Yesterday, the Federal Trade Commission announced its final rule addressing consumer reviews and testimonials. With this rule, the Commission takes aim at ​“fake” reviews and testimonials by prohibiting their sale or purchase and allows the agency to seek civil penalties against ​“knowing” violators.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-finalizes-rule-on-fake-reviews

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

Donnelly McDowell

(202) 342-8645

www.kelleydrye.com/people/donnelly-l-mcdowell

Ioana Gorecki

(202) 342-8417

www.kelleydrye.com/Our-People/Ioana-Gorecki

Caroline Schmitz

(202) 342-8459

https://www.kelleydrye.com/people/caroline-t-schmitz

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On August 7, 2024, the Federal Communications Commission (FCC) adopted a Notice of Proposed Rulemaking and Notice of Inquiry related to the use of artificial intelligence in outbound calls and texts. Among the proposed rules are a definition of an ​“AI-generated call” and disclosure requirements for placing such calls. This item is the latest in a series of actions taken by the FCC this year under its authority to implement the Telephone Consumer Protection Act (TCPA) and demonstrates the agency’s continued focus on what it says is the ​“top category of consumer complaints that [it] receive[s].” Initial comments on the proposed rules will be due 30 days after the item is published in the Federal Register, and reply comments will be due 15 days thereafter.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/fcc-proposes-new-tcpa-rules-for-ai-calls-and-texts

Alysa Hutnik

(202) 342-8603

www.kelleydrye.com/people/alysa-z-hutnik

Jennifer Rodden Wainwright

(202) 342-8649

www.kelleydrye.com/people/jennifer…dden-wainwright

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If you’ve watched the news recently, it’s fairly safe to predict that two things happened. First, you probably watched an announcer recount disturbing news about the current political climate. Second, following that segment, you probably watched a celebrity recount the benefits of using CarShield. (If your experience is different than mine, please let me know, so that I can change my viewing habits.) Although both of those things may continue to happen for a while, you may soon see some changes to the CarShield commercials.

www.kelleydrye.com/viewpoints/blog…on-endorsements

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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In June, we summarized a number of new and pending laws specifically designed to regulate how companies display prices and fees. Although it’s important for companies to focus on those, we also noted that even in states without specific laws on point, enforcers could still rely on laws that more generally outlaw deceptive and unfair acts and practices to challenge how companies display their prices. A new lawsuit filed this week by the DC Attorney General against StubHub provides yet another perfect example.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/from-grubhub-to-stubhub-dc-sues-stubhub-for-deceptive-pricing-and-junk-fees

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

Paul Singer

(202) 342-8672

www.kelleydrye.com/Our-People/Paul-L-Singer

Abigail Stempson

(202) 342-8678

www.kelleydrye.com/Our-People/Abigail-Stempson

Beth Chun

(202) 342-8671

www.kelleydrye.com/Our-People/Beth-Bolen-Chun

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“Up to” claims can be difficult to substantiate, in part, because the standard for substantiating those claims isn’t always clear. Over the years, the FTC, NAD, and courts have articulated different standards that are hard to reconcile with each other. For example, last month, we posted about a decision in which a three-judge panel with the Ninth Circuit determined that an ​“up to” claim reflected the ​“upper limit” of what consumers could expect and rejected the plaintiff’s assertions that consumers should ​“always” expect that. This month, the FTC announced a settlement that takes a different view.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-settlement-illustrates-challenges-with-up-to-claims

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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Cameo is a platform where people can pay celebrities to record videos with scripted personal messages. Jimmy Kimmel recently used the platform to see if he could get George Santos to say silly things and then Kimmel aired those videos on his late night show. Santos later sued Kimmel, accusing him of copyright infringement, and the two are battling that out in court. But today, it’s Cameo that finds itself in a legal battle.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/cameo-settles-with-30-ags-over-endorsement-issues

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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The FTC is focused on ensuring that consumers have options when it comes to repairing products. Two years ago, we summarized an FTC workshop, report, Policy Statement, and three settlements on this issue. Last week, the FTC announced that they had sent warning letters to eight companies, raising concerns about whether their warranty practices were unlawfully hindering consumers’ right to repair their products.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-sends-warning-letters-over-warranty-practices

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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In 2015, plaintiffs filed a lawsuit against Ashley Madison, alleging that the company had surreptitiously employed an ​“army of fembots” to lure unsuspecting men into cheating on their spouses. (You can read our coverage of that case and related warnings here.) Not satisfied with having broken up countless homes, the bots are back, and this time they’re trying to lure people away from their money. At least that’s what Skillz Platform alleges in a false advertising lawsuit against its competitor, Papaya Gaming.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/bots-and-false-advertising

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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On July 23, 2024, the Federal Trade Commission (FTC) announced that it had voted unanimously to initiate a new study focused on how companies may be leveraging consumer purchasing behaviors to personalize pricing for consumers. Using its authority under 6(b) of the FTC Act, which empowers the FTC to study specific industries or business practices, the Commission issued orders to eight companies that it believes offer products that use technology and personal information to enable businesses to set personalized prices for a product or service. The FTC’s press release refers to this conduct as ​“surveillance pricing,” and says the study will ​“shed light on the shadowy ecosystem of pricing middlemen.” Commissioners Holyoak and Ferguson, in their concurring statements, suggested that they would have preferred the Commission use a more neutral term to describe the practices being studied, but support the 6(b) effort.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-to-study-surveillance-pricing

Kate White

(202) 342-8855

https://www.kelleydrye.com/people/katherine-white

Alex Schneider

(202) 342-8634

www.kelleydrye.com/people/alexander-i-schneider

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Two men – we’ll call them Mario and Alin – purchased Blue Ice Vodka based, in part, on social media posts in which various influencers suggested that the vodka was a ​“healthy product” that can help with personal fitness and weight management. ​“After conducting some research,” both men discovered that Blue Ice Vodka ​“does not have any health benefits.” They also discovered that the influencers were paid to promote the vodka.

https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/court-considers-vodka-influencers-posts

Gonzalo Mon

(202) 342-8576

www.kelleydrye.com/people/gonzalo-e-mon

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