address in2014. for advertisersandagenciestothinkabout and and discusswhathappened, andoffersuggestions and promotionsin2013. Here, ourlawyersexplain aspect ofthelawrelatingtoadvertising, marketing There weresignificantchangesinalmostevery Davis &Gilbert LLP 2014
2013 MARKETING&PROMOTIONS ADVERTISING, 1740Broadway, New York, NY10019T: 212.468.4800 www.dglaw.com 2014 T LOOKING O Children’s Advertising
SAG: Commercials 2014 Native Advertising First Amendment 2013 FTC andState Environmental Entertainment Sweepstakes AHEAD Social Media & Gambling Regulatory: Contract Ad Tech Authors Privacy Mobile NAD FDA
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Page 2 discussed above,andalsomaybecovered bythenewMobilePrinciples. Many oftheseopportunitiesraiseprivacyanddatacollection issuessimilartothose sophisticated advertisingopportunitiesonmobiledevices havebecomeavailable. As mobiledevicesandsoftware haveevolved,avarietyofnewadvertisingunitsand Principles totheMobileEnvironment (the“MobilePrinciples”). documents includingtheDigitalAdvertisingAlliance’s ApplicationofSelf-Regulatory begun toimplicateprivacylawsandissuesaddressed in2013bynewguidance tactics suchasthecollectionofgeo-locateddatathrough linkeddeviceshave concerted actionhasbeentakenyetwithrespect ofThings,”but tothe“Internet brought increased ofThings.”No attentiontonativeadvertisingandthe“Internet Intersections betweencontentandadsdigitalreal realms also consumer datathrough previously unexplored pathways. data” alsointroduced furthercomplexities,as newtechnologiescollectandtransmit specifications and requirements). Connectionsbetweenprogrammatic adsand“big valves toaddress excessbuyingandtobetter ensure buysmeetadvertiser ( buying orselling,presented newissuesinconnection withbothspecificmechanics Programmatic advertising,includingreal timebiddingandotheralgorithm-based relationships betweenadvertisingmodes,technologiesandplatforms. year focusedontheexpansionofdigitaladvertisingecosystemandnew technologies beingusedandtheissuestheypresent. Inparticular, discussionlast tools, andthere wasanexponentialincrease inthecomplexityandvarietyof During 2013,asinrecent years,theadvertising industryexplored newtacticsand LEGAL ISSUES ANALYSIS OFIMPORTANT NEW TECHREQUIRES Ad Tech e.g. , pixelplacement)andgeneraloperation( >> Richard S. Eisert and Celia R. Muller e.g. , buildinginappropriate safety likely willinclude: Key issuesandthemes 2014 T LOOKING data andtargetingmechanisms. data along withnewkindsoftools, continue todevelopandexpand, advertising activities, will andintegrated sophisticated including morediverse, The mobileenvironment, move intoanenforcementphase. phase,”“implementation will beeninan thus far have The MobilePrinciples, which will raisenovelprivacy issues. data New methodsofgathering issues. contractual andregulatory assessment toprevent willrequirein-depth legal that New buyingandsellingmodes O
20142013 AHEAD Page 3 advertised tochildren. company specificnutrition criteria)forthetypesofproducts thatmaybe advertisers, implementingauniformnutritioncriteria(in contrastto regulatory organizationrepresenting themajority ofchildren’s food the Children’s FoodandBeverageAdvertising Initiative(CFBAI),aself- Food advertisingtochildren alsoremained atoppriorityin2013,with to buyproducts (includingin connectionwithin-apppurchases). a product’s performance ( disclosing whatisnotincluded intheinitialpurchase), misledchildren about disclosures inlanguagethatchildren couldunderstand(particularlywhen products thatposedsafetyriskstochildren, failedtomakematerial CARU alsobrought severalactionsagainstadvertisements whichfeatured online privacyprotection continuedtobean important priorityforCARU, Advertising (theCARUGuidelines)toreflect the revised COPPA. While children’s advertising,updateditsSelf-RegulatoryProgram forChildren’s The Children’s AdvertisingReviewUnit(CARU),theself-regulatory armof information from child-directed services. revised COPPA iftheyhaveactualknowledgeare collectingpersonal such asadnetworksandplug-ins,canalsobeheldliableunderthe connection withbehavioraltargeting)through theirservices.Third parties, apps strictlyliableforthecollectionofpersonalinformation(includingin into effect onJuly1standmadeoperatorsofchild-directed sitesand to theChildren’s OnlinePrivacyProtection Rule(COPPA), whichwent daunting wascomplyingwiththeFederalTrade Commission’s amendments Children’s advertisingfacedanumberofchallengesin2013,butthemost NOT CHILD’SPLAY AND CFBAI: COPPA, CARU Children’s Advertising e.g. >> , depictingtoymovement)andurgedchildren
