On August 14, 2024, the Federal Trade Commission’s (“Commission”) new Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (the “Rule”) was finalized and went into effect. The Rule prohibits specified unfair or deceptive acts or practices involving consumer reviews or testimonials. Violations of the Rule can result in a business being assessed civil penalties up to $51,744 per violation. In addition, any
Read More Beware! The FTC Has Adopted A New Rule Regarding Fake Consumer Reviews and TestimonialsE-Commerce
Recent Developments Concerning So-Called “Algorithmic Collusion’
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Artificial Intelligence (AI) is quickly evolving to be more capable and efficient in ways that defy even our own imaginations. It is then no surprise that businesses are increasingly looking to AI, including AI-driven pricing algorithms, to optimize their business operations and strategic decision making. Regulators, however, have expressed increasing concern that AI-driven algorithms may facilitate price-fixing agreements, even in the absence of direct human-to-human…
Read More Recent Developments Concerning So-Called “Algorithmic Collusion’Why Correctly Understanding Antitrust Risk is Crucial to Properly Addressing Brand Dilution in the E-Commerce Age
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The National Law Review has published a recent article titled, Why Correctly Understanding Antitrust Risk is Crucial to Properly Addressing Brand Dilution in the E-Commerce Age, which was authored by Wiggin and Dana Partner, Benjamin Diessel and Associate, Timothy Cowan.
To read the full article, please click here.
Read More Why Correctly Understanding Antitrust Risk is Crucial to Properly Addressing Brand Dilution in the E-Commerce AgeCongress Protects Negative Online Reviews
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Social media sites such as Yelp and Facebook provide consumers with a platform to share their opinions about businesses that sell goods or services to the public.
While businesses rely on this kind of digital word-of-mouth to boost sales and positive brand awareness, unflattering online reviews are inevitable and have the potential to cause considerable damage.
But stopping customers from giving bad feedback, even if…
Read More Congress Protects Negative Online ReviewsConsumer Review Fairness Act Prevents Companies From Stifling Negative Consumer Reviews
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Introduction
Customer reviews are ubiquitous in today’s commercial environment. Whether the business is Amazon.com or the doctor’s office down the street, consumers are accustomed to rating and reviewing goods and services online and having access to reviews from other consumers to help inform their purchasing decisions. Ratings are important because consumers sometimes have limited opportunities to interact with sellers, prompting them to rely on accounts…
Read More Consumer Review Fairness Act Prevents Companies From Stifling Negative Consumer ReviewsCFPB Proposes Rule Banning Class Action Prohibitions
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On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule that drastically limits the effectiveness of arbitration clauses in consumer financial product agreements. Specifically, the proposed rule bans providers of “consumer financial products” from including arbitration clauses in their contracts that prohibit consumers from filing or participating in class actions. The proposed rule also sets out specific language regarding the right…
Read More CFPB Proposes Rule Banning Class Action ProhibitionsThird Circuit Affirms FTC’s Ability to Bring Cybersecurity Enforcement Actions
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On August 24th, the United States Court of Appeals for the Third Circuit issued its decision in Federal Trade Commission v. Wyndham Worldwide Corp., affirming a 2014 district court ruling that the Federal Trade Commission (“FTC”) has the authority to regulate cybersecurity lapses. The Third Circuit also held that Wyndham – the global hospitality giant — had fair notice that its cybersecurity practices could…
Read More Third Circuit Affirms FTC’s Ability to Bring Cybersecurity Enforcement Actions