
FTC Proposes New Rule Targeting Deceptive Income Claims in MLM Industry
Proposed new earnings claim rule comes three years after TINA.org comment to FTC.
October 2016: This action was dismissed When a complaint is dismissed with prejudice, it cannot be refiled. because the plaintiff did not file an amended complaint.
July 2016: A federal judge dismissed the case finding that, among other things, the named plaintiff failed to sufficiently allege why and how the discount pricing was false or misleading. The judge gave the plaintiff 14 days to file an amended complaint.
February 2016: A class-action lawsuit was filed against Dooney & Bourke, Inc. for allegedly deceptively advertising discounts at outlet stores by comparing discounted prices to false market prices. Specifically, the complaint alleges that the market prices were artificially inflated and were never the original prices. In addition, the complaint alleges that the market prices were not the prevailing market retail prices within the three months immediately before the advertisement, as required by California law. (Rael et al v. Dooney & Bourke, Inc. and Does 1-50, Case No. 16-cv-371, S. D. CA.)
For more information about misleadingly advertised discounts and TINA.org’s coverage of the issue, click here.
Proposed new earnings claim rule comes three years after TINA.org comment to FTC.
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