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In addition to allegations about Activia Yogurt, the FTC’s recent settlement with Dannon Corporation challenged health claims for DanActive, a probiotic dairy drink advertised to reduce the likelihood of getting colds or flu. In one ad cited in the complaint, a boy is show taking a test in school, playing baseball in the rain, and – poor kid – getting decked repeatedly in martial arts class. He arrives home looking tired and drops his backpack by...

If you or your clients make health claims in advertising, the FTC’s settlement with Dannon Corporation for allegedly false and deceptive representations about Activia Yogurt and DanActive is a must-read. The FTC worked closely with 39 state Attorneys General, who announced a simultaneous $21 million settlement with the company. You might want to finish lunch before digesting the details, but let’s start with Activia. According to the FTC, Dannon...

As part of its ongoing probe of questionable claims involving kids’ health, the FTC announced a $2.1 million settlement with major dietary supplement marketers for allegedly deceptive claims that their products promote healthy brain and eye development in children. The FTC charged NBTY and two subsidiaries, NatureSmart and Rexall Sundown, Inc., with making misleading representations about the amount of DHA – an Omega-3 fatty acid – in their line...

For people with an ailment, Direct Marketing Concepts and ITV Direct had the answer: Coral Calcium or Supreme Greens. But according to a recent decision by the U.S. Court of Appeals for the First Circuit, the companies, their corporate officers, and related entities lacked scientific proof for claims that their products could cure or prevent diseases like cancer, arthritis, lupus, Parkinson’s, and MS. The upshot? A judgment upholding the trial...

Owners of small businesses wrestling with tax obligations are sure to have seen the ads. American Tax Relief LLC promised to settle customers’ delinquent federal and state taxes for a fraction of what they owe, as well as put a stop to tax liens, bank levies, and property seizures. But according to a lawsuit filed by the FTC, the company charged up-front fees ranging from about $3,200 to $25,000 and offered little in return. How did the outfit...

There’s lots of public information out there about people. So it’s no surprise there’s a booming business in the sale of data – and in the sale of services that promise to protect personal information. The FTC’s recent settlement with data broker US Search demonstrates that like any other advertising claims, representations about privacy and security must be substantiated. US Search sells search services through a website. For a fee, people can...

The FTC’s first law enforcement action related to the revised Endorsement Guides offers compliance insights for marketers. In a proposed settlement with Reverb Communications, Inc., the FTC alleged that employees of a public relations agency hired by game developers posed as consumers and posted reviews on Apple’s iTunes store without disclosing that the reviews came from people working on behalf of the developers. According to the FTC, in...

Welcome to the BCP Business Center: Your Link to the Law. Explore and you’ll find practical compliance guidance on advertising, telemarketing, credit, data security, and other need-to-know topics for business owners and marketing professionals. What else will you find? The latest word on upcoming workshops, hot-off-the-presses staff reports, and new compliance videos. We’ll do our best to keep things to the point with a minimum of ho-hum, a...