Marketing & Advertising
The Internet connects marketers to customers across the country and around the world. The general principles of advertising law apply online, regardless of the existence of space constrained screens and social media platforms. The FTC Act’s prohibition on “unfair or deceptive acts or practices” encompasses online advertising, marketing, and sale.
NAD Rules Online Reviews Not Sufficient To Substantiate Advertising Claim
The National Advertising Division (“NAD”) recently decided that an advertiser’s use of aggregated online consumer reviews was not sufficiently reliable and representative to support a claim that its product “America’s Most Recommended.” More specifically, the NAD reviewed an advertising claim made by Euro-Pro for its Shark-branded vacuum cleaners in various media, including television commercials, infomercials,…
Read Article...NAI Announces Release of Draft Revised Data Collection Code of Conduct
Earlier this week, the Network Advertising Initiative announced the release of a draft revised code of conduct for public comment that would require those delivering targeted advertising to provide notice regarding data collection and use practices “in and around the targeted ads they serve.” The NAI is the leading self-regulatory body governing “third parties” in…
Read Article...Compliance with Online Endorsement Guidelines
With increasing regularity, business are turning to social media and professional bloggers to promote their products and services. There are, however, FTC Guidelines that set forth clear legal and regulatory restrictions governing deceptive advertising and endorsements applicable to online advertising. All too often, those within the interactive advertising industry seem to forget the FTC Guideline…
Read Article...FTC Cracks Down on Use of Endorsements in Advertising
According to a proposed Federal Trade Commission (“FTC”) consent order, a Nashville-based company selling guitar-lesson DVDs would pay a $250,000 civil penalty and would be required to disclose its relationship with online affiliate marketers who falsely posed as ordinary consumers or independent reviewers. The action is one of only a small few that the FTC…
Read Article...California Court of Appeal Holds That The CAN-SPAM Act Does Not Preempt E-Mail Service Provider’s California State Law Claims
A significant decision was published last week by the California Court of Appeal, Second District on the issue of whether CAN-SPAM preempts California’s anti-spam statute (Hypertouch Inc. v. ValueClick Inc., Cal. Ct. App., 2d Dist., Jan. 18, 2001). Hypertouch, Inc., an e-mail service provider claimed that that online marketer ValueClick, Inc. violated the statute which prohibits…
Read Article...What Will Be The Most Significant Aspects of the Government’s Proposed “Privacy Bill of Rights” Framework for Commercial Activities
This year, the Obama administration is expected finalize the blueprint for a new U.S. privacy “framework” governing business practices that involve the collection, use, and sharing of consumers’ personal data online. The plan is expected to guide federal policymakers as they struggle with the challenge of protecting consumers’ privacy in the Internet age. In December 2010, the Department of…
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