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. This Update highlights hot topics in advertising law for 2024.
Consumer Protection Review
The latest legal updates in marketing, consumer products & consumer protection
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Judge Rules Water Bottler Must Face Class Action Over “Carbon Neutral” Claims
Key Update:
- A federal court in New York denied Danone Waters of America’s motion to dismiss a class-action lawsuit accusing it of falsely advertising Evian-branded bottled water as “carbon neutral.”
- The putative class-action lawsuit claims that the Evian water bottles are not actually carbon neutral due to alleged emission of carbon dioxide during manufacturing.
- The
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FTC Warns Trade Associations and Influencers About Social Media Posts Promoting Sugar
Key Update:
- The Federal Trade Commission (FTC) issued warning letters to the American Beverage Association (AmeriBev), The Canadian Sugar Institute, and 12 health influencers, citing concerns over inadequate disclosures in Instagram and TikTok posts promoting aspartame or sugar-containing products.
- The FTC claimed the trade associations might not have adequately disclosed influencer relationships, emphasizing the necessity
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Junk Fees Under Scrutiny: FTC Issues Proposed Rulemaking
Key Updates:
- On October 11, 2023, the FTC proposed a new rule that it claims will end deceptive “junk fees.” The FTC defines junk fees as “bait-and-switch pricing tactics” that conceal required charges while misleading consumers about the actual price of items.
- The FTC claims the proposed rule is expected to save consumers more than
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New Version of Web Content Accessibility Guidelines Released
The Web Content Accessibility Guidelines (WCAG) are an international standard used to assess the accessibility of web content for people with disabilities. WCAG 2.1, which was adopted on June 5, 2018, has been the prevailing version of the guidelines relied on by courts, regulators, and industry professionals. On October 5, 2023, the nonprofit standards organization…
FTC Staff Perspective: Preventing Blurred Advertising to Children
The FTC released a staff paper in September 2023 directed at businesses and social media influencers who promote products to children online. The paper includes findings from the FTC’s October 2022 workshop, “Protecting Kids From Stealth Advertising in Digital Media,” which addressed the issue of blurred advertising that makes it hard for children to…
FTC Reaches $650,000 Settlement With Experian Over Unsolicited Emails
Key Takeaways:
- Experian Consumer Services, operating as ConsumerInfo.com, agreed to pay a $650,000 civil penalty for alleged violations of the CAN-SPAM Act by sending marketing emails without an opt-out option.
- This settlement serves as a reminder that all marketing emails must contain an opt-out and that the Federal Trade Commission (FTC) will use its enforcement
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FTC Finalizes Updated Guidance for Influencer and Consumer Review Programs
The Federal Trade Commission recently finalized updates to its Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address the FTC’s latest thinking about how the truth-in-advertising standards under the FTC Act apply to endorsement and review-related issues.
The updated Guides expand or clarify guidance related to (1) who can be considered an endorser, what qualifies…
FTC’s Secures $18.5 Million Settlement With Publishers Clearing House for Alleged Dark Pattern Sweepstakes Tactics
Key Update:
- Publishers Clearing House (PCH), a direct marketing company known for its sweepstakes, has agreed to pay $18.5 million as part of a settlement with the Federal Trade Commission (FTC).
- The settlement follows allegations of deceptive practices, such as the use of “dark patterns” to encourage sweepstakes entries and purchases.
- As part of the
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INFORM Act Addresses Online Marketplace Transparency With Harsh Penalties for Noncompliance
Key Update:
- The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Act or the Act) aims to increase transparency in online transactions and discourage the sale of stolen, counterfeit, or unsafe items through online marketplaces.
- Online marketplaces must comply with key requirements in the Act by June 27, 2023, to avoid
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