This past week, several consumer actions made headlines that affect the retail industry.
App Operator Im-Pacted by FTC Settlement
The Federal Trade Commission has reached a $948,788 settlement with app developer Pact, Inc. over claims that it engaged in unfair and deceptive business practices. Pact users enter into “pacts” to exercise and/or eat better. The app charges between $5 and $50 per missed activity for users who fail to meet their weekly goals. Users who meet their weekly goals were supposed to be rewarded with a share of the money collected from those who did not.
The FTC alleged that Pact charged “tens of thousands” of consumers even if they met their goals or cancelled their participation in the service. Customers had a difficult time getting refunds or even determining how to cancel. The FTC’s complaint alleged violations of the FTC Act and the Restore Online Shoppers’ Confidence Act.
Under the terms of the settlement, Pact must disclose its billing practices, and is prohibited from misrepresenting its billing practices or engaging in unfair billing practices. A judgement of $1.5 million will be partially suspended upon Pact’s payment of $948,788.
On September 8, 2017, New York City Comptroller Scott Stringer and the New York City Pension Funds announced the second phase of their Boardroom Accountability Project, which will focus on board diversity and composition. Stringer sent a letter to the nominating and governance committee chairs of 151 portfolio companies held by the New York City Pension Funds, requesting board engagement regarding the director refreshment process and disclosure of a director qualification matrix that identifies directors’ relevant skills and experience and their gender and race/ethnicity. The list of companies included several major retailers and consisted of companies that have adopted proxy access in response to shareholder proposals from the NYC Pension Funds and those where the NYC Pension Funds’ proxy access proposals received majority support in 2017.
Hurricanes Harvey and Irma have devastated portions of Texas, Louisiana and Florida. For retail insureds in particular, the losses due to property damage and business interruption will be staggering. In an article published September 12, 2017, in South Florida’s Daily Business Review, Hunton Insurance lawyers Walter Andrews and Andrea DeField explain why it is critical that policyholders act fast to maximize insurance recovery for their hurricane-related losses. They also provide a checklist to guide policyholders through the claim process and to ensure maximum recovery for any property damage and business interruption losses. As Andrews and DeField explain, business interruption and related coverage endorsements may cover loss resulting from (1) an inability to open for business; (2) reduction in business income when the business remains open but cannot operate at full capacity; (3) civil authority orders barring access to an insured business; and (4) service and utility outages effecting business interruptions — an important coverage in light of Florida’s ongoing power outages.
Earlier this month, the Department of Labor (“DOL”) dropped its defense of an Obama-era regulation that sought to increase the salary level for overtime-exempt employees from $23,660 per year to $47,476 per year. The regulation had been set to take effect in November 2016, but a last-minute preliminary injunction issued by a federal district court in Texas stayed the implementation of the regulation.
In the preliminary injunction ruling, the district court ruled that the new $47,476 salary threshold exceeded the scope of the DOL’s authority because such a high salary level had the effect of making an employee’s salary—and not their primary duty—the determinative factor in the exemption inquiry. Importantly, the district court’s preliminary injunction ruling went well beyond the appropriateness of the particular salary level at issue in the new regulation, and instead expressed the broader view that the DOL lacked the authority to impose any salary level requirement (regardless of the level of salary chosen) because the relevant provision of the FLSA focused on an employee’s duties, not their salary.
As consumers celebrated lower avocado prices at Whole Foods during the last week in August, views were mixed regarding the FTC’s decision not to challenge the Amazon/Whole Foods merger.
On August 23, 2017, the FTC’s Bureau of Competition issued a short statement that read, in its entirety: “The FTC conducted an investigation of this proposed acquisition to determine whether it substantially lessened competition under Section 7 of the Clayton Act, or constituted an unfair method of competition under Section 5 of the FTC Act. Based on our investigation we have decided not to pursue this matter further. Of course, the FTC always has the ability to investigate anticompetitive conduct should such action be warranted.”
