August 2015

FTC Shuts Down Multi-Level Marketer for Alleged Pyramid Scheme Operation

August 28, 2015 This week, the Federal Trade Commission (“FTC”) obtained a preliminary injunction in the U.S. District Court for the District of Arizona, ceasing the operations of certain businesses and individuals, including multi-level marketer Vemma Nutrition Company (“Vemma”), which the FTC has accused of running an illegal pyramid scheme. How did Vemma’s operations draw […]

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Third Circuit Rules That New Jersey Sports Gambling Law Violates PASPA

August 26, 2015 On August 25, 2015, the United States Court of Appeals for the Third Circuit, by a 2-1 decision, affirmed a lower court ruling that held New Jersey’s sports gambling law violates the federal Professional and Amateur Sports Protection Act (“PASPA”). The law, passed by the New Jersey legislature in 2014 (the “2014

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FTC Stops Elaborate Telemarketing Scam

August 24, 2015 This week, the Federal Trade Commission (“FTC”) obtained final judgments against various defendants involved in an elaborate telemarketing operation which the FTC claimed swindled victims out of more than $7 million. The judgments, obtained in the United States District Court for the District of Arizona, imposed monetary sanctions of $7.3 million, as

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Human Intervention the Focus in TCPA Autodialer Case

August 21, 2015 This Wednesday, the U.S. District Court for the Northern District of California granted summary judgment in favor of defendant Shac, LLC (“Shac”) in a proposed class action under the Telephone Consumer Protection Act (“TCPA”). The court determined that the promotional text messaging system used by Shac involved human intervention and, therefore, was

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PornHub Advertising in Crosshairs for Sloppy Trademark Clearance

August 19, 2015 Last Wednesday, an Italian consortium of Parmigiano-Reggiano cheese producers and traders threatened legal action against the owners of adult video website PornHub. The dispute stems from shoddy trademark clearance work and an adult-oriented commercial featuring the famous cheese’s trademark-protected name. Why is it important to clear advertising materials for third-party brands?

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Marketer to Pay $58K to FTC for Allegedly Deceptive Mobile Apps

August 17, 2015 Last Thursday, the Federal Trade Commission (the “FTC” or “Commission”) announced that it had settled its lawsuit against Mr. Avrom Lasarow in connection with a number of allegedly deceptive mobile apps. Mr. Lasarow’s “Mole Detective” apps purported to detect the skin cancer melanoma in moles on users’ skin. What can app providers

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CVS Hit with TCPA Class Action Lawsuit

On August 11, 2015, a putative class action lawsuit was filed against CVS Pharmacy, Inc. (“CVS”) in the United States District Court for the Middle District of Louisiana, alleging that the pharmacy violated the Telephone Consumer Protection Act (“TCPA”). The lawsuit also names West Corporation (“West”), the party alleged to have made/sent the subject unlawful

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South Carolina Anti-Robocall Statute Ruled Unconstitutional

August 12, 2015 Last week, the United States Court of Appeals for the Fourth Circuit struck down a South Carolina anti-robocall statute. The Circuit Court determined that the South Carolina law unconstitutionally regulated free speech in violation of the First Amendment. What about the South Carolina anti-robocall statute made it unconstitutional?

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