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BCLP Counsel Jim Dudukovich was quoted at length Oct. 19 by Law360 on warnings from the Federal Trade Commission (FTC) that companies face potentially hefty fines if they work with influencers in ways that are misleading or deceptive. The FTC is leaning on its statutory power to penalize companies for practices the commission has established through previously adjudicated cease-and-desist orders as unfair or deceptive. Known as penalty offense authority, it can lead to fines of $43,792 per violation. A well-known advertising and social media lawyer, Jim said the FTC’s stepped-up use of its penalty offense authority, coupled with changes in staffing at the FTC under President Biden, have him keeping a close eye on developments. “[Identifying and implementing powerful enforcement tactics was] certainly one of the things that we thought would happen,” he said.

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