Enforcement Trends
Consumer protection law enforcement covers a multitude of legal regulatory matters initiated by federal and state agencies. Advertising and marketing-related enforcement action trends include developing issues that impact the litigation of alleged violations of unfair and deceptive trade practices statutes, such as Section 5 of the FTC Act.
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The FTC, Lead Generation and Telemarketing Sales Rule Do Not Call Enforcement
The Federal Trade Commission continues to investigate and enforce violations of the Telemarketing Sales within the lead generation industry, including lead generators that “assist and facilitate” sellers or telemarketers that violate the TSR. Recent FTC Civil Investigative Demands to lead generators illustrate that the FTC may now be resurrecting the issue of the application of…
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Five Ad Claim Substantiation Mistakes Made by Digital Marketers
The Federal Trade Commission requires advertisers to possess a “reasonable basis” for express and implied claims. The failure to do so constitutes an unfair and deceptive act or practice in violation of Section 5 of the FTC Act. Substantiation is a key FTC enforcement priority. Advertisers should be intimately familiar with FTC substantiation investigation and…
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U.S. Supreme Court Halts FTC’s Ability to Obtain Ill-Gotten Gains
On April 21, 2020 in the matter of AMG Capital Management, the U.S. Supreme Court effectively made it more difficult for the Federal Trade Commission to force those that engage in deceptive business practices to return ill-gotten gains obtained from consumers. The unanimous ruling was written by Justice Stephen Breyer and is a victory of…
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FTC Announces New Rulemaking Group
On March 25, 2021, the Federal Trade Commission announced the creation of a new rulemaking group within the agency’s Office of the General Counsel. According to the FTC, the new structure will allow it to take a “strategic and harmonized approach to rulemaking across its different authorities and mission areas.” With this new group in…
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Virginia Passes Broad Consumer Data Protection Law
Much like other states that have followed California in passing data privacy legislation, Virginia has passed and signed into law the Virginia Consumer Data Protection Act. Similar to California’s CCPA, Virginia’s law builds upon fair information privacy principles. The law is intended to provide consumers with increased control over how their personal data is used.…
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New York’s New Automatic Renewal Law
On February 9, 2021, SB 1475 – New York’s new automatic renewal law – became effective. New York has now joined numerous states that have enacted similar law related to automatic renewal plans and continuity services, including California. Prior to enactment of SB 1745, New York’s ARL – N.Y. Gen. Oblig. Law § 5-903 –…
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