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FTC Sends a Flurry of Notices of Penalty Offenses, Warns of Steep Penalties for Unfair and Deceptive Business Practices

  • The Federal Trade Commission (“FTC”) recently sent Notices of Penalty Offenses (“Notices”) to more than 700 businesses, including consumer products companies, retailers and retail platforms, and advertising agencies, warning them about various practices that the FTC previously determined to be unfair or deceptive in violation of the FTC Act.
  • The Notices identify a number of practices relating to endorsements, such as fake online reviews and failure to disclose an unexpected material connection with an endorser, that have been found to be unlawful, and warn that a business could incur up to $43,792 per violation if it uses endorsements in ways that the FTC previously found to be unfair or deceptive.
  • The FTC also recently sent Notices to 70 for-profit educational institutions listing claims regarding graduates’ employment and earnings prospects that the FTC deems unfair and deceptive and that can incur a financial penalty.