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consumer protection Tag

What a bunch of turkeys!

Impulse-buying millennials spent approximately $482 million on counterfeit products last year on Black Friday. This year, the trend is set to continue as it is predicted that one-in-four will purchase counterfeit items due to the buyer's inability to spot counterfeiters and the marketplace's laissez-faire attitude toward counterfeit sellers online. Considering that this year's online holiday spending is predicted to exceed $124 billion from November - December (with over $23 billion from Thanksgiving to Cyber Monday alone!), it is imperative that buyers beware, and that product marketers actively police their online listings; lest their sales and reputations get gobbled up by...

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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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‘BOGO’ Refunds Commence in Allstar’s Snuggie Settlement

On March 12, the Federal Trade Commission (FTC) began mailing refund checks totaling some $7.2 million to more than 218,000 consumers who purchased products from Allstar Marketing Group LLC that included an offer for a free product in connection with those purchases. The refunds, averaging $33 per consumer, are a result of an investigation by the New York State Office of the Attorney General and a subsequent 2015 settlement with the FTC. Allstar is alleged to have violated multiple consumer protection laws by its deceptive advertising practices involving products including, among others: Snuggie, Perfect Bacon Bowl, Magic Mesh Door, Perfect Brownie...

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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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Is ‘Made in China’ a Thing of the Past? What tariffs and trade relations mean for the consumer product industry.

According to the Office of the U.S. Trade Representative, China is our largest goods trading partner with approximately $579 billion in total trade during 2016. Imports from China totaled $463 billion, resulting in a $347 billion U.S. trade deficit for the year. This deficit, along with the goal of bringing manufacturing jobs back home, has the President Trump contemplating high tariffs on Chinese and other imports, including those from another major trade partner – Mexico. The World Trade Organization stipulates that tariffs can only be imposed when there is material injury to the domestic industry, such as the detrimental effects of...

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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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Lawsuits and Fines Plague Amazon to Kick off 2017

Despite its recent announcement of plans to create 100,000 jobs during the next 18 months, 2017 is off to a rocky start for Amazon. Just days before the new year, RUN-DMC Brand filed a lawsuit against Amazon (and others, including Walmart and Jet.com) seeking $50 million in damages for trademark infringement, dilution, and unfair competition. RUN-DMC’s complaint alleges that the defendants are advertising, manufacturing, selling, and distributing multiple products with the iconic 1980s rap/hip-hop group’s RUN-DMC trademark without the permission of RUN-DMC, which is owned by former band member, Darryl McDaniels. Run-DMC alleges that Amazon directly advertises and sells infringing products,...

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DRTV Powerhouses Take on Amazon in Federal Court

Digital Law Group has been advocating on behalf of its clients and the direct response industry for some time now against Amazon’s unscrupulous business practices of knowingly selling counterfeit products on its marketplace. In fact, when we pitched a panel idea for a recent tradeshow on policing and enforcing intellectual property rights on online marketplaces, the organizer notified us that Amazon could not be included/mentioned in the content of our session. Naturally, we were concerned by this information and perplexed as to why so many marketers continue to do business with Amazon in spite of the fact that knockoffs and counterfeits...

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