California Update: New Negative Option Law Effective Dec 1st

California Update New Negative Option Law Effective Dec 1st On December 1st, California’s negative option law went into force.  The law requires that for all negative option transactions (i.e., those that automatically renew unless cancelled), the merchant must provide a disclosure in type larger than the surrounding text detailing that: (1) the subscription or purchasing…

600 Penn: Astroturfing Consent Decree, Acai Berry Bust and Substantiation Requirements

FTC Tags Reverb Communications for Astroturfing Public Relations firm Reverb Communications became one of the first companies to enter a consent decree under the new FTC Blogger Endorsement Guidelines after the FTC charged it with using its employees to post favorable reviews for clients.  Under the consent decree, Reverb and its owner must remove any…

Top Stories of 2009

TOP STORIES OF 2009 ZERO HOUR APPROACHING ON  PRIVACY; NINTH CIRCUIT SHUTS DOOR TO LITIGATION MILLS & NEGATIVE OPTION CRACK DOWN Zero Hour on Privacy Throughout the year, the FTC ratcheted up the rhetoric that action was imminent if the online advertising industry did not move to provide greater privacy safeguards for behavioral targeting.  The year ended with…

IN THE COURTS: SLAMMER FOR SPAMMER, FINES FOR CONTINUITY SCAMMERS & HARBORMASTERS

Spammers Alan Ralsky (“Godfather of Spam”) – 51 months in federal prison for fraud and CAN-SPAM violations Sanford Wallace (“Spam King”) – $711 million in damages to Facebook for CAN-SPAM violations Lance Atkinson (New Zealand’s King of Spam and leader of world’s largest spam gang) – $15.5 million default judgment for CAN-SPAM violations.  Atkinson’s US…

In the Courts: Sears and Overstock Pay Price for Inadequate Notice, FTC Operation Short Changed, ME Privacy Law

Sears, Overstock Pay Price for Inadequate Consumer Notice Sears initiated a program where consumers visiting Sears.com and Kmart.com could become members of the “My SHC Community.” Members were paid $10 to participate in return for downloading a toolbar that would track their “online browsing.” The toolbar did more than that, however, collecting information such as…