Blog

The FTC has gone to court in an effort to shut down an operation that allegedly blasted consumers with more than five million illegal spam text messages, including many pitching loan modification help, debt relief, and other services. The agency also has charged that the defendant marketed his text message services with email that violated the CAN-SPAM Act. According to the FTC, here’s how the operation worked. When people responded to the...

Of course, no legitimate business would put out a welcome mat for crooks. But as the FTC’s data security cases make clear, that’s the effect when companies fail to take reasonable steps to secure sensitive information in their possession — or data they allow others to access. Three recent settlements with companies that resell credit reports illustrate that point. The companies contract with the nationwide credit reporting agencies to assemble...

As a recent FTC action against three companies and their owner proves, ads promising quick and easy relief from credit card debt are likely to attract law enforcement attention. But this case featured an interesting twist because what the company really was up to was generating leads it turned around and sold to other companies. According to the FTC’s lawsuit against Media Innovation, Hermosa Group, Financial Future Network, and Jonathan...

For many people, environmental considerations play an important role in what they put in their shopping carts. But it's tough to know when green claims are credible. Seals and certifications can be a useful tool to help shoppers decide where to place their trust and how to spend their money — but only if they're backed by solid proof. The FTC’s proposed settlement with Tested Green, Nonprofit Management LLC, and Jeremy Ryan Claeys demonstrates...

When visiting an unfamiliar city, it helps to have a tour guide – a knowledgeable local to walk alongside you to point out the notable sights. When your destination is a proposed FTC order, that guide is the Analysis to Aid Public Comment, a summary of key provisions the Commission issues with each administrative settlement. Given the buzz these days about ad substantiation, the Analysis in the FTC’s proposed settlement with Dannon – which...

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...