Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC official addresses advertising, privacy concerns at marketing law conference, (Nov 7, 2014)
Organizations Mentioned:Gerber Products Co.
By Jody Coultas, J.D.
In the keynote address at the 36th annual BAA/PMA Marketing Law Conference, Jessica Rich, the Director of the FTC Bureau of Consumer Protection, highlighted the FTC’s advertising and privacy policies and enforcement actions in these areas. The address was delivered on Thursday, November 6, in Chicago.
Director Rich discussed the current trends in advertising that most concern the FTC. As part of Operation Failed Resolution, the FTC brought claims against national marketers that advertised green coffee bean extract, acai berry, caffeine-infused shape wear, and skin creams that were allegedly scientifically-proven to promote easy weight loss without diet and exercise. The weight-loss marketers will pay approximately $34 million for consumer redress.
The FTC has also seen a rise in marketers claiming their products will treat and/or prevent various health issues, including drinking cactus juice to alleviate pain and inflammation linked to allergies, Alzheimer’s disease, heart disease, and diabetes. Gerber Products Co. is currently facing FTC charges that it deceptively advertised that its Good Start Gentle formula would prevent or reduce the risk of developing allergies.
As the population ages, the market for cognitive benefit aids has increased dramatically, according to Rich. The FTC has settled a number of charges against marketers claiming their dietary supplements and products would improve memory.
She also noted that the FTC has been very active in setting clear standards for so-called “green” marketing. The FTC has sent warning letters to a number of companies concerning their compliance with the relevant standards and has brought charges against companies that deceptively advertised their products as eco-friendly.
The FTC has also initiated Operation Full Disclosure in order to ensure that advertisers make clear and conspicuous disclosures in their television and print advertisements, according to the official. Sixty companies have been sent warning letters, alerting them to failures such as hiding disclosures in hard to read print, burying disclosures in non-related text, and making disclosures hard to see against the background.
In terms of privacy issues, Rich noted that the FTC is focused on big data, sensitive data protection, and mobile and connected devices. The overarching theme of the FTC’s compliance requirements is to tell the truth, do not over-collect data, and secure sensitive data. The FTC has brought a number of law enforcement actions against companies that have failed to abide by the regulations such as the Fair Credit Reporting Act and the Children’s Online Privacy Protection Act. These cases have included issues involving kids InApp purchases, mobile cramming, and deceptive data collection disclosures. This area of regulation continues to expand and grow as the technology changes and the uses of data expand.
One of the newest issues involving data and privacy concerns wearable technology that tracks consumer’s health and fitness data. Due to the increased concerns regarding data and privacy protection, the FTC has proposed legislation to increase its authority in this area, according to Rich.
News: Advertising ConsumerProtection Privacy FederalTradeCommissionNews