Settlement with Verizon Wireless Establishes Standards for Advertising on Websites
Posted by: Adam Solomon
June 30, 2009

On June 24, 2009, Florida's Attorney General announced a $1.5 million dollar settlement with Verizon Wireless and Alltel over "free" ringtone offers. The settlement, the latest in a continuing series of enforcement action in the mobile space by the Florida Attorney General's office, is very important to mobile marketers because it require the implementation of a series of detailed "best practices" standards that impose significant compliance obligations on those involved in marketing mobile content.

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FTC Announces Actions Against Kmart, Tender and Dyna-E Alleging Deceptive 'Biodegradable' Claims
Posted by: Adam Solomon
June 18, 2009

On June 9, 2009 the FTC charged Kmart Corp., Tender Corp., and Dyna-E International with making false and unsubstantiated claims that their paper products were "biodegradable." Kmart and Tender have agreed to settle the cases against them; the case against Dyna-E will be litigated. With the recent growth in "green" advertising and product lines, the FTC stated it will continue its efforts to ensure that environmental marketing is truthful, substantiated, and not confusing to consumers.

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FTC Seeks Public Comments on Negative Option Rule
Posted by: Adam Solomon
June 18, 2009

The Federal Trade Commission is seeking public comment on its Rule Concerning the Use of Prenotification Negative Option Plans (Negative Option Rule), 16 C.F.R. Part 425, as part of the agency's systematic review of its rules and guides. The Rule regulates one type of negative option marketing - so-called prenotification negative option plans for the delivery of merchandise. In this type of negative option marketing, consumers receive periodic announcements that merchandise will be delivered unless they decline the items within a set time.

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Cheerios FDA Warning Letter Signals Narrow Interpretation of Authorized Health Claims
Posted by: Andy Lustigman
June 12, 2009

Signaling a new focus on food health-related claims, the FDA has issued a Warning Letter to General Mills with respect to the labeling of Cheerios® Toasted Whole Grain Oat Cereal. The FDA accused General Mills of being marketed as an unapproved new drug because the product is promoted as being intended for use in the prevention, mitigation, and treatment of disease. The FDA also found that the product was a misbranded food because it bears unauthorized health claims in its labeling and on its referenced website.

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