February 2, 2017
On Wednesday, the Federal Trade Commission (“FTC”) announced settlement of its false advertising claims against iSpring Water Systems, LLC (“iSpring”). According to the FTC’s complaint, iSpring, a company that sells water filtration systems and parts, falsely claimed and marketed that its products are “built in USA.” In fact, according to the FTC, iSpring “sources significant inputs to its products overseas,” and other “products are wholly imported.”
What are the Terms of the FTC’s False Advertising Settlement?
Pursuant to its settlement with the FTC, iSpring is prohibited from making any future “made in USA” or any other country-of-origin claims about a product or service unless such claims are true. To that end, on a going-forward basis, iSpring may only make such claims if its products’ final assembly or processing takes place in the USA and that all or virtually all ingredients or components of the products are made and sourced in the United States.
Protect Yourself Against False Advertising Claims
We recently blogged about a joint FTC-New York State Attorney General false advertising lawsuit. The FTC is expected to remain vigilant in its enforcement of Section 5(a) of the FTC Act during the new administration. Therefore, it is imperative that companies ensure that all marketing materials comply with federal and state advertising laws, rules and regulations by consulting with competent counsel before commencing any advertising campaign.
If you are interested in learning more about this topic, please visit the Telemarketing Law practice area of our website. If you have been served with process concerning your marketing practices in general, please e-mail us at info@kleinmoynihan.com or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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