Extra! Extra! Marketer Using Fake News Sites Has No Immunity from FTC!

The FTC has become increasingly aggressive in holding advertisers responsible for advertising claims made by their affiliate networks and marketers.  Indeed, just this week the FTC announced another settlement in a case that was part of the same "sweep" as the case discussed here. In July of 2012, the FTC amended its April 2011 complaint against LeanSpa, a marketer of acai berry and colon cleanse products, to add claims against LeadClick, which served as the ad network for LeanSpa.  The FTC alleged that LeadClick (and LeanSpa) had paid affiliate marketers to publish fake news stories touting the LeanSpa products to drive traffic to LeanSpa.  In a novel defense to the FTC's claim, LeadClick argued that its actions were immune under section 230 of the Communications Decency Act  ("CDA").  Last week, the federal district court in Connecticut denied Lead Click's Motion to Dismiss finding the CDA did not provide immunity from the FTC's allegations.