ADVERTISING

Sugar vs. High Fructose Corn Syrup: A Bittersweet Debate
April 13, 2012
Several organizations that represent farmers and refiners of cane sugar (“Sugar Producers”) recently filed a false advertising lawsuit against several organizations that represent corn refiners and producers of high fructose corn syrup (“HFCS Producers”) in the US District Court for the Central District of California. The Sugar Producers allege that the HFCS Producers have disseminated advertisements likening high fructose corn syrup to sugar despite the fact that these claims are untrue. The HFCS Producers filed a motion to dismiss, arguing that they have done nothing wrong.

New Jersey Gift Card Law Forces Gift Card Retailers to Leave the State
April 13, 2012
Three major gift card issuers have announced that their cards will no longer be available in New Jersey due to a law that lets the state claim the value of unredeemed cards after just two years. In the past two weeks, Blackhawk Network, InComm and American Express each announced that they would stop offering gift cards in New Jersey because of the state’s recently passed unclaimed property law.

FTC Reviewing Alcohol Advertising
May 1, 2012
The Federal Trade Commission (FTC) is currently in the midst of its fourth major study to determine the effectiveness of voluntary industry guidelines regarding the advertising and marketing practices of alcoholic beverage manufacturers. The purpose of the guidelines is to reduce the promotion of the drinks to underage audiences. The FTC reached out to 14 manufacturers including Anheuser-Busch Companies, Inc., Bacardi USA, Inc., Heineken USA, Inc., Pernod Ricard USA, and Skyy Spirits LLC.

FTC Halts Online Marketer Using Negative Options and Inadequate Disclosures
May 1, 2012
The Federal Trade Commission (FTC) recently reached a proposed settlement with Green Millionaire LLC and others based on the defendants’ practice of offering a free product, then using a negative option plan to sign consumers up for an online magazine that they never ordered. Specifically, the defendants were accused of advertising The Green Millionaire Book as a limited time “free” book that the defendants falsely claimed would provide consumers with valuable knowledge such as how to “get free gas for life” or how to power their homes and vehicles at no cost. Television commercials and the website offering the book had bold language regarding the “free” offer. However, the FTC alleged that consumers were not provided with the material terms of the offer. Specifically, the FTC claimed that consumers were not notified that they would be billed for the Green Wealth e-Magazine upon signing up for the book.

FTC Gets Record $30 Million in Civil Penalties from Deceptive Robocallers
May 1, 2012
A federal judge recently ordered defendants involved in a deceptive robocalling scheme to pay $30 million in civil penalties and surrender $1.1 million in ill-gotten gains based on violations of the FTC Act and the Telemarketing Sales Rule. The defendants, who operated under the name Cash Grant Institute, made millions of robocalls to consumers falsely claiming that consumers prequalified for cash grants up to $25,000. The calls referred consumers to websites that also boasted false claims. Instead of providing the grants, which are not generally available, the websites referred consumers to other websites where consumers were required to pay to obtain additional information. Typically, the information provided informed consumers that they were not eligible for the grants they were seeking.

FTC Action Ends One Robocaller Company’s Telemarketing Business
May 1, 2012
A proposed settlement agreement between the Federal Trade Commission (FTC) and a Los Angeles-based telemarketing business, SBN Peripherals (d/b/a Asia Pacific Telecom Inc.), bans the company and several others involved with the business from telemarketing. The defendants were accused of violating the FTC Act, the Telephone Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”) and the Telemarketing Sales Rule (TSR). This is yet another case to demonstrate the FTC’s commitment to stop deceptive robocallers.

Paying on the Go: FTC Holds Workshop on Mobile Payment Systems
May 1, 2012
As the number and variety of mobile payment options has increased, so has the Federal Trade Commission’s interest in the costs and benefits of these technologies. On April 26, 2012, the FTC held a day-long workshop — bringing together government regulators, industry leaders, consumer advocates, and academics — to discuss the current state of mobile payment technologies, the costs and benefits of the technology for consumers and businesses, and the legal, security, and privacy concerns raised by the technology.

UPCOMING EVENT
2012 Legal and Regulatory Conference: Hot Topics in Marketing and Advertising
This month, on May 10, Anthony Lupo and Sarah Bruno will be part of a panel discussion at the Personal Care Products Council Annual Legal and Regulatory Meeting in Charleston, SC. The discussion will cover “Hot Topics in Marketing and Advertising.” The panel will include a member of the National Advertising Division of Better Business Bureaus (NAD), who will discuss some notable examples of marketing in the personal care industry and provide strategies for companies concerned about the level of substantiation needed in the personal care field. Panelists will also discuss marketing challenges arising out of social media and global communication platforms, as well as key concerns relating to data privacy. The discussion will cover a lot of ground and will provide good tips for marketers in 2012.

DATA SECURITY & PRIVACY

UPCOMING EVENT
Arent Fox Breakfast Seminar on Cross-Border Privacy
Sarah Bruno of Arent Fox LLP hosts a breakfast seminar that will provide an overview of the data transfer issues between Europe and the United States, the EU Cookie law, as well as how these laws impact US companies.

Register Today.

ENTERTAINMENT

Copyright and Trademark Issues Highlighted During Recent Controversy Over Pinterest’s Terms of Service
April 26, 2012
Any company with an online presence, especially one that allows users or subscribers to post content or images, should carefully consider applicable intellectual property laws and take steps to ensure that its website’s terms of service are at all times appropriately tailored to provide adequate protection for the company while simultaneously serving the specific needs of the site and its users. This is especially true in the fast-paced social media market, where constant innovation and rapid growth not only yield greater opportunities, but also demand timely adjustments to the contractual provisions governing the relationship between a site and its users. Few companies understand this notion better than Pinterest, the immensely popular social bookmarking website.

A Penny Saved is a Penny … Lawsuit
May 1, 2012
Bidcactus LLC, a company that owns and operates a penny auction website, is facing a class action lawsuit filed by an individual that allegedly paid more than $15,000 due to poorly disclosed terms and conditions. Recently, the court decided that the suit based on deceptive trade practices and violations of Connecticut gambling laws could proceed, thereby denying the defendant’s motion to dismiss.