Allison Fitzpatrick
agencies willneedto: Children’s advertisersand 2014 T LOOKING updated uniformnutritioncriteria.updated be marketedtochildrenundertheCFBAI’s member’s to productsareevenallowed CFBAI shouldchecktoseewhetherthe whorepresentsamemberofthe Anyone children aboutaproduct’s performance. children topurchaseproductsormislead their advertisementdoesnotpressure forchildrenand areappropriate featured the child-directedaudience, theproducts theirdisclosuresthat areunderstandableto In particular, advertisersshouldmakesure compliance priortoadvertisingchildren. Guidelinestoensure Review theCARU effect. withthesethird partiestothat agreements targeting childrenandshouldimplement arenotbehaviorally their sitesorapps adnetworksorother third partieson any particular, advertisersshouldensurethat compliance withtherevisedCOPPA. In Review privacy practicestoensure O
AHEAD 20142013 Page 4 music contentisconsumed. with iTunes Radio.AsNetflixhas done withvideo,theseserviceshavealtered how such asPandoraandtheentry intothestreaming marketplace byAppleitself, The declinenodoubtisaresult ofthematurationmusicstreaming services since theintroduction oftheiTunes Store backin2003,digitalmusicsalesdropped. sharing, sawitspaiddigitalmusicbusinessbegintofalter. In2013, forthefirsttime The musicindustry, finally stabilizingafteryearsofupheavalcausedbyillegalfile model fordeliveringvideoprogramming toviewers. affiliate fee revenue streams ofprogrammers, fundamentallyalteringthebusiness Court. Together, thesedevelopmentsthreaten toerode both theadvertisingand to itssubscribers’connecteddevices;thedisputenow isbefore theU.S.Supreme to pullfree over-the-air broadcast signalswithoutauthorization andtransmitthem in haltingthelaunchofBarryDiller’s Aereo service,whichuses miniature antennas programming onanydevice.Similarly, broadcasters sofarhavebeenunsuccessful remove thecommercials withasimplepushofbuttonandthenwatch that its Hopperservice,whichenablesuserstomassrecord primetimeprogramming, to consumers.ThenetworksunsuccessfullysoughtenjoinDISHfrom offering technological changesthatare reshaping howtelevisionprogramming isdelivered On thedistributionfront, networkscontinuedtofightanuphillbattleagainst binge viewingandalteringtheverynotionof“season.” of programming atonceacceleratedaseachangeinviewinghabits,encouraging Perhaps more significantly, Netflix’s practiceof releasinganentire season’s worth as sophisticatedandcompellinganythingonHBOoranybroadcast network. “House ofCards,” Netflixshoweditcouldproduce award-winning programming The televisionindustrydealtwithchallengesseeminglyoneveryfront. With driven bytechnologicalinnovation. The yearinentertainmentwasmarkedbyfundamentalchangesaudiencehabits ANDAGENCIES ADVERTISERS REQUIRES ADAPTATION BY CHANGES INAUDIENCEHABITS, TECHNOLOGY, DRIVING Entertainment >> James L. Johnston 2014 T LOOKING music streamingservices. inherentin and preferencedata ofuserlocation,advantage taste opportunities areavailable, taking more significantadvertising sales tomusicstreaming, where theshiftfrommusic Leveraging DVR world. with consumersinanon-demand identifying newwaystoconnect traditional channels, while in messages communicate event programmingto onsportsand live Capitalizing subscribers. to unique relationship oftheir takeadvantage that within subscriptionvideoservices marketingopportunities Creating changing habitsby: will need toadaptthese Advertisers andagencies O
20142013 AHEAD Page 5 marketing claims. as theFTC’s new“defacto”banonunqualifiedgeneralenvironmental such likely willbetheyearregulatory to“new”concerns, scrutinyturns long establishedprinciplesofgreen marketing,meaningthat2014 enforcement actions.Inotherwords, regulators used2013to enforce by theFTCandthatalsohadbeensubjectofmany previous – suchasdegradabilityforwhichguidancelonghad been provided last year’s regulatory scrutinyinvolvedmore “traditional”green claims guidance aboutenvironmental issuesneverbefore covered, muchof Interestingly, althoughtheupdatedGreen Guides containalotof industry self-regulatory actionsoverthelastyear. generalinvestigations,privatelitigationsand of manystateattorney environmental marketingclaims.Green claimsalsowere thefocus actions basedonwhatitconsidered tobemisleadingordeceptive much ontheirradar. TheFTCalonesettled14separateenforcement message tothemarketplacethatgreen marketingpracticeswere very Regulators usedthefirstfullyearofnewGreen Guidestosenda of marketing. 