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.
In this age of online advertising, independent reviews by customers have become a crucial marketing tool for many businesses. Having “5-star” customer reviews is worn like a badge of honor, and companies can boast of their high customer ratings in an effort to attract other customers who look to such reviews for confirmation of the reputation of a company or the high quality of its goods or services. Given the value of such reviews, customer reviews have become subject to falsification and manipulation by companies seeking to boost their ratings and attract other customers. Such actions, however, can result in liability for false advertising, and two recent cases highlight the serious liability a company that falsifies and manipulates reviews can suffer.
In a quintessential Covid-era case, following part of its routine monitoring program, the National Advertising Division of the Better Business Bureau (“NAD”) requested substantiation for claims made by Ontel Products Corporation in respect of its “Safe & Healthy” branded portable UV-C sanitizing light.
The change in the Presidential administrations also brings a change at the Commissioner and senior staffing levels at the Federal Trade Commission (FTC), as well as other agencies.
Olshan Advertising attorneys Andrew Lustigman, Scott Shaffer, Mary Grieco and Morgan Spina presented a webinar for the Consumer Protection Monthly Update hosted by the American Bar Association Antitrust Law Section.
Olshan’s Advertising, Marketing & Promotions Practice Group chair Andrew Lustigman and associate Morgan Spina have authored an article published in NYSBA Inside entitled “Check Your Enrollment Path: New York Enacts Comprehensive Automatic Renewal Law.”
Court of Appeals Issues Legal Victory for States Challenge to Department of Justice
Law360 has published an article authored by advertising partner Scott Shaffer entitled “TCPA Future Uncertain After A Tumultuous 2020.” In the article, Mr. Shaffer discusses the legal developments that occurred during last year regarding the Telephone Consumer Protection Act (TCPA) and what to expect in 2021.
Andrew Lustigman, head of Olshan’s Advertising, Marketing & Promotions Practice Group, was quoted in Law360 on major upcoming U.S. Supreme Court fights concerning consumer protection, namely, the Federal Trade Commission’s (FTC) ability to seek monetary restitution for bad marketplace behavior under Section 13(b) of the Federal Trade Commission Act. Specifically, the Court’s arguments scheduled for January 13 in AMG Capital Management LLC et al. v. FTC challenge allegations that payday loan companies engaged in predatory loan practices. Mr. Lustigman described disgorgement as an “enormous hammer” for the FTC, as a monetary fine equal to sales of a targeted product neglects to take into account a company's other expenses, like taxes and advertising. "There's no setoff," he explained. "They're saying you have to give up everything you took in."
Olshan Advertising partners Andrew Lustigman and Scott Shaffer, along with Olshan Intellectual Property partner Mary Grieco—all of whom are members of Olshan’s Brand Management & Protection Practice Group—will present a webinar entitled “Marketing in the COVID-19 Era” for the Bronx Third Avenue Business Improvement District on December 16 at 9am. Areas to be covered include ecommerce marketing, advertising claims, social media marketing, and data privacy, followed by a Q&A.
The Legal 500 published a Q&A authored by attorneys Andrew Lustigman and Morgan Spina, entitled “United States: Pharmaceutical Advertising”