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In FTC

United States: FTC puts companies on notice that failure to provide support for their product claims could result in civil penalties

by , , and 3 Mins Read

In brief On 13 April 2023, the Federal Trade Commission (FTC) issued a letter containing a Notice of Penalty Offenses Concerning Substantiation of Product Claims to approximately 670 advertisers, putting each company on notice that deceiving consumers with advertisements that make unsubstantiated product claims could subject the company to civil penalties of up to USD 50,120 per violation under 15 U.S.C. § 45(m)(1)(B). The FTC noted that, while the initial distribution of the Notice was specific to those making…

In SEC

United States: SCOTUS upholds district court’s jurisdiction over challenges to SEC and FTC actions

by and 4 Mins Read

In brief On 14 April 2023, the United States Supreme Court issued its opinion in Axon Enterprise, Inc. v. Federal Trade Commission et al., and unanimously held that a litigant challenging the constitutionality of an agency administrative enforcement action need not await the outcome of that action before bringing their constitutionality challenge in federal district court. In depth The Court in Axon Enterprise, Inc. considered two separate matters based on administrative enforcement proceedings: one from the…