2012, allcontributedtoenvironmental impact beinganincreasing focus Federal Trade Commission(FTC)ofitsupdatedGreen GuidesinOctober of “once-in-a-lifetime”weatherevents,aswelltherelease bythe Factors suchasanimproving economyandaseeminglyendlessseries were againonthemindsofconsumers,advertisersandregulators. years ofdiminishedstandingduringtheGreat Recession,green issues Environmental marketingmadeasignificantcomebackin2013.After THIS YEAR TO TOP FTC’SINTEREST “NEW” CONCERNSLIKELY Environmental >> Ronald R. Urbach and Matthew E. Smith will needto: Advertisers andagencies 2014 T LOOKING environmental claim shouldbemade. when determininghow, orevenif, acertain ( consider theintendedmediaanditslimitations FTC. Therefore, itis importanttocarefully environmental claim isnotacceptable tothe referencing awebsitewithdetailsaboutthe to beproperlyunderstood, andmerely information a lotofqualifyingandexplanatory greenclaimsKeep inmindthat oftenrequire claim). unqualified generalenvironmentalbenefit cannotbesupported( names –that of thirdpartysealsoruse “green” trade claims –including throughitsvisuals, use of theadsoastoensureitisnotmaking critical toconsidertheoverallnetimpression withgreenmarketing,Understand that itis different claims bequalified. mighthave to closely withcounselearly toascertainhow of renewableenergies;bespecificandwork reductions incarbonemissionsor theuse about “new” environmentalissues, including cautious whenmakingmarketingclaims andbeespecially scrutiny Expect regulatory e.g. O , socialmedia, mobilemarketing) AHEAD 20142013
e.g. , an Page 6 supplement forconditionsthat causedtheproduct to be adrug. radiation.” TheFDAfoundthat AMARC’s “Like”impermissibly promoted itsdietary supplement “enabledmeto keepcanceratbaywithouttheuseofchemoand adopting thatstatement.In AMARC’s case,theconsumersaid thatAMARC’s dietary determined thatwhenacompany“Likes”consumer’s statement,it’s thesameas media sitesandsearch engines.InaWarning LettertoAMARCEnterprises,theFDA Over thepastyear, theFDA evenexpandeditsenforcement presence tosocial though thepress release accompanyingthepitchletterincludedriskinformation. Therapeutics forallegedlyfailingtoincluderiskinformation inapitchletter, even Act. ThisactionechoestheFDA’s enforcement actionagainstCornerstone and madethedistributionofdrugaviolation Food,Drug,andCosmetic letter, the FDAdeterminedthatthestatementscauseddrugtobemisbranded “Fast Money”andpromoted Juxtapidforunapproved off-label uses.Inawarning off-label uses.Latelastyear, theCEOofAegerionPharmaceuticalsappeared on The FDAalsocrackeddownonthedistributionofpharmaceuticalsmarketedfor promoting certaindrugsandfailingtoreport adverseeventdata. alleged,includedunlawfully for $3 billionviolationsthat,thegovernment These actionsrecall theDOJ’s settlementonbehalfoftheFDAwithGlaxoSmithKline what theFDAcontendedwere misleadingmarketingmessagestargetingphysicians. anti-psychotic drug,foroff-label uses.Janssenhadreceived repeated over warnings billion dollarfines, respectively, inconnectionwiththepromotion ofRisperdal, an Janssen PharmaceuticalsandJohnson&were hitwithmultimillionand approach. adverse eventreporting, socialmediaand statementshighlightthischanging advertising agenciesservicingthissector. Actionsoverthepastyearrelating to against pharmaceuticalcompaniescontinuestoimpactpublicrelations and The increasingly conservativestanceoftheFoodandDrugAdministration(FDA) AND AGENCIES PHARMACEUTICAL COMPANIES FDA POSESCHALLENGESFOR INCREASINGLY CONSERVATIVE FDA >> Stuart LeeFriedel , Brooke ErdosSinger , and Rohini C. Gokhale 2014 T LOOKING appropriately. adverseeventsarereported that procedures inplacetoensure policies and should have agreement, thentheagency under theagency-client required toreportadverseevents If anadvertiseroragency is with pharmaceuticalcompanies. Carefully reviewingagreements FDA enforcementactions. do not “like” mayinvite poststhat they media policiestoensurethat presence anddraftingsocial companies’ socialmedia pharmaceutical Managing off-label uses. inadvertently promotedrugsfor usesanddonot approved promotedrugs for materials speeches andmarketing ensure allpromotionalmaterials, pharmaceutical companiesto Working inconjunctionwith stance willrequire: increasingly conservative Adapting totheFDA’s O 20142013 AHEAD Page 7 statements on legalissues. had wonandthat onlysuperficiallyandsporadically includedthelawyer’s political blog thatconsistedpredominantly ofself-promotional postsaboutcasesthelawyer Supreme Courtrefused to grantheightenedFirstAmendmentprotection toalawyer’s “inextricably intertwined”with booksbyLanceArmstrong. Bycontrast,theVirginia gave heightenedFirstAmendment protection topromotional materialsthatwere respect tohybrid