Posts tagged FTC.
FTC Continues Ramp Up of Enforcement Actions

The Federal Trade Commission (“FTC”) continued a flurry of activity to put companies on notice of future enforcement activities and safeguard consumer financial information. All businesses that advertise to consumers and that have an online presence should be aware of the FTC’s initiatives.

False Money-Making Claims

On October 26, 2021, the FTC sent a Notice of Penalty Offenses Containing Money-Making Opportunities and Endorsements and Testimonials (the “Notice”) to over 1,100 companies. These companies encompass a wide variety of industries and cover ...

Posted in Legal Bites
FTC Sends Notice of Penalty About False Endorsements

On October 13, 2021, the Federal Trade Commission (“FTC”) circulated a Notice of Penalty Offenses (“Notice”) to over 700 companies. These companies included as recipients of the Notice are large companies, advertising agencies and consumer product companies. 

The Notice places the companies on notice that they could incur civil penalties of up to $43,792 per violation if they use endorsements in ways that are precluded by the FTC’s prior administrative cases.

The FTC’s vote to authorize the Notice and its wide distribution was unanimous.

The Notice states that ...

Posted in Legal Bites
FTC Announces Expansion of Compulsory Process Resolutions to Eight Areas

On September 14, 2021, the Federal Trade Commission (“FTC”) voted 3-2 to approve new compulsory process resolutions in eight areas.

Compulsory process refers to the issuance of demands for documents and testimony, through the use of civil investigative demands and subpoenas. The FTC Act authorizes the FTC to use compulsory process in its investigations, which requires the recipient to produce information, and these orders are enforceable by courts.

According to the press release, the “resolutions announced today will broaden the ability for FTC investigators and ...

Posted in Legal Bites
FTC Finalizes “Made in USA” Rule Amidst Inter-Commission Conflict

On July 1, 2021, the Federal Trade Commission (“FTC”) issued its final rule related to “Made in USA” and other unqualified U.S.-origin claims on product labels. The effective date of the rule is August 13, 2021.

The rule comes almost one year after the FTC issued its Notice of Proposed Rulemaking (“Notice”) seeking public comments on the rule on July 16, 2020.

The FTC stated that it had received over 700 comments from the public in response to the Notice. According to the FTC: “Commenters generally supported the rule, stating it provided much-needed clarity and would ...

Posted in Legal Bites
FTC Announces July 1 Open Meeting

On June 24, 2021, the Federal Trade Commission (“FTC”) announced that it would be holding the first of a series of open meetings. Members of the public are invited to listen to the FTC’s discussion and submit public comment.

The initial agenda includes the following:

  • Made in the USA Rule: The FTC will vote on whether to finalize the Made in the USA Rule.
  • Section 18 Rulemaking Procedures: The FTC will vote on whether to streamline the procedures for Section 18 rules prohibiting unfair or deceptive acts or practices.
  • “Statement of Enforcement Principles Regarding ‘Unfair ...
Posted in Legal Bites
FTC Announces New Enforcement Actions for COVID-19

In April 2021, the Federal Trade Commission (“FTC”) emphasized its commitment to protecting consumers from unsubstantiated claims of products advertised to prevent, treat or cure COVID-19. On April 29, 2021, the FTC announced an additional set of warning letters related to these types of claims. The FTC has now sent nearly 400 warning letters in ten sets to companies and individuals. According to the agency, “In the letters, the FTC states that one or more of the efficacy claims made by the marketers are unsubstantiated because they are not supported by scientific evidence ...

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