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Note:This website is where you can find advertising law information based on archived news briefs from past issues of Advertising Compliance Service. These archived advertising law-related news briefs were published in Advertising Compliance Service in November 2004.

 

 

 

 


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NASCAR HARD LIQUOR ADS IN 2005 WILL COMPLY WITH DISTILLED SPIRITS COUNCIL'S ADVERTISING CODE

NASCAR recently announced that distilled spirits products will be a new category for sponsorship in the sport beginning in the 2005 season. "We felt the time was right to allow distilled spirits companies into NASCAR." So said NASCAR president Mike Helton. "Attitudes have changed, and spirits companies have a long record of responsible advertising.

"Any spirits company involved in NASCAR will have marketing campaigns strongly grounded in responsibility and will follow advertising and marketing guidelines set by NASCAR that are consistent with the Distilled Spirits Council's advertising code," he said.

(NASCAR Press Release, November 10, 2004.)

FDA CHIEF COUNSEL RESIGNS

Acting Food and Drug Administration (FDA) Commissioner Dr. Lester M. Crawford today issued the following statement on the departure of Chief Counsel Dan Troy:

Daniel E. Troy, Associate General Counsel/Chief Counsel of the Food & Drug Division of the Department's Office of the General Counsel, has resigned. Troy was FDA's senior legal advisor since his appointment in August 2001. His resignation is effective November 28, 2004.

General Counsel Alex Azar named Jerry Masoudi, the current Deputy Associate General Counsel of the Food and Drug Division, as Acting Associate General Counsel/Chief Counsel of the Food and Drug Division of the Office of the General Counsel until a permanent replacement is appointed.

(Statement of Dr. Lester M. Crawford, Acting Commissioner of Food and Drugs on the Resignation of Daniel E. Troy, November 16, 2004.)

FTC CHARGES DEBT NEGOTIATION COMPANY WITH DEFRAUDING DEBT-BURDENED CONSUMERS

An operation billing itself as a debt negotiation company that promised to reduce consumers' debt, negotiate with creditors, and stop harassment from debt collectors in exchange for various fees instead pocketed the fees and plunged consumers deeper into debt, according to FTC. FTC charged that Better Budget Financial Services (BBFS) and its principals, John Colon, Jr. and Julie Fabrizio-Colon, defrauded consumers out of hundreds or thousands of dollars each, causing many to be sued by their creditors and forcing others into bankruptcy.

FTC has asked the court to award consumer redress to the victims of this alleged scam. On November 3, 2004, the court entered a temporary restraining order halting defendants' allegedly illegal business practices, freezing their assets, and appointing a temporary receiver pending a preliminary injunction hearing.

According to FTC, BBFS has advertised its services through Internet advertising and on its websites since at least August 2000. Defendants' websites, www.betterbudget.net and www.termidebt.net, claim that BBFS can negotiate with consumers' creditors to reduce their debt by 50%. Consumers who contact the defendants are promised that the defendants will negotiate with consumers' creditors for a non-refundable retainer fee, monthly administrative fees of $29.95 to $39.95, and 25% of any savings realized by a debt settlement. According to FTC, consumers typically paid the defendants hundreds or even thousands of dollars in fees.

NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.

(FTC v. Better Budget Financial Services, Inc., John Colon, Jr., and Julie Frabrizio-Colon, United States District Court, District of Massachusetts, FTC File No.: 042 3140, Civ. No. 04-12326 (WG4), November 15, 2004.)

CROSS-BORDER COPS CRACK DOWN ON BOGUS ADVANCE-FEE LOANS, ADVANCE-FEE CREDIT CARD SCHEMES

U.S. and Canadian law enforcers have joined forces to target an alleged scam that affects millions of consumers a year, bilking each of them out of hundreds of dollars or more, for loans they never get. According to FTC, the "loans" are promoted by Ontario-based telemarketers who target U.S. citizens by running ads in U.S. newspapers that they pay for with stolen or compromised credit cards.

The three-prong initiative, advanced by the Toronto Strategic Partnership, a group of law enforcement agencies in the U.S. and Canada that shares information and collaborates to combat cross-border fraud, involves law enforcement cooperation, an alert to consumers, warning them about these scams, and an effort to enlist newspapers across the country to check out questionable ads with law enforcers before running them. FTC also announced an advance-fee credit card case developed through work with the Partnership. Since the Partnership was created in 2000, it has worked to bring 16 FTC cases and over 380 Canadian criminal charges.

(FTC Release, November 16, 2004.)

ELECTRONIC PAYMENT PROCESSORS PAY $1.5 MILLION IN REDRESS

First American Payment Processing, Inc., two related corporations, and their principals are banned from processing any payments for outbound telemarketers as part of a settlement with FTC. FTC had charged defendants with assisting fraudulent telemarketers by electronically debiting consumers' bank accounts in violation of the Telemarketing Sales Rule (TSR) and the FTC Act. The settlement bars defendants from engaging in the types of practices alleged in the complaint and requires them to pay redress in the amount of $1,580,739.

NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Stipulated final orders have the force of law when signed by the judge.

(First American Payment Processing, Inc., et al., FTC File No. 032 3261, Civil Action No. CV 04-0074 PHX SRB, November 3, 2004.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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