Sign Up for Alerts
Sign up to receive receive industry-specific emails from our legal team.
Sign Up for Alerts
We provide tailored, industry-specific legal updates to our clients and other friends of the firm.
Areas of Interest
March 6th, 2012
FTC Announces Settlement with Window Marketers Over Environmental Claims
The Federal Trade Commission (“FTC”) recently announced that it reached an agreement with five companies that sell replacement windows, settling allegations that they made false claims about how much money consumers could save on their heating and cooling bills by having these windows installed. This settlement is another example of the FTC’s broad efforts to ensure that environmental marketing is truthful and based on solid scientific evidence.
According to the FTC, the five companies engaged in deceptive practices by making unsupported energy efficiency and money-savings claims - in some cases, that consumers could cut their energy bills in half by using replacement windows alone. The proposed settlement orders prohibit each company from falsely claiming that:
- consumers who replace their current windows with those of the company will achieve up to, or a specified amount or percentage of energy savings, or a reduction in their heating or cooling costs; or
- that a specific number or percentage of consumers who replace their windows with the company's will achieve energy savings or reduced heating or cooling costs.
The order also requires the companies to have competent and reliable scientific evidence to substantiate that “all or almost all” consumers are likely to achieve the maximum savings claimed. In addition, if the advertised performance is limited to certain circumstances, the order also requires the companies to clearly and prominently disclose any limitations.
The proposed settlement order will be subject to public comment for 30 days, until March 23, 2012, at which point the FTC will decide whether to make it final. Written comments can be sent to: FTC, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Ave., N.W., Washington, DC 20580.
Read full press release - Window Marketers Settle FTC Charges That They Made Deceptive Energy Efficiency and Cost Savings Claims
If you have any questions about the FTC’s announcement, please contact Jeffrey A. Greenbaum at (212) 826 5525 or jgreenbaum@fkks.com, or any other member of the Frankfurt Kurnit Advertising Group.
Disclaimer. This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
October 10 2022
Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
