FTC Files Brief Defending “Click to Cancel” Negative Option Rule
Ending speculation and uncertainty about whether new leadership at the Federal Trade Commission (FTC) would repeal or continue to defend the agency’s Negative Option Rule, which regulates offerings such as autorenewal of subscription services, this week the agency filed a brief at the Eighth Circuit defending the rule—something of a surprise.
Trump Fires Democratic FTC Commissioners, Setting Up a Direct Challenge to Humphrey’s Executor
On March 18, President Trump fired the two Democratic commissioners of the Federal Trade Commission (FTC). The removals of Alvaro Bedoya and Rebecca Kelly Slaughter are the latest in a series of executive actions that will limit the agency’s independence.
National Advertising Division Targets Celebrity, Influencer, and Third-Party Marketing in Recent Decisions
The National Advertising Division (NAD) recently issued a series of decisions addressing influencer and third-party marketing. The NAD is a self-regulatory body that assesses the truth and accuracy of claims made in national advertising and refers matters to the Federal Trade Commission (FTC) if an advertiser refuses to comply with its decisions.
DOJ Dismisses Lawsuit Over COVID Nasal Spray False Advertising
On March 10, the Department of Justice (DOJ) moved to drop a lawsuit filed on behalf of the Federal Trade Commission (FTC) against Xlear, which marketed a line of over-the-counter saline nasal spray products touted to treat and prevent COVID-19 and similar viruses.
New York Seeks to Beef up Consumer Protection Framework
New York attorney general Leticia James is the latest state-level actor to respond to the Trump administration's efforts to shrink federal consumer protection agencies. James has championed the FAIR Business Practices Act, a bill introduced in the New York state legislature aimed at expanding the New York consumer protection statutes to include unfair and abusive practices.
Pleading an Injury in Consumer Class Actions: Is It Enough to Just Say So?
In recent years, businesses have faced an onslaught of consumer class actions challenging sustainability initiatives, environmental commitments, and ethical sourcing language. In our view, these lawsuits frequently rely on dubious injury allegations because they challenge company-wide statements without properly connecting those statements to the value of any specific product purchased by plaintiff. After all, federal courts have limited jurisdiction, requiring a plaintiff to plausibly allege, with facts, an actual injury flowing from defendant's conduct.
State Attorney General Investigations: What Consumer Financial Services Companies Need to Know
State attorneys general (AGs) have long played a significant role in consumer protection enforcement, often acting as frontline regulators alongside federal agencies. For consumer financial services companies, an AG investigation can present both operational disruption and reputational risk. Understanding the process, potential pitfalls, and effective defense strategies can help make a significant difference in the outcome.
Laws Regulating Minors' Access to Social Media Face First Amendment Scrutiny in the Courts
Last month, the United States District Court for the Western District of Texas enjoined parts of the state's Securing Children Online Through Parental Empowerment (SCOPE) Act, a law requiring certain digital service providers (DSPs) to limit Texas minors' access to harmful online content and targeted advertising.