The limited liability company (“LLC”) has quickly become one of the most popular corporate vehicles for start-ups and other new ventures. While there are some drawbacks (such as the number and type of investors permitted, and limitations with going public), the LLC combines the tax advantages of a partnership (no corporate level tax) with the […]
Why Operating Agreements Are a Must for Any New LLC Read More »
On October 22, 2021, the Federal Trade Commission (“FTC”) published an enforcement policy statement on negative option marketing. Soon thereafter, on October 28, 2021, the FTC issued a press release explaining that its guidelines are meant to serve as a warning to businesses against employing deceptive sign-up tactics and/or illegal dark patterns that trap consumers
FTC Guidelines on Negative Option Marketing Released Read More »
Promotional contests and sweepstakes are increasingly popular marketing methods. However, many prospective sweepstakes operators may not be aware of or fully understand the importance of the sweepstakes rules governing the applicable contests. Unlike other marketing means, sweepstakes promotions cannot be adjusted or terminated mid-campaign, based simply on the desires of the sponsor. The parameters of the
Sweepstakes Rules: Carved in Stone Read More »
Sweepstakes and promotional games are a dynamic and cost-effective way to develop a database of engaged consumers and otherwise increase brand awareness. Consumers are more easily attracted to your marketing message or brand by the opportunity to win prizes than with more mundane advertising that offers little in the way of incentive. When running such
Sweepstakes and Promotions: Winning the Marketing Grand Prize Read More »
On October 19, Coinbase Global, Inc. (“Coinbase”) filed a motion to compel arbitration in the proposed class action arising out of its “Dogecoin Sweepstakes.” Dogecoin traders (collectively, “Traders”) brought a class action lawsuit against Coinbase and Marden-Kane, Inc. (“MKI”) (collectively the “Defendants”) for allegedly engaging in false, deceptive and misleading sweepstakes advertising. Coinbase, one of the largest online
Coinbase Sued for Misleading Sweepstakes Advertising Read More »
As readers know by now, the Supreme Court’s April 2021 decision in Facebook v. Duguid has changed and clarified how courts interpret what constitutes an autodialer within the meaning of the Telephone Consumer Protection Act (“TCPA”). For TCPA purposes, an autodialer is equipment that uses a random or sequential number generator to produce phone numbers
How the Facebook Decision Has Changed the Autodialer Factors Analysis Read More »
NFTs (short for non-fungible tokens) represent a rapidly-growing industry in the online space. As evidence of this trend, sales of NFTs exceeded $2 billion in the first quarter of 2021 alone. In an effort to attract consumers in this increasingly competitive environment, NFT purveyors frequently turn to promotional NFT contests as a marketing tool. However,
NFT Contests and NFT Sweepstakes: What Businesses Need to Know Read More »
In the past, the Federal Trade Commission (“FTC”) warned, and subsequently penalized, businesses that publish misleading and false reviews or endorsements. Now, the FTC is taking things up a notch, by utilizing its Penalty Offense Authority to alert businesses of the fact that the Federal Trade Commission Act (the “Act”) will be enforced even more
Fake it ‘Til You Make It: FTC Brings Down the Hammer on False Reviews Read More »