Damon Wright: The Legal Houdini of E-Commerce and the FTC's Reluctant Dance Partner
Damon Wright is not your average lawyer. He’s the legal equivalent of that friend who tells you to calm down before you end up on the evening news, except in this case, the evening news is an FTC enforcement action, and you’re the poor schmuck who didn’t read
the fine print on your own marketing claims.
As a guest on The ADOTAT Show, hosted by Pesach Lattin, Damon delivered a masterclass in how to navigate the minefield of compliance in e-commerce. From the FTC’s aggressive crackdown on deceptive practices to the growing role of AI in
advertising, Damon unpacked the chaos of modern regulation with wit, candor, and a dash of legal realism.
The FTC: Big Brother or Necessary Evil?
To say Damon has opinions about the FTC would be an understatement. When Pesach compared the agency to a nosy
neighbor obsessed with landscaping decisions, Damon didn’t skip a beat. “The FTC has very much overreached over the last few years,” he explained. “What they've done is create new rules where they believe Congress or a state legislature hasn’t filled the gap.”
Take the FTC’s infamous
approach to enforcing rules. Damon pointed out that the agency often files lawsuits and freezes assets before the defendant even knows what’s happening. “They’ll sue a company and file a motion for a temporary restraining order, ask the judge to restrain the company's operations, freeze the assets of the company and the owner. And they’ll do all that before the company and the owner even know there’s been a lawsuit filed against them.”
This lack of due process has consequences. Damon highlighted how the FTC’s current leadership, under Lina Khan, has drawn criticism not just from businesses but from within the agency itself. “The FTC actually had the lowest morale of any government agency the last couple of years based on surveys of federal government employees,” he
added.
But Damon believes change is coming. With Lina Khan expected to resign or be replaced by 2025, and growing frustration with the FTC’s approach to antitrust and consumer protection, Damon predicts a “dialing back” of aggressive tactics. Still, as he notes, issues like fake
testimonials, deceptive earnings claims, and Made in the USA violations aren’t going anywhere.
Click-to-Cancel: The New Compliance Nightmare
One of the hottest topics in the e-commerce world is the FTC’s new Click-to-Cancel rule, which requires businesses
to make subscription cancellations as easy as signing up. Damon broke it down with the precision of a surgeon and the frustration of a mechanic fixing the same broken engine over and over. “The rule took effect a few weeks ago,” he explained. “It requires businesses selling products on subscription—not just online businesses, but all businesses—to have a mechanism by which the consumer can easily cancel online. They need to be able to click a button.”
The rule sounds simple enough, but for small businesses, it’s a logistical headache. “If you're just selling in your local community—a flower delivery service, for example—adding that functionality to your website isn’t a small expense,” Damon pointed out. For businesses already operating on thin margins, compliance can feel like
an unfunded mandate.
Strike-Through Pricing: Where Imagination Meets Litigation
Pesach and Damon shared a good laugh over the absurdity of fake discounts—products advertised with “strike-through” pricing that was never actually offered. Damon explained the legal
nuances: “Under the FTC's law, that needs to have been the price within the prior 90 days. There's a California statute that says it must have been the prevailing price over the prior 90 days.”
Businesses, however, have found creative workarounds. “Some will list the higher price on
Amazon or Walmart, knowing they won’t get many sales there, but just to show that they do sell the product at that higher price. It’s a bit of legal gymnastics,” Damon admitted.
Made in the USA: Patriotism or a Legal Landmine?
Ah, the quintessential red,
white, and blue claim. Damon’s take? Proceed with caution. “The FTC's Made in the USA rule requires that all or nearly all of the constituent components or ingredients of a product have actually been sourced from within the USA,” he explained. “It's not where the product was made, but where the innards of the product come from. And that's not intuitive to folks.”
Pesach couldn’t resist throwing in a zinger: “So you're saying if I bought cloth and made a whole clothing brand, I couldn't say Made in the USA if the cloth was imported?” Damon confirmed, adding, “The FTC would have an issue. They’re enforcing it, and for whatever reason, they’ve decided to make it a priority.”
Influencers: FTC’s New Favorite Target
In the world of influencer marketing, the line between authenticity and shilling can be razor-thin. Damon laid out the FTC’s main concerns: “One, when the person providing that testimonial hasn’t ever used the product. And two, if there’s compensation or an incentive for that testimonial that influenced their
statement and it’s not disclosed.”
Pesach pressed further: “Do you think consumers actually care, or are they just here to see train-wreck content?” Damon acknowledged the challenge, saying, “Consumers do care whether someone’s just a shill reading a script or genuinely believes in what
they’re saying. But the FTC is cracking down with endorsement rules, and the consequences for violating these rules can be up to $51,000 per violation.”
