Court Holds That Anthropic's Training of AI Using Legally Obtained Books Is Fair Use, but Storage of Pirated Books Is Not
On June 23, 2025, Judge Alsup in the Northern District of California issued an order in Bartz et al. v. Anthropic PBC, granting in part and denying in part Defendant Anthropic's motion for summary judgment on the sole issue of whether its use of Plaintiffs' books as training data for Anthropic's large language models (LLMs) was "quintessential" fair use.
FTC Targets "Merchant of Record" for Unlawful Payment Processing, TSR, and ROSCA Violations
In a development that underscores the Federal Trade Commission's (FTC) growing scrutiny of the "merchant of record" model, the commission announced a $5 million settlement with UK-based Paddle.com Market Limited (Paddle), which processed payments for multiple businesses that allegedly sold deceptive tech support software subscriptions to U.S. consumers. The Paddle settlement, which follows a series of earlier actions involving merchants of record, suggests that the FTC has expanded its focus from the traditional payments industry to more novel models that support merchant aggregation and related services. The settlement also presents another novel use of the FTC's authority under the Restore Online Shoppers' Confidence Act (ROSCA), which has become a favored tool of the FTC in policing sales and recurring billing practices that the commission deems unfair or deceptive.
Recyclable, Renewable, Regulated: NAD Pokes Holes in Boxed Water's Green Pitch
In a decision underscoring the complexity and risks of making environmental marketing claims, the National Advertising Division (NAD) issued a decision in a challenge brought by the International Bottled Water Association (IBWA) against Boxed Water is Better® (Boxed Water). In the case, the NAD addressed a slew of claims touching on recyclability, renewability, life cycle impact comparisons, puffery, and more.
FCC Adopts Several National Security Measures
At its May open meeting, the Federal Communications Commission (FCC) implemented three distinct regulatory measures aimed at protecting domestic communications networks and equipment from threats posed by hostile foreign nations and identifying security vulnerabilities in the communications supply chain. The actions impact telecommunications carriers, service providers, and equipment manufacturers, as well as stakeholders in related industries.
Marketing in Sensitive Sectors: The FTC Prescribes a $1.9 Million Lesson to Evoke Wellness
Federal Trade Commission (FTC) chairman Andrew Ferguson has promised vigorous law enforcement under his leadership. Consistent with that promise, on June 10, 2025, the Commission announced a $1.9 million settlement with Florida-based Evoke Wellness and two of its corporate officers, resolving allegations that the company engaged in deceptive advertising and telemarketing practices targeting individuals seeking substance use disorder treatment.