Brands will Lose Billions in Fraud During Holidays

LEGAL: Review Websites Are Top FTC Enforcement Priority

In February 2019, the Federal Trade Commission brought its first case challenging fake paid reviews on an independent retail website. In settling the agency’s complaint, the company and its owner resolved allegations that they made false and unsubstantiated claims for their garcinia cambogia weight-loss supplement and that they paid a third-party website to write and … Read more

Binary Affiliate Fraudsters Charged by Feds

The U.S. Commodity Futures Trading Commission (CFTC) filed fraud charges against two affiliate marketers for binary options trading. In its complaint, the CFTC alleged that David Sechovich and Peter Szatmari, the two affiliate marketers, created and distributed millions of fraudulent solicitations to open and fund retail binary options trading accounts on websites operated by unregistered, off-exchange brokers. … Read more

New Nevada Privacy Law

Nevada’s new privacy law became effective on October 1, 2019. It provides Nevada residents with a limited right to opt out of the sale of personal information. Although a bit narrow in scope, the law possesses some similarities to the California Consumer Privacy Act (CCPA) which becomes effective January 1, 2020. In short, businesses that … Read more

Feds Going After CBD Marketing

The explosion of cannabidiol, or CBD, products – from trendy cosmetics to dietary supplements – is catching the attention of the Federal Trade Commission (“FTC”). The until-very-recently little-known chemical compound currently represents a $5 billion market, according to cannabis industry research consultancy Brightfield Group, up a whopping 700% in value from last year, and unsurprisingly, brands, … Read more

FTC Launches Investigation into E-Cigarette Marketing

The Federal Trade Commission has opened a new inquiry looking at the marketing practices of six major e-cigarette manufacturers, ordering them to turn over reams of data by Jan. 2, the agency announced Thursday. The commission is requiring the companies — Juul Labs, RJ Reynolds Vapor Company, NJOY LLC, Nu Mark, Logic Technology Development and Fontem … Read more

FTC Testifies Before Congressional Subcommittees About Consumer Protection Work

In recent testimony before the House Appropriations Subcommittee on Financial Services and General Government, the Federal Trade Commission described its work to protect consumers and promote competition. Testifying on behalf of the Commission, FTC attorney and Chairman Joseph Simons, along with Commissioner Rohit Chopra outlined the FTC’s work in areas that include, without limitation, privacy, … Read more

Seventh Circuit Drops Bomb on FTC

As previously blogged about here, the FTC’s enforcement authority has been under attack. The agency authority to obtain disgorgement under a theory of “ancillary equitable relief” got clipped by the U.S. Court of Appeals for the Seventh Circuit. What’s more, the court ignored long-standing precedent in doing so. The issue is this. Does the FTC … Read more