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Kelley Drye represents clients that face false advertising and unfair competition claims brought by the Federal Trade Commission (FTC) and state Attorneys General, as well as disputes between clients and their competitors. The firm also helps businesses and advertising agencies navigate through investigations launched by federal and state government agencies into perceived false or deceptive advertising, or illegal sales or marketing practices. No matter what the scope of federal or state actions you face, Kelley Drye has the experience to counsel and guide you through this challenging process swiftly so you can keep your focus on your customers and the success of your business.
The Kelley Drye team regularly represents clients in advertising substantiation proceedings and investigations and defends clients against actions initiated by individual and multi-state Attorneys General. In addition, a number of the firm’s Advertising attorneys have worked at the FTC’s Bureau of Consumer Protection at various levels, ranging from Bureau Director to Assistant Director to attorney advisor. We also have strong relationships with attorneys at every level at the FTC and in the offices of state Attorneys General, as well as with advertising/marketing attorneys across the United States. Over the past several years we have worked on numerous government investigations on behalf of clients and have negotiated assurances of voluntary compliance with individual states and multi-state groups. We have represented companies before the FTC in connection with various information collection proceedings pursuant to Section 6(b) of the FTC Act. The firm has experience representing clients across a range of industries, including computer manufacturing, telecommunications, tobacco, financial institutions, marketing and retail.
Representative Experience
Litigation
- Represent a Fortune 100 telecommunications company in a lawsuit brought by the Minnesota Attorney General in Minnesota state court asserting claims under Minnesota’s consumer fraud act and deceptive trade practices act.
- Represent a national marketer of satellite television services in litigation filed by the Department of Justice on behalf of the FTC and the states of North Carolina, Illinois, Ohio and California seeking civil penalties for violations of the FTC's Telemarketing Sales Rule by allegedly calling telephone numbers listed on the Do Not Call Registry.
- Represented a Fortune 50 computer and technology company in litigation initiated by the Attorney General of the State of New York (Andrew Cuomo) alleging that the company violated Sections 349 and 350 of NY's General Business Law and Section 63(12) of NY's Executive Law in connection with the company's financing promotions, service contract and warranty offers, and rebate fulfillment. Negotiated a settlement providing for injunctive relief and restitution on terms that were previously agreed to with the remaining 49 state Attorneys General.
- Represented a sub-prime lender in litigation filed by the FTC, six state Attorneys General, AARP and related consumer class actions.
- Represented a national marketer of nutritional supplements in an investigation by the Department of Justice alleging violations of a prior FTC order.
- Represented a national marketer of discount buying clubs in litigation brought by the FTC and 47 state Attorneys General.
- Defended a cigarette manufacturer’s famous advertising campaign in administrative litigation that resulted in the FTC’s withdrawal of its complaint.
Settlements
- Defended an international developer and publisher of mobile video games in a regulatory investigation involving in-app purchases.
- Represented a subsidiary of the world's largest food and nutrition company in the FTC's first case challenging advertising for probiotics. Successfully negotiated a settlement for the case, which alleged deceptive advertising claims about the health benefits of a children's nutrition drink.
- Represented a national pharmacy chain in a settlement with the FTC regarding advertisements for a line of cold-and-flu treatment dietary supplements. The FTC's allegations related to alleged unsubstantiated health claims involving cold and flu prevention and immune boosting.
- Represented the largest provider of pre-paid legal plans in the country in an FTC investigation regarding their advertising and privacy business practices. Kelley Drye convinced the Commission to reject the FTC staff's proposal to file a complaint, and the FTC closed the investigation - an extremely rare result.
- Settled allegations brought by the Office of the Attorney General of New Jersey regarding unfair and deceptive practices related to prepaid telephone companies. Settled a similar case with the state of Florida.
- Represented Fortune 50 computer and technology company and its financial services arm in obtaining settlement with attorneys general of 49 states, resolving allegations related to clients’ financing promotions, service contract and warranty offers, and rebate fulfillment. Case settled by payment of $4,075,000 for consumer redress, costs, penalties and disgorgement (averaging less than $85,000 per state) and implementation of injunctive relief.
- On behalf of a large Internet company, settled allegations regarding violations of state Uniform and Deceptive Trade Practices Act (UDTAP) claims related to cancellation, reactivation, telephone billing and disclosure of terms of service with 48 state Attorneys General, with the Texas Attorney General’s office acting as the lead for the multi-state group throughout the investigation and settlement. Also settled similar allegations with the Attorneys General of Florida and New York.
- Represented leading academic research company in separate privacy investigations by the FTC and 42 state Attorneys General, and negotiated FTC consent order and state Assurance of Voluntary Compliance.
- Represented major online retailer in an FTC investigation of Mail Order Rule violations, resulting in closing of investigation.
- Represented major telecommunications company in an FTC investigation of Fair Credit Reporting Act and Equal Credit Opportunity Act violations, resulting in negotiation of favorable settlement.
- Represented numerous companies seeking FTC support or guidance on consumer protection regulatory issues, legislation or enforcement policy.
- Represented a provider of financial services in an FTC challenge to its credit card marketing practices. The FTC also alleged that a subsidiary debt collection company engaged in deceptive conduct in marketing credit cards as part of its debt collection activities and violated the FDCPA.
- Kelley Drye has also closed non-public cases without enforcement action or consent orders in investigations initiated by the FTC or state Attorneys General regarding online marketing, call center, telemarketing and consumer product companies. We are currently handling non-public Attorney General investigations for various clients in the following states: California, Connecticut, Florida, Minnesota, Nevada, New York and Tennessee.