On September 7, 2017, the FTC announced its first-ever case against social media influencers. In its complaint, the FTC alleged that two widely followed gamers, Trevor “TmarTn” Martin and Thomas “Syndicate” Cassell, posted messages endorsing online gaming service CSGO Lotto without disclosing that the two jointly owned the company. In addition to deceptively endorsing the service, the two are alleged to have paid thousands of influencers to promote the CSGO Lotto on social media without requiring those influencers to disclose the payments, which ranged between $2,500 and $55,000. The consent agreement requires Cassell and Martin to clearly and conspicuously disclose material connections between any endorser and promoted products and services.
On September 5, 2017, the FTC announced that Lenovo, Inc. (“Lenovo”) agreed to settle charges that its preloaded software on some laptop computers compromised online security protections in order to deliver advertisements to consumers. The settlement agreement (the “Settlement”) is between Lenovo, the FTC and 32 State Attorneys General.
Retailers are increasingly relying on drones to further automate delivery systems and inventory management, among many other uses. The Federal Aviation Administration recently predicted that nearly 4 million drones will be operating in the U.S. by the year 2021.
Hunton & Williams Insurance Coverage attorneys Syed Ahmad and Geoffrey Fehling, with co-author Robert Hopson of Lockton Companies, recently published an article in Unmanned Aerial Online providing an overview of available insurance coverage for commercial drones and several coverage issues to consider when buying ...
In March of this year, consumer electronics and home appliance retailer Gregg Appliances, Inc., better known as H.H. Gregg, filed for Chapter 11 bankruptcy in Indianapolis, Indiana. H.H. Gregg, which took over many of the retail spaces previously occupied by Circuit City, is one of many big-box retailers that have sought Chapter 11 bankruptcy over the past several years. Like Circuit City, H.H. Gregg was unsuccessful in reorganizing in bankruptcy and is now seeking to recover payments made to vendors and other creditors within 90 days prior to the bankruptcy filing.
August was a busy month in the world of recalls. First, the end of August ushered in a hefty $5.7 million civil penalty against a major retailer in the United States. The retailer was allegedly selling and distributing recalled products and has agreed, in addition to the civil penalty, to maintain a compliance program and a system of internal controls and procedures. The CPSC voted 4 to 1 to accept the settlement, with Acting Chairman Buerkle voting to accept a lower civil penalty.
On August 21, 2017, New York Attorney General Eric T. Schneiderman announced that Simon Property Group settled claims that it used anticompetitive tactics to prevent development of competing outlet centers close to Woodbury Common center in New York. Leases with retailers at Woodbury Common included a clause preventing the retailers from opening another location within a 60 mile radius of the outlet center—a radius that encompassed the entire New York City area.
Search
Recent Posts
Categories
- Advertising & Marketing
- Bankruptcy
- Class Action
- Competition/Antitrust
- Consumer Protection
