New Ninth Circuit FTC Act decision: FTC v. Cyberspace.com

I hope to provide more commentary later this week on the interplay between Mervyn's, Branick, and Pfizer, but in the meantime, here is a new Ninth Circuit case to consider. Federal Trade Commission v. Cyberspace.com LLC, ___ F.2d ___ (9th Cir. July 13, 2006), is a rare decision interpreting the Federal Trade Commission Act (15 U.S.C. §§41 et seq.). The FTC Act prohibits "deceptive acts or practices in or affecting commerce." Slip op. at 7766 (quoting 15 U.S.C. §45(a)). "[A] practice falls within this prohibition (1) if it is likely to mislead consumers acting reasonably under the circumstances (2) in a way that is material." Id. (citing FTC v. Gill, 265 F.3d 944 (9th Cir. 2001)). Because the UCL is also known as California's "little FTC Act," federal caselaw interpreting the federal FTC Act can be instructive. The decision is worth a read.