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FTC Warns Cole Haan Over Pinterest Contest

What Made News? In a recent letter, the Federal Trade Commission (FTC) alleged that a promotional contest on Pinterest violated Section 5 of the FTC Act. Although the FTC did not take any direct enforcement action against Cole Haan, the letter forced Cole Haan to discontinue the contest and is one of the first instances in which the FTC has offered an opinion about what it takes to keep social media contests and promotions on the right side of federal advertising laws.

California State Court Decision Could Spell Trouble for Some Online Retailers

A recent state court decision in California could prove a major headache for online retailers that engage in comparative price advertising. Although the decision — People of the State of California v. Overstock.com — is not binding precedent and its future on appeal is far from clear, the decision suggests that retailers may be forced to adopt more rigorous internal standards when engaging in comparative price advertising.

Yes Means No Agreement to Arbitrate: Lack of Essential Elements of a Contract in Online Transactions

In a recent decision from the US Court of Appeals for the Ninth Circuit, Lee v. Intelius Inc., 9th Cir., No. 11-35810, 12/16/13, the Court held that an online consumer could not be compelled to arbitrate a class action because the essential elements of a contract were not present.