Just when Google thought their antitrust worries had washed away with a wave of other campaign-year flotsam, the Federal Trade Commission has fired up the bat signal and are summoning the proverbial “A Team.” Their focus, once again, seems to be on the Khal of Search, Google. A new marketing czar is now at the helm of the FTC. Moreover, judging from early reports, it seems the commission is focusing on the logistics of Google’s ad exchange program, instead of organic SERP results, like last time. Could these two variables result in a bad outcome for Google this go round? The Google Antitrust Legal War Google is no stranger to the antitrust litigation ring. The first unfair competition arrow was shot from the SS FTC in 2007. Back then, the commission concerned themselves with the tech company’s acquisition of a ...
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What happens when you cross the advertising “puffery” line? Skechers shoe company recently found out. They had to fork over a cool $40 million thanks to a class-action lawsuit over some claims made in their ads. A $40 million class-action settlement against Skechers shoes should serve as a cautionary tale to all online marketers. The warning: Don’t Make Incredible Claims if You Don’t Have the Proof! Not only could ignoring this warning result in a scuffle with the FTC, but customers – with visions of greenbacks dancing in their heads — could entangle you in a costly false advertising lawsuit. Judge Thomas B. Russell, of the Kentucky Federal Court, affirmed a false advertising class-action against Skechers. A passel of lawyers, two primary plaintiffs and about 520,000 claimants cumulatively earned $40M – all because Skechers’ ads arguably crossed the truthiness line. ...
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Posted in Affiliate Marketing Law, FTC News
Tagged Affiliate Marketing Law, FTC, Internet Marketing Law
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This year, the nation’s consumer watchdogs are on the lookout for unscrupulous data brokers. Specifically, the FTC is concerned about (a) adherence to privacy and due diligence standards outlined in the Fair Credit Reporting Act, and (b) the commodification of inaccurate personal information and its effect on consumers. What Are Data Brokers? Data brokering is a booming business. We’re talking multi-billion booming. Basically, data brokers collect information about you, me and everyone we know. Then they sell the juicy data to product marketers, potential employers, insurance agencies, credit card companies and anyone else with a need for human behavioral data. The Federal Trade Commission seems to be concerned with operations that market “quick and easy background checks.” For example: Nanny background checkers; Legal background checkers; Companies that sell marketing data to credit card companies to facilitate sending out pre-approved cards; ...
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Below is an in-depth review of the March 2013 Dot Com Disclosures update. Fair Warning: It is the opposite of short. We’ve done our best to use descriptive headlines to break the monotony and hopefully allow for easier navigation. If you need to speak with an attorney who deals with FTC and online advertising issues, get in touch. Kelly Warner is here to help any and all online marketers. The Federal Trade Commission updated the Dot Com Disclosures. In April 2012, the nation’s consumer protection agency held workshops to discuss mobile devices and sales disclosures. Now, they’ve released a new set of guidelines. It’s supposed to act as a set of rules for how mobile and social media ads should be structured, but the 53-page Dot Com Disclosure update is actually a lengthy treatise filled with non-committal suggestions. Regardless of ...
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Posted in Affiliate Marketing Law, Government Regulations
Tagged FTC, Internet Marketing Law
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Attention digital marketers: Not only does Uncle Sam want you, but he’s also after your kin. You got it, the FTC is now going after the relatives of individuals who are under investigation for marketing fraud. In 2010, the Federal Trade Commission opened an investigation into I Works for allegedly wheedling $275 million out of unsuspecting consumers. Conceived and run by Jeremy Johnson, I Works operated in the trial membership, money making and government grant marketing spheres. When the investigation began, the feds froze I Works’ financial accounts and appointed a court-supervised trustee to ensure victims got a refund if the FTC won. Now, three years later, as a way to safeguard any recoverable funds, the FTC is asking to amend the list of relief defendants – namely Jeremy Johnson’s family. Specifically, the nation’s consumer watchdog department is looking to ...
