Complimentary Webinar On The New FTC Testimonial and Endorsement Guidelines
Posted by: Andrew Lustigman
November 13, 2009

Perhaps the most important development in advertising law in several decades, the FTC's recently revised Guides Concerning the Use of Endorsements and Testimonials in Advertising go into effect on December 1, 2009. The revised Guides (available online at http://www.ftc.gov/os/2009/10/091005revisedendorsementguides) have a number of new elements that are extremely important for all marketers to understand, including:

* The elimination of the "results not typical" safe harbor for advertisements showing a consumer's experience with a product;

* Making it clear that endorsers as well as advertisers can be held liable for false or unsubstantiated claims

* Describing the obligation of celebrities to disclose relationships when making endorsements outside of ads (e.g. on talk shows); and

* The disclosures and liability marketers face when incorporating on-line media reviewers and promoters.

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Investigation Being Conducted Regarding the Online Marketing of Membership Clubs
Posted by: Adam Solomon
November 12, 2009

The United State Commerce Committee has expanded its investigation into e-commerce companies which present membership club enrollment offers to their online customers and have the customers agree to pass their customers' credit card or debit card numbers to enroll in the membership club. Senator Rockefeller who is the Chairman of the Committee has entitled the investigation is focusing on this practice because it has been the center of criticism by consumer advocates. Click here for more information.

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NY Refund Policy Law To Take Effect
Posted by: Andrew Lustigman
November 11, 2009

Retailers with stores in New York should take note that effective November 25, 2009, an amendment to the state's existing refund policy law takes effect. Set forth at New York General Business Law § 218-a, the law requires retailers to disclose the store's refund policy in one of four defined locations and to make a written policy available to consumers who request it. The refund policy must state state whether or not it is the retailer's policy to give refunds and, if so, under what conditions, including but not limited to whether a refund will be given, including (i) on merchandise which had been advertised as "sale" merchandise or marked "as is;"(ii) on merchandise for which no proof of purchase exists; (iii) at any time or not beyond a point in time specified; (iv) in cash, or as credit or store credit only; or (v) subject to any fees, including a restocking fee, and the dollar or percentage amount of each fee; and (b) advise consumers that they are entitled to a written copy of the store's refund policy upon request.

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