The Boring Ecom Podcast
Boring E-commerce Law 101 With Rob Freund
Dec 18, 2024
Rob Freund, a former big law litigator specializing in advertising and e-commerce law, reveals the secrets of legal compliance in e-commerce. He discusses major pitfalls that can lead to devastating lawsuits, including deceptive pricing and subscription model issues. Freund shares eye-opening real-life examples of brands facing multi-million dollar settlements. He also explores the complexities of influencer marketing and the legal ramifications of customer reviews, offering actionable advice to help businesses avoid costly mistakes.
48:05
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Quick takeaways
- E-commerce brands face significant legal risks from misleading pricing claims, necessitating genuine discount practices to avoid costly settlements.
- Influencer marketing requires careful management and compliance, as brands can be liable for influencers' claims if not properly monitored.
Deep dives
Legal Risks in E-Commerce Pricing Claims
Pricing claims represent a significant legal risk for e-commerce brands. Cases involving deceptive markdowns highlight that brands can face substantial settlements if accused of misleading pricing practices. For instance, Boohoo settled for over $200 million due to allegations of false advertising regarding markdown prices. Brands must adhere to regulations, such as ensuring that any advertised 'sale' prices reflect genuine discounts based on historical pricing to avoid legal repercussions.
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