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United States:
Ad Law News And Views October 23
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Flexing the Agency’s Muscles: What FTC Notice
of Penalty Offenses Really Means for Advertisers
Over the last ten days, 700 companies and 70 for-profit colleges
received notice of the FTC’s intent to pursue civil penalties
under Section 5(m)(1)(b), if these companies and colleges engage in
certain conduct deemed by the FTC to be unfair or deceptive. The
notices sought to achieve two important Agency objectives: first,
force addressees to consider their marketing messages and
compliance programs; and second, reintroduce (or reinforce) the
threat of significant monetary penalties for those who need
discipline. The warnings will undoubtedly alter the dynamic of new
investigations as parties consider the costs and benefits of
negotiating consent orders that include payment of consumer
redress.
California Updates its Automatic Renewal
Law
In 2017, California updated its automatic renewal law to
create some of the strictest requirements in the country. Now, just
four years later, the Governor Newsom signed a new law that will
impose even stricter requirements.
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