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.
Andrew Lustigman, head of Olshan’s Advertising, Marketing & Promotions Practice Group, was quoted in a Law360 (subscription required) article titled "Kids' Data Again In spotlight as FTC Revisits Privacy Rule"
Marketers frequently tout “limited time” bonus offers that appear to continue for an inordinate amount of time. A recent decision of the National Advertising Division ("NAD") of the Council of Better Business Bureaus relating to such an offer makes clear that a “limited time” offer must indeed be so.
Authored by Kenneth Silverman and intern Yousraa Belabed
Intellectual Property partner Mary Grieco was quoted in a recent Law360 article (subscription required) on the prevalence of recent federal and state laws, like California’s Consumer Privacy Act and a U.S. Senate proposal to create a national “Do Not Track” registry, designed to increase the public’s control over the use and sale of its personal information.
In the wake of several state-enacted regulations and restrictions on automatic renewal provisions in consumer contracts, on May 10, 2019, Rep. Mark Takano (D-Calif.) introduced the federal Unsubscribe Act of 2019, H.R. 2683, to increase consumer protection with respect to online negative option agreements. Negative option agreements include by definition automatic renewal contracts, continuity plan contracts and free-to-pay conversion contracts.
Disgorgement Avoided Even Though Liability Established
The National Advertising Division of the Better Business Bureau (“NAD”) recently found two separate “#1” claims to be sufficiently supported, thereby providing valuable insight to advertisers regarding the type and degree of information required to support such a claim.
The Electronic Retailing Self-Regulation Program (“ERSP”) has recommended that Alo, LLC (“Alo Yoga”) modify the Instagram posts of certain influencers of its products to disclose the material connection between Alo Yoga and the influencers.
As we have discussed in a prior post, the FTC and FDA have been involved in a joint effort to curb non-compliant labeling and/or advertising of e-liquids for use in e-cigarettes. For the most part, the agencies have been focused on protecting children and young people from the dangers of nicotine and tobacco products by cautioning manufacturers, distributors and retailers of e-liquid products against using labeling, packaging and/or advertising that resembles children’s food products, like juice boxes, candies or cookies.
On June 17, 2019, the California Department of Alcoholic Beverage Control (the “Department”) issued an Industry Advisory to its licensees in the alcoholic beverage industry regarding club renewals (the “Advisory”). The purpose of the Advisory is to alert its licensees to the legal requirements for subscription services or other purchasing agreements, which commonly operate in the alcoholic beverage industry as wine clubs, beer-of-the-month clubs and spirits clubs. The Advisory notes that when consumers sign up for these clubs and agree to receive future shipments or deliveries of wine, beer or spirits, they effectively become subscribers to the licensee’s offering of products. To the extent these memberships are creating a paid subscription or purchasing agreement that is automatically renewed, the clubs must comply with California and Federal statutes that regulate such purchasing arrangements.