November 2009

— Karen Brennan, Attorney

While browsing through a toy store recently, I noticed what appears to be a trend in branding this holiday season – reintroducing classic or “nostalgic” toys.   It is very hard for me to accept that the toys I played with as a child could be considered “nostalgic,” but upon

We all would agree that “As Seen on TV” is one of the great brands of all time. The brilliant marketeers behind it recognized the extraordinary power of television – people believe as true what they see on TV.

Why that is I’m sure has been the subject of enumerable studies; after all it defines who we are as consumers and sets the stage for a marketplace where the phrase “targeted consumer” takes on real meaning. Between infomercials laden with celebrity endorsement, a tried and (sometimes) true tactic for moving people closer to their wallets coupled with compelling “just like my neighbor” testimonials, and home shopping networks with live celebrities and testimonials whose “it has to be true” quality rings true for millions of people, consumers are drawn to purchase like moths to a light.

The online world has taken this phenomenon and cranked it up a notch. The more modern version of “As Seen on TV”, its sister brand “As Seen on the Internet” – is an even more powerful lure. It is extraordinary how so many people believe that the “default” for the Internet is Truth, as if there were a mysterious group of censors and law enforcement officials who were reading everything found on the Internet to ensure that anything false or fraudulent automatically was removed. If only that were so.

Social networking has taken this propensity to believe anything electronically delivered to an even higher level. People tend to believe as true what others in their electronic neighborhoods say. This tends to be the case whatever the form of visual channel, from “expert” blogs in About.com, to the thousands of pseudo-news blogs, closed social environments like Facebook or MySpace, or in some form of IM (Include Twitter here). The stories of fraudulent promotion on Twitter already are legion. Add to this the hundreds, perhaps thousands of for-hire bloggers who will supply testimonials for a fee, and the potential for online, “As Seen on the Internet” consumer deception increases dramatically.

It was inevitable that at some point the FTC would have to step in. The Federal Trade Commission historically has taken consumer fraud seriously, but the massive amounts of online fraud, ranging from paid for false testimonials to the most severe forms of identity theft , have created a new vigor in that agency.

On December 1, 2009, new Federal Trade Commission’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Guides”), with heightened requirements for bloggers to disclose affiliations with sponsors of those endorsements, go into effect.  See FTC Press Release dated October 5, 2009, here.  The text of the Guides, 16 CFR Part 235, is available, here.  Although these Guides are advisory in nature and do not expand the scope of liability under Section 5, they are intended to provide guidance as to how the FTC would apply governing law to various fact patterns.Continue Reading Let’s Play “Truth or Consequences”: The New FTC Guides for Endorsements & Testimonials Bring Truth a Little Bit Closer

Today, the U.S. Supreme Court declined to hear the requested appeal of Harjo v. Pro-Football, Inc., the nearly two-decade old trademark case seeking cancellation of the U.S. Trademark Registrations owned by the NFL franchise in the Nation’s Capitol. In doing so, the highest Court in the land, has permitted the laches ruling to stand. Basically, permitting dismissal of the action given

Gift Chocolates on any Occassion - Pack of 24 - Snickers Crispy,Crunchy Choclates

A couple of months ago I saw in a convenience store a large Snickers point-of-sale floor-display depicting a prominent and attention-getting cross-section of a Snickers candy bar. Given Mars’ apparent interest in owning and creating non-traditional trademark rights surrounding the Snickers brand (revisit Dan’s post from earlier this year), it made me wonder whether Mars might

         

Every Sunday I go through the circulars in the paper looking for new products. I usually spend a lot of time with the ads from the national drug store chains (Walgreens, CVS, and Rite Aid). Recently, I observed that each chain seems to have a radically different philosophy on store brand naming. And while this observation isn’t earth shattering, it exposes the marketing strategies (or lack thereof) of each chain.

For example, check out the allergy section. The big brand names like Benadryl®, Claritin® and Zyrtec® all have store brand/private label competition. Walgreens naming protocol for its store brand is pretty straightforward and seems to be designed to help a consumer find the Walgreens knockoff of the branded product. You can buy Wal-dryl, Wal-itin, and Wal-zyr, and the packaging is color coded to make it easier.  This is a very consistent strategy that is designed to make life easier for the consumer and also designed to build the “Wal-“ prefix as a brand.

          Non-Drowsy 24 Hour Allergy,Tablets          

                    

At CVS, you have to be a well-informed consumer or a doctor to get it right because CVS attempts to align symptoms with branding. For example, the CVS version of Benadryl is called Allergy, while the CVS version of Claritin is called Non-Drowsy Allergy Relief (non-drowsy being a key benefit of the active ingredient in Claritin), and the Zyrtec knockoff product is called Indoor/Outdoor Allergy Relief (Zyrtec is the only brand with indoor/outdoor allergy claims).

                                      Continue Reading Naming the Store Brand