The D.C. Circuit Court of Appeals has affirmed a Federal Trade Commission (FTC) order that found POM Wonderful’s advertising to be misleading for claiming that its products treat or reduce the risk of several medical conditions, including prostate cancer and heart disease. POM Wonderful, LLC v. FTC, No. 13-1060 (D.C. Cir., order entered January 30, 2015). In 2013, FTC ordered POM to stop making misleading health claims about its product, and POM challenged the ruling. POM argued that its ads were protected by the First Amendment, but the court dismissed this argument, finding that deceptive and misleading ads have no First Amendment protection. The juice company also asserted that it had clinical studies to support its health claims. The circuit court affirmed FTC’s finding that POM had cherry-picked its results when presenting them to the public, which invalidated them as support for the claims. The court agreed with POM, however, that…
Category Archives Federal Trade Commission
The U.S. Federal Trade Commission (FTC) is soliciting comments on proposed amendments to the Fair Packaging and Labeling Act (FPLA). The 1967 law requires that certain products carry labels with identifying information such as the source, content and quantity and specifically excludes—among other categories—meat products, poultry and alcohol beverages. FTC sought comments on the existing rules in March 2014 and used some of the suggested changes in the proposed amendments, which include (i) “modernizing the place-of-business listing requirement to incorporate online resources”; (ii) “eliminating obsolete references to commodities advertised using the terms ‘cents off,’ ‘introductory offer,’ and ‘economy size’”; and (iii) incorporating “a more comprehensive metric chart.” Comments must be received by March 30, 2015. See FTC News Release, January 22, 2015. Issue 552
Ten consumer organizations, including the Center for Science in the Public Interest and the Rudd Center for Food Policy and Obesity, have filed a Request for Investigation with the Federal Trade Commission (FTC) alleging that Topps Co., maker of Ring Pops, violated the Children’s Online Privacy Protection Act (COPPA) by encouraging children younger than age 13 to post photos of themselves wearing the candy to social media. Topps apparently introduced the campaign, #RockThatRock, as a collaboration with “tween band” R5 to feature photos of Ring Pop wearers in the band’s music video. Consumers could enter the contest by posting a photo to social media and appending the name of the campaign. The consumer groups allege that Topps aimed the contest at youth through its child-focused website, Candymania, and that the contest violated COPPA rules by collecting personal information—which, by statutory definition, includes photographs—from a child without giving notice and obtaining…
Days after the U.S. Federal Trade Commission (FTC) filed a lawsuit to enjoin Gerber Products Co. from claiming that its Good Start® Gentle infant formula helps reduce allergies in children, a consumer filed a putative class action in Arizona federal court alleging the same facts. Werthe v. Gerber Prods. Co., No. 14-8216 (D. Ariz., filed November 3, 2014). Additional information about FTC’s lawsuit against Gerber appears in Issue 543 of this Update. Like the FTC complaint, the consumer action alleges that Gerber advertises the partially hydrolyzed whey protein (PHWP) in its Good Start® Gentle formula as reducing the risk of atopic dermatitis in infants. As a result, Gerbercharges “a significant premium” over other infant formulas, the plaintiff asserts. The complaint cites Gerber’s labeling, which allegedly promises thatits product is the “1st & Only Routine Formula to Reduce the Risk of Developing Allergies” and that it “Meets FDA [U.S. Food and Drug…
The U.S. Federal Trade Commission (FTC) has filed a complaint in a New Jersey federal court against Gerber Products Co., alleging that since 2011 the company has falsely promoted its Good Start Gentle infant formula as a product that can prevent or reduce the risk of a child developing allergies. FTC v. Gerber Prods. Co., No. 14-6771 (U.S. Dist. Ct., D.N.J., filed October 29, 2014). The formula is apparently made with partially hydrolyzed whey proteins (PHWPs) that Gerber purportedly claims make the product easier to digest than formula made with intact cow’s milk protein. Product stickers and ads compare the product to breastfeeding as a way to naturally protect a baby from allergies and claim that the formula is the “1st and ONLY” “TO REDUCE THE RISK OF DEVELOPING ALLERGIES.” The company also allegedly claims that the formula “is the first and only infant formula that meets the criteria for…
