Ad Law Insights - Legal and Regulatory Updates
FTC + state attorneys general digital marketing compliance, investigation + enforcement advocacy by FTC lawyer to Internet business community
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The Federal Trade Commission is seeking public comment on a petition from X Corp., formerly known as Twitter, to set aside or modify its 2022 settlement order with the agency.
According to the federal regulatory agency, in its petition to the FTC, X Corp. cited several reasons why it believes that the order should either be set aside or modified so that it terminates at the end of 2026. The petition argues:
- The order was imposed on a company that no longer exists, that every individual responsible for the underlying failures has left the company and that X Corp. has since built a world-class privacy and data-protection program;
- The order no longer serves any valid regulatory purpose, imposing millions of dollars in needless costs to address obligations and protections already required by domestic and international privacy regimes and industry-recognized frameworks that X Corp. follows;
- Setting aside the order safeguards First Amendment values; and
- Setting aside or modifying the order is critical to advancing American leadership in artificial intelligence.
The public will have 30 days, until July 2, 2026, to submit comments on the petition.
Richard B. Newman is a social media lawyer at Hinch Newman LLP.
Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.
On May 19, 2026, the Federal Trade Commission announced that at its request, a federal judge ordered a payment processing company, and its operators to pay $6.5 million in sanctions for allegedly violating a 2015 federal court order designed to prevent the company from enabling consumer fraud. On May 13, 2026, the U.S. District Court in Nevada entered the order finding that the payment processor, along with executives in civil contempt for multiple alleged violations of the 2015 order. The court determined the defendants violated multiple core provisions of the 2015 federal court order by allegedly facilitating fraud on behalf of several scammers.
“It is a Commission priority to root out fraud in the payments system,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “I am pleased the court held [the payment processor], [and the executives] accountable for violating the requirements of the order they agreed to in 2015. As the court concluded, [the payment processor] and its executives assisted and facilitated scammers in avoiding fraud and risk monitoring programs and failed to conduct the 2015 order’s required underwriting. The court’s order should send a strong signal that the Commission will enforce its orders and continue to prioritize rooting out fraud from the American payment system.”
The court found the defendants unlawfully processed hundreds of millions of dollars in transactions for merchants that were on Mastercard’s Member Alert To Control High-risk merchants (MATCH) list.
The court also concluded the defendants:
- Assisted and facilitated two groups of merchants in avoiding fraud and risk monitoring programs,
In 2026, the Center for Industry Self-Regulations launched the Institute for Responsible Influence. The aim of the agency is to offer an interactive certification program designed “to elevate transparency, strengthen accountability, empower creators, and foster trusted brand partnerships within creator marketing.”
The Institute trains training influencers and offers resources to assist with complying with the FTC’s Endorsement Guides and Review Rule, and other advertising legal regulations, including a certification program. The Institute shall offers a database of certified influencers for brands.
Enrollment and training have begun.
Those that complete the program receive the Institute for Responsible Influence Certification Seal and are subject to ongoing monitoring. They are also included in a searchable database so that brands can connect.
Brands and influencers with questions may contact the author to discuss the certification program.
Richard B. Newman is an FTC advertising practices attorney at Hinch Newman LLP.
Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.
California’s new Business and BCSA is intended to strengthen oversight, improving coordination across departments, and modernize California’s consumer protection framework amid growing threats from weakened federal enforcement.
Chopra previously served as Director of the U.S. Consumer Financial Protection Bureau and as a Commissioner of the Federal Trade Commission, where he led major efforts to crack down on junk fees, corporate misconduct, and unfair practices harming consumers and small businesses. The new agency, which was established by Governor Newsom through a government reorganization last year will bring together a broad range of licensing, enforcement and other functions that ensure fair competition and treatment for consumers and businesses across a number of sectors of California’s economy.
The agency officially launches July 1, 2026.
“While federal agencies are making life more expensive and enriching special interests, California will be firing on all cylinders to make sure markets aren’t rigged against families and small businesses,” said Rohit Chopra. “By bringing together dozens of boards, bureaus, and departments under one roof, California’s new agency will work to protect the public in health care,
On May 4, 2026, the Federal Trade Commission announced that it will prohibit data broker Kochava and its subsidiary from selling, sharing or disclosing sensitive location data without consumers’ affirmative express consent to settle allegations the companies sold location data from hundreds of millions of mobile devices that could be used to trace the movements of individuals.
The FTC sued Idaho-based Kochava in August 2022 alleging that its collection, use and disclosure of precise location data invaded consumers’ privacy by revealing their movements, including visits to sensitive locations such as health facilities and places of worship. According to the author, the FTC alleged that because consumers were unaware of and did not consent to this data sharing, consumers had no way of avoiding the harm resulting from its collection and disclosure.
Under the proposed order resolving the FTC’s litigation, Kochava and its subsidiary, Collective Data Solutions (CDS), which has purportedly taken over Kochava’s data broker business, will be prohibited from selling, licensing, transferring, sharing or disclosing sensitive location data in any products or services unless they obtain a consumer’s affirmative express consent and the data is used to provide a service directly requested by the consumer.
The subsidiary and Kochava (if Kochava sells or uses precise location data) also are required to:
- Establish and implement a sensitive location data program to develop a comprehensive list of sensitive locations to prevent the sale, transfer or disclosure of sensitive location data;
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About This Blog and Hinch Newman’s Advertising + Marketing Practice
Hinch Newman LLP’s advertising and marketing practice includes two decades successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. As FTC attorneys, the firm possesses superior FTC compliance knowledge and more than 20 years of FTC defense advocacy experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. It has also been selected to author the Consumer Protection Section of the prestigious American Lawyer Media International Federal Trade Commission: Law, Practice and Procedure Treatise, a comprehensive resource for developments of concern to advertisers, marketers and legal professionals that practice before the Commission. Through these advertising and marketing law updates, Hinch Newman LLP provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/ judicial process.