Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC Commissioner Brill Addresses Advertising Law Conference , (Mar 20, 2013)

By Jeffrey May, J.D.

“The FTC takes substantiation requirements seriously, in particular when they involve health claims,” FTC Commissioner Julie Brill told attendees of the Association of National Advertisers Advertising Law & Public Policy Conference today in Washington, D.C. Brill provided this morning's keynote address, entitled “A Beautiful Friendship,” referring to the relationship between the advertising industry and the FTC.

Brill talked about the FTC's action against POM Wonderful LLC, in which the agency challenged the company's advertisements for its pomegranate juice and supplements, noting that many of the conference attendees were paying close attention to the matter. In January, the Commission found that POM violated the FTC Act by misrepresenting that clinical studies, research, and/or trials proved that consumption of the products treated, prevented, or reduced the risk of heart disease, prostate cancer, or erectile dysfunction.

The Commission ordered POM to cease all such false and deceptive claims. In addition, it required the company to back up certain claims with double-blind randomized controlled clinical trials.

“As someone who has long been in the business of enforcing advertising law, I find myself both deeply concerned about POM’s particular false and deceptive ads, and at the same time in deep admiration of the company’s creativity,” said Brill. Noting her respect for POM's creativity, Brill went on to say that she believes that “POM is capable of putting together equally successful ads that stay well within the strictures of the law.”

Brill also discussed the agency's recent efforts to encourage proper disclosures in marketing. The official noted last month's staff mobile privacy disclosures report, which laid out best practices for all players in the mobile ecosystem. Brill recommended that the industry use its “creativity to provide consumers with accessible, understandable, and relevant disclosures about how their personal data will be handled.”

Brill also recommended as a “good read” the agency's revised guidance on dot com disclosures. The guidance updated a 2000 report for online advertisers to reflect changes to the marketplace such as the increased use of mobile devices and the rise of social media marketing.

Lastly, Brill mentioned the efforts of the Internet Corporation for Assigned Names and Numbers (ICANN) to expand top-level domains. “Next month, ICANN plans to begin to approve the first of nearly 2000 applications for new web addresses,” Brill explained. “I remain concerned, as I have been since ICANN first announced its plans, that the expansion could create opportunities for scammers to defraud consumers online, shrink law enforcement’s ability to catch scam artists, and divert the resources of legitimate businesses into litigating and protecting their own good names.” However, she remained optimistic that ICANN can address these and other concerns.

Companies: POM Wonderful LLC

News: Advertising Privacy FederalTradeCommissionNews