College Settles FTC Deceptive Advertising Lawsuit

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May 28, 2015 This week, the Federal Trade Commission (“FTC”) announced that Professional Career Development Institute, LLC, doing business as Ashworth College, agreed to an $11 million settlement for allegedly engaging in deceptive advertising in violation of the FTC Act. Specifically, in its Complaint, the FTC alleged that Ashworth College misrepresented, among other things, that […]

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22 State AGs Settle Data Passing to Negative Option Marketer Claims for $11 Million

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May 28, 2015 Attorneys General from 22 states reached agreement with Classmates, Inc., Florists’ Transworld Delivery, Inc. and FTD.com (the “Settling Parties”) to settle allegations that the Settling Parties sold consumer information to negative option marketers. Of the $11 million settlement sum, $8 million will be paid by the Settling Parties directly to the various

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Licensing Journal Features Article by KMT’s David Klein and Joshua Wueller

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Intellectual Property Concerns for Sponsors of Promotional Contests and Sweepstakes Marketers are always looking for more effective ways to entice consumers, with the goal to build a brand and sell more products and services. Long ago, armed with the knowledge that people enjoy winning prizes, savvy promoters began offering promotional contests and sweepstakes, which encourage

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Telemarketers, Payment Processor to Pay $1.7 Million to FTC

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May 26, 2015 Last Tuesday, a federal court in Orlando issued its final order in a years-long legal battle between the Federal Trade Commission (the “FTC” or “Commission”), a number of telemarketers and their payment processor. The ruling follows an order late last year that granted the Commission’s motion for summary judgment against all remaining

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Manufacturer Not Vicariously Liable for Distributor TCPA Violations

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May 26, 2015 Last week, the United States District Court for the Central District of California entered an order granting summary judgment in favor of manufacturer UTC Fire & Security Americas Corporation, Inc. (“UTCFSA”) and dismissed a putative Telephone Consumer Protection Act (“TCPA”) class action pending against it. The plaintiff sought to hold UTCFSA liable

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Illegal Lottery Lands Ironman Triathlons in Hot Water

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May 21, 2015 Last week, the United States Attorney for the Middle District of Florida filed a Complaint seeking the forfeiture of proceeds received by the World Triathlon Corporation (“WTC”) over a period of time spanning from 2013 until 2015. The Complaint alleges that the funds were generated as proceeds from a lottery that violated

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Lead Generators: What to do When You Receive a TCPA Subpoena

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May 21, 2015 The number of Telephone Consumer Protection Act (“TCPA”) class action lawsuits has grown significantly recently, with several thousand cases filed in each of the past several years. Typically, TCPA actions are brought against businesses which contact customers or potential customers via text, telephone or facsimile (“Advertisers”), or against companies that send the

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