United States: Advertising, Marketing & Branding

Generative AI tools can accelerate branding, but without proper legal safeguards, businesses risk trademark disputes, false advertising claims, and costly rebrands. Understanding how to maintain human control, clear brand elements, substantiate claims, and implement review processes is essential for companies leveraging AI in their marketing and brand development efforts.

As announced by the FTC this week, StubHub will pay $10 million to settle the FTC’s charges that the company violated the FTC Act and the Rule on Unfair or Deceptive Fees by deceptively advertising ticket prices on its website without clearly and conspicuously disclosing, up-front, how much consumers would pay for tickets, including all mandatory fees.

The FTC is now prioritizing enforcement of its Consumer Review and Testimonials Rule, issuing warning letters to companies using fake reviews, undisclosed incentives or misleading testimonials, and demanding immediate corrective action.