The FTC updated its Negative Option Rule last month and gave it a new name to emphasize the expanded scope of programs to which it applies. It will now be the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs.” The updated rule, as the FTC outlines, will now be applicable to nearly all forms of negative option marketing.Continue Reading Click! FTC Updates Its Negative Option Rule
Tiger Natural Gas, Inc. recently settled a class action privacy suit alleging that it illegally recorded sales calls with over 27,000 potential customers. Although Tiger hired a third party to handle its telemarketing, Tiger will pay $3.7 million on the claims as the advertiser with ultimate liability for non-compliance. According to the plaintiffs, neither company told the consumers the calls were recorded, as is required under California’s call recording law.
Continue Reading Utility Provider Settles Call Recording Lawsuit for $3.7 Million
Two mobile apps directed at children were recently subject to action by the Children’s Advertising Review Unit. The first, “My Talking Tom,” is a virtual pet game for children operated by Outfit7 Limited. One issue was the display of Outfit7’s privacy policy. Under the Children’s Online Privacy Protection Act, privacy policies must be understandable, and contain no unrelated material. The app’s policy, however, contained advertisements for other games, and animated balloons that obstructed the user’s view. Accordingly, CARU found that the distracting content violated COPPA. Outfit7 prudently removed the content, and CARU took no further action on the issue.
Continue Reading CARU Takes Action Against Two Mobile Apps