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FTC’s $25 million settlement with Reebok challenges toning shoe ad claims

Lesley Fair
Shape up your substantiation or tone down your ads. That’s the message marketers should take from the FTC’s $25 million settlement with Reebok for false and unsubstantiated claims for the company’s EasyTone and RunTone toning shoes. Fitness freaks and couch potatoes alike have noticed the toning shoe trend. Reebok kicked off its EasyTone walking shoes line in early 2009. RunTone running shoes followed in 2010. Retailing for about $100, the shoes...

Patent (s)pending

Lesley Fair
If necessity is the mother of invention, bogus invention promotion companies are the sketchy brothers-in-law. That’s why inventors who think they may have that Next Big Thing should investigate thoroughly before signing on with a firm that promises to evaluate, patent, and market an innovation. Some make pie-in-the-sky promises, but serve up crumbs. Unscrupulous promoters try to take advantage of inventors’ enthusiasm by overstating the benefits...

Truth in app-vertising

Lesley Fair
Here’s how AcneApp and Acne Pwner were supposed to work. Buyers downloaded the apps from their favorite app store. After selecting a light — blue to fight bacteria or red to heal, some ads said — they rested their smartphone against their skin. “Kill ACNE with this simple, yet powerful tool,” promised the marketer of Acne Pwner . (No, that’s not a typo. For readers old enough to remember when phones had curly cords, gamers use “pwn” to mean to...

Relief pitching?

Lesley Fair
“You can settle your credit card debt for pennies on the dollar without filing for bankruptcy.” For people struggling to stay afloat, Debt Relief USA’s national TV ads must have seemed like a lifeline. When consumers called the company, representatives assured them that low monthly payments to Debt Relief USA would cover both the settlement of their reduced debts and the company’s fees. For the service to work, said the reps, people had to stop...

FTC announces first mobile app case

Lesley Fair
There are some combinations that raise immediate compliance issues for responsible businesses — and kids’ privacy and mobile applications are among them. A settlement announced by the FTC — the agency’s first involving a mobile app — sends the important message that consumer protection laws and rules apply with full force in the mobile marketplace. W3 Innovations, which does business as Broken Thumbs Apps, develops and distributes mobile apps...

Swish Marketing decision nets consumers $4.8 million

Lesley Fair
Thinking about using a pre-checked box to obligate buyers in an online transaction? Maybe you’re considering a negative option arrangement without clearly and conspicuously disclosing the details of the deal. Or perhaps you’re an affiliate marketer who’s concluded that legal compliance is somebody else’s responsibility. A $4.8 million judgment entered by a federal court in California suggests you might want to reconsider those strategies. Swish...

$108 million for homeowners in distress

Lesley Fair
Homeowners in financial trouble aren’t getting a lot of great news these days. But 450,177 of them will be getting a check in the mail that represents their share of the FTC’s $108 million settlement with mortgage giant Countrywide. And companies that take advantage of Americans struggling to pay the bills will be getting a little something, too: a strong message from the FTC that unfair or deceptive practices targeting cash-strapped consumers...

Candid spamera

Lesley Fair
Say “spam” and most business executives think of annoying messages that litter their IN box. But the CAN-SPAM Act and the FTC’s CAN-SPAM Rule cover a much broader range of commercial email. Yes, that includes messages offering to split $50 million languishing in the foreign bank account of a deposed prince. But the Rule also applies to a wide variety of communications with customers or potential customers — for example, an email notifying them...

Thigh maintenance

Lesley Fair
A skin cream that can reduce body size. Are historians sure that wasn’t what Ponce de Leon was seeking? It’s certainly what buyers are looking for, if ads are any indication. But claims like that have to be backed up by solid science, as is clear from the FTC’s $900,000 settlement with Beiersdorf , Inc., marketer of Nivea My Silhouette! (Yes, the exclamation point is on the package.) Ads for the product touted its “Bio-slim Complex,” a...

Double duty?

Lesley Fair
Sometimes it’s great to put stuff to more than one use. Think the versatile Swiss Army knife, the iconic Little Black Dress, or the typical elementary school “cafetorium” where kids can eat lunch, shoot hoops, and put on plays. But when what’s at issue is information from people’s credit reports, that kind of double duty can violate the Fair Credit Reporting Act — as the FTC’s $1.8 million settlement with Teletrack , Inc., makes clear. In FCRA...