commercial/non-commercialWith DistrictCourt speech,aCalifornia insurers, and,therefore, comportedwiththeFirstAmendment. was reasonably related tothestate’s interest in promoting informedrate-settingby court heldthatthelawcompelleddisclosure ofpurely factualinformationonly, and benefits managersto report pharmacypricinginformationtotheirinsurer clients.The Supremelaw requiringtoken, theCalifornia Courtuphelda prescription and, therefore, didnotviolatethemeatproducers’ free speechrights.Bythesame and wasreasonably related totheUSDA’s interest inpreventing consumerdeception, the regulation compelleddisclosure offactualanduncontroversial informationonly, to belabeledwithdetailedinformationonitsgeographicorigin.Thecourtheldthat preliminarily upheldaU.S.DepartmentofAgriculture (USDA)regulation requiring meat In thearea ofcompelledcommercial speech,theWashington, D.C.DistrictCourt consume underthelaw. over age21,from receiving truthfulinformationaboutproducts theywere allowedto plaintiff newspapersbecauseitprohibited theirreaders, themajorityofwhomwere student publications.Thecourtruledthattheregulation wasoverbroad astothe underage andbingedrinkingbystudents,bannedalcoholadvertisementsincollege Circuit regulation CourtofAppealsinvalidatedaVirginia that,withtheaimofreducing For example,inthearea oflegalrestrictions onnon-misleadingadvertising,theFourth >> >> >> areas relating tocommercial speech: In 2013,stateandfederalcourtsaround thecountrymadesignificantrulingsinthree TO COMMERCIAL SPEECH THREE AREASRELATING SIGNIFICANT RULINGSIN First Amendment >> >> >> heightened protections ofnon-commercial speech. giving speechthatintertwinescommercial andnon-commercial elementsthe ideological nature; and upholding lawsthatcompelledcommercial speechofapurely factualandnon- invalidating lawsthatrestricted non-misleadingadvertising; >> Ashima A.Dayal developments include: Commercial speech 2014 T LOOKING these communications. Amendment protectionfor to secure heightenedFirst toattempt communications websites andother non-commercial speechintotheir will injectmorepoliticalandother Advertisers andotherbusinesses a fairmarketplace. consumer deceptionandensuring aimofpreventing with thestated to disclose factualinformation, compellingbusinesses more laws willpass Emboldened legislatures purpose. regulatory toachievetheir necessary are moreextensivethan that laws will readilyinvalidate truthful commercialspeechand skeptical ofrestrictionson Courts willbeincreasingly O
20142013 AHEAD Page 8 TCPA consentrequirements. per violation.There already hasbeenanumberofclassactionsundertheprior telemarketers –withthepotentialofsignificantdamages awards ofupto$1,500 Of criticalimportanceisthefactthatTCPA permitsprivatelawsuitsagainst text message,includingtheabovedisclosures, toobtaintheconsumer’s consent. off-line offer oropts-inbysendingatext,themarketerwillneedtosendseparate signed) consentoutlinedabove.Therefore, evenwhere aconsumer responds toan on future offers”), marketersnowwillneedtoobtainthepriorexpress written(and for 50%off yournextpurchase atABCStore andtoperiodically receive information messages toconsumers( While asimpleopt-inwasallthatpreviously required tosendcommercial text >> >> >> sufficient toshowthat: (essentially anycomputer).Specifically, theconsentmustbeinwriting,signedand commercial SMSorMMStexttoanywireless numberusinganautodialer Protection Act(TCPA) torequire “priorexpress writtenconsent”in order tosenda Communications Commission(FCC)toitsrulesundertheTelephone Consumer The biggestnewsinmobilefor2013wastherevisions bytheFederal TAKE CENTER STAGE WRITTEN CONSENT”RULES FCC’S “PRIOREXPRESS Mobile >> >> >> purchasing anygoodorservice. there wasnorequirement tosignitasacondition–directly orindirectly –of these callsatatelephonenumbertheconsumerdesignated;and the consumerwhoreceived thisinformation agreed unambiguouslytoreceive messages byoronbehalfofaspecificseller; of providing therequested consent, the consumerreceived “clearandconspicuous disclosure” oftheconsequences >> Joseph J. Lewczak e.g. , “Text ‘coupon’to12345receive acoupongood i.e. , thattheconsumerwillreceive future text Some thingsto consider: 2014 T LOOKING test case. in compliance. Donotbea ifnot and revise immediately are taking toobtainconsent and their marketingagencies should reviewthestepsthey into effect inOctober2013) (thenewrulewent so already notdone have Advertisers that with therevisedruleiscritical. class action, strictcompliance Given theriskofpotential consent.to obtain appropriate marketerswhofailed against inearly2014 action lawsuits Expect toseeanumberofclass O
