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8 May, 2016

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Legal and Regulatory Voices of DRMA
FDA Regulation of 'Cosmeceuticals': More Wrinkles Coming? 
Compared to other popular direct response product categories, such as dietary supplements, over-the-counter drugs (e.g., anti-acne creams) and medical devices (e.g., wrinkle and acne reducing lights), cosmetics are subject to far less Food and Drug Administration (FDA) regulation. Unlike those products, for example, cosmetics are not subject to manufacturing requirements, facility registration or adverse event reporting. This low level of regulation has led some to argue that the FDA cannot adequately protect consumer safety. That, however, may be changing.
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FTC Scores Big Court Win Against DRTV Veterans 
In a much-awaited decision, a federal judge has granted summary judgment in favor of the Federal Trade Commission (FTC) against DRTV veterans Gary Hewitt and Doug Gravink and their company, Family Products LLC, in the case FTC v. John Beck Amazing Profits et al. Hewitt and Gravink sold "John Beck’s Free & Clear Real Estate System," "John Alexander’s Real Estate Riches in 14 Days," and "Jeff Paul's Shortcuts to Internet Millions" through national infomercials. The FTC obtained a preliminary injunction in 2009 but failed to get an asset freeze, which allowed the defendants to keep advertising under the strictures of the preliminary injunction and, equally importantly, to continue to pay for a defense – all the way to trial if necessary. The court did not need a trial, however, summarily ruling that all challenged ad claims and marketing practices were deceptive and a violation of either the FTC Act or the FTC Telemarketing Sales Rule (TSR).
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Bayer Suffers From Class Certification Headache 
In designing their marketing campaigns, many marketers strive to create a simple, pithy, unifying claim or message in their advertising to catch the attention of their target audience - and then seek to reinforce that claim or message on their packaging. While that makes perfect sense from a marketing perspective, if that central claim or message is ultimately challenged as being allegedly deceptive or misleading, the marketer's attempt to develop a unified marketing campaign will likely render any claims regarding their marketing practices more susceptible to being prosecuted as a class action comprised of most, if not all, of their customers.
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Endorsements From Regular People Are Powerful, but Mind the FTC's Guidelines 
A recent AdWeek article highlighted a significant decline in the use of celebrity endorsers in television commercials. The article cited a report by brand research agency Millward Brown that found the use of celebrity endorsers has declined by half during the past eight years. Although it is not exactly clear what led to this decline, a 2011 study by Ace Metrix found that in a sampling of 2,600 TV ads, those ads featuring celebrities had, on average, lower effectiveness scores than non-celebrity ads.
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DRMA News & Case Studies

DRMA Announces Drive to Support Amber Golden Education Fund in Honor of Industry Legend Ray Golden

SANTA ANA, Calif. –In recent months, direct response industry legend Ray Golden has been fighting a battle against lung cancer. Just two weeks ago, he was moved into hospice care. In honor of his years of service to the DR business and the legions of friends he made in our world, Response and the Direct Response Marketing Alliance (DRMA) are making Golden’s final wish our DRMA Cares project between today and Response Expo 2012: building support for the Amber Golden Education Fund.

Just two months ago, Golden announced the formation of this special educational fund for his daughter Amber. She has gone through five heart surgeries in her young life and is now in her third year of pursuing a nursing degree in order to give back to those who have helped her and others. Continuing her education to completion is likely to cost more than $50,000.

You have many different outlets to help the cause:
• Attendees of the DRMA Chicago Reception on March 12, during the International Home + Housewares Show, will be able to donate on site.
• There will also be a donation station on site at the Hilton San Diego Bayfront during Response Expo 2012, May 15-17.
• At the Response Expo Golf Tournament on May 15, the DRMA will sponsor a “mulligan hole,” where players can pay $20 to take a mulligan. All proceeds will go directly to the Amber Golden Education Fund
• And you can always donate directly by sending a check payable to the Amber Golden Education Fund c/o Wells Fargo Bank N.A., P.O. Box 3408, Omaha, NE 68103.


 

DRMA Spotlights Cannella Response Television: Going a Long Way Toward DR Success

BURLINGTON, Wis. – A lot of big names in the direct response industry like to boast they’ve been part of the game since the beginning, but when you’re the company who’s been around long enough to have snagged the URL www.DRTV.com, you just might have a few more bragging rights on your side.

Cannella Response Television, founded in 1984 amid the birth of the infomercial itself, touts itself as the DRTV expert with low rates and high-profile media availabilities. Along with the Direct Response Marketing Alliance (DRMA) member’s proprietary MediaStar software, Cannella’s buyers use traditional DRTV doctrine and extensive station and daypart analysis to recommend rollout strategies and bottom-line campaign media improvements. With a distinct expertise in long-form that comes from unparalleled history and experience within the industry, Cannella knows what works for DR marketers.

“We’re the longest-standing infomercial company out there. We have 30 years of experience, and we’re really an innovator in the industry,” says Robert Medved, CEO of Cannella Response Television. “Our roots show that we really gave birth to the infomercial industry and we’ve continued down that path.”

Read the complete March 2012 DRMA Spotlight of Cannella Response Television 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 jyarrington@questex.com or (714) 338-6724.

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