Fifth Circuit Holds U.S. FTC’s In-House Adjudication of Deceptive Advertising Claim Unconstitutional Under Jarkesy
On March 20, 2026, the U.S. Court of Appeals for the Fifth Circuit granted Intuit’s petition for review and vacated a cease-and-desist order from the U.S. Federal Trade Commission (FTC or Commission) related to Intuit’s marketing of TurboTax because “[f]ollowing the Supreme Court’s decision in SEC v. Jarkesy … the adjudication of a deceptive advertising claim before an administrative law judge [ALJ] violated the constitutional separation of powers.”1
U.S. FTC’s New Rule on Fake and AI-Generated Reviews and Social Media Bots
On August 14, 2024, the United States Federal Trade Commission (FTC) announced a final rule that prohibits fake and artificial intelligence-generated consumer reviews, consumer testimonials, and celebrity testimonials, along with other types of unfair or deceptive practices involving reviews and testimonials. This new rule is the latest development in the FTC’s increased rulemaking efforts and increased focus on AI, and will take effect on October 21, 2024.
