For over 35 years now “New Coke” has been used as a textbook example of a bad business decision and a public relations debacle. Recall that in 1985, after 15 years of eroding sales, the Coca-Cola Company decided to reformulate Coca-Cola and introduce “New Coke” to the marketplace, a supposedly superior tasting product that would help reinvigorate the brand. Consumers rebelled, hoarding the original formulation, and vehemently protesting the corporation’s decision. After 89 days, the old drink – now dubbed “Coca-Cola Classic” was brought back and marketed beside the new entrant until, over time, the latter died off from American store shelves along with the controversy that surrounded it.
In May, I wrote “The FTC Isn't the Only One Watching Direct Response Marketers.” This still holds true. State attorneys general, such as Karl A. Racine (D-DC), an up-and-coming star in the Democratic Party, and other state regulators are making enforcement waves on direct response marketers. And according to Racine, state attorneys general are ready to lean in on enforcement and step up.
Our first featured speaker at the Government Affairs Fly-In, Lois Greisman, was incredible and I’m so glad she kicked off our two day conference. As associate director, she currently heads the Federal Trade Commission’s (FTC) Division of Marketing Practices as part of the Bureau of Consumer Protection.
Under Greisman’s management, Marketing Practices leads the FTC’s law enforcement initiatives tackling telemarketing fraud (including Do Not Call enforcement), fraudulent investment opportunity schemes, and internet frauds, with particular focus on challenges posed by new technologies and convergence issues.