Category: Affiliate Marketing

Continuing to up its enforcement game, the Federal Trade Commission (FTC) issued a proposed order to stop two companies from continuing to promote and sell supplements after using baseless health claims. While this order is not finalized and does not include any direct sellers, it is yet another regulatory action to watch.

With no significant movement on 13(b) legislation, the FTC is now looking for new ways to hold businesses accountable for deceptive claims according to this article from Kelley Drye.

The FTC has announced a tentative agenda for its Open Commission Meeting on February 17 and one of the main topics is of particular interest to the direct selling industry. Amond other items, the commission is planning to discuss and vote on the Advanced Notice of Proposed Rulemaking Concerning Earnings Claims.

The FTC has published inflation-adjusted maximum civil penalty dollar amounts for violations in 2022.

Adding to this increased regulation are measures being taken by the U.S. Food & Drug Administration (FDA). Like other regulators, such as the Federal Trade Commission (FTC), the FDA is making a point of upping its game. While the FDA has always been an ardent protector of public health through its enforcement policies, they are adapting to new sales techniques by increasing their scrutiny of social media promotion.

Commissioner Christine Wilson of the Federal Trade Commission (FTC) recently criticized the FTC Chair's current agenda during an ABA Fall Forum speech. She spoke her mind regarding the commission's current course of action and predicted it would fall short of its goals while identifying four critical mistakes.

The Federal Trade Commission (FTC) has put more than 1,100 businesses, including many direct sales companies, on notice that if they deceive or mislead consumers about potential earnings, the agency may use its authority to target them with large civil penalties.

By successfully utilizing Section 19 of the FTC Act, the Federal Trade Commission has found a new avenue to restitution after Section 13(b) was vacated by the Fifth Circuit. An article from JD Supra details this important development.

Regulatory action is on the rise as the U.S. Food and Drug Administration and the Federal Trade Commission are coordinating consumer protection efforts.

The FDA and the FTC posted warning letters to 10 companies for illegally selling dietary supplements that claim to cure, treat, mitigate, or prevent diabetes, in violation of the Federal Food, Drug, and Cosmetic Act (FD&C Act).