FTC Advertising Enforcement: The Year in Review

1. FTC Advertising Enforcement: The Year in Review Lesley Fair Division of Advertising Practices Federal Trade Commission

2. Recent Developments • Health & Safety • High Tech Products • Privacy • Remedies

3. Health & Safety OPERATION CURE.ALL: Phase 3 Anti-Aging in a Bottle Activate your body’s regenerative power! Amazing New Youth Formula is guaranteed to make you biologically younger in 30 days or less and we have the test to prove it. MaxCell BioScience

4. St. John’s Wort Colloidal silver DHEA Kava Kava Ephedra Shark cartilage Chitin Magnetic devices Health & Safety CHALLENGED PRODUCTS

5. Health & Safety [Wonder Bread “Professor Neuron” video] Wonder Bread

6. High Tech Products Starting now, Juno is offering full Internet access for free. From free Web access to premium dial-up and broadband services, everybody’s getting it. Juno

7. High Tech Products Some PCs include a mouse pad. For $1299, this one includes the Internet for a year. (And a mouse pad.) NINE LINES OF 4-POINT TYPE: Rural access $3.95/hour. Gateway

8. Disclosures “CLEAR AND CONSPICUOUS” PROMINENCE:Is it big enough for consumers to notice and read? PRESENTATION:Is the wording and format easy for consumers to understand? PLACEMENT:Is it where consumers will look? PROXIMITY:Is it near the claim it qualifies?

9. Privacy • Continued COPPA enforcement

10. Privacy • Continued COPPA enforcement • Challenge deceptive practices Eli Lilly

11. Privacy FROM: mail_usmail-welcome@lilly.com TO: DATE: Wednesday, June 27, 2001, 8:37 p.m. SUBJECT: Medi-Messenger Dear Medi-Messenger User: We’re listening! This week Eli Lilly & Company relaunched Prozac.com with a new navigation and feel. Based upon feedback from customer like you, we have discontinued our Medi-Messenger e-mail reminder service. We are appreciative of your comments, and hope this doesn’t cause any inconvenience to those of you who were using this feature.

12. Privacy jdkkej @aol.com, soo@cs.com, 197n @aol.com, os7 @earthlink.net, zvb @cs.com, gff@juno.com, domcb @trilogy.com, nodjns @mail.state.us, cmsl @swbell.net, cvbs1956 @worldnet.att.net, fjk11 @aol.com, de @now.com, qzp @ home.com, 1978msnd @juno.com, uoihjj @peoplepc.com, oppsjdk @cs.com, 888xsdhdj @excite.com, shdjjf @cmich.edu, djfeooei @msn.com, djs @aol.com, 193884 @netzero.com, hsjd @cs.com, 192830 @juno.com, cnfl @bellsouth.com, s9d @aol.com, omvnncnnd @nyc.com, kdd @cyberhighway.net, dhfk @skytel.com, mnncmmcmc @teleport.net, djskkkflf @earthlink.com, skkdld999 @aol.com, jdj @cs.com, jdk9 @juno.com, 948 @hotmail.com FROM: mail_usmail-welcome@lilly.com TO: DATE: Wednesday, June 27, 2001, 8:37 p.m. SUBJECT: Medi-Messenger Dear Medi-Messenger User: We’re listening! This week Eli Lilly & Company relaunched Prozac.com with a new navigation and feel. Based upon feedback from customer like you, we have discontinued our Medi-Messenger e-mail reminder service. We are appreciative of your comments, and hope this doesn’t cause any inconvenience to those of you who were using this feature.

13. Privacy • Continued COPPA enforcement • Challenge deceptive practices • Proposed National DO NOT CALL

14. Remedies • FTC v. Diversified Marketing:$39 million for violation of Telemarketing Sales Rule • FTC v. Crescent Publishing:$30 million for billing credit cards for web site access advertised as “free” • FTC v. Smolev and Triad:$9 million for billing credit cards for memberships in buying clubs advertised as “free” • FTC v. First Alliance Mortgage:as much as $60 million for borrowers in subprime lending case

15. Remedies FTC v. Enforma • $10 million redress • Settled cases against: • corporation • individual officers • “expert” • Ongoing cases against: • former L.A. Dodger Steve Garvey • corporation and officers for contempt

16. Industry Guidance

17. Industry Guidance www.ftc.gov