- Corporate Governance
- Environmental
- General
- Health Care
- Insurance
- IP
- Labor and Employment
- Mergers & Acquisitions
- Patent Infringement
- Patents
- Privacy & Cybersecurity
- Product Liability
- Real Estate
- Regulatory
- Regulatory
- Technology & E-Commerce
Tags
- 29 C.F.R. § 785.48
- 396-r
- 3D Printer
- 3D Printing
- A. Todd Brown
- A.S. Research (ASR)
- Aaron P. Simpson
- Advertisers
- Advertising
- Advertising Claims
- Advertising Idea
- Agency Guidance
- AI
- AI Interviewing Platforms
- Algorithmic Accountability Act
- Align
- Americans with Disabilities Act
- Americans with Disabilities Act (ADA)
- Andrea DeField
- Ann Marie Buerkle
- Annual Reports
- anti-aging
- Anti-Discrimination
- APEX Agreement
- Arbitration
- Arbitration Agreements
- Arizona
- Arkansas
- Arthritis
- Artificial Intelligence
- Artificial Intelligence (AI)
- Asbestos
- Assembly Bill 51 (AB 51)
- ATDS
- Australia
- Auto-renewals
- automatic telephone dialing system (ATDS)
- Automobile
- Automotive Body Parts Association (ABPA)
- Back to Work Emergency Ordinance
- biased endorsements
- Biden Administration
- Biometric Data
- Biometric Information
- Biometric Information Privacy Act (BIPA)
- BIPA
- Bitcoin
- Blockchain
- Board Diversity Disclosure
- Boards of Directors
- Bonuses
- Braille
- Branding
- Breach
- Breach of Contract
- Business Interruption Loss
- Businessowner’s Insurance
- California
- California Assembly Bill 2011
- California Employment Laws
- California Fair Employment and Housing Act
- California False Claims Act
- California Labor Code
- California Senate Bill 6
- California’s Unfair Competition Law
- CAMS
- Canada
- Cannabis
- CBD
- CBP
- CCPA
- Celebrity Endorsers
- Center for Disease Control (CDC)
- CFIUS
- CGL
- Chatbot
- Children’s Advertising
- Children’s Advertising Review Unit
- Children’s Online Privacy Protection Act (COPPA)
- China
- Christopher J. Dufek
- Christopher W. Hasbrouck
- Christy Kiely
- Class Action
- Class Actions
- Clawback
- Click-to-Cancel
- Climate Change
- clinical trials
- Collective Action
- Colorado
- Commercial General Liability
- Commercial Leasing
- Commodity Futures Trading Commission
- Compliance
- Congress
- Connecticut
- Consent
- Consent Order
- Consumer Data
- Consumer Financial Protection Bureau
- Consumer Fraud
- consumer loyalty program
- Consumer Product Safety Act
- Consumer Products
- Consumer Products Safety Commission (CPSC)
- Consumer Protection
- Consumer Review Fairness Act of 2016 (CRFA)
- Consumer Reviews
- Contamination
- Contract Law
- Controlled Substance Act
- Cookware
- COPPA
- Copyright
- Coronavirus/COVID-19
- Corp Fin
- Corporate Governance
- Corporate Reporting
- Corporate Sustainability
- Counterfeit Goods
- Counterfeit Goods Seizure Act of 2019
- CPRA
- CPSA
- CPSC
- Crack House Statute
- CRFA
- Cryptocurrency
- CSPA
- Cuba
- Currency
- Customs and Border Protection
- Cyber Coverage
- D&O
- D&O policies
- D. Andrew Quigley
- Damages
- Data Breach
- Davidson
- Deceptive Advertising
- DEI
- Delaware
- DEP
- Department of Justice
- Department of Labor
- Development Impact Fee
- Digital Assets
- digital currency
- Disclosures
- Distribution
- Division of Corporation Finance
- Dodd-Frank
- DOJ
- DOL
- Duty to Defend
- Duty to Indemnify
- e-liquid products
- Eddie Bauer
- EEOC
- Electric Vehicles
- Eleventh Circuit