20142013 AHEAD Page 9 designate contentasadvertising whenpromoting products withinitspublication. Accordingly, theNADrecommended thatthepublisher clearlyandconspicuously an editorialcontextthanto recommendations madeinanadvertisingcontext. consumers mayattachdifferent weightorsignificanceto recommendations madein characterize thearticleasanadvertisement.TheNAD disagreed, notingthat branded products wasobvioustoconsumersandthatthere wasnoneed to publisher arguedthattherelationship between promoted thebenefitsofcertainShape-brandedwaterflavoring products. The instance, inDecember2013,theNADreviewed anarticlein Several NADcasesfrom 2013alsoaddressed theissueofnativeadvertising.For advertisements. referencealternative, theuseoflashinsertsinmainmessage advertisers eitherdiscontinuetheuseofartificiallash enhancements or, inthe performance claimsintheadvertisement.Thus,NADrecommended thatboth conveyed bytheadvertisementthatphotographwasademonstrationof styled withlashinserts”wasinsufficient becauseitcontradictedthemessage each ofthesecases,theNADconcludedthatusedisclosure “lashes the volumethatcouldbeachievedbyapplyingmascaraalone.Additionally, in wearing lashinsertswasliterallyfalsebecauseitnotanaccuratedepictionof mascara. Ineachcase,theNADdeterminedthatphotographofmodel models usedlashinsertstoartificiallyenhancetheperformanceofadvertised monitoring program, theNADexaminedtwo mascaraadvertisementsinwhich by apairofNADdecisionsissuedinSeptember2013.Aspartitsroutine Cosmetics advertisementscameunderincreased scrutinylastyear, asevidenced products were themostcommon. prior years,challengesinvolvingdietarysupplementsandcosmeticsbeauty were filedwiththeNADlastyear, thesamenumberthatwere filedin2012.As Council ofBetterBusinessBureaus (theNAD).Seventy-onecompetitorchallenges 2013 proved tobeanotherbusyyearfortheNationalAdvertisingDivisionof NAD’S 2013 RULINGS TO RESPOND TOTHE MUCH TODOIN2014 NAD >> Ronald R. Urbach and Aaron Taylor Shape magazineandtheShape- Shape magazinethat will needtorespond to Advertisers andagencies 2014 T LOOKING content. between advertisingandeditorial clearCreating distinctions advertisement. conveyedbyan message cannot contradictthemain adisclosureRecognizing that performance. actualproduct exaggerate donot product demonstrations and/or images Ensuring that these NADdecisionsby: O
20142013 AHEAD Page 10 practices inoraffecting commerce. enforcement ofSection5theFTCActforanyunfair ordeceptiveacts guidance, itlikelyalsowillcontinue tomonitornativeadvertisingthrough engage innativeadvertisingpractices.AlthoughtheFTC mayissuefurther disclosure theFTCshoulddemandfrom advertisersandpublishersthat industry, expertsinadiscussionoverwhatlevelof academicandgovernment In December, theFTCheld aworkshoponnativeadvertisingthatfacilitated results thatare organic through theuseofclearandconspicuous disclosures. should delineatebetweensearch results thatare paidplacementsandsearch as well.TheFTCsentletterstothemajorsearch enginesstatingthatthey The FederalTrade Commission (FTC)hasbeguntofocusonnativeadvertising advertising. Advertising Bureau bothhaveissuedguidelines ontheuseofnative this time,theAmericanSocietyofMagazineEditorsandInteractive applicable lawsandconsumerexpectationsofthebrandorpublication.Since advertisers andpublishersthatnativeadvertisingneedstobemindfulofboth magazine’s values.Theincidenthas servedasacautionarytaleto journalistic from readers becausetheChurch’s messageseemedtorun countertothe Scientology that,althoughproperly disclosedassponsored, created anoutcry In early2013, solutions. recently statedthatnearlyninetypercent ofitsmembersare providing native apply tonativeadvertising.ThePresident oftheOnlinePublishersAssociation and regulatory discussionaround howtraditionaladvertisinglawprinciples digital nativecontentbecameahottopic,aswellthesubjectofindustry Native advertisinghasbeenaround fordecadesinvariousforms,but2013, ISSUES TOP NATIVE ADVERTISING CONSUMER EXPECTATIONS: IP, DISCLOSURESAND Native Advertising The Atlantic >> publishedanarticlesponsored bytheChurch of Vejay G. Lalla and Anne DiGiovanni 2014 T LOOKING messaging. their oradvertisers’corebrand audience expectsandconsistentwith the content isconsistentwithwhat advertisingtomakesure native should treadcarefullywhentakingon Media companiesandpublishers publishers andmedia. disclosure incontractswith obligation enforcement, including byplacinga of anditshistory regulations accordance withcurrentFTC includes properdisclosures in advertising native any ensure that Agencies andadvertisersshould reviewed closely. other rights, socampaignsshouldbe third partyintellectualpropertyor advertising content)doesnotinfringe content(includingensuring any native bear theburdenofresponsibilityfor Agencies andadvertiserstypically dominate include: Issues likelyto O
