The Dueling Views of FTC Commissioners Ferguson and Holyoak on the Scope of Agency Authority
Last month, the Federal Trade Commission (FTC) announced an enforcement action against Evolv Technologies, alleging that the company made deceptive claims about the capabilities of its AI-powered security screening system, including in school settings. Among other allegations, the complaint alleged that Evolv advertised that its systems could reliably detect all weapons, but the systems consistently failed to detect guns and knives and routinely gave false alarms.
Listen to Episodes 9 and 10 of Venable's Ad Law Tool Kit Show Podcast – "Understanding False Advertising Claims, Part I: Litigation" and "Understanding False Advertising Claims, Part 2: the National Advertising Division"
Episode 9: The first rule of advertising compliance is that advertising must be truthful and not misleading to consumers. All material advertising claims also have to be substantiated. There are many venues in which a business can challenge a competitor who fails to follow those rules. What are the different ways in which an advertising claim can be false or misleading?
Episode 10: The National Advertising Division (NAD) is part of the BBB National Programs. Its mandate is to “hold national advertising across all media types to high standards of truth and accuracy by reviewing truth-in-advertising challenges from business, trade associations, consumers, or on its own initiative.” In 2023, the NAD closed 26% more false advertising cases than the year before.
Understanding False Advertising Claims: An Excerpt from the Advertising Law Tool Kit
The first rule of advertising compliance is that advertising must be truthful and not misleading to consumers. In addition, all material advertising claims must be substantiated. When competitors’ ads do not meet those tests, there are numerous venues in which they may be challenged. When challenging competitors’ advertising, it is critical to understand the different ways in which an advertising claim can be false or misleading.
Listen to Episodes 8 of Venable's Ad Law Tool Kit Show Podcast – "State Privacy Laws"
State privacy laws continue to evolve rapidly, challenging businesses to keep pace. By the end of 2024, businesses will need to comply with up to nine comprehensive state privacy laws, with more laws slated to come into force in 2025 and 2026. To date, all such laws draw inspiration from both the first comprehensive state privacy law—the California Consumer Privacy Act (CCPA)—and the European Union General Data Protection Regulation (GDPR). But there are differences.
State Privacy Laws: An Excerpt from the Advertising Law Tool Kit
State privacy laws continue to evolve rapidly, challenging businesses to keep pace. In 2023, new omnibus privacy laws went into effect in California, Colorado, Connecticut, Utah, and Virginia, while eight additional states enacted similar laws. Of the eight states with newly enacted laws, four have laws that will come into effect in 2024—Florida, Montana, Oregon, and Texas. Therefore, businesses should be prepared to comply with up to nine comprehensive state privacy laws in 2024, with more laws slated to come into force in 2025 and 2026.