- Emily Burkhardt Vicente
- Employee Rights
- Endorsement
- Endorsement Guides
- Endorsement Notice
- Endorsements
- endorser monitoring requirements
- Enforcement
- Environmental Protection Agency
- Environmental Protection Agency (EPA)
- EPA
- Epidemic
- ESG
- ESG Disclosure
- EU Regulation
- European Union
- European Unitary Patent
- EV Charging
- Exceptions
- Exclusions
- Exercise Machines
- Extended Producer Responsibility (EPR)
- FAA
- Fair Labor Standards Act
- Fair Labor Standards Act (FLSA)
- fair use
- False Advertising
- False Advertising Claims
- False Advertising Law
- False Claims Act
- Family Leave Policies
- FCC
- FCRA
- FDA
- Federal Arbitration Act (FAA)
- Federal Communications Commission
- Federal District Court
- Federal Trade Commission
- Federal Trade Commission (FTC)
- FFDCA
- FIFRA
- Fifth Circuit
- Final Rule
- Fireworks
- First Amendment
- Fixing America’s Surface Transportation (FAST) Act
- Florida
- Florida House of Representatives (HB 963) and Florida Senate (SB 1670)
- Florida Legislature
- FLSA
- FLSA/Wage & Hour
- food delivery
- Food Safety
- Form 10-K
- Formaldehyde Standards for Composite Wood Products Act of 2010
- fractional interests
- Franchise
- Frederic Chang
- Free Trials
- FTC
- FTC Act
- Gavin Newsom
- GDPR
- General Liability
- Geoffrey B. Fehling
- Georgia
- Gift Cards
- GoodRx
- Gramm-Leach-Bliley (GLB) Act
- Green
- Green Guides
- Greenhouse Gas
- Gun Safety
- Hart-Scott-Rodino
- Hart-Scott-Rodino (HSR)
- hashtag
- Hawaii
- Health Care
- Health Claims
- Hedge Fund
- HIPAA
- hoverboards
- human capital
- Human Rights
- Illinois
- Illinois Artificial Intelligence Video Interview Act (the Illinois Act)
- Illinois Biometric Information Privacy Act (BIPA)
- Indiana
- Influencer Marketing
- Infringement
- initial public offerings (IPOs)
- Injury
- Insurance
- Insurance Loss
- Insurance Provider
- Intellectual Property
- Intellectual Property Licenses in Bankruptcy Act
- Interest Rate
- International
- International Trade Commission
- International Trade Commission (ITC)
- INVISALIGN
- Iowa
- IP
- Ireland
- IT
- ITC
- iTERO
- Junk Fees
- Katherine Miller
- Kurt A. Powell
- Kurt G. Larkin
- Labeling Rules
- Labor
- Labor Code Private Attorneys General Act of 2004 (PAGA)
- Labor Organizing
- Labor Unions
- Land Use
- Landlord
- Latin America
- Lautenberg Act
- Lawsuit Reform Alliance of New York (LRANY)
- Lead
- Lease
- Legislation
- Leveraged Loans
- Liability Insurance Policy
- Liberty Insurance Corporation
- Liberty Mutual Fire Insurance Company
- LIBOR Discontinuation
- liquidity
- Litigation
- Live Chat
- Louisiana
- M&A
- Made in the USA
- Made in USA
- MagicSleeve
- Magnuson-Moss Warranty Act
- Magnuson-Moss Warranty Act (MMWA)
- Maine
- Malcolm C. Weiss
- Manufacturing
- Marketing Claims
- Maryland
- Massachusetts
- Matthew T. McLellan
- Maya M. Eckstein
- MD&A
- Medtail
- Membership cancellation
- Metaverse
- MeToo Movement
- Mexico
- Michael J. Mueller
- Michael S. Levine
- Minimum Wage
- Minnesota
- Minnesota Pollution Control Agency (MPCA)
- Misclassification
- Mislabeling
- Mission Product Holdings
- Missouri
- Mobile
- Mobile App
- Multi-Level Marketing Program (MLM)
- NAA
- NAD
- NASA
- National Advertising Division
- National Advertising Division (NAD)
- National Advertising Review Board
- National Products Inc.