AI: The Double-Edged Sword of Automation
When it comes to AI, Damon has seen both the promise and the
pitfalls. From chatbots inadvertently signing contracts to dynamic pricing systems offering products at hilariously low prices, the risks are real. “If you’re going to use innovative technology to speak on your behalf, you can be bound by the consequences,” Damon warned.
Yet, he’s
optimistic about AI’s potential to streamline legal workflows. “Imagine an AI tool that could analyze document production, generate deposition outlines, and even draft cross-examination questions. It’s a huge time-saver—but you still need smart lawyers to ensure the output is accurate.”
Breakdancing, Bourbon, and Building a Legacy
Damon isn’t all business. When Pesach asked about his breakdancing days, Damon admitted he could still bust out “the worm,” though he’s retired the more acrobatic moves. And on a desert island? His survival squad includes Houdini for underwater foraging, Thomas Jefferson for intellectual stimulation, and, hilariously, Mary Ann from Gilligan’s Island. “She knows what it’s all about,” Damon said with a laugh.
When asked about his ultimate legacy, Damon grew reflective. “It’s about helping clients build their brands on a strong foundation so they can have employees who can have homes, families, and pride in what they do,” he said. “I get a lot of satisfaction watching clients mature from impulsive
entrepreneurs to thoughtful CEOs.”
The Final Word: Conduct Business Like Grandma’s Watching
If Damon Wright had to distill his decades of legal wisdom into a single, snappy piece of advice, it would be this: “Conduct business like your grandmother is watching you.” It’s a deceptively simple mantra, but one that carries the weight of both ethical
integrity and strategic foresight. Picture your grandmother, perched on her favorite chair, scrutinizing every marketing claim, every bold promise, and every flashy “limited-time” offer you make. She doesn’t care about conversion rates or click-through percentages. What she cares about is honesty, value, and delivering on your word. Would she approve of how you’re conducting yourself? If the answer is “no,” chances are the FTC wouldn’t approve either.
This philosophy isn’t just a call for ethical behavior; it’s a blueprint for long-term success. “It’s not about squeezing out one more conversion or tricking a customer into an upsell,” Damon explains. “It’s about building trust, delivering real value, and creating a relationship with your customers that they’ll want to come back
to. If you can’t look your grandmother—or your customer—in the eye and be proud of what you’re doing, then it’s time to rethink your approach.”
And when Damon says "conduct business like your grandmother is watching," he’s not asking you to bake cookies or knit scarves while you
negotiate your next ad campaign. He’s asking you to consider the deeper implications of your decisions. Are you taking shortcuts? Are you hiding behind fine print? Are you prioritizing quick wins over building a solid, reputable brand? Grandma wouldn’t be impressed by misleading strike-through pricing or testimonials from influencers who have never touched your product. And guess what? Neither would your customers—or the FTC.
Of course, no good legal philosophy is complete without its caveats. Damon acknowledges that the path to integrity isn’t always clear-cut. In an age where AI writes your ad copy and algorithms dictate your pricing, even well-meaning businesses can stumble into murky ethical and legal territory. But Damon’s advice remains steadfast: “Take the time to
understand the rules of the game. Hire the right people, ask the right questions, and don’t try to outsmart the system with gimmicks. Grandma wouldn’t fall for it, and neither will your audience.”
And what about the fine print under that billboard? “Results not guaranteed,” you might
think—but that phrase has become its own legal landmine. Damon would likely replace it with something more practical, like, “Don’t forget to read the contract.” It’s one of his biggest frustrations: clients who gloss over crucial agreements, only to come back to him when things go sideways. “We’ve already helped the client navigate one dispute, and then they do the same thing all over again because they didn’t take the time to read the next contract,” he says. For Damon, integrity in business
isn’t just about how you present yourself to the world—it’s about doing your homework, understanding your obligations, and setting yourself up for success.
Walking the Tightrope of Compliance with a Sense of Humor
What sets Damon apart is his ability to navigate the dense jungle of advertising law without losing sight of what matters most: relationships, integrity, and
a good laugh. “The rules are there for a reason,” he says, “but that doesn’t mean you can’t have a little fun while figuring them out.” Whether he’s joking about influencer disasters or recounting tales of courtroom mix-ups, Damon’s sharp insights and self-deprecating humor make even the driest legal topics feel accessible.
And let’s not forget the breakdancing. Damon’s a guy who can talk about FTC compliance one moment and reminisce about middle school cafeteria dance-offs the next. His ability to balance the serious and the lighthearted is what makes him such an effective guide through the murky waters of advertising law. He doesn’t just know the rules; he knows how to apply them in ways that help businesses thrive while keeping their reputations—and their
consciences—intact.
So, the next time you’re crafting an ad campaign or negotiating a contract, ask yourself: Would Grandma approve? If not, it might be time to call Damon Wright. Just don’t ask him to do the worm during your consultation—unless, of course, your grandmother
insists.
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