Airbrushing = false advertising? UK's Advertising Standards Authority says "Yes"
This week, two magazine ads from a leading cosmetics company were banned by the UK's Advertising Standards Authority (ASA) after a Member of Parliament brought the ads to the regulator's attention. The MP complained that the ads' images were digitally manipulated and "not representative of the results the product could achieve." The ASA banned the ads from future publication, ruling they were misleading and violated the advertising standards code for exaggeration.
Read coverage of the story by the Washington State Attorney General's "All Consuming" Blog and The Guardian newspaper.
FDA Provides Draft Guidance on Mobile Medical Apps
On June 19, the FDA released draft guidance clarifying which types of mobile applications would be subject to FDA regulation as medical devices. The medical device and software industries were both generally happy with the draft guidance, which will not regulate educational and general wellness applications for the consumer market. The FDA will accept comments on the draft guidance through October 19.
Read coverage of the draft guidance in the Washington Post. View the FDA's draft guidance here.
Analysis
Launch of CFPB has Implications for Marketers and Financial Institutions
July 21, 2011 marked the one-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") as well as the official transfer date for the newly-formed Consumer Financial Protection Bureau ("CFPB"). On that date, the CFPB assumed authority over existing consumer protection laws and consumer compliance supervision pertaining to large depository institutions.
The CFPB will also exercise regulatory authority over certain other institutions that provide financial services and products to consumers. The July 21 issue of Venable's CFPB Watch describes several of the CFPB's first formal efforts and what they may mean for marketers and institutions that fall under the Bureau's jurisdiction.
Click here to read the latest edition of CFPB Watch.
Venable's CFPB Task Force, created over a year ago to bring together regulatory attorneys from various practices to serve clients impacted by the CFPB, has also launched the CFPB Monitor. This online tool is designed to help companies stay abreast of the CFPB's enforcement activity and current developments related to the primary provisions of the Consumer Financial Protection Act. Click here to visit the CFPB Monitor website.
FTC Issues Mortgage Acts and Practices – Advertising Final Rule
On July 19, the Federal Trade Commission issued the Mortgage Acts and Practices – Advertising Final Rule (the "Final Rule"), which bans deceptive claims and practices that may occur with regard to mortgage advertising or other types of commercial communications. The Final Rule will have important implications for all advertisers and marketers of mortgage credit products. It provides guidance and clarity as to what practices constitute deceptive mortgage advertising; gives the FTC and state authorities power to seek civil penalties for deceptive mortgage advertising, which the Final Rule defines broadly; and imposes record-keeping requirements on mortgage advertisers.
Click here to read analysis of the Final Rule by Venable's Jonathan Pompan.
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