Last month, the Federal Trade Commission (“FTC”) settled charges against 12 companies who deceptively marketed “cognitive improvement” supplements by using sham news websites containing false and unsubstantiated efficacy claims, referencing non-existent clinical studies, and advertising fraudulent consumer and celebrity endorsements. According to the FTC’s complaint, the defendants falsely claimed that their dietary supplements could enhance users’ focus by as much as 300%, boost brain power by as much as 89.2%, increase users’ IQ by as…

The Federal Trade Commission (“FTC”) announced that it reached a settlement with iSpring Water Systems, LLC for allegedly making false claims that its wholly imported Chinese water filtration systems were made in the U.S.A – in violation of a 2017 FTC consent order. In 2017, the company made certain claims that its water filtration systems and parts were “Built in USA,” “Built in USA Legendary brand of water filter,” and “Proudly Built in the…

Earlier this year, the New York Attorney General reached a “precedent-setting” settlement with Devumi LLC, a third-party website, over its sale of fake followers, “likes,” and views to customers on all major social media platforms. Devumi utilized computer-operated “bot” accounts and “sock-puppet accounts” (where an online user pretends to be one or many other people) to give the appearance of genuine social media engagement. The settlement states that Devumi’s deceptive business practices attempted to affect…

Last month, the Federal Trade Commission (“FTC”) approved a final consent order settling deceptive advertising charges against A&O Enterprises, Inc., d/b/a iV Bars regarding deceptive and unsupported health claims that iV Bars’ intravenously injected therapy products, or “iV Cocktails,” can safely and effectively prevent and treat such serious diseases as cancer, multiple sclerosis, and cardiovascular disease. According to the FTC’s complaint, which we previously wrote about here, iV Bars advertised, sold, and administered at…

This month, the Federal Trade Commission (“FTC”) announced a settlement with San Francisco-based food delivery service UrthBox, Inc. and its principal, Behnam Behrouzi, regarding the company’s failure to adequately disclose key terms of its “free trial” automatic renewal programs and its misrepresentation of customer reviews. According to the FTC’s complaint, from October 2016 to November 2017, UrthBox offered consumers a “free trial” of its snack boxes for a nominal shipping and handling fee. However, upon…

On March 19, 2019 the Association of National Advertisers (ANA) launched the Trust Consortium. A copy of the press release can be found here. The ANA Trust Consortium is an alliance among ANA members and their partners and a voice for brands on transparency, measurement, auditing, digital fraud, brand safety, and more through ongoing reporting and analysis. The first event scheduled for the Consortium is the Trust Summit on May 15 in New York…

The Federal Trade Commission (“FTC”) recently filed another case in a series of recent enforcement actions targeting allegedly deceptive online “free-trial” offers that tricked consumers into enrolling in negative option plans. The FTC charged Gopalkrishna Pai and eight (8) companies he owns and operates as a common enterprise with violating the FTC Act and the Restore Online Shoppers’ Confidence Act (“ROSCA”) and defrauding consumers tens of millions of dollars. According to the FTC’s complaint, the…