Last week, the United States District Court for the District of
Nevada granted partial summary judgment for the Federal Trade
Commission ("FTC") against Jeremy Johnson and a number of
related corporate entities collectively referred to as
"iWorks," offering a glimpse into how the FTC and the
courts analyze certain online advertising issues. The FTC first
brought suit in 2010, alleging, in part, that Jeremy Johnson's
websites used misleading testimonials, failed to disclose that
consumers would be entered into negative option plans, and failed
to disclose that websites and positive articles about the products
were created by the defendants. While some defendants in this case
settled with the FTC in 2014, the battle between Jeremy Johnson and the FTC has
raged on, with the court's
most recent order constituting a significant victory for the
FTC on some counts, but requiring the FTC to prove much of its case
at trial. The court's opinion highlights the difference