As we proceed through July, the FTC continues to bring the summer heat in cracking down on the advertising practices of cannabis manufacturers, and on the possible anti-competitive effects of serial acquisitions and roll-up strategies. All this, and more, after the jump.
Tuesday July 16, 2024
Bureau of Consumer Protection, Advertising and Marketing
- On July 16, 2024, the FTC sent a second round of cease-and-desist letters, jointly with the U.S. Food and Drug Administration (FDA), to cannabis companies which market products containing Delta 8 tetrahydrocannabinol (THC) in packaging which closely resembles children’s snack items. The first round of these letters was sent only last year, and was intended to put companies on notice that such products may violate the FTC Act and lead to enforcement. The FTC determined that such packaging may violate its prohibition against unfair or deceptive practices because it that presents unwarranted safety risks, particularly for children who are less likely to understand the text on product labels.
Friday July 19, 2024
Competition, Merger Review, DOJ
- On Friday July 19, 2024, the FTC announced that it is extending the deadline for the public to comment on a joint Request for Information (RFI) disseminated by the FTC and the U.S. Department of Justice Antitrust Division (DOJ) that seeks to identify serial acquisitions and roll-up strategies that have barred competition. The new deadline to submit comments is September 20, 2024.
- The agencies jointly seek comment across all sectors and industries and invite consumers, workers, and businesses to share their perspectives. The RFI is in place so that the agencies can attain information on how corporate actors become larger and potentially dominant through acquisitions of several smaller firms. Often, businesses do not have to report these mergers to the applicable federal antitrust agencies, leaving the transactions free from government scrutiny. Comments can be submitted via Regulations.gov. Once submitted, comments will be posted to Regulations.gov.