As the sole UK member for the Global Advertising Lawyers Alliance, we know that the GALA blog is a unique source of information about advertising law and regulation from around the world. If you haven't seen the GALA blog, here is a summary of the last month's worth of news. We've taken out the UK news, as that already appears on this blog! If you'd like to subscribe to the GALA blog, connect here and click "subscribe."

Cineplex Pays $39M in Landmark Drip Pricing Case

Kelly Harris & Lauren Shrubb, Harris + co. (Canada)

The Competition Tribunal has ordered Cineplex Inc to pay nearly $39 million for engaging in drip pricing, marking a significant development in Canadian advertising law. This is the first order issued following the 2022 introduction of higher administrative monetary penalties, and also the first decision interpreting the new civil drip pricing prohibitions. Read More

The Hungarian Competition Authority Has Imposed the Highest Ever Fine on Booking.com in Follow-up Investigation

Aniko Keller & Dorottya Moldovan, Szecskay Attorneys at Law (Hungary)

In 2018, the Hungarian Competition Authority (HCA) launched a competition investigation against Booking.com B.V. for engaging in unfair commercial practices. As a result of these proceedings in 2020, a fine of HUF 2.5 billion (approx. EUR 6.5 million) was imposed by the HCA. Furthermore, the HCA prohibited the company from continuing the unfair commercial practice. Read More

Can You Promote a Category of Products as "Clean" if They Contain Harmful Ingredients?

Jeffrey A. Greenbaum, Frankfurt Kurnit Klein & Selz (USA)

In its stores and online, Target categorizes some of the products that its sells as “Target Clean.”  According to Target, if a product is identified by the bright green Target Clean logo, it means that “the product is formulated without a group of commonly unwanted chemicals that can be found in products we use regularly.”  Read More

California Privacy Protection Agency Warns Businesses Against “Dark Patterns” and Urges “Symmetry in Choice”

Leonard L. Gordon, Kelly Bastide & Jay Prapaisilp, Venable LLP (USA)

Not to be left behind by other regulators, the California Privacy Protection Agency (CPPA) recently issued an enforcement advisory on “dark patterns” in the context of the notice and consent required under the California Consumer Privacy Act (CCPA). As we’ve previously discussed, dark patterns are a subset of “deceptive marketing” and are also known as “deceptive design patterns.” The Federal Trade Commission (FTC) released a report in 2022 outlining the various methods companies employ, such as “making it difficult for consumers to cancel subscriptions or charges, burying key terms or junk fees, and tricking consumers into sharing their data.” Read More

FTC Announces AI Sweep

Hannah Taylor, Frankfurt Kurnit Klein & Selz (USA)

The Federal Trade Commission (FTC) recently initiated a law enforcement sweep, Operation AI Comply, against multiple companies that the FTC alleges have “relied on artificial intelligence as a way to supercharge deceptive or unfair conduct that harms consumers.”  Read More 

The Hungarian Authority's Guidance on Tipping Awareness

Aniko Keller & Dorottya Moldovan, Szecskay Attorneys at Law (Hungary)

Tipping habits in restaurants vary from country to country. In some places, tipping is explicitly expected, while in others, it is not required. The Hungarian Competition Authority (HCA) provides information on tipping and service charges to help companies avoid unfair commercial practices and to help consumers make informed decisions. Read More

In a First - Jail for Operator for Unfair Consumer Practice

Denise Mirandah, Mirandah Asia (Singapore)

On 9 September 2024, the managing director of Nail Palace received a four-month prison sentence for contempt of court, marking the first in Singapore’s efforts to safeguard consumers against unfair practices. In addition, two Nail Palace outlets were each fined S$15,000 for their noncompliance with judicial orders. Read More

Handle Autorenewal Programs with Care: Federal Trade Commission Targets Care.com for Alleged Dark Patterns and Earnings Claims

Shahin Rothermel, Jay Prapaisilp & Glen Hisani, Venable LLP (USA)

Companies that care about avoiding Federal Trade Commission (FTC) action should take heed. Last month, the FTC announced an $8.5 million settlement with Care.com, resolving claims challenging its advertising claims and automatic renewal program. Read More

Get Ready to Comply with CPSC's Upcoming eFiling Requirement

Melissa Landau Steinman, Elizabeth Lowe & Alexander Rubel, Venable LLP (USA)

Consumer products regulated by the U.S. Consumer Product Safety Commission (CPSC) may soon be denied entry into the United States unless the importer of record electronically files a detailed product certification with the U.S. Customs and Border Protection (CBP). In late 2023, the CPSC published a proposed CPSC rule that will require that importers of regulated consumer products eFile Certificates of Compliance at import. Read More

California Passes New Legislation Prohibiting Unauthorized AI Replicas

Samantha Rothaus & Jordan Thompson, Davis+Gilbert LLP (USA)

California’s 2024 legislative session has resulted in some major new protections against the harmful use of artificial intelligence technologies. While California has no doubt embraced AI technology – launching several AI programs and initiatives to explore how AI can best serve the community, and proudly serving as headquarters for several industry-leading AI tech companies – California is also home to Hollywood, and to thousands of performers who have had serious concerns about the threat that AI poses to their jobs and the entertainment industry. Acknowledging such concerns, California lawmakers have continued to make AI-generated digital replicas a main focus. On September 17^th, 2024 at the headquarters of SAG-AFTRA, the union representing over 160,000 performers, Governor Gavin Newsom signed into law two bills, AB 2602 and AB 1836, which aim to protect performers – both living and dead – against the unauthorized use of AI-generated digital replicas. Read More

The Exception for Current Events

Triana Uribe & Michelsen Ltda (Colombia)

Photographer Dave Walsh filed a lawsuit against LA OPINIÓN S.A. over the economic rights to the photo titled FROOME AND BERNAL, VOLTA CATALUNYA 2019 and the moral right of attribution. Read More

Green Lights for Green Advertisement

Triana Uribe & Michelsen Ltda (Colombia)

The Superintendency of Industry and Commerce issued new guidelines about the advertisement of environmental benefits. When a product is advertised as having environmental qualities, characteristics, or attributes, in addition to complying with the Consumer Protection Statute, the product must generate real environmental benefits. Read More

ICC Issues the 11th Edition of its Advertising and Marketing Code

Jeffrey A. Greenbaum, Frankfurt Kurnit Klein & Selz (USA)

The International Chamber of Commerce just released a new edition of The ICC Advertising and Marketing Communications Code. First issued in 1937, the 11th edition of the Code provides updated guidance on some of the key issues that marketers face today. Read More

Advertisement Board is Again Able to Block Access

Hande Hançar & Baran Güney, Gün + Partners (Turkey)

Turkish Constitutional Court (“Court”) annulled the paragraph 12 of Article 77 of the Consumer Protection Law, which granted the Advertisement Board (“Board”) the power to partially or entirely block access to websites containing unlawful advertising content. The relevant rule was considered to be unconstitutional pursuant to the Court’s decision dated 13 September 2023 and numbered 2022/70 E. - 2023/152 K. which was published on the Official Gazette dated 27 October 2023 and numbered 32352. Since the legal gap, that might arise due to the annulment of the subject rules, is deemed to damage public interest, it has been decided that the Court’s decision will enter into force nine months after the publication of the decision in the Official Gazette. Therefore, the annulment provision duly entered into force on 27 July 2024. Read More