In a recent article published in the Daily Journal, Partner Mary Ellen Callahan and Associate Emily A. Bruemmer explore a recent Federal Trade Commission complaint against Lord & Taylor. At issue was the department store’s “Design Lab” collection promotion, which featured social media and paid “fashion influencers,” without disclosing that they had been paid to endorse the product. The FTC alleged that Lord & Taylor deceived customers by paying “fashion influencers” and a publication to promote the new collection, but the endorsements did not feature any disclosures about the payment. “The enforcement action demonstrates the pitfalls awaiting companies that seek to attract online buzz without a thorough understanding of how social media marketing can lead to charges of unfair or deceptive trade practices,” the authors observe. The article is the latest installment of Ms. Callahan’s regular Privacy and Information Governance (PIG) Tales column in the Los Angeles and San Francisco Daily Journal.
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