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April 18th, 2023
FTC Alerts Nearly 700 Companies About Potential Penalties for Misleading Claims
Advertising Partner Jeffrey A. Greenbaum is quoted in the article, "FTC Alerts Nearly 700 Companies About Potential Penalties for Misleading Claims" published by The Wall Street Journal. The article discusses the recent FTC warnings sent to companies about the penalties they could face if they mislead consumers with substantiated product claims. The new warnings could apply to any marketers' statements about the performance of their products, and is part of a continuing effort to penalize brands that engage in deceptive marketing tactics. Jeff notes that a 2021 Supreme Court decision significantly limited the FTC's ability to seek financial damages for customers affected by such practices, but that the agency still has ways to take action. He is quoted saying, "The FTC can still penalize advertisers. While it only has the authority to seek $50,120 for any given violation, penalties could total millions or even hundreds of millions of dollars because of the way violations are counted. As a general matter, if 10 consumers see a deceptive ad, that’s 10 violations. These numbers can add up very quickly."
In conclusion, Jeff says, "The letter is likely to prompt many brands to review their marketing strategies even if they didn’t receive one directly. Companies on the list are at a disadvantage, however, because parties are only subject to penalties if they have already received such a notice."
Read the full article here.
Other Quoted
Lawyer Who Cited Bogus Legal Opinions From ChatGPT Pleads AI Ignorance
Courthouse News Service, New York Law Journal, and Law360 mention Tyler Maulsby, Ronald C. Minkoff, and Ashley Alger as counsel to attorney Steven Schwartz and Levidow Levidow, whose court filings included fake case citations generated by ChatGPT. Read more.
June 9 2023
Greenwashing in the Crosshairs: Regulators Around the Globe Take Aim
AdWeek quotes Jeffrey A. Greenbaum on the FTC's updated Green Guides guidance, which discourages U.S. brands from misleading consumers through false advertising. Read more.
May 31 2023
How GCs Can Handle Internal Pressure To Hire A Certain Firm
Law360 quotes Tyler Maulsby on potential ethics issues when general counsels are pressured to steer work to specific law firms. Read more.
May 16 2023