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FTC to L’Oréal: Scientific claims need proof that’s more than just skin deep

Lesley Fair
When ads for beauty products convey subjective claims – for example, L’Oréal’s long-standing “Because I’m worth it” tagline – it’s unlikely consumers would think statements like that are supported by science. (It’s hard to imagine a testing protocol that could establish whether or not we’re worth it.) But flip through a magazine and it’s apparent that test tubes are overtaking powder puffs in how some cosmetics are marketed. When companies tout...

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Mike Moiseyev, Bureau of Competition
“The clock” is a central part of a merger lawyer’s life. HSR merger review is all about managing the clock effectively. Here are some things we’ve been known to say: Is the clock running? When does the clock start? How much time is on the clock? Conducting a merger investigation under the Hart-Scott-Rodino Act requires that we always be aware of the timing, and where we are on the clock. Once the parties to a proposed transaction have filed an...

Deceptive mortgage ads hit close to home

Lesley Fair
The headline read ZIP. ZERO. NADA. In big print, the ads also said 0 money down* and 0 for paid closing costs*. Heritage Homes didn’t include ZILCH, BUPKES, or (for “Buffy the Vampire Slayer” fans) THE BIG GOOSE EGG, but the FTC says the meaning to prospective buyers was clear. So how much truth was in that across-the-board “zero” claim? According to the FTC’s complaint: Zip. Zero. Nada. Through newspaper ads, flyers, and direct mail, the...

Where did I put those keys?

Lesley Fair
If it hasn’t happened yet, it’s only a matter of time. You walk into a room – say, to get your sunglasses – and then can’t remember why you’re there. So it’s no wonder that claims for BrainStrong Adult, a dietary supplement advertised on TV, online, and through an active social media presence, caught consumers’ eye. Ads said that Brain Strong Adult “helps protect against normal cognitive decline as we age” and is “clinically shown to improve...

Hat trick? FTC charges violations in auto loan servicing, debt collection, credit reporting

Lesley Fair
Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges. (Shemp doesn’t count.) But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers. But there’s relief on the way in the form of a...

Lice, Lice, Baby

Lesley Fair
Dare us to describe the legal ramifications of a recent advertising settlement involving health claims in the style of a cringeworthy rap from 1990? Cue up the bass line ‘cause here we go. Yo, FTC, let’s kick it. Lice, Lice, Baby. Lice, Lice, Baby. Advertisers, stop! Support your claims with back-up Or face an enforcement crack-up. You need proof. There’s no exception. The law bans every kind of deception. To say your products prevent infestation...

From the antitrust mailbag: refusals to deal

Alan Friedman, Bureau of Competition
Here’s a very common question, and the writer is usually a retailer who sells products from different manufacturers. Q: I received notice from my supplier that the company will no longer provide its products for me to sell. Is it a violation of the antitrust laws for my supplier to cut me off? Typically, the answer is no, it is not a violation of antitrust law for a supplier to refuse to sell to a dealer. In our free market economy, a seller...

Gone with the wind?

Lesley Fair
A mobile app that lets users send photo and video messages that recipients can look at for a moment before the content is, in effect, gone with the wind? Scarlett O’Hara could have declared her love for Rhett Butler (or Ashley Wilkes), confident that the message was ephemeral. Of course, residents of Tara didn’t have access to the popular app Snapchat, which claimed to do just that. But according to an FTC settlement, the company’s promise that...

Antitrust by association(s)

Geoffrey Green, Bureau of Competition
Antitrust enforcers have always been concerned about the potential for harm arising from the activities of trade groups made up of competitors. From its earliest days, the FTC has examined the conduct of trade associations. For example, here’s a passage from the FTC’s first annual report circa 1916: One of the most important questions of trade policy at the present time relates to the practice of trade associations. Their activities are of a...

Checking up on consumer generated health information

Kristen Anderson
Whether it’s a website where people diagnosed with the same medical condition can share their stories or an app to find out how long it will take in the gym to burn off a Macadamia Mania Ripple sundae, consumers are taking their health in their own hands – and generating a massive amount of digital data in the process. If you or your clients have jumped into this burgeoning market, here’s a development you’ll want to follow. Consumers are...
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