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compliance Tag

That Bites: “Aromaflage” Owner Settles False Advertising Claims

On May 3, 2018, the Federal Trade Commission (FTC) announced that Mikey & Momo, Inc., owner of "Aromaflage" perfumes and scented candles, agreed to settle charges that it used deceptive claims to sell its alleged mosquito-repelling products. According the FTC, the products, marketed as "fragrance with function," lack any scientific evidence to support their insect-repellant claims. According to their marketing materials, the elegantly packaged products sold by several retailers including Dillard's, Overstock.com and Anthropologie, were "tested in the rice paddies of Southeast Asia as well as the finest locations in the Caribbean, Hamptons, and cottage country in the peak...

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Advertising in a World of PC Police

It seems like every time you turn on the news these days, another company is being accused of racist or sexist advertising material.  Are companies and ad agencies really being that insensitive, or have we, as a society, become a bit thin-skinned; looking to make anything, no matter how trivial, a matter of discrimination?  Either way, in addition to the numerous governmental regulations that product distributors and marketers have to abide by when advertising and labeling a product, the feelings of eggshell consumers are now likely another box that needs to be checked. The Kellogg Company was the latest brand to...

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Bounding into Trouble: Trampoline Review Sites Launch Brothers into FTC Investigation

Trampoline selling brothers, Sonny and Bobby Le, are prohibited from engaging in deceptive marketing practices after sending consumers to "independent" product review sites that were actually owned and operated by the brothers' company. According to the FTC complaint, the brothers advertised and sold Infinity and Olympus Pro trampolines through various websites. These e-commerce websites displayed logos and seals for the Bureau of Trampoline Review, Trampoline Safety of America, and Top Trampoline Review. As a result, consumers were led to believe that these review sites containing ratings based on safety and performance, were comprised of unbiased, expert reviews. In reality, these...

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Truth in Advertising Going to the Dogs?

Last week a class action lawsuit was filed in California against Ainsworth Pet Nutrition, the owners of Rachael Ray™ Nutrish® dog food products for, among other claims, negligent misrepresentation and violations of California's false advertising law and Consumer Legal Remedies Act. According to the complaint, the defendants engaged in deceptive labeling practices by marketing the food as "natural" and containing "no artificial preservatives." The ingredients at the center of the lawsuit are synthetic versions of vitamins B, C and K, as well as caramel color. Although not proven to be harmful, and present in animal and human foods, the ingredients...

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FTC shakeup may be welcome news for online product marketers

The president appears to be making good on his promise to cut government regulations, as the Federal Trade Commission is the latest body to get “Trumped.” Maureen Ohlhausen of the FTC, a critic of government regulation, has been appointed the interim chair by President Trump. She replaces Edith Ramirez who will be resigning today, February 10, 2017. Ohlhausen will be bringing a new focus to the FTC; specifically, an emphasis on pursuing claims based on actual consumer harm, not just whether a regulatory violation occurred. For example, on a recent $2.2M settlement with Vizio regarding the software in...

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Love and deception

Online dating has become such the norm these days that meeting a potential partner through a friend or at a bar almost seems old fashioned.  However, the online dating game comes with certain risks; most commonly, perhaps, is misrepresentation – e.g., profile pictures are outdated and profiles misleading.  While this may be frustrating to someone who is looking to find Mr. or Ms. Right, it is not illegal.  However, when JDI Dating (UK based operator of 18 dating sites) created fake, computer generated profiles and then messaged users from those accounts, a line was certainly crossed.  Many users signed up...

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Caffeine in your undies got ya jumpy?

As some of you may know, FTC investigations are commonplace in the consumer product industry. What you may not know, is complaints by consumers that the product did not perform as expected are oftentimes the trigger for these investigations.  Most recently in the hot seat, Wacoal America, Inc. and its caffeine-infused underwear, iPant.  The iPant promised that the caffeine would pass through the skin leaving users with lasting slimming results.  The FTC found the product claims to be unsubstantiated. Not only will Wacoal pay over one million dollars in consumer refunds, but they have become the butt of many coffee-related...

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