FOLLOW US

In the ever-evolving landscape of consumer protection, 2024 promises to be a year of heightened scrutiny and relentless pursuit of deceptive practices. From deceptive endorsements to the labyrinth of environmental advertising, the Federal Trade Commission (FTC) is gearing up for a tumultuous year ahead.

Consumer Protection Issues To Watch In 2024: Navigating the Environmental Maze

The FTC, known for its assertive stance in safeguarding consumer interests, is set to finalize the long-awaited revision of its Green Guides. These guides, born in 1992, serve as a compass for environmental marketing claims. With a surge in consumer reliance on eco-friendly claims, the FTC aims to establish clear standards for carbon offsets, recyclability, sustainability, energy efficiency, and climate change narratives.

Lesli Esposito, head of the consumer protection practice at McDermott Will & Emery LLP, foresees a pivotal year. "Companies will have to be mindful of the environmental claims they're making and ensure they meet any revised standards the FTC releases."

Endorsements Under the Magnifying Glass: The Influencer Dilemma

Endorsements and testimonials, especially in the digital realm, continue to captivate consumers. The FTC, having finalized updated Guides for Endorsements and Testimonials in June, is aggressively combating fake reviews, negative review suppression, and the murky world of paid endorsements.

Esposito points out a growing trend: "Advertisers are now facing more significant accountability as the FTC turns its attention toward them." November's warning letters to health influencers and food industry trade groups emphasize the FTC's commitment to transparency in sponsored posts.

Consumer Protection Issues To Watch In 2024: Expanding the "War on Fees"

The FTC's war on hidden fees intensifies as it extends the public comment period for a proposed rule targeting "hidden and bogus fees." This rule seeks to protect consumers by mandating full disclosure of fees by businesses like hotels and ticket sellers. Troutman Pepper partners expect this war on fees to persist, shaping rulemaking in 2024.

Dark Patterns and Subscription Shenanigans: Amazon's Legal Bout

Subscription and automatic renewal issues take center stage, with the FTC's keen eye on "dark patterns." June witnessed the FTC suing Amazon, alleging manipulative design elements and deceptive practices. Amazon, in defense, claims the FTC is attempting to redefine consumer protection law through litigation.

Mary K. Engle of BBB National Programs warns of an AI-driven future exacerbating dark pattern challenges. "The rise of artificial intelligence technologies that could be used to manipulate content is likely to make the issue even more prevalent in the coming months and years."

As we plunge into 2024, the battlefield of consumer protection appears set for an intense showdown, with regulators and industry players locked in a dance between deception and defense.