Category: Insurance

The FTC recently finalized a rule to ban fake reviews and testimonials, including those generated by AI. According to the new rule, the maximum civil penalty for those using fake reviews is $51,744 per violation.

The U.S. House Energy & Commerce Committee's Subcommittee on Innovation, Data & Commerce held a hearing on Tuesday, July 9, regarding the 2025 FTC budget that also delved into congressional oversight of the agency following the U.S. Supreme Court decision that overruled the Chevron case in June.

The FTC has published inflation-adjusted civil penalty amounts for 2024 where the maximum civil penalty amount is now $51,744 per violation.

The FTC has issued warning letters to a pair of trade associations and at least a dozen influencers regarding improper social media posts. Notably, each letter also included the FTC’s notice of penalty offenses concerning misleading endorsements and indicated that the recipient could face civil penalties of up to $50,120 per violation.

One day after releasing updated Advertising Guides to combat deceptive reviews and endorsements, the FTC has announced a proposed rule to ban fake reviews and testimonials. This marks yet another action taken by the Commission to prevent deceptive advertising practices and protect consumers.

Following a public comment period (beginning in May of 2022) for proposed changes to its current Endorsement Guides, the FTC has announced updated Advertising Guides to combat deceptive reviews and endorsements in order to protect consumers.

In case you missed it, you can now watch the full PDMI webinar from May 2 featuring Momentum Factor's own Travis Wilson. During this in-depth webinar, Wilson along with other experts in ecommerce, legal and compliance discuss the impact of proposed changes to the FTC's Negative Option Rule.

In case you missed it with the start of the new year, the FTC has published inflation-adjusted civil penalty amounts for violations in 2023. As a result, many companies can now expect to pay up to $50,120 per violation.

An FTC lawsuit against an investment advising company for deceptive money-making opportunities and earnings claims has resulted in the company having to refund millions of dollars to consumers and also pay a significant civil penalty. This enforcement result is significant as it's the first time that the FTC has collected civil penalties related to the Notice of Penalty Offenses regarding money making opportunities that was sent to hundreds of companies, including direct sellers, last October. Check out this article from JD Supra to learn more.

The FTC has voted to issue an Advanced Notice of Proposed Rulemaking regarding its Business Opportunity Rule. This ANPRM will explore changes and possible expansion of the rule, which could have implications for the direct selling industry.