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When silence isn't golden

Lesley Fair
Silence may be golden, but not for the parents of kids with speech disorders. Illinois-based NourishLife marketed two dietary supplements, Speak and Speak Smooth, advertised as the answer for kids with a broad range of speech disorders, including those associated with autism. But the FTC says the company’s claims were long on talk and short on scientific substantiation. According to the FTC, NourishLife and owner Mark Nottoli claimed their...

How to avoid common HSR filing mistakes with Item 4(c) and 4(d) documents

Premerger Notification Staff, Bureau of Competition
The PNO handles Hart-Scott-Rodino Premerger Notification Filings for well over a thousand transactions each year. When you submit an HSR Form with all of the required information, the PNO can quickly review the filing, and if necessary, forward it to the investigative staff who will focus on determining whether the acquisition presents competitive issues that warrant further review. But when filings contain mistakes, the PNO review process can...

Top 10 blog topics of 2014

Lesley Fair
Years ago, a TV network repackaged the summer rerun season with the brilliant tagline, “If you haven't seen it, it's new to you!” Going through this year’s Business Blog posts, we spotted the 10 most-read topics of 2014. Others in your industry are up on the latest. Are you? Listed alphabetically, here's what business people were reading. Advertising disclosures. If the disclosure of information is necessary to prevent deception, it has to be...

Advertise auto promotions car-fully

Lesley Fair
“$1 gets you out of your current loan or lease!” According to Trophy Nissan in the Dallas area, consumers could end their loan or lease for a buck – less than the cost of one of those air fresheners hanging from the rearview mirror. Trophy also promised to “match your tax refund so you can use it for a down payment!” Those are just two of the claims the FTC challenged as deceptive in a proposed settlement with the dealership. If you have clients...

Spotting the signs of a crampage: Lessons from the FTC’s proposed settlement with T-Mobile

Lesley Fair
Flashes at a railroad crossing. That chirp from a smoke detector. The “check engine” light on the dashboard. Those are just a few warnings that merit your attention. The FTC’s proposed settlement with T-Mobile – which imposes at least $90 million in financial remedies, including full consumer refunds – highlights another warning that businesses should heed: clear indications that consumers are getting billed without consent. The FTC sued T-Mobile...

FTC Milestones: Cold War chills report on International Petroleum Cartel

Kelly Signs, Bureau of Competition
The FTC’s status as an independent agency, secured in an early constitutional challenge to the FTC Act, was tested during the early years of the Cold War when the agency’s international work provoked a national security debate at the highest levels. Students of constitutional history may recall that the Supreme Court in Humphrey’s Executor v. United States, 295 U.S. 602 (1935), determined that the President does not have the authority to fire...

Putting the brakes on deceptive auto ads

Lesley Fair
When it comes to cars, sometimes good things come in twos: double wishbone suspension, dual overhead cams, twin torsion bars, and classic 2 + 2 muscle cars. What’s not on that list? Two lawsuits charging two auto dealers with deceptive advertising in violation of two FTC orders. In 2012, the FTC settled separate administrative cases against Billion Auto and Ramey Motors, alleging that the companies had misrepresented key financing terms in the...

Information exchange: be reasonable

Michael Bloom, Bureau of Competition
Each day companies seek out market information to gain insights on how to compete more effectively. When companies compete more effectively, that can be good for consumers, making more and better goods and services available to them at lower prices. But when competing companies seek market intelligence by exchanging price or other commercially sensitive information, that may facilitate collusion or otherwise harm competition and consumers in...

FTC Milestones: Weighing in on weight loss cases

Lesley Fair, Bureau of Consumer Protection
“No need to be fat. No need to diet or go through unpleasant exercise.” “Your thin friends can tell you the right way to fight fat.” “Men avoided me. I was too fat.” Sounds like a lot of the bogus diet promotions the FTC has gone to court to shut down. But there are two things different about this false advertising case. First, it went to the Supreme Court. And second, the year was 1931. For the first two decades of the FTC’s existence, there was...

All about the tout: Takeaway tips from the FTC’s Sony-Deutsch settlements

Lesley Fair
Looking for PlayStation tips and tricks? We can’t tell you how ISA Vekta Special Forces Team Alpha can navigate the Akmir Snowdrift in Killzone 3. But for businesses – including ad agencies and PR firms – interested in keeping their practices out of the Pyrrhus Crater, the FTC’s proposed settlements with Sony Computer Entertainment America and ad agency Deutsch LA offer practical guidance. The lawsuits charge that the companies overhyped the...
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