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MARKETER AGREES TO PAY $28,000 CIVIL PENALTY TO SETTLE FTC CHARGES A company nationally promoted a "sonic toothbrush kit" containing interchangeable brushing, flossing, and tongue cleaning heads in 30-minute infomercials and on the Internet. That company agreed to pay a $28,000 civil penalty to settle FTC charges that it violated FTC's Mail or Telephone Order Merchandise Rule by failing to ship its product within the promised shipment time and failing to notify consumers of the delayed shipments. Also, the proposed settlement would bar the defendant, Amden Corporation, from violating the Rule in the future. According to FTC's complaint, Amden solicited orders for the toothbrush kits by mail, telephone, and on the Internet. Amden claimed that consumers could pay for the $120 product in a single payment or in five monthly installments. Amden claimed that merchandise for buyers paying in a lump sum would be shipped in 10 days. The company claimed that merchandise for buyers paying in installments would be shipped for delivery in three to four weeks. The complaint alleges that, when Amden was unable to ship consumers' orders within the promised shipment time, it didn't notify the consumers and request their agreement to delayed shipment. It then allegedly failed to cancel the delayed orders and promptly refund the buyers' money. The Department of Justice, at FTC's request, filed the complaint and proposed consent decree in the U.S. District Court for the Central District of California on April 18, 2002. The proposed consent decree is subject to court approval. NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge. (Amden Corporation, FTC File No. 012-3118, Civil Action No. CV02-3186, April 19, 2002.) Watch the latest videos on YouTube.com FTC MARKS 2D ANNIVERSARY OF COPPA BY ANNOUNCING 6TH CASE FTC marked the second anniversary of the Children's Online Privacy Protection Rule, the Federal Trade Commission announced its sixth COPPA enforcement case along with "new initiatives designed to enhance compliance with the law." The package of initiatives includes: A settlement with the operators of the Etch-A-Sketch Web site resolving alleged violations of COPPA and requiring a $35,000 civil penalty; Release of an FTC COPPA compliance survey, and a "business education initiative"; Announcement of warning letters sent to 50+ children's websites; and Extension of COPPA's sliding scale mechanism for obtaining verifiable parental consent for a three-year period. The Ohio Art Company is the manufacturer of the popular Etch-A-Sketch drawing toy. It agreed to pay $35,000 to settle FTC charges that it violated the Children's Online Privacy Protection Rule. The settlement also bars future violations of COPPA. This is FTC's sixth COPPA law enforcement case. NOTE: A consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge. (Ohio Art Company, FTC File Nos. 022-3028, April 22, 2002.)     Articles "12 Key Advertising-Related Laws You Should Know" This article examines 12 key advertising-related laws that you should know about before you review your ads to make sure they don't run afoul of these laws. "10 Things to Do So Your Ads Comply With Advertising Laws" This article discusses 10 key areas you should look at when you're reviewing your advertising to determine whether it's in compliance with advertising law's many requirements. "10 Tactics to Use So Your Ads Comply with Advertising Laws" This article presents 10 tactics you could use to help your ads comply with the many laws, rules, regulations and guidelines that may affect your advertisements. "10 Major Advertising Law-Related Concepts" This article is a useful review of 10 key areas you should look at when you're reviewing your advertising to determine whether it's in compliance with the numerous laws, rules, regulations and guidelines that may affect your ads.

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