Tag Archives: ftc

Legal Applications of Marketing Theory, part 2

Dominique Hanssens, Natalie Mizik, & Lorenzo Michelozzi, UCLA Anderson, Univ of Washington, Cornerstone Research, Brand Value, Marketing Spending and Royalty Rates Brands can create value, but require ongoing marketing. When licensed, disputes can arise about royalty rates and marketing support/maintenance … Continue reading

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Recommended podcast on multilevel marketing

The Dream by Stitcher. Excellent look at how multilevel marketing companies succeed at avoiding regulation and at convincing enough people to try them—and convincing them that their subsequent failure is their own fault and not intrinsic to the model—to make … Continue reading

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Second Circuit summarily reverses bad Prevagen decision on statistical proof

FTC v. Quincy Bioscience Holding Co., 17-3745-cv(L) (2d. Cir. Feb. 21, 2019) Quincy sold Prevagen dietary supplements, claiming (1) that the supplements improve memory and provide other cognitive benefits, (2) that these effects are clinically proven, and (3) that the … Continue reading

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Roca Labs’ weight loss claims are losers, and its gag clause fares no better

FTC v. Roca Labs, Inc., 2018 WL 5629875, No. 15-cv-2231-T-35TBM (M.D. Fla. Sept. 14, 2018) The FTC sued Roca for its advertising and sale of weight-loss products and the use of contractual provisions barring purchasers from providing negative commentary, bringing … Continue reading

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Initial decision in FTC 1-800 case finding that anti-keyword agreements violated antitrust law

Agreed-on limits on advertising, like agreed-on limits on other inputs, risk being a per se violation of the antitrust laws.  Here, a blanket ban, including a negative keyword requirement (so that someone bidding on “contacts” wouldn’t get ads run against … Continue reading

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FTC loses motion to dismiss because court doesn’t deal well with statistics

FTC v. Quincy Bioscience Holding Co., 2017 WL 4382312, No. 17 Civ. 124 (S.D.N.Y. Sept. 28, 2017) Lawyers and especially generalist-by-necessity judges need to understand some statistical basics. When they don’t, they let bad science shape consumers’ decisions and even … Continue reading

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Reading list: empirical evidence about FTC’s substantiation standard

Sungho Cho &Yongjae Kim, Empirical Rationalization of Prior Substantiation Doctrine: Federal Trade Commission v. Reebok & Sketchers, 29 Loy. Consumer L. Rev. 55 (2016) (not apparently available online—update that website, Loyola Consumer Law Review!) ABSTRACT Companies frequently make efficacy claims … Continue reading

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