The Advertising Law Blog provides commentary and news on developing legal issues in advertising, promotional marketing, Internet, and privacy law. This blog is sponsored by the Advertising, Marketing & Promotions group at Olshan. The practice is geared to servicing the needs of the advertising, promotional marketing, and digital industries with a commitment to providing personal, efficient and effective legal service.
On October 13, 2025, California Governor Gavin Newsom signed into law the nation’s first statute aimed at regulating “companion chatbots,” which are AI systems that simulate human-like relationships with their users. The new law, which has been added to California’s Business & Professions Code, sets out disclosure, safety, and reporting requirements. Users who suffer harm from a violation of this law now have a private right of action that allows them to seek at least $1,000 per violation plus attorney’s fees. The law will take effect on January 1, 2026.
Andrew Lustigman, Chair of Olshan's Advertising, Marketing & Promotions Group and Co-Chair of the firm’s Brand Management & Protection Group, and Branding Department associate Morgan Spina published an article in New York Law Journal entitled “Continued Focus on Subscription-Based Practices Leads to $2.5 Billion Amazon Settlement With FTC.”
On September 1, 2025, Texas Senate Bill 140 (“SB 140”) expanded the state’s telemarketing law to cover text messaging under Chapter 302 of the Texas Business & Commerce Code. Previously, these rules primarily applied to telephone calls, but SB 140 was designed to include unwanted or “spam” text messages. Critical to businesses that use text messaging for marketing purposes, SB 140’s broad language appears to expose such businesses to burdensome registration and bonding requirements, even if the businesses limit their marketing texts to consumers who have opted in voluntarily. This uncertainty prompted a same-day legal challenge in federal court, filed by Flux Footwear, Postscript, and the Ecommerce Innovation Alliance (EIA).