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It’s called ROSCA – the Restore Online Shoppers’ Confidence Act – and it prohibits marketers from charging consumers for an online transaction unless the marketer has clearly disclosed all material terms of the deal and received the consumer’s express informed consent. Your e-commerce clients will want to know about the FTC’s first ROSCA case, filed recently in Nevada. According to the lawsuit, Health Formulas, LLC and a tangle of related...

A box of light bulbs. A case of cleaner. Another box of light bulbs. Ordinary supplies that businesses and nonprofits of all sizes use every day. If these things arrive at your office doorstep, someone in your company or organization must have ordered them, right? And when the bill comes, you have to pay it, right? Well, not necessarily. The FTC went to federal court in Maryland against a group of companies the agency says relied on these...

We can’t vouch for the accuracy of Shakira’s representation that “Hips Don’t Lie.” But the FTC says anti-cellulite and slimming claims for caffeine-embedded underwear sold by lingerie company Wacoal and catalog retailer Norm Thompson were deceptive. As for Norm Thompson's statement that Dr. Oz endorsed its products, the complaint challenges that as false. (And no, we’re not kidding about the caffeine-embedded underwear part.) Wacoal advertised...

If the disclosure of information is necessary to prevent an ad from being deceptive, the disclosure has to be clear and conspicuous. That shouldn’t be news to any advertiser and certainly not to the 60+ companies – including 20 of the 100 biggest advertisers in the U.S. – that received warning letters as a part of the FTC’s Operation Full Disclosure. But whether your company heard from us or not, there are lessons to learn from our latest effort...

Fans of Tiny Pets, Tiny Zoo, Tiny Village, Tiny Monsters, and Mermaid Resort will be relieved to know that adorable Sully the Dog and arch-nemesis Duke Spendington haven’t been named in their individual capacities. But the developer of those kid-directed apps – San-Francisco-based TinyCo, Inc. – just settled an FTC lawsuit alleging the company violated the Children’s Online Privacy Protection Act (COPPA) Rule. One interesting allegation: In...

This is a post about the Children’s Online Privacy Protection Act (COPPA) Rule. Some readers already have a finger poised over the DELETE button since their business isn’t child-related. But as the FTC’s settlement with Yelp suggests, that would be a mistake. Yelp is an online service where people can read and create reviews about businesses and connect with others online and at local events. Many users post profiles with photos and detailed...

Companies that sign settlements with the FTC need to know that those documents contain consumer protection provisions enforceable in court. That’s the message of a motion for contempt just filed against Bayer Corporation by the Department of Justice and the U.S. Attorney’s Office for the District of New Jersey, with the assistance of the FTC. The action stems from a massive campaign Bayer runs for Phillips’ Colon Health. Packaging, TV commercials...