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ARTICLE · 22 NOVEMBER 2022

Proposed FTC Settlement Provides Learnings For All

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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As alleged in the complaint, the matter involved marketers who promised, for a hefty fee, to help others set up and manage stores on Amazon.

United StatesMedia, Telecoms, IT, Entertainment

A recently announced settlement by the FTC, although addressing the kind of conduct not typical for mainstream companies, highlights some common and problematic marketing issues: relying on anecdotal information and testimonials in lieu of hard cold substantiation data; relying on small print disclaimers as a fig leaf; and misusing the customer review process. Advertisers of all stripes would do well to take note of this case and the FTC's concerns and strategy in dealing with the defendants here.

As alleged in the complaint, the matter involved marketers who promised, for a hefty fee, to help others set up and manage stores on Amazon. Over a four year period, the defendants allegedly raked in over $52 million from this business, selling Amazon business packages, business coaching, and cryptocurrency investments. They promised huge returns to purchasers of their services, using purported testimonials from purchasers about how much money they made. In materials

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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