Insights

On September 16, 2026, California became the second state in the country to require disclosures of AI-generated synthetic performers in advertising. Governor Gavin Newsom signed into law SB 1050 — a measure that prohibits advertisers from publishing advertisements prominently featuring AI-generated synthetic performers without a clear and conspicuous disclosure — effective January 1, 2027.

A recently filed class action lawsuit against Gymshark, a prominent athletic apparel company, highlights the escalating legal risks associated with influencer marketing. The complaint, brought in the U.S. District Court for the Southern District of New York on June 16, 2026, alleges that Gymshark systematically paid social media influencers to promote its products without ensuring that the influencers were providing clear and conspicuous disclosures about such payment, in violation of Federal Trade Commission (FTC) guidance and New York state law.

On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission’s (FTC) Rule Concerning Subscriptions and Other Negative Option Plans, commonly known as the “Click-to-Cancel” rule. As detailed in a previous client alert, the rule was intended to regulate negative option plans[1]— such as subscriptions and automatic renewals — by imposing stringent requirements on businesses, including streamlined cancellation processes and enhanced disclosure obligations. The Eighth Circuit vacated the Click-to-Cancel rule because it found that the FTC had failed to comply with mandatory procedural requirements. As a result, the rule is no longer in effect, and businesses are not currently subject to its mandates.

Following the holiday weekend, the Federal Trade Commission (FTC) announced a proposed settlement with Humboldt Merchant Services requiring the payment processor to pay $12 million and accept restrictions on servicing certain merchants over allegations that it facilitated merchant fraud and rescinded its 2021 policy statement on breaches by health apps and other connected devices as unnecessary in light of the Commission’s 2024 rule amendments. More on these updates after the jump.

Over the past two weeks, the FTC secured a permanent injunction blocking Henkel’s $725 million acquisition of Liquid Nails, entered a stipulated order unwinding Zillow and Redfin’s $100 million market-exit agreement, and reached a $4 million settlement with Manchester City Nissan over unauthorized dealer fees. The agency also finalized $930,000 in penalties against Cox Media Group and two affiliated firms for deceptive AI advertising claims, issued a draft policy statement on personalized pricing open for public comment, updated National Do Not Call Registry fees for Fiscal Year 2027, and filed an amicus brief in a Fourth Circuit antitrust matter involving Amgen. These stories and more after the jump.