Ad Law in the Age of COVID-19 and Regulatory Reactions
The COVID-19 crisis has spawned a new wave of predatory behavior toward consumers, with the marketing of coronavirus-related products and untested cures. Regulators have responded to these behaviors swiftly and in a variety of ways. In a recent webinar, Richard Cleland, assistant director, division of advertising practices at the Federal Trade Commission (FTC), and Venable attorneys Melissa Steinman and Kristen Klesh addressed the advertising enforcement trends stemming from the COVID-19 pandemic and offered their reflections on best practices for consumer protection. Following is a breakdown of key points discussed and information shared.
How Has the FTC Addressed Consumer Complaints?
The FTC’s response to COVID-19-related violations has been a combination of education and enforcement. The agency recorded more than 130,000 complaints in approximately the first half of 2020; unsubstantiated health claims and health fraud are the main areas of concern. The FTC has issued more than 300 warning letters and has seen a high compliance rate (around 95 percent) with this course of action. These letters address claims that businesses are promoting the cure or treatment of COVID-19 through:
Dietary supplements or treatment in medical or wellness clinics in the form of herbal teas, essential oils, vitamins, zinc, immunity boost IVs, chiropractic, homeopathic, other therapies, virus-killing “zappers,” and colloidal silver
The FTC has also filed three federal court actions related to COVID-19 consumer fraud, and the agency is conducting extensive consumer education campaigns related to health fraud and coronavirus scams. The FTC website examines various types of health and economic fraud related to the epidemic.
How Are Government Agencies Collaborating on Fraud-Related Enforcement?