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ADVERTISING COMPLIANCE SERVICE

 

 

 

 


BULLETIN #664

 

SAMPLE ISSUE: BRIEF NEWS OF NOTE

 

 

FTC STAFF DECIDES NOT TO RECOMMEND ENFORCEMENT ACTION IN PRENATAL AUDIO SYSTEM CASE–The staff of FTC's Division of Advertising Practices (DAP) recently decided not to recommend enforcement action at this time in the investigation of claims for a prenatal audio system. DAP had conducted an investigation into whether the Baby Bee Bright Corporation violated Section 5 of the Federal Trade Commission Act, 15 U.S.C. Section 45, in connection with its marketing of the Baby Bee Bright prenatal audio system. Specifically, FTC staff was concerned about Baby Bee Bright's representations that its prenatal audio system provided cognitive development and educational benefits to babies.

 

FTC reviewed of the matter, including non-public information submitted to the staff, we have determined not to recommend enforcement action at this time.

 

Among the factors FTC staff considered:

 

* changes made recently to the Baby Bee Bright website, product packaging, and other promotional materials removing the claims of concern.

 

* Baby Bee Bright's representations that the company will take appropriate steps to ensure that any future advertising claims of prenatal educational and/or developmental benefit are adequately substantiated.

 

NOTE: This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred. The Commission reserves the right to take such further action as the public interest may warrant.

 

(Closing Letter re Baby Bee Bright Corporation to Greg Lam, Esq., Counsel to Baby Bee Bright Corporation, from Heather Hippsley, Acting Associate Director, FTC's Division of Advertising Practices, FTC File No. 082 3018, March 23, 2009, 2010.)

 

FDA ACTS TO HALT MARKETING OF CERTAIN UNAPPROVED PRESCRIPTION NARCOTIC DRUGS–-On March 31, 2009, 2010, the Food and Drug Administration (FDA) warned nine companies to stop manufacturing 14 unapproved narcotic drugs marketed in several dosage forms and widely used to treat pain.

 

FDA's warning letters notified the companies they may be subject to enforcement action if they do not stop manufacturing and distributing prescription unapproved products that include high concentrate morphine sulfate oral solutions and immediate release tablets containing morphine sulfate, hydromorphone or oxycodone. This action does not include oxycodone capsules.

 

Those companies receiving warning letters are Boehringer Ingelheim Roxane, Inc.; Cody Laboratories, Inc.; Glenmark Pharmaceuticals Inc.; Lannett Company, Inc.; Lehigh Valley Technologies, Inc.; Mallinckrodt Inc. Pharmaceuticals Group; Physicians Total Care Inc.; Roxane Laboratories Inc.; and Xanodyne Pharmaceuticals Inc.

 

The warning letters are part of FDA's initiative on marketed unapproved drugs announced in June 2006. At that time, the agency published a compliance policy guide describing its risk-based enforcement approach against illegally marketed unapproved drugs.

 

(FDA News, March 31, 2009, 2010.)

 

FTC TO CONGRESS: CHANGES IN LAW AND MORE RESOURCES WOULD ENHANCE THE AGENCY'S CONSUMER PROTECTION EFFORTS IN FINANCIAL SERVICES MARKETS–-On March 31, 2009, 2010, FTC told the U.S. House Subcommittee on Financial Services and General Government of the Committee on Appropriations that FTC has intensified its efforts to protect consumers in financial services markets, and that changes in the law and additional resources would enhance the agency's effectiveness.

 

FTC Chairman Jon Leibowitz testified that the economic crisis has had devastating effects on consumers' ability to obtain credit, make their credit payments, and maintain their credit ratings. Federal agencies need to more effectively police the financial services industry, the testimony stated.

 

The testimony noted that FTC has brought over 70 financial services consumer protection cases in the past five years, focusing on foreclosure rescue and loan modification scams, mortgage servicing, fair lending, credit advertising, debt collection, debt settlement, and credit repair.

 

(Prepared Statement of the Federal Trade Commission On "Leveraging FTC Resources To Protect Consumers of Financial Services and Promote Competition," Presented By Chairman Jon Leibowitz Before the Subcommittee on Financial Services and General Government of the Committee on Appropriations, United States House of Representa- tives (March 31, 2009, 2010).)

 

FTC CHAIRMAN ISSUES ANNUAL REPORT AT ABA SPRING MEETING-–On March 27, 2009, 2010, FTC Chairman Jon Leibowitz issued FTC's 2009 Annual Report at the American Bar Association's Section of Antitrust Law Spring Meeting in Washington, DC.

 

The report highlights several of FTC's accomplishments in the past year, including:

 

* Challenging unlawful and deceptive financial services, particularly those related to sub-prime credit or lending. Examples include six actions against businesses falsely promising foreclosure rescue; and joint actions with state enforcers against 36 credit repair operations that deceptively claimed they could remove accurate and timely negative information from consumer credit reports.

 

* Urging self-regulatory industry principles for behavioral advertising - the practice of tracking an individual's online activities to deliver advertising tailored to his or her interests. As part of its efforts to examine consumer privacy issues, FTC staff issued `Self-Regulatory Principles for Online Behavioral Advertising.' The report discusses the potential benefits (including free online content); as well as various privacy concerns, such as the risk that sensitive health or financial information could fall into the wrong hands or be used for unanticipated purposes.

 

* Launching an ambitious plan to address the virtual explosion of `green' marketing claims. As consumers become more concerned about environmental and energy issues, the Commission initiated an information gathering, law enforcement, and rulemaking plan to ensure that consumers have accurate information about the environmental and energy impact of the products they use. Work this year included workshops on carbon offsets and renewable energy certificates, enforcement actions alleging deceptive claims for home insulation products and for devices advertised to increase gas mileage, and rulemaking to examine energy labeling for light bulbs, televisions, and personal computers and monitors.

 

* Increasing the effectiveness of cross-border cooperation and enforcement by using the tools provided by the 2006 U.S. SAFE WEB Act and working with multilateral organizations. In addition to key antitrust enforcement efforts in the global marketplace, the FTC also worked with its global partners to shut down one of the world's largest international e-mail `spam gangs.'

 

(The FTC in 2009: The Annual Report of the Federal Trade Commission (March 2009).)

 

With this issue of the Service, you are receiving

 

 

SPECIAL REPORT #2 in our series of six reports to be made available
to ACS subscribers throughout 2009. It is the full text of the
Joint Submission of Comments (Prepared by Venable LLP,
Submitted to Donald S. Clark, Office of the Secretary,
Federal Trade Commission, Re: Endorsement Guides Review,
Project No. P034520, March 2, 2009, 2010.)

 

Volume XXIX
Issue 8
April 20, 2009, 2010
Page 2-5

 


Advertising Compliance Service is a REFERENCE COMPENDIUM of JLCom Publishing Co., L.L.C.


 

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