Blog

There’s no such thing as a free lunch. That’s what consumers who signed up for NutraClick’s “free” samples learned. But what can your business take away from the FTC’s settlement with NutraClick? If your company is considering offering a negative option program, and wants it to be a positive experience, you’ll want to read on. Maybe you’ve heard of NutraClick. They sell nutritional supplements and beauty products including Force Factor, Peak Life...

Researchers report that 72% of American adults now own a smartphone and when they’re on their phones, 89% of their time is spent on apps. An analysis of how app developers generate revenue raises some interesting issues that touch on consumer privacy. How do app developers make money? Some sell their apps directly to users. Others offer in-app purchases. A third business model is to generate revenue from ads. To facilitate that, app developers...

We often get the question, “If I comply with the NIST Cybersecurity Framework, am I complying with what the FTC requires?” From the perspective of the staff of the Federal Trade Commission, NIST’s Cybersecurity Framework is consistent with the process-based approach that the FTC has followed since the late 1990s, the 60+ law enforcement actions the FTC has brought to date, and the agency’s educational messages to companies, including its recent...

“It’s a dog’s life,” they say – and according to Mars Petcare, its Eukanuba brand of dog food could extend dogs’ lives by 30%. But the FTC alleges that Mars made misleading representations about the products’ life-extending benefits and falsely claimed that scientific tests supported what the company said. Mars Petcare US, a wholly-owned subsidiary of Mars, Inc., sells some of the biggest brands in the dog food business. Eukanuba’s ads featured...

Multi-level marketer Herbalife will pay $200 million back to people who were taken in by what the FTC alleges were misleading moneymaking claims. But when it comes to protecting consumers, that may not be the most important part of the just-announced settlement. What could matter more than $200 million? An order that requires Herbalife to restructure its business from top to bottom – and to start complying with the law. Advertising in English and...

The Internet of Things refers to consumer products that connect to the Internet to send and receive data – everything from fitness devices, wearables, and smart cars to connected smoke detectors, light bulbs, and refrigerators. These new products bring enormous benefits to consumers – including the ability to track and share their vital signs with care providers without having to go to a doctor’s office, turn off the burglar alarm and turn on the...

In the popular video game Shadow of Mordor, players don’t just randomly slash, hack, and pillage. They battle specific opponents through a feature known as the Nemesis System. In the FTC’s lawsuit against Warner Bros. Home Entertainment, truth in advertising had a nemesis: paid pitches for Shadow of Mordor that Warner Bros. deceptively claimed were independent reviews. And read on for a startlingly candid statement by one of those influencers. To...

Recently, the FTC sent hundreds of thousands of refund checks to people who bought the book The Weight Loss Cure “They” Don’t Want You to Know About by pitchman Kevin Trudeau. Court decisions have established there wasn’t much truth in Mr. Trudeau’s advertising claims, but the story behind the law enforcement actions underscores one fundamental truth: the FTC’s commitment to effective order enforcement. Kevin Trudeau is no stranger to the FTC. He...

The FTC just announced a partial settlement with Volkswagen Group of America that will return as much as $10 billion to owners and lessees of VW and Audi 2.0 liter diesel cars. As the largest false advertising case in FTC history, it’s a record-breaking win for consumers – and it’s in keeping with the law-breaking nature of the deception the FTC alleged in its lawsuit against VW. “Clean diesel” was the focus of Volkswagen’s massive marketing...