With no significant movement on 13(b) legislation in favor of the commission, the Federal Trade Commission (FTC) is now looking for new ways to hold businesses accountable for deceptive claims.
According to this recent article from Kelley Drye:
“The FTC released an Advanced Notice of Proposed Rulemaking (ANPR) on earnings claims as it embarked on a mission to adopt a rule that would give the FTC, in its own words, “an important new tool to return money to consumers injured by deceptive income claims, and to hold bad actors accountable with civil penalties.” Importantly, the ANPR also suggests that the rule could do more than just change the FTC’s enforcement tools and also seek to substantively change the standard that has long been applied in analyzing earnings and lifestyle claims. Interested parties will have 60 days from publication in the Federal Register to submit comments and respond to the FTC’s questions and requests for evidence.
As an Advanced Notice of Proposed Rulemaking and not a proposed rule, the ANPR does not offer specific regulations for consideration at this point. Notably, however, the FTC solicited information on a number of specific issues that shed light on possible new areas for regulation.”