2014 AHEAD 2013 Page 11 any consensusinitsDNTefforts. the MobileEnvironment, Web whiletheWorld Consortiumfailedtoachieve Wide Digital AdvertisingAlliancereleased itsApplicationofSelf-RegulatoryPrinciplesto Self-regulatory efforts ininteractiveadvertisinghadsuccessesandfailures. The new legislation. current privacyandsecurityenforcement activities,butmayspurCongress toenact standards. ShouldWyndhamprevail, thiswouldsignificantlyundercut theFTC’s (FTC), arguingthattheFTCdoesnothaveauthoritytoestablishdatasecurity Wyndham HotelscontinuedwithitslawsuittheFederalTrade Commission signals transmittedbywebbrowsers. and anotherrequiring awebsitetodisclosehow itresponds to“donottrack”(DNT) with therightofminorsto“erase”contenttheyhavepostedsocialmediasites regulation. enactedapairofgroundbreaking California privacylaws,onedealing 2013 sawkeydevelopmentsinprivacythrough legislation,litigationandself- use longhavebeenapartoftheindustry, albeitformuchmore benignpurposes. the marketingandcommunicationsindustry, where extensivedatacollectionand andcitizenintheworld.Themattercastanegativelighton business, government the Edward Snowdenaffair. Thecollection anduseofdataisonthemindsevery from decisionmakers.Nonetheless,theseissuesskyrocketed withtherevelations in attention Privacy anddatasecurityissuesdidnotneedanyhelpin2013garnering 2014’S BIG PRIVACY ISSUES INCREASED LITIGATION ARE STATE LEGISLATION AND EU REGULATIONS, Privacy >> Gary A.Kibel Gary 2014 T LOOKING distribution of “big data.” involving thecollection, useand Increased sensitivitytoissues these laws. of many Congress toupdate laws, whichmayfurtherpush decades-old privacy/technology modern technologiesand involving Increased litigation level. state More privacy the at legislation intheEU. companies operating asignificantimpact onU.S.have European Union(EU), whichcould fromthe New regulations to follow: Some keyissues O
20142013 AHEAD
Page 12 juice actually prevented heartdisease. reasonable consumerswouldnotinterpret theadvertisingtomeanthatPOM’s concluded thatthechallengedclaimswere misleadingdespitethefactthatmost proof oftheseclaims.Applyingthis“significantminority”standard, the FTC that drinkingPOMjuicewouldprevent heartdiseaseand/orthatthere was clinical campaign, atleasta“significantminority”of reasonable consumerswouldbelieve the FTC foundthat,basedontheoverall“netimpression” ofthePOMadvertising standard fordeterminingwhetheranadvertisingclaimismisleading.Specifically, A 2013FTCrulingagainstjuicecompanyPOMWonderful clarifiedtheFTC’s available toconsumerseffectively blockordisputesuchcharges. charges. Thecommentsalsoexpressed about thelimitedmechanisms concerns for unwantedservicesaswelltheinadequatedisclosure ofthesethird party practice involvingtheplacementofunauthorizedchargesonconsumermobilebills with theFTCaddressing consumercomplaints about“mobilecramming”–a generalfiledcomments On theprivacyside,dozensofstateandterritoryattorneys and that are usedbyapplicationdevelopers. guidelines designedtoimprove thedisclosures thatappearonmobileplatforms implement effective disclosures. TheFTCalsoannouncednewmobileprivacy may encounteradvertisementsandclarifiedmethodsbywhichadvertiserscan must beclearandconspicuousonalldevicesplatformswhere consumers forms ofnewmedia.Moreover, theupdatedguideemphasizedthatdisclosures FTC’s theUseofEndorsements andTestimonials GuidesConcerning invarious guide toprovide advertiserswithmore specificinstructionsforcomplyingwiththe and guidelinesin2013.Specifically, theFTCupdatedits“.comDisclosures” The FederalTrade Commission(FTC)madeanumberofchangestoitsregulations YEAR’S TO-DOLIST POLICIES HEADTHENEW DISCLOSURES ANDPRIVACY >> FTCandState Regulatory: Ronald R. Urbach , Aaron Taylor
and Paavana L. Kumar Advertisers andagencies 2014 T LOOKING believe tobetrue. reasonable consumerswould only a “significant minority” of that even thoseinterpretations oftheirclaimsinterpretations – responsible forallreasonable advertisersare Recognizing that and standardizedprivacy policies. implement effectivedisclosures developers todevelopand Working withapplication platforms. on mobileandsocialmedia and truthfuldisclosures aremade clear,Ensuring that conspicuous regulatory approaches by: will needtoadaptthese O
