ANPR seeks public comment on potential new rule
By: David Bland
“Case-by-case enforcement without civil penalty authority may not be enough to stem the growth of deceptive reviews and endorsements.” —Federal Trade Commission
On Oct. 20, the Federal Trade Commission (FTC) released an Advanced Notice of Proposed Rulemaking (ANPR) to seek public comment on the benefits of a new rule to combat the harms from deceptive or unfair product reviews and endorsements. The ANPR represents the Commission’s first official step in evaluating the need for and the shaping of a new rule.
Continuing its push to create additional enforcement mechanisms after the Supreme Court took away the FTC’s ability to obtain equitable monetary relief under Section 13(b) of the FTC Act, Chairwoman Lina Khan sees the rulemaking process as an essential tool for combatting industry-wide violations across many types of businesses, including the direct selling channel.
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