Last week, the FTC announced its long-awaited finalization of updated Endorsement Guides. These guidelines come after the FTC initially voted to publish revised guidelines in May 2022.
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FTC
FTC Secures First Monetary Settlement Against Celebrity Endorsers
On May 22, 2023, the Federal Trade Commission announced its first monetary settlement with celebrity endorsers for a combined $1.7 million.
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FTC Permanently Bans Operators of Cryptocurrency MLM
The Federal Trade Commission reached a settlement with the promoters of chain-based cryptocurrency schemes—Thomas Dluca, Louis Gatto, Eric Pinkston and Scott Chandler—in which the defendants promised recruits big rewards in exchange for a small payment of bitcoin or Litecoin. In reality, the defendants’ schemes, promoted through YouTube videos, social media and in conference calls, depended on continual recruitment of new participants to generate revenue. Under the FTC settlement, each defendant is permanently banned from operating, participating in or assisting others in promoting or operating any multi-level marketing program, pyramid, Ponzi or chain referral scheme, and three also were required to make payments in redress.
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