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DRMA Voice July 2012

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Legal and Regulatory Voices of DRMA
Owner of Hair Regrowth Product Required to Make $40M Personal Restitution 
by John Waller, Jeffrey Richter
For nearly a decade, restitution under California’s Unfair Competition Law has been restricted by court rulings to the return of money or property that has been acquired directly by the perpetrator of an unfair business practice from the victims of such practices. As a result, it may come as a surprise to corporate officers and business owners that they may be personally liable to make restitution to such victims when the transactions at issue occurred between their company and the victims of those unfair business practices – notwithstanding that the individuals had no direct interaction with the victims.
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FTC’s Substantiation Standards Take Center Stage in Basic Research Case 
by Jeffrey D. Knowles, Randal M. Shaheen
It has been a busy couple of months in court for the Federal Trade Commission (FTC). Recently, the FTC won on the merits but saw an Administrative Law Judge reject its proposed substantiation standard in the Pom Wonderful case. In another contempt case (Daniel Chapter One) filed in the federal District Court for the District of Columbia, the FTC also won on the merits but the judge then gave the defendants two weeks to purge their order violations before imposing any civil penalty. Not surprisingly, the defendants availed themselves of that opportunity.
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Calling All Data Brokers: The FTC Is Watching You 
by Marc Roth
Since the beginning of 2012, the Federal Trade Commission (FTC) has made it clear that the collection and dissemination of consumer data is a high priority. Companies in the direct response industry that collect and sell consumer data to third parties are well advised to review their practices to ensure they are complying with all applicable laws, even if the coverage of such laws is not clearly obvious.
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Settle or Fight the FTC: A ‘Hobbesian’ Choice 
by William I. Rothbard
Imagine you’re a Federal Trade Commission (FTC) target presented with a no-compromise settlement demand for all your assets and warned by a top FTC official that unless you take it, “You’ll be working for me all your life.” You have someone else to pay for your defense (insurance), top-tier legal representation and a chance to win. If you gamble and lose, on the other hand, you could face a multi-million dollar judgment. What would you do? “Cave,” or fight?
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Committee Corner
DRMA News & Case Studies

DRMA Spotlights Inter/Media Group of Companies: New Digs, but the Same Commitment to Excellence

The incredible attention to detail at the Inter/Media Group of Companies’® brand new home office in Woodland Hills, Calif., makes perfect sense to anyone who has spent time with the company’s CEO and president, Bob Yallen. In his 27th year with the company his father Syd founded in 1974, the younger Yallen’s passion for the advertising business is surpassed only by his longtime commitment to driving InterMedia to new and greater heights.

“In college, I was an All-American sprinter at Cal State Northridge, and I’d say that I still move pretty quickly,” he says. “I was working summers through high school and college with Inter/Media, and after I got my bachelor’s degree in business, I went on to law school because I wanted to bring a little more depth to what Inter/Media could offer.”

Yallen’s J.D. from Southwestern University School of Law had an emphasis in entertainment law, something that’s been a key driver of the agency’s entertainment division — one of the agency’s 10 business units. “We’ve become a company with assets in the media, advertising, entertainment, communication, marketing and creative sectors,” Yallen says.

That expansion figures in Yallen’s quarter-century quest to find a building to house the company’s corporate headquarters in the Los Angeles area (Inter/Media also has offices in New York and Dallas). “One reason we wanted to buy our own building was to control our own growth and destiny. Also, from an investment standpoint it just penciled out,” Yallen says.

Read the complete June 2012 DRMA Spotlight of Inter/Media here, and view the Spotlight video here. Response Magazine highlights different DRMA members each month in our DRMA Spotlight. Interested in learning more? Contact John Yarrington at or (714) 338-6724.

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