companies eager to hop on the AI hype train and ride the momentum of new and innovative business tools. While...more

Robinson+Cole Data Privacy + Security Insider

Cleo AI Agrees to $17 Million Settlement with FTC

Sometimes, deals are too good to be true. That was the case for Cleo AI, an online cash advance company that promised consumers fast, up-front cash payments. According to the Federal Trade Commission (FTC), Cleo AI offered...more

Davis Wright Tremaine LLP

Stay ADvised: 2025, Issue 7

New Suit Claims "Scientifically False" Pheromone Ads Are "Pure" False Advertising - "It's not myth. It's science." So claims Pure Instinct in its ads for pheromone perfumes. But a new class action lawsuit claims it's not...more

Venable LLP

Cleo AI Settles with FTC for $17 Million for Alleged Misleading Practices and Autorenewal Violations

Venable LLP on

In one of the first settlements since the new administration took office, the Federal Trade Commission (FTC) announced a $17 million monetary judgment with Cleo AI to resolve allegations that Cleo violated Section 5 of the...more

Sheppard Mullin Richter & Hampton LLP

FTC Orders Fintech Company to Pay $17 Million for Allegedly Deceptive Subscription Practices

On March 27, the FTC announced that a fintech company offering cash advances through a mobile app has agreed to pay $17 million to resolve allegations that it violated the FTC Act and the Restore Online Shoppers’ Confidence...more

Cozen O'Connor

States and Feds Continue Crackdown on Hidden Fees

Cozen O'Connor on

Massachusetts Attorney General Andrea Campbell has announced new consumer protection regulations targeting so-called “junk fees.” Effective September 2, 2025, the regulations require businesses to clearly and prominently...more

Oberheiden P.C.

Targeting MLMs and Other “Money-Making Opportunity Sellers” Remains an FTC Priority in 2025

Oberheiden P.C. on

Targeting multi-level marketers (MLMs) and other “money-making opportunity sellers” has been among the U.S. Federal Trade Commission’s (FTC) top priorities in recent years. The FTC has pursued several enforcement actions...more

Davis Wright Tremaine LLP

Stay ADvised: 2025, Issue 4

Food delivery service GrubHub will pay $25 million in a pre-New Year settlement with the Federal Trade Commission (FTC) and has agreed to make comprehensive changes to its business practices to resolve charges that it engaged...more

Troutman Pepper Locke

Misleading Artificial Intelligence Claims by Marketer of Website Accessibility Widget Lead to $1 Million FTC Settlement

Troutman Pepper Locke on

On January 3, the Federal Trade Commission (FTC) issued a press release announcing that accessiBe Inc. and accessiBe Ltd. (collectively, accessiBe) agreed to pay $1 million to settle allegations of deceptive advertising...more

Troutman Pepper Locke

FTC and Illinois AG Secure $20M Settlement with Leader Automotive Group Over Allegedly Deceptive Practices

Troutman Pepper Locke on

In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over...more

Cozen O'Connor

Home Rental Company to Pay $48 Million Over Alleged Deceptive Practices

Cozen O'Connor on

The FTC settled with Invitation Homes Inc. to resolve allegations that its home rental service practices violated the FTC Act and the Gramm-Leach-Bliley Act (GLB Act). ...more

Moritt Hock & Hamroff LLP

CarShield’s $10 Million Lesson: A Tale Of Deceptive Advertising

I was recently in the potential market for an extended car warranty. After a bit of research, I contacted CarShield to explore my options. I spoke with a representative who heartily congratulated me on qualifying for one of...more

Sheppard Mullin Richter & Hampton LLP

FTC Settles Action Against Online Career-Training Company for Deceptive Advertising

On July 29, the FTC filed a stipulated order settling claims against an online career-training company on the grounds that it engaged in deceptive advertising. In addition to injunctive relief barring the company from...more

Hinch Newman LLP

1MM FTC Settlement With Online Used Car Dealer Over Alleged Misrepresentations and Failing to Deliver on Time

Hinch Newman LLP on

On July 2, 2024 the Federal Trade Commission announced that it initiated action against online used car dealer Vroom for allegedly misrepresenting that it thoroughly examined all vehicles before listing them for sale and...more

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