20142013 AHEAD Page 13 a “Commercial” canbeanunwelcomesurprise. performer appearinginanonline videothattheadvertiserwasnotconsidering a claimfrom SAG-AFTRAthatscalewagesare owedforeach principal parameters maybemore usefulforplanningproduction budgets,asreceiving in consideringwhata“Commercial” is,havingclearly-defined ontheInternet by theCommercials Contract.Althoughitmayseemusefultohaveflexibility advertisers andagenciesmayinterpret whattypesofproductions are covered new media“Commercial,” leavingintactthecurrent ambiguityinhow Notably, theMoAdidnotprovide clarificationonthe definitionofanInternet/ a copyoftheproduced commercial withinsixtydaysoffirstuse. agency notifytheunionthatitisapplyingwaiverand provide theunionwith and hiddencamerafootage.Itisamaterialconditionthattheadvertiseror staged forpurposesofproducing acommercial, “man-on-the-street” segments AFTRA Commercials Contractcanbecomeinapplicable toliveeventsnot commercial. Whenanadvertiseroragencyemploysthiswaiver, theSAG- as thosepeopleare neitherscriptedtospeak anydialoguenor“cast”forthe public withoutthembeingcovered undertheCommercials Contract,aslong signatory advertisersandagenciesnowcanfilmtheactivitiesofpeoplein andMadeforNewMediaCommercialsfor MadeInternet underwhich Key amongtheupdateswasasideletterforanExperimentalCoverageWaiver operative forthree years. in April2013,resulting inaMemorandumof Agreement (MoA)thatwillbe for talentappearingincommercial advertisingproductions, wasrenegotiated The SAG-AFTRACommercials wagesandbenefits Contract,which governs MEDIA “COMMERCIALS” REMAIN ABOUTINTERNET/NEW REQUIREMENT, ANDQUESTIONS CONTRACT HASSTRINGENTNOTICE RENEGOTIATED COMMERCIALS >> SAG: CommercialsContract Howard R.Howard Weingrad and Anne DiGiovanni
2014 T LOOKING Commercials Contract. “Commercial” is subjecttothe that whethercontentisan Internet evaluating commercial, amongotherfactors, when it couldrunontelevisionasa current format in thevideoandwhetherinits identification whether thereisatitlecardorother sponsor withthebrand,action topurchaseorengage entertaining, whetheritcontainsacallto purposeofsellingaproductversus primary whether onlineadvertisingcontenthasthe shouldconsider Advertisers andagencies Commercials Contract. contentbesubjecttothe that having during thepromotionperiodonly–without user-generated submissionsonline–but other content, canpostthe advertisersnow consumers submituser-generated videosor When conductingapromotioninwhich submitted totheunion. notbeen and theproducedcommercialhave commercial intheeventnoticeofwaiver ina payments toallindividualsappearing toenforcescale advertisers andagencies pursue SAG-AFTRA willaggressively consumers shouldnotbetakenlightly, as usereal payments forproductionsthat scale owing The noticerequirementtoavoid Issues ofnoteinclude: O
AHEAD 20142013 Page 14 guidance onhowtomakeappropriate disclosures onlineand inmobile. Commission (FTC)publishedanupdated“.comDisclosures” guidetoprovide media presence whilecomplyingwithregulatory guidelines,theFederalTrade Acknowledging thechallengesthatcompaniesfacein maintaining asocial purpose. just becauseitisavailableonlinedoesn’t meanitcanbeusedforany without permission.Morel wasawarded $1.2millionindamages.Remember, Presse hadinfringedonDanielMorel’s copyrightbydistributinghisphotos without authorization,whenajudgeruledthatGettyand AgenceFrance One lawsuitinparticularhighlightedthedangersofusing socialmediacontent without consent. that thesiteusedusers’profiles inits“Sponsored Stories”advertisements For example,Facebooksettledaclassactionlawsuitfor$20millionalleging Social mediaplatformsthemselveswere notimmunetochallengesin2013. that hadpostedorsolicitedfakereviews. willingness totakeactionagainstfakereviews bysuingseveralcompanies penalties. Consumer-review websitessuchasYelp alsodemonstratedtheir investigation resulted insettlementswith19 companies andover$350,000in hundreds offalseonlineprofiles topostphony reviews. Theyear-long used advancedIPspoofingtechniquestohidetheiridentitiesandsetup into fakereviews onconsumer-review websites,determiningthatcompanies Generalconcludedaninvestigation In anotablestateaction,theNYAttorney faced stateandcivilactionsfortheirconduct. advertising, andbloggerconsumerendorsements,certaincompanies media. Asuseofsocialplatformsexpandedtoengageinstorytelling,native Last yearproved tobeanenlighteningyearfor companiesnavigatingsocial SOCIAL MEDIA PLATFORMS AVOIDING MISSTEPSON Vejay G. Lalla Social Media , and >> Rohini C. Gokhale Joseph J. Lewczak , Gary A.Kibel Gary , Allison Fitzpatrick , Advertisers utilizingsocialmedia 2014 T LOOKING significantly frompersonaluses. andcontent differ media services commercial