Settlements Without Penalties Spur Compliance More Than Litigation – FTC Commissioner
Non-monetary settlements are more effective than litigation at changing consumer product companies’ advertising practices, says FTC Commissioner Christine Wilson. “We see non-monetary settlements curtail behavior and require sometimes fundamental changes in the way companies do business.”
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At least one FTC commissioner seems convinced that the agency’s Enforcement Guides are ripe for an update to address unscrupulous influencer marketing practices. Democrat Rohit Chopra proposes their codification into formal rules that would make violators liable for civil penalties and damages.
FTC Busts Sunday Riley Skincare For Fake Sephora Reviews, But Not All Its Commissioners Are Satisfied
For close to two years, Sunday Riley management allegedly led a company-wide practice of posting glowing reviews of its products on Sephora.com without proper disclosures. The company is barred from repeating such conduct under terms reached with the FTC, but two dissenting commissioners say the settlement falls short of what’s needed to address a growing problem.
The high court denies the firm's writ of certiorari to review an appellate 2015 ruling largely upholding a 2013 FTC order on claims made for POM Wonderful 100% Pomegranate Juice and POMx pills and liquid supplements.