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DRMA Voice July 2014

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8 Jul, 2017


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Legal and Regulatory Voices of DRMA
Does the FTC Have Legal Authority Over Affiliate Networks? 
In the past few years, the Federal Trade Commission (FTC) has placed several affiliate networks under consent orders for operating allegedly deceptive advertising schemes in violation of the ban on “unfair or deceptive practices” in Section 5 of the FTC Act. Among other things, these orders require the networks to establish and enforce rigorous compliance controls over their affiliates. Because the cases settled, the FTC has never had to face a serious court test – until now.
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Inability to Allege Economic Injury Dooms Class Action 
In another blow to plaintiffs seeking to escape the impact of Proposition 64 and its requirement that persons alleging violations of California’s Unfair Competition Law (Bus. & Prof. Code 17200 et seq.) must establish that they have suffered injury in fact and lost money or property as a result of the alleged unfair competition in order to have standing to pursue such claims, a Court of Appeal in recently affirmed the dismissal of a putative class action of individuals who alleged that they had been injured by a grocery chain’s unauthorized sharing of their personal information acquired through the grocer’s customer reward program.
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Piercing the Corporate Veil 
As an Orange County attorney, the drive up to the San Fernando Valley to take and defend three days of depositions was brutal. Even leaving at 5:30 a.m. each day, my attempt to beat traffic was futile at best. The upside was that I had ample time to ponder that day’s deposition.
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Watch Your Back End 
Many marketers would like to believe that their only concerns are the number of orders coming in, the reasonable accuracy of their advertising claims and disclosures, and ensuring the package arrives at the consumer’s doorstep. Life would be fairly simple if that were the case. Unfortunately, it is not.
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Committee Corner
DRMA News & Case Studies

DRMA Spotlight: Argo Marketing Group — 'Growing Smiles on Customers' Faces'

“In the beginning it was just me in my apartment on my couch with a laptop and $400 cash,” says Jason Levesque, CEO and founder of Argo Marketing Group. “I could only get cell reception near the front door of my house. This was AT&T and Maine — it was horrible. And I went through that $400 pretty darn quick.”

Recently, Response caught up with Levesque for this DRMA Spotlight feature.

Read the complete DRMA Spotlight here. Or view the exclusive DRMA Spotlight video interview 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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