usesofsocial Recognize that hashtags. or content viasocialmediaplatforms posting orotherwiseusingconsumer Respect therightsofthirdpartieswhen company. topostonbehalfofthe representatives media policiesonlyallow “authorized” developments, including ensuringsocial law for recentadvertisingandemployment socialmediapolicies Review andupdate appear. requireddisclosures toverifythat approved postspre- requiring endorserstohave hyperlinks orbehindbuttons. Consider be clear andprominent, notburiedin social mediaplatforms. Disclosures should disclosuresare makingtheappropriate on other endorsersandmakesure policies forbloggers, spokespeopleand writtensocialmedia Develop orupdate should takethefollowingsteps: O
AHEAD 20142013 Page 15 legitimate activities. sweepstakes cafésfrequently are draftedbroadly andmaysuckinothermore enforcement actionsagainst operators.Keepinmindthatthelawsprohibiting Internet prohibiting orrestricting the activity, andFlorida, GeorgiaandNewJerseypursuing Mississippi,NewYorkstates suchasCalifornia, andOhiopassingnewlaws sweepstakescafés,with On theflipside,statescontinuedtheirpursuitofInternet post authentic,highqualitycontenttotheirFacebooktimelines. Facebook statedthatitiskeepingthisguidelinetoensure thatpeoplecontinueto in a promotion byliking,sharingorpostingsomething on theirpersonaltimelines. Despite thesechanges,businessesstillare notpermitted toaskpeopletakepart >> >> >> on itsplatform.Giventhechanges,companiesnowcan: will enablemore businessestolaunchsweepstakes,contestsandotherpromotions create andadministerpromotions onFacebook. Facebookhopesthatthesechanges In addition,FacebookupdateditsPagetermstomakeiteasierforbusinesses purchase nolongerwillberequired tovoidVermont. games. Accordingly, businessesthatare structuringacontestthatrequires afeeor of skill-basedconteststorequire anentryfeeorotherconsiderationforintoskill On thepromotional front, Vermont joinedthemajorityofstatesinpermittingsponsors promotions industryperse,itishighlylikelythatmore stateswillfollowinthefuture. gamblingcompanieslocatedoffshore.Internet Althoughnotnecessarilyimpactingthe most oftheback-endoperationalaspectsbeingprovided byalready established Nevada andDelaware. Ofcourse,itislimitedtolicensedcasinosinthestate,with became thethirdgambling,following stateintheUnitedStatestopermitInternet 2013 wastheyearreins ongamblingbegantoloosenevenmore. NewJersey GAMBLING RESTRICTIONS TARGETED, ASSTATES LOOSEN CAFÉS CONTINUETOBE INTERNET SWEEPSTAKES Sweepstakes &Gambling >> >> >> utilize likesasavotingmechanism. collect entriesbyhavingusersmessagetheirPage;and collect entriesbyhavinguserspostontheirPageorcomment orlikeaPagepost; >> Joseph J. Lewczak 2014 T LOOKING complies withthelaw. business model/promotiontoensure it proposed to carefullyanalyzeany and/orillegalgambling.lottery Besure are present,consideration itisanillegal elements ofprize, chanceand ifallthree should beareminderthat andenforcementactions legislation café The Internetsweepstakes another. permissible oneday, maynotbeon frequently,updated maybe andwhat the site’s termsandconditions. They are social mediaplatform, besuretocheck Before runningapromotiononany unlicensed bythestate, itstillisillegal. states. theyaredoingis Ifwhat tosneakbackintothe opportunity totry gambling providersmayusethisasan activities. SomeunlicensedInternet and theaidingabettingofthose illegal gamblingactivitiesonallfronts, officials willnotcontinuetopursue enforcement law does notmeanthat seems tobecrumblingsomewhat, that Although theperceivedevilofgambling Consider thefollowing: O
20142013 AHEAD AUTHORS
Ashima A. Dayal Richard S. Eisert Allison Fitzpatrick Stuart Lee Friedel James L. Johnston Gary A. Kibel Partner Partner Partner Partner Partner Partner 212.468.4912 212.468.4863 212.468.4866 212.468.4818 212.468.4867 212.468.4918 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Vejay G. Lalla Joseph J. Lewczak Brooke Erdos Singer Ronald R. Urbach Howard R. Weingrad Anne DiGiovanni Partner Partner Partner Chairman Partner Associate 212.468.4975 212.468.4909 212.468.4940 212.468.4824 212.468.4829 212.468.4894 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Rohini C. Gokhale Paavana L. Kumar Celia R. Muller Matthew E. Smith Aaron Taylor Associate Associate Associate Associate Associate 212.468.4978 212.468.4988 212.468.4955 212.468.4804 212.468.4984 [email protected] [email protected] [email protected] [email protected] [email protected]
@2014 Davis & Gilbert Davis & Gilbert LLP 1740 Broadway, New York, NY 10019 T: 212.468.4800 www.dglaw.com Attorney Advertising 1461