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Advertising Law Blog

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.

Showing 16 posts in False Advertising.

FTC Files Complaint in U.S. District Court for the District of Utah Against Misleading Online Hotel Room Rental Operation

The Federal Trade Commission recently filed a complaint in the United States District Court for the District of Utah against three defendants who purchase hotel room inventory through online travel agencies (“OTAs”) and then market those hotel rooms to consumers on the internet through search engine marketing such as Google. Read More ›

NAD Recommends Too Faced Discontinue Claims Related to Its “Better Than Sex” Mascara

A recent decision highlights the risk in relying on confidential support, as well the difficulty in substantiating extraordinary cosmetic benefit claims. Benefit Cosmetics recently challenged Too Faced Cosmetics’ advertising before NAD. The challenge was focused on Too Faced’s mascara advertising claims relating to clinic studies, the degree to which the product increased eyelash volume, and the representations made in the advertiser’s use of “before” and “after” comparative photographic demonstrations.   Read More ›

New York Law Journal Publishes Article on Fake E-Commerce Reviews by Lustigman

The New York Law Journal (subscription required) published an article authored by Andrew Lustigman titled "Everyone's a Critic: Fake E-Commerce Reviews Undercut the Marketplace" Read More ›

"World’s Best Glass Cleaner” Claim Found To Be Puffery

S.C. Johnson recently brought a challenge before NAD claiming the phrase “World’s Best Glass Cleaner” claim on PLZ Aeroscience’s (“PLZ”) “Sprayway” glass cleaning product packaging was unsubstantiated. Read More ›

Jelly Belly Sued for Failing to Adequately Disclose the Presence of Sugar in Its “Sports Beans”

With consumers ever more ingredient-conscious, brands must be careful of how they describe them, particularly when the product may be positioned as a “healthy” version. Read More ›

FTC Settlement with Trampoline Marketer Shows Risk in Using Fake Review Sites

The FTC considers review sites to be advertising and will hold marketers responsible for their content Read More ›

FDA Steps Up Enforcement on Unapproved Dietary Supplement Claims

FDA regulations prohibit making drug claims for dietary supplement products even if such claims are supported by scientific evidence. A recent FDA enforcement action involving dietary supplement products promoted to address high cholesterol, hypertension, diabetes, depression and muscle pain claims show that the agency is prepared to take significant steps where manufacturers continue to make drug claims for dietary supplement products, particularly where the facility fails to meet CGMP requirements. Read More ›

NAD Recommends Modification of Exercise Equipment Claims

Nautilus advertised its Bowflex TreadClimber exerciser as promoting substantial weight loss.   NAD recommended that the broad claim of “All They Had To Do Was Walk” should be discontinued because its weight loss claims failed to sufficiently encompass the need to diet.  Read More ›

Lily Case Highlights Compliance Obligations Under the Mail Order Sales Rule

While the FTC’s Mail Order Sales Rule pre-dates the Internet by decades, the Rule remains relevant with today’s online marketing practices, particularly for pre-orders. Companies that rely on pre-orders for a concept product need to take careful note of recent action filed by the San Francisco District Attorney against Lily Robotics, Inc. for false advertising and unfair business practices. After acquiring tens of millions of dollars’ worth of capital investment and pre-order revenue for a conceptual drone, the company repeatedly delayed release of the product in 2015 and 2016, and has since failed to produce a saleable product. Read More ›

“Shark Tank” APP FTC Case Provides Lessons to Early Stage Tech Companies

Many early stage technology-based companies with promising ideas may compromise substantiating their product’s performance claims with the belief that there is time for compliance down the road.   The FTC’s recent case against the marketers of two app-supported smartphone accessories, advertised to accurately measure consumers’ blood alcohol content, and who received funding on Shark Tank, highlights the risk in waiting. Read More ›