: The Federal Trade Commission secured a settlement agreement with Southern Glazer’s Wine and Spirits LLC, the nation’s largest distributor of wine and spirits, that will redress allegedly illegal price discrimination practices and make it easier for small businesses to compete against large chain retailers. The sweeping settlement covers nearly all Southern wine and spirits sales to the five largest chain retailers in 26 states. The settlement will also provide direct cash payments to harmed small businesses if an independent monitor finds that Southern violates the settlement order going forward. “This settlement marks a significant milestone for the FTC in its enforcement of the Robinson-Patman Act, which Congress enacted to empower small businesses to compete against large ones,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “Small businesses are an invaluable part of the American economy and way of life. The FTC is committed to ensuring that all businesses, no matter their size, can c[...]
: New FTC warning letters cite unsupported Coronavirus-related health and earnings claims sgressin April 24, 2020 | 12:44PM New FTC warning letters cite unsupported Coronavirus-related health and earnings claims By Seena Gressin The FTC is not the pen pal you want if you operate a multi-level marketing company but aren’t closely monitoring your distributors. In its latest round of warning letters, the FTC warns ten MLM companies that they are responsible for the claims made by their participants. The letters direct the companies to report within 48 hours what actions they’ve taken to stop their distributors from claiming their products can treat or prevent Coronavirus disease, that MLM business opportunity participants are likely to earn substantial income, or both. The FTC says that the health and earnings claims are unsubstantiated and therefore violate truth-in-advertising laws. The products at issue are not scientifically proven to treat or prevent COVID-19, the disease that Coronavirus causes. The FTC pre[...]