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As a result of the firm’s demonstrated subject matter expertise and track record of success in the fields of FTC advertising compliance, investigations and defense, Richard B. Newman has been selected to assume authorship of the Consumer Protection Section of the American Lawyer Media International Federal Trade Commission: Law, Practice and Procedure Treatise, a comprehensive resource of developments of concern to advertisers, marketers and legal professionals that practice before the Commission.
Mr. Newman’s contributions shall feature detailed analyses of emerging legal regulatory issues pertaining to advertising and marketing compliance, civil investigative demands (CIDs), judicial litigation and administrative enforcement actions, rulemaking, civil penalties and consumer redress, legislative updates, evolving guidelines of unfairness and deception, data privacy in designated market sectors, telemarketing regulations and case law developments.
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FTC advertising compliance and defense lawyer Richard B. Newman was recently quoted in an article for Law.com titled “FTC Bags First Settlement in Probe of ‘Review Hijacking’ in E-Commerce.”
The article discusses the FTC’s first case alleging “review hijacking,” in which a marketer steals or repurposes reviews of another product. The case involves a marketer of vitamins and other supplements that allegedly carried out this tactic by merging its new products on Amazon with different well-established products that had more ratings, reviews and badges.
Mr. Newman stated, “[n]ot only is the FTC currently seeking to promulgate us that come with big civil penalties for such conduct, it has recently blanketed the digital advertising industry with warning letters.”
According to the FTC, the marketer “took advantage of an Amazon feature that allows vendors to create or request the creation of ‘variation’” relationships between some products that are similar but differ only in narrow, specific ways – such as color, size, quantity, or flavor. Products with a variation relationship share the same product detail page on Amazon.com and appear as alternative choices, so shoppers can compare and choose among similar products.”
“The product detail page of products that are in a variation relationship displays the total number of ratings, the average star rating, and the reviews for all of the products in the variation relationship,” the FTC said in its complaint. “They also share any ‘#1 Best Seller’
Federal Trade Commision (FTC) investigation and litigation defense attorney Richard B. Newman has written an authoritative article on JD Supra for digital marketers and FTC practice counsel. JD Supra is a need-to-know news, insights and intelligence source that publishes and distributes valuable content produced by thought leading experts on myriad topics across numerous industries and fields, including advertising legal regulatory matters.
The article examines, in depth, the purpose of FTC civil investigative demands (CIDs), considerations relating to the nature substance of the initial response and subsequent responses, defense strategies, how to evaluate whether the recipient is a “target,” the importance of the “meet and confer” process, liability exposure and business disruption minimization tactics, persuasive written advocacy submissions, lodging objections to a CID, petitions to limit or quash, enforcement action avoidance and monetary fine minimization, how to avoid negative publicity, investigation closure and how to achieve an optimal resolution.
The article covers numerous steps that CID recipients should consider prior to, during and after learning that they are the subject of an FTC investigation.
You can read the article titled The Art of Responding to an FTC CID by an FTC CID Lawyer on JD Supra, here. An article authored by FTC lawyer Richard B. Newman titled Considerations for Digital Marketers When Selecting Regulatory Investigation Defense Counsel is also available on JD Supra, here.
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About This Blog and Hinch Newman’s Advertising + Marketing Practice
Hinch Newman LLP’s advertising and marketing practice includes successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. The firm possesses superior knowledge and deep legal experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. Through these advertising and marketing law updates, Hinch Newman 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. This blog is sponsored by Hinch Newman LLP.