Recent legal developments in the advertising and marketing industry signal heightened regulatory and consumer concerns in various areas, most particularly, the health, environmental, and privacy sectors. At the forefront of these actions is the Federal Trade Commission, which has brought several cases against companies alleged to have made unsubstantiated health claims and violated their stated privacy policies. Underscoring the FTC’s concerns in these areas are settlements that include strong injunctive provisions.
In addition, consumer class actions and cases initiated by competitors and self-regulatory bodies have also played a large part in shaping the legal landscape for industry members. As discussed in greater detail below, these cases have involved social media, cosmetic advertising, and “natural” claims. However, consumer class actions based on allegedly false or misleading advertising claims and failure to honor privacy policies, each of which have proliferated in the past year, faced significant hurdles, as courts have declined to hear such cases in the absence of actual harm to consumers.
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