December 14, 2016
On December 5, 2016, the Federal Trade Commission (“FTC” or “Commission”) issued an opinion finding that California Naturel, Inc. (“CNI”) had violated the FTC Act by falsely marketing its sunscreen products as “all natural,” despite the presence of a synthetic substance. CNI sought to avoid summary judgment by arguing that after the FTC had commenced the underlying investigation, CNI added disclaimers to its webpage which cured any alleged deceptive representations. However, the FTC noted that the disclaimers were posted on the bottom of the webpage, well below the product ingredients list, and even below the “Add to Cart” button. As a result, the FTC found the disclaimers to be insufficient to defeat a claim of misrepresentation.
Why did the FTC Find CNI’s All-Natural Claims Misleading?