June 06, 2019

Advertising Law News and Analysis

2 min

FTC Continues to Clamp Down on Gag Clauses

About a month ago, we blogged about how the FTC brought its first-ever cases under the Consumer Review Fairness Act (CRFA) since the statute went into effect in 2017. Well, it looks like the FTC was just getting started, as it announced this week that it has issued administrative complaints and proposed orders against two more companies for allegedly violating the CRFA.

FTC Reminds Crowdfunders: Deliver on Your Promises or Refund

Crowdfunding plays an important role in democratizing access to capital for small entrepreneurs, but as we’ve written before, entrepreneurs of every ilk need to remember that their representations to consumers need to be truthful, accurate and not misleading. Last month, the FTC filed a complaint against Douglas Monahan and his company iBackPack of Texas, LLC, alleging that Monahan and his company had violated Section 5 of the FTC Act by scamming consumers on crowdfunding sites Indiegogo and Kickstarter with four crowdfunding campaigns that together raised over $800,000, including a campaign to develop a bulletproof backpack that could recharge personal electronic devices and act as a mobile hot spot.

You Can't Block the Ability of the CFPB to Challenge Conduct Through a Release in a Class Action

On April 22, the Maryland Court of Special Appeal told us that a class action settlement can't buy you peace from the CFPB. That court ruled that a class settlement that purports to interfere with a state agency's or the CFPB's enforcement authority was unenforceable. The underlying dispute stems from two cases. The first is a class action brought by lead poisoning victims with cognitive impairments. And the second is a suit bought by government agencies for mishandling the rewards of the first case.

fore·shad·ow (verb). Be a warning or indication of (a future event): FCC Commissioner O'Rielly Speech Suggests What’s in Store for the TCPA

On May 16, 2019, FCC Commissioner Michael O'Rielly gave a speech at the ACA International Washington Insights Conference in Washington, DC, which gave a potential preview of how the Commission may shape the TCPA landscape in the near future. Commissioner O'Rielly's full speech is available here. He gave his thoughts on a number of subjects and some of the highlights are below.