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Online Marketing & Advertising Law

Efficacy Claims in Hemp Advertising

by David Klein

The popularity of hemp grew exponentially with the passage of the 2018 Farm Bill (“Farm Bill”). Per the definition section of the Farm Bill, hemp, with a concentration of no more than 0.3% of Tetrahydrocannabinols (“THC”), on a dry weight basis (also known as cannabidiol or “CBD”), was removed from the controlled substances list. As a result, businesses rushed to produce products that include hemp as an ingredient. Hemp products containing more than 0.3% THC continue to be classified as illegal marijuana. Businesses investing in hemp advertising are tempted to boast about the efficacy of their products to consumers. However, before doing so, businesses should get familiar with regulations related to hemp product advertising. 

Are businesses allowed to advertise the efficacy of their hemp products?

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Businesses Continue to Violate PPE Advertising Regulations

by David Klein

As the Covid-19 pandemic swept across the world, businesses rushed to satisfy the demand for personal protective equipment (“PPE”). The intention was often noble, but sometimes it was opportunistic, and some PPE advertising toed the line of legality. As a result, the U.S. Food and Drug Administration (“FDA”) and the Federal Trade Commission (“FTC”) began investigating businesses that made deceptive or scientifically unsupported PPE claims. Since March 6, 2020, the FDA and FTC have issued sixty-four (64) joint warning letters to businesses that may have violated federal law in their PPE advertising. Given the foregoing risk, businesses must be aware of relevant FDA and FTC regulations before bringing PPE products to market. 

What are the FDA and FTC guidelines for PPE advertising?

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Florida Grants College Athletes Rights of Publicity

by David Klein

On June 12, 2020, Florida Governor Ron DeSantis signed a bill that will allow collegiate athletes in the State to profit from the use of their names, images, and likenesses – their “rights of publicity.” The bill, SB 646 (the “Law”), will go into effect on July 1, 2021. Florida is the latest state to pass legislation that allows collegiate athletes to profit from their rights of publicity. 

What does the new law allow?

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Sanitizer Law During a Pandemic

by David Klein

Recently, we blogged about some of the legal issues involved in the sale and marketing of Personal Protective Equipment (“PPE”) during the Covid-19 pandemic. Similar legal issues are triggered when businesses pivot from their usual operations and turn to help meet the demand for alcohol-based hand sanitizer. Those that look to follow the lead of companies, such as ExxonMobil, Bacardi, and local craft distilleries, that are now manufacturing and selling (or donating) hand sanitizer, must be aware of the legal regulations that apply to the manufacture and sale of hand sanitizer (“Sanitizer Law”). 

What are the legal guidelines for manufacturing and selling hand sanitizer?

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Looking to Supply PPE During the Pandemic? Speak with a PPE Lawyer First

by David Klein

Every day, heartwarming stories are emerging about selfless acts of kindness that have occurred during the Covid-19 pandemic. Among those selfless actors are companies that have pivoted from their usual operations to the new focus of producing personal protective equipment (“PPE”) for healthcare workers, first responders, essential workers, and the public at large. On the flip side of the coin, when disaster strikes, it is also serves as an opportune time for bad actors to easily defraud consumers. Because of the actions of these unfortunate few, federal authorities have recently grown suspicious of the entire PPE supplier marketplace. To avoid regulatory scrutiny, PPE suppliers should advertise their products in a legally compliant fashion by, among other measures: 1) following the guidelines released by the United States Food and Drug Administration (“FDA”); 2) following Federal Trade Commission (“FTC”) marketing regulations; and 3) consulting with a PPE lawyer concerning the legal issues related to the sale and marketing of PPE. 

What are the guidelines for marketing PPE?

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FTC Sues Negative Option Marketers

by David Klein

On May 13, 2020, the Federal Trade Commission filed a complaint in the Eastern District of Pennsylvania against American Future Systems, Inc. (“AFS”), a Pennsylvania-based telemarketing company, and its alleged co-conspirator, International Credit Recovery, Inc. (“ICR”) (AFS and ICR, collectively, “Defendants”), for conspiring to bilk businesses into paying for publications that they never ordered. Pursuant to the scheme, AFS made unsolicited calls to various businesses and organizations across the country in an effort to dupe unsuspecting employees into agreeing to receive free samples of the company’s publications. In reality, AFS would enroll the businesses in negative option programs without their consent. According to the FTC, when the businesses failed to pay for these products, AFS referred the matter to ICR, a debt collection agency, in order to prod the businesses into making payment. 

What are the FTC’s allegations?

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NCAA To Update Athlete Marketing Rules

by David Klein

On April 28, 2020, the Board of Governors (the “Board”) of the National Collegiate Athletics Association (“NCAA”) implemented new rule changes that would allow student athletes to be compensated for third-party endorsements. To that end, the NCAA instructed each of the three (3) NCAA Divisions to consider appropriate changes to their existing athlete marketing rules so that the new regime may be adopted no later than January 2021, to take effect at the beginning of the 2021-2022 academic year.

 What rule changes are anticipated?

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Governor Cuomo Revises E-Signature Executive Order

by David Klein

Previously, we blogged about federal and state e-signature and notarization laws that apply in this time of working remotely from home. On March 31, 2020, the New York Department of State revised Executive Order 202.7 to clarify the responsibilities of New York State licensed notaries public. 

What are the revisions to the Executive Order?

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