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May 31st, 2016
FTC Will Examine Effectiveness of Consumer Disclosures
The Federal Trade Commission ("FTC") announced last week its plan to host a public workshop on September 15, 2016 called "Putting Disclosures to the Test." The goal of the workshop is to have companies, academics, and the FTC weigh in on how to evaluate the effectiveness of disclosures advertisers make to consumers about advertising claims, privacy practices, and other information. If you are interested in being a presenter, you may submit a proposal by contacting the FTC at disclosuretesting@ftc.gov by July 15th. To submit public comments in connection with the workshop click here (until November 2nd).
The press release for the workshop suggests that the FTC is particularly focused on exploring ways to evaluate and test consumers' understanding of disclosures made online and in other forms of digital media. The FTC last updated its guidance about disclosures in online advertising in March 2013 when it released the Dot Com Disclosure Guides, and has studied the effectiveness of disclosures in other industries and for specific purposes since then, for example, in connection with mobile shopping applications. We have previously reported on the FTC's guidance [here] and [here].
The fact that the FTC is examining disclosures again so soon may signal a concern that marketers' current practices are inadequate and that new guidance is required. Stay tuned for updates and further advice about how your company can effectively use disclosures so that consumers notice and understand them.
If you have any questions about advertising disclosures, or about any other advertising law issues, please contact Terri Seligman at (212) 826 5580 or tseligman@fkks.com, or any other member of the Frankfurt Kurnit Advertising, Marketing & Public Relations Group.
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
