social networking

On January 23, 2019, the UK’s Competition and Markets Authority (“CMA”) announced that it had secured undertakings from 16 social media influencers, including well-known names such as Ellie Goulding, Rosie Huntington-Whiteley and Rita Ora, that commit each influencer to increased transparency when they promote or endorse brands or services on social media on behalf of businesses.

The CMA stressed that applicable UK consumer law requires that it be made clear when posts are sponsored (i.e., paid or incentivized).  The CMA also disclosed that it has sent warning letters to other (unidentified) influencers and celebrities, and indicated it will continue to consider the role of social media platforms in this issue.

This enforcement action, together with the CMA’s recent success in court against secondary ticketing website Viagogo, and more recent threat to take Viagogo to court again, is evidence that consumer protection enforcement remains high on the CMA’s agenda.

Below, we summarise key elements of the undertakings in more detail, and also refer to further available UK regulatory guidance on how to advertise on social media.…

Continue Reading UK Consumer Protection Regulator (“CMA”) Extracts Undertakings from Social Media Influencers to Increase Transparency in Sponsored Posts

Path, a social networking mobile app, has agreed to enter into a settlement with the Federal Trade Commission (“FTC”) regarding charges that the company deceived consumers by collecting contact information from users’ mobile address books without notice and consent.  The agreement also resolves charges that the company violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting personal information from children under  13 years old without parental notice and consent.  Path did not admit any liability by entering into the consent decree, which is for settlement purposes only.

The FTC alleged that the Path application included an “Add Friends” feature that allowed users to make new connections within the app.  Users were given three options when using the “Add Friends” functionality:  “Find friends from your contacts,” “Find Friends from Facebook,” or “Invite friends to join Path by email or SMS.”  Regardless of which option was chosen, Path automatically collected and stored contact information from the address book on the user’s mobile phone.  The FTC argued that this practice was contrary to representations made in the company’s privacy policy that only certain technical information, such as IP address, browser type, and site activity information, was automatically collected from the user.  Under the settlement, Path agreed to implement a comprehensive privacy program and obtain biennial, independent privacy assessments for the next twenty years.
Continue Reading FTC Settles Deception, COPPA Charges Against Social Networking App Path