January 29, 2026

Advertising Law News and Analysis

2 min

New Prize Tax Rules Raise the 1099 Threshold for Sweepstakes and Contests

Among the many changes included in the One Big Beautiful Bill Act (OBBBA) is one relevant to brands and agencies running sweepstakes, contests, and other consumer promotions.

Texas Attorney General Probes Pesticide Use on "Organic" Produce at Grocery Chains

This month, Texas Attorney General Ken Paxton launched an investigation into major grocery chains' use of chemical pesticides on produce labeled "organic" by the manufacturer. Paxton's office expressed concern that the grocery chains may be deceiving consumers who base their purchasing decision on the belief that organic produce has not been treated with pesticides.

FTC Lawsuit Targets JustAnswer for Alleged ROSCA and Subscription Disclosure Violations

Last week, the Federal Trade Commission (FTC) filed a lawsuit in federal court against JustAnswer LLC and its CEO, arising from the company’s subscription program. According to the complaint, JustAnswer operates an online platform that engages "experts" where consumers can ask questions through online chats or phone calls about various subject areas.

FTC Wins Eleventh Circuit Ruling Over Hidden Fees and Deceptive Marketing

Last week, an Eleventh Circuit panel unanimously upheld a federal district court's summary judgment ruling in favor of the Federal Trade Commission (FTC) concerning advertising and disclosure practices related to a national fuel card program. The decision affirms the FTC's authority to seek and obtain broad injunctive relief for unfair or deceptive acts and practices, particularly where fee disclosures and consent mechanisms are found to be inadequate.

FCC Delays Revoke All Consent Rule for Robocalls and Text Messages Until 2027

The Federal Communications Commission (FCC) has further extended the effective date of the Revoke All consent rule from April 11, 2026 to January 31, 2027. That rule requires businesses to treat a consumer’s consent revocation request made in response to one type of text message or call as applicable to all future calls and texts from that caller on all other matters. The FCC first extended the effective date last April.

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