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Ads for Lumosity’s “brain training” program made it sound simple. Play games for 10-15 minutes several times a week to delay memory decline; protect against dementia and Alzheimer’s disease; improve school, work, and athletic performance; and reduce the effects of everything from ADHD to post-traumatic stress disorder. But an FTC complaint alleges that defendant Lumos Labs didn’t have sound science to support those claims. What’s the message for...

2015 saw the end of The Late Show with David Letterman, but his Top 10 List legacy lives on. From the home office in Washington, D.C., here is our informal take on ten topics we covered this year in the BCP Business Blog. Advertising substantiation. People will be citing the D.C. Circuit’s POM Wonderful opinion for years to come, so we extracted a dozen quotable quotes. Other relevant posts: Spilling the beans: The anatomy of a diet craze...

If what looks to be an article, video, or game is really an ad – but it’s not readily identifiable to consumers as such – the FTC has another word for it: deceptive. Ads that blur the line between advertising and content have long been a consumer protection concern under Section 5 of the FTC Act. The FTC just issued an Enforcement Policy Statement on Deceptively Formatted Advertisements that reiterates how it applies established legal principles...

When consumers updated Java SE, which has been installed on more than 850 million computers, Oracle Corporation promised “safe and secure access to the world of amazing Java content” and stated that the updates had “the latest . . . security improvements.” But according to a settlement just announced by the FTC, when it came to those security updates, Java SE was pouring decaf. Consumers use Java to do everything from playing online games to...

The law may not authorize the use of light sabers, but to protect consumers and ensure that companies comply with existing orders, the FTC will use the forces within its power. It’s a lock that the agency’s $100 million settlement with LifeLock – one of the largest redress orders of its kind – makes that point as big as life. LifeLock’s first go-round with the FTC and 35 state AGs was in 2010. According to that complaint, LifeLock didn’t live up...

Data security watchers read with interest the United States Court of Appeals’ decision earlier this year in FTC v. Wyndham, upholding the FTC’s authority to challenge allegedly lax data security practices under the unfairness prong of the FTC Act. We view that ruling as a milestone victory for consumers and for companies of all sizes that are committed to keeping customers’ personal information secure. Now there’s another big development in the...

Maybe “a rose by any other name would smell as sweet,” but deceptively describing rayon clothing as bamboo isn’t so sweet – and violates the FTC’s Textile Rules. In addition to civil penalties totaling $1.3 million, settlements with Bed Bath & Beyond, Nordstrom, J.C. Penney Company, and Backcountry.com suggest another important point for industry members: Don’t ignore warnings about deceptive ads and misleading labels. Why does this issue matter...

As the song by The Who asks, “Who are you?” When it comes to the Fair Debt Collection Practices Act, many companies think they know who they are. If they’re third-party debt collectors, they’re covered by the FDCPA. If they’re creditors collecting their own debts, they aren’t. But as I mentioned recently in a presentation at an industry event, it’s not that simple. Some creditors and others may not realize that certain courses of conduct can put...

The marketers of products as diverse as dietary supplements, mobile apps, cosmetics, and apparel may not think they have much in common. But if they make health-related representations, they all need sound science to support what they say. Here are five principles to help keep your practices in line with the law. 1. Claims about serious medical conditions call for serious science. Support objective product claims with (at minimum) competent and...

People usually think of beacons as radiant lights that attract attention. But the FTC has charged that two Ohio auto dealers (among other things) used the word in a way that kept consumers in the dark. Ads for Progressive Chevrolet Company and Progressive Motors prominently claimed “Sign & Drive Leases ZERO DOWN!!!!!!” and “ALL LEASES ARE Zip, Zero, Zilch – Nothing Down!” By our count, the companies featured one of those “z” words a total of 31...