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Spin doctors expertly touted tendentious studies, but Google emerged the apparent victor from its U.S. antitrust investigation. Media outlets — both brawny and bitty — technology bloggers, pundits and pirates weighed in with their opinion. Questions abounded: Did Google get off lightly? Would the European Commission consider the FTC’s ruling in their ongoing investigation? Was it a pyrrhic victory? Opinions overflowed: The FTC Sucks! Anyone Who Thinks the FTC Sucks, Sucks! The Google Antitrust Ruling Was A Victory For The Free Market! The Google Antitrust Ruling Killed The Free Market! Not wanting to be a wallflower at the Legal Punditry Ball, we’ve created a Reader’s Digest version of reactions to the Google antitrust outcome. Time Magazine: Did Google’s Antitrust Victory Have To Do With Their Motto? Assuming the role of philosopher, Time Magazine’s David Futrelle asked the question: “Did Google’s Promise ...
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The nation’s consumer protection agency is actively enforcing their new Biz Opp rules. On October 31, 2012, the Federal Trade Commission, in conjunction with other federal task forces, the U.S. Postal Inspection Service and Attorneys General in Arizona, Colorado, California and Indiana filed 108 new legal actions against Biz Opp companies that authorities allege are unfairly scamming would-be entrepreneurs. Operation Lost Opportunity: The FTC’s Latest Crackdown On Biz Opps With a 3-0-2 vote, the FTC put operation lost opportunity into action. Seventy civilian actions and 38 criminal actions were filed in the District Court for the Southern District of Florida against a slew of companies offering “be your own boss” prospects. Specifically, a group of companies that offer mystery shopping, credit card processing, website operation, and government insurance refund processing opportunities are being charged with violating various consumer protection rules. ...
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All affiliate marketers should take a moment to read Senator Chuck Schumer’s new Internet law proposal that seeks to raise fines on any entity that places calls to any number on the National Do Not Call Registry. An aggressive piece of affiliate marketing law legislation, the bill seeks to raise fines and re-classify violations as felonies. “Congress has enacted the laws to fight back against [robo advertising], but the companies are using new tricks, and now we must enact stiffer penalties to make sure the laws have teeth so the regulators can bring the rogue firms to heel,” Schumer explained to CBS news. How The Proposed Act Could Affect Affiliate Marketers Specifically, if the new bill is passed, anybody who places illegal robo-calls or digital messages will be fined $20,000 per call. Moreover, it would redefine DNCR violations as a ...
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Attention diet product affiliate marketers, you may want to update your websites pronto, because America’s most famous doctor is on the hunt for anyone using his name or likeness to promote a product. Specifically, Oz and co. have made it crystal clear on his website that “Dr. Oz and The Dr. Oz Show do not endorse any products featured on the show. If you see Dr. Oz’s image or the show’s logo being used to sell any products, please let us know.” In other words, if you have a glossy picture of the good doc on your website, or you mention his name in your content as being an endorser of the product, then you probably should take it down ASAP. Now, you may be thinking, “Well, can’t I just re-word it? Isn’t there some wiggle room here? My Dr. ...
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Posted in Affiliate Marketing Law
Tagged Affiliate Marketing Law, FTC, Online Privacy Laws
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The Federal Trade Commission (FTC), with the assistance of the United States Department of Justice (DOJ), prevailed in a civil suit against HireRight Solutions for violating provisions of the Fair Credit Reporting Act (FRCA). The United States District Court for the District of Columbia ordered HireRight Solutions to pay a $2.6 million penalty for providing clients (potential employers for job applicants) with outdated and erroneous information that could bar a job applicant from employment. According to the FTC, HireRight failed to investigate disputed claims found in the consumer reports they provided regarding job applicants they screened for employers. There were instances of when HireRight supplied a consumer report to the job applicant’s potential employer that showed the applicant had a criminal record, but didn’t reveal it was expunged. In other instances, the same crime showed up on the consumer report ...
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