The National Advertising Division (NAD) has referred Talking Rain Beverage Co. to the Federal Trade Commission (FTC) after the company failed to comply with a previous NAD determination finding that certain aspects of its advertising could be misleading. After a July 2014 NAD investigation, Talking Rain’s advertising for Sparkling ICE—which it presents as “the adventurous side of water,” “the vibrant side of water” and “the bold side of water”—was found to be misleading if the product was not shown because consumers may believe that the product is water without additional flavoring. NAD found that Talking Rain’s claim “Naturally flavored sparkling mountain spring water” was not misleading when displayed with the product, which is brightly colored and bears a list of ingredients indicating the inclusion of flavoring agents. In July, Talking Rain said it disagreed with the conclusion but would take NAD’s recommendation into consideration, but following several months of inaction…
A group of U.S. senators and a group of U.S. representatives, all Democrats, each sent an identical letter to Federal Trade Commission (FTC) Chair Edith Ramirez calling for a report on 2014 food and beverage marketing expenditures aimed at children. They found it “unacceptable” that FTC “is not actively working on projects focused on food marketing to children,” pointing out that data gathered during 2014 and compiled into a report could serve as a five-year follow-up to a similar 2012 report on 2009 data. “A follow up report would help policy makers, public health practitioners, industry representatives, and the public understand how food marketing directed at children and adolescents has changed over the last five years and provide a critical opportunity to evaluate the continued role of such marketing in regards to the health of our nation’s children.” The senators who signed the letter were Sens. Tom Harkin (D-Iowa), Richard Durbin…
The Federal Trade Commission (FTC) has approved a modified final order in proceedings against Phusion Projects, LLC, which markets the malt beverage Four Loko, to account for the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau’s (TTB’s) denial of proposed changes to the company’s product labels. In re Phusion Projects, LLC, No. C-4382 (FTC, order entered July 24, 2014). Additional information about FTC’s January 2014 order and agreement with the company appears in Issue 471 of this Update. FTC alleged that Phusion and its principals “falsely claimed that a 23.5-ounce, 11 or 12 percent alcohol by volume can of Four Loko contains alcohol equivalent to one or two regular 12-ounce beers, and that a consumer could drink one can safely in its entirety on a single occasion.” The modified final order acknowledges the company’s attempt to comply with the January agreement by seeking TTB’s approval to display an…
The Federal Trade Commission (FTC) recently hosted a workshop on digital native advertising as part its effort to ensure that “consumers can identify advertisements as advertising wherever they appear.” Titled “Blurred Lines: Advertising or Content?,” the workshop examined “the practice of blending advertisements with news, entertainment, and other content in digital media,” bringing together publishers, marketers, consumer advocates, academics, and self-regulatory organizations to discuss: (i) “the ways in which sponsored content is presented to consumers online and in mobile apps”; (ii) “consumers’ recognition and understanding of it”; (iii) “the contexts in which it should be identifiable as advertising”; and (iv) “effective ways of differentiating it from editorial content.” Building on recent updates to FTC’s guidance on search engine advertising, dot com disclosures, and endorsements and testimonials, the workshop is reportedly the latest step in the commission’s efforts to ensure that digital advertisers conform to rules intended to help consumers distinguish between…
The Federal Trade Commission (FTC) has requested comments on proposed self-regulatory guidelines submitted by the kidSAFE Seal Program under the safe harbor provisions of the Children’s Online Privacy Protection Rule (the COPPA Rule). Owned and operated by Samet Privacy, LLC, the kidSAFE Seal Program identifies itself as “a fast-growing safety certification service and seal-of-approval program designed exclusively for children-friendly websites, mobile applications, tablet devices, and other similar interactive services and technologies.” The program is seeking safe harbor status pursuant to Section 312.11 of the Revised COPPA Rule. In particular, FTC has asked respondents to consider, among other things, whether (i) the proposed guidelines provide “the same or greater protections for children” as those contained in Sections 312.2-312.10 of the Rule; (ii) “the mechanisms used to assess operators’ compliance with the proposed guidelines” are effective; (iii) “the incentives for operators’ compliance with the proposed guidelines” are effective; and (iv) the proposed…
