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Developments of Note
FTC Stops Business That
Used the Web To Peddle Cancer 'Cures'
In an Order on Default Judgment and Initial Decision, the Federal Trade Commission (“FTC”) in November directed Herbs for Cancer ' including www.HerbsforCancer.com ' to stop claiming or implying, or offering alleged testimonials from customers, that the herbal teas the Surprise,
AZ, business sold could treat or cure cancer.
The Initial Decision found that presentations about the many herbal teas Herbs for Cancer sold were false and misleading concerning their effect on a wide range of cancers. The FTC Administrative Law Judge in the matter concluded that the business' claims were unfair or deceptive acts or practices, and false advertisements under the FTC Act.
The order, in effect for 20 years, also required Herbs for Cancer to send all customers who bought the teas after Jan. 1, 2005, a notice about seeking proper medical advice, along with a copy of the FTC order. It forbids the respondent from making any false or misleading claims about any products sold, but does not forbid selling products approved by the Food and Drug Administration (“FDA”) for specific uses and that are represented truthfully within the scope of their approval. The business is to provide the Commission with compliance reports for five years. (Note: www.HerbsforCan cer.com appeared last month not
to be operating.) A copy of the order is available at www.ftc.gov/os/adjpro/d9331/081105aljordondefaultjudg.pdf.
More Time Allowed for Comments
On Proposed Changes to Ad Guides
The Federal Trade Commission (“FTC”) has extended the comment period on proposed changes to the Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 C.F.R. Part 255) until March 2.
The Guides help businesses and “others” meet requirements in the Federal Trade Commission Act for endorsements and testimonials, the FTC says.
The Commission is looking for comments on:
- The Guides' costs, benefits, and regulatory and economic impact. This includes possible conflicts with state, local or other federal laws, and what effects, if any, changes in relevant technology, such as e-mail and the Internet, or economic conditions, have had on the Guides.
- Two FTC-commissioned studies looked at messages consumer testimonials convey. They are The Effect of Consumer Testimonials and Disclosures of Ad Communication for a Dietary Supplement and Effects of Consumer Testimonials in Weight Loss, Dietary Supplement and Business Opportunity Advertisements. The studies examined whether advertisements with consumer testimonials conveyed to consumers that the products advertised would enable new users to achieve results similar to those portrayed by the people in the testimonies, and would enable a substantial portion of new users to achieve results similar to those portrayed.
- Whether certain disclosures affected the communication of those messages. The Commission seeks comments about any other available research concerning the messages conveyed by consumer testimonials.
Available research on consumers' expectations regarding compensation of celebrity endorsers who endorse a product outside the context of a traditional advertisement, and whether knowledge of such compensation might affect the credibility of the endorsement.
FTC Stops Business That
Used the Web To Peddle Cancer 'Cures'
In an Order on Default Judgment and Initial Decision, the Federal Trade Commission (“FTC”) in November directed Herbs for Cancer ' including www.HerbsforCancer.com ' to stop claiming or implying, or offering alleged testimonials from customers, that the herbal teas the Surprise,
AZ, business sold could treat or cure cancer.
The Initial Decision found that presentations about the many herbal teas Herbs for Cancer sold were false and misleading concerning their effect on a wide range of cancers. The FTC Administrative Law Judge in the matter concluded that the business' claims were unfair or deceptive acts or practices, and false advertisements under the FTC Act.
The order, in effect for 20 years, also required Herbs for Cancer to send all customers who bought the teas after Jan. 1, 2005, a notice about seeking proper medical advice, along with a copy of the FTC order. It forbids the respondent from making any false or misleading claims about any products sold, but does not forbid selling products approved by the Food and Drug Administration (“FDA”) for specific uses and that are represented truthfully within the scope of their approval. The business is to provide the Commission with compliance reports for five years. (Note: www.HerbsforCan cer.com appeared last month not
to be operating.) A copy of the order is available at www.ftc.gov/os/adjpro/d9331/081105aljordondefaultjudg.pdf.
More Time Allowed for Comments
On Proposed Changes to Ad Guides
The Federal Trade Commission (“FTC”) has extended the comment period on proposed changes to the Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 C.F.R. Part 255) until March 2.
The Guides help businesses and “others” meet requirements in the Federal Trade Commission Act for endorsements and testimonials, the FTC says.
The Commission is looking for comments on:
- The Guides' costs, benefits, and regulatory and economic impact. This includes possible conflicts with state, local or other federal laws, and what effects, if any, changes in relevant technology, such as e-mail and the Internet, or economic conditions, have had on the Guides.
- Two FTC-commissioned studies looked at messages consumer testimonials convey. They are The Effect of Consumer Testimonials and Disclosures of Ad Communication for a Dietary Supplement and Effects of Consumer Testimonials in Weight Loss, Dietary Supplement and Business Opportunity Advertisements. The studies examined whether advertisements with consumer testimonials conveyed to consumers that the products advertised would enable new users to achieve results similar to those portrayed by the people in the testimonies, and would enable a substantial portion of new users to achieve results similar to those portrayed.
- Whether certain disclosures affected the communication of those messages. The Commission seeks comments about any other available research concerning the messages conveyed by consumer testimonials.
Available research on consumers' expectations regarding compensation of celebrity endorsers who endorse a product outside the context of a traditional advertisement, and whether knowledge of such compensation might affect the credibility of the endorsement.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?