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Franchise Fundamentals: Considering, calculating, and consulting

Lesley Fair
You think a franchise may be for you. You can’t wait to cut that ribbon and get your business up and running. But to avoid a false start, it makes sense to spend more time in the starting block. This post – the fourth in the FTC’s Franchise Fundamentals series – covers key steps to take before you’re off to the races: 1) carefully evaluating critical documents that may (or may not) be attached to the Franchise Disclosure Document, 2) scrutinizing...

Watching the detectives: Suspicious marketing claims for tools that spot AI-generated content

Michael Atleson, Attorney, FTC Division of Advertising Practices
A common trope crossing the science fiction and mystery genres is a human detective paired with a robot. Think I, Robot , based on the novels of Isaac Asimov, or Mac and C.H.E.E.S.E. , a show-within-a-show familiar to Friends fans. For our purposes, consider a short-lived TV series called Holmes & Yoyo , in which a detective and his android partner try to solve crimes despite Yoyo’s constant malfunctions. Let’s take from this example the...

THC edibles that look like snacks popular with kids? FTC and FDA have something to say about that.

Lesley Fair
We’ve seen a lot of products in our day, but six companies that just received joint FTC-FDA cease and desist letters have earned a place in our “What The Heck Were They Thinking?” Pantheon. What did they do to merit that dubious distinction? According to the two agencies, the companies currently market edibles containing Delta-8 THC (yeah, that THC) with packaging and advertising that mimic the look of candy and snack brands popular with children...

“I’m not a smoker, but I play one in ads”: FTC files first smoking cessation case under addiction treatment law

Lesley Fair
The Opioid Addiction Recovery Fraud Prevention Act gives the FTC authority to seek civil penalties for unfair or deceptive advertising of products or services marketed to treat substance use disorders – and that includes addiction to tobacco. The FTC just announced a settlement with affiliated companies selling products under the “Smoke Away” brand and the man behind all those LLCs, Michael J. Connors . Do those names sound familiar? They should...

FTC and endorsements: Final revised guides, a proposed new rule, and an updated staff publication

Lesley Fair
Companies that use deceptive endorsements and reviews inflict an injurious double whammy. They harm consumers with misleading tactics that subvert their choices at check-out. And they take business away from honest competitors that work hard to comply with the law. For decades, the FTC has challenged those illegal practices and will continue that fight. But it’s important that our approach keeps current with the state of technology and marketing...

Generative AI Raises Competition Concerns

Staff in the Bureau of Competition & Office of Technology
Generative AI has the potential to rapidly transform the way we live, work, and interact. Within just a few months, generative AI chatbots and applications have launched and scaled across industries and reached hundreds of millions of people. AI is increasingly becoming a basic part of daily life. Generative AI depends on a set of necessary inputs. If a single company or a handful of firms control one or several of these essential inputs, they...

Online marketplaces, take note: INFORM Consumers Act takes effect on June 27th

Lesley Fair
The INFORM Consumers Act is effective as of June 27, 2023. Online marketplaces, have you taken the steps the statute requires? And is your site ready for scrutiny by the FTC and state law enforcers? The INFORM Consumers Act requires “online marketplaces” – a term defined in the statute – to protect consumers from counterfeit, unsafe, and stolen goods by verifying the identity of high-volume third-party sellers on their platforms and by making it...

In Olde English or modern, Made in USA means Made in USA

Lesley Fair
When thou makest claims to thy consumers, Base them in facte, not boast or rumours. Nowhere is this truer say eth Than when thou claim “Made in USA-eth.” OK – that’s not even close to Ye Olde English, but when a company’s name is Chaucer Accessories, it’s hard for Literature majors not to harken back to their Canterbury Tales days. The FTC just announced a proposed settlement with the company, affiliated entities, and the company president for...

FTC “Apprise Patrol” visits Publishers Clearing House to challenge company’s digital dark patterns

Lesley Fair
Most people are familiar with the Publishers Clearing House Prize Patrol and their visits to consumers’ homes to deliver those big checks. In a twist on the familiar scenario, this time the FTC is – metaphorically speaking – paying a call on Publishers Clearing House as the Apprise Patrol, apprising companies and consumers of a proposed settlement with Publishers Clearing House for multiple violations of federal law. However, a big check is still...

FTC alleges Amazon enrolled people in Prime without consent and thwarted members’ attempts to cancel

Lesley Fair
In the latest action to challenge alleged digital dark patterns, the FTC has sued Amazon for enrolling people in its Prime program without the consumer ’s consent . Once consumers were signed up, the complaint also charges that Amazon set up online obstacles that made it difficult for them to cancel their Prime subscription. According to press reports, Amazon’s in-house nickname for its efforts to deter consumers from unsubscribing from Prime may...