Assignment Task:
"LeadClick managed an affiliate-marketing net-work to provide its customers online advertising. Instead of running its own online advertising, LeadClick would connect its clients with third-party affiliates that would design and implement the advertisements. The client party would pay LeadClick for every clicked advertisement link that resulted in a purchase, and LeadClick would remit a percentage of the payment to the third-party affili-ate that created the advertisement itself, pocket-ing the difference as revenue. One such client was LeanSpa, which hired LeadClick to promote weight loss and colon cleansing products in 2010.In 2011, the FTC filed a complaint against LeanSpa, among other defendants for unfair trade practices. Unknown to LeanSpa, LeadClick's affili-ates used fake news sites to promote its advertise-ments. Fake news sites consisted of websites that looked like genuine news sites, with logos that resem-bled news sites, and photographs of reporters that did not exist. The news sites contained articles that claimed that real reporters had conducted an inde-pendent analysis of LeanSpa's products and believed they worked. While LeanSpa was not aware of the third-party affiliates business practices, LeadClick had direct knowledge and the FTC amended the com-plaint in 2012 to include LeadClick. Lastly, in 2013, the FTC again amended the complaint to include CoreLogic, a company that wholly owned LeadClick and of which LeadClick was a direct subsidiary.In 2015, the district court granted the FTC's motion for summary judgment and required Lead-Click to disgorge $11.9 million in payment received from LeanSpa. Of that $11.9 million, $4.1 million had already been transferred to CoreLogic. The dis-gorgement of payment ordered by the district court included the $4.1 million. CoreLogic and Lead-Click appealed. Do you think LeadClick should be held liable for unfair trading practices? Do you think CoreLogic should be forced to disgorge the $4.1 million even if they had no knowledge of Lead-Click's day-to-day practices? How did the appeals court decide?[FTC v. LeadClick Media, LLC, 838 F. 3d 158 (2016)"