The Federal Trade Commission (FTC) announced on March 21st a 30-day public comment period regarding the proposed settlement agreement with Legacy Learning Systems, Inc. and Lester Gabriel Smith for violations of the FTC's "Guides Concerning the Use of Endorsements and Testimonials in Advertisement." The settlement includes the first ever monetary component for a violation of the blogger endorsement rules-a payment of $250,000. "The original complaint alleged that Smith posted reviews for the instructional videos offered for sale by Legacy while failing to mention that Smith, as the endorser, receives financial compensation for the sale of Legacy products," says Andrew Martin, an attorney with the technology law firm Scott & Scott, LLP. "This settlement makes clear that failure to stay abreast of, and invoke the necessary internal controls to comply with, changing online marketing and privacy regulations is a risky strategy for any company doing business online." For more information, please contact Mr. Martin at 800-596-6176 or amartin@scottandscottllp.com.
About the author
Andrew Martin:
As an associate attorney with extensive prior experience advising information technology start-ups, Andrew’s practice focuses on finding solutions for his clients’ intellectual property issues. Due to his extensive experience in the software and technology industries, Andrew understands both the practical and legal issues involved in IP licensing agreements and disputes. In addition to licensing, Andrew helps his clients find new ways to use existing technologies to assist his clients in areas such as data privacy compliance. Andrew uses his diverse background which includes founding a record label and working for a world-wide concert promoter when counseling the firm’s entertainment clients.
Get in touch: amartin@scottandscottllp.com | 800.596.6176