- National Retail Federation
- Natural Disaster
- Nebraska
- Neil K. Gilman
- Network Outage
- Nevada
- New Jersey
- New York
- NHTSA
- NIL rights
- Ninth Circuit
- NLRA
- NLRB
- no-action request
- non-fungible token (NFT)
- North Carolina
- Obama Administration
- Occupational Safety and Health Administration (OSHA)
- Occurrence
- Office of Labor Standards Enforcement
- Ohio
- Oklahoma
- Online Cash Providers
- Online Retailer
- online reviews
- Opioids
- Oregon
- Overboarding
- Overtime
- Overtime Exemptions
- Ownership
- Packaging
- PAGA
- Pandemic
- Patent
- Patent Infringement
- Patents
- Paul T. Moura
- Pay Ratio
- pay-to-play rankings
- Penalty
- Pennsylvania
- Personal and Advertising Injury
- Personal Data
- Personal Information
- Personally Identifiable Information
- Pesticides
- PFAS
- Physical Loss or Damage
- Policy
- price gouging
- Privacy
- Privacy Guidelines
- Privacy Policy
- Privacy Protections
- Prohibition on Sale
- Property Insurance
- Property Rights
- Proposition 65
- Proxy Access
- proxy materials
- Proxy Statements
- Public Companies
- Purdue Pharma
- Randall S. Parks
- Ransomware
- real estate
- Recall
- Recalls
- Regulation
- Regulation S-K
- Restaurants
- Restrictive Covenants
- Retail
- Retail Development
- Retail Industry Leaders Association
- Retail Litigation Center
- Rounding
- Rulemaking
- Ryan A. Glasgow
- Sales Tax
- Scott H. Kimpel
- SD8 coins
- SEC
- SEC Disclosure
- Second Circuit
- Section 337
- Section 365
- Secure and Fair Enforcement Banking Act of 2019 (“SAFE Banking Act”)
- Securities
- Securities and Exchange Commission
- Securities and Exchange Commission (SEC)
- security checks
- Senate
- Senate Data Handling Report
- Sergio F. Oehninger
- Service Contract Act (SCA)
- Service Provider
- SHARE
- Shareholder
- Shareholder Proposals
- Slogan
- Smart Contracts
- Social Media
- Social Media Influencers
- Software
- South Carolina
- South Dakota
- Special purpose acquisition companies (SPACs)
- State Attorneys General
- Store Closures
- Subscription Services
- Substantiation
- Substantiation Notice
- Supplier
- Supply Chain
- Supply contracts
- Supreme Court
- Sustainability
- Syed S. Ahmad
- Synovia
- Targeted Advertising
- Tax
- TCCWNA
- TCPA
- Technology
- Telemarketing
- Telephone Consumer Protection Act
- Telephone Consumer Protection Act (TCPA)
- Tempnology LLC
- Tenant
- Tennessee
- Terms and Conditions
- Texas
- the Fair Credit Reporting Act (FCRA)
- Thomas R. Waskom
- Title VII
- tokenization
- tokens
- Toxic Chemicals
- Toxic Substances Control Act
- Toxic Substances Control Act (TSCA)
- Trade Dress
- Trademark
- Trademark Infringement
- Trademark Trial and Appeal Board (TTAB)
- TransUnion
- Travel
- Trump Administration
- TSCA
- TSCA Title VI
- U.S. Department of Justice
- U.S. Department of Labor
- U.S. Food and Drug Administration
- U.S. House of Representatives
- U.S. Patent and Trademark Office
- Umbrella Liability
- Union
- Union Organizing
- United Specialty Insurance Company
- Unmanned Aircraft
- Unruh Civil Rights Act
- UPSTO
- US Chamber of Commerce
- US Customs and Border Protection (CBP)
- US Environmental Protection Agency (EPA)
- US International Trade Commission (ITC)
- US Origin Claims
- US Patent and Trademark Office
- US Patent and Trademark Office (USPTO)
- US Supreme Court
- USDA
- USPTO
- Utah
- Varidesk
- Vermont
- Virginia
- volatile organic compound (VOC) emissions
- W. Jeffery Edwards
- Wage and Hour
- Walter J. Andrews
- Warranties
- Warranty
- Washington
- Washington DC
- Web Accessibility
- Weight Loss
- Wiretapping
- World Health Organization (WHO)
- Wyoming
- Year In Review
- Zoning Regulations
Authors
- Gary A. Abelev
- Alexander Abramenko
- Yaniel Abreu
- Syed S. Ahmad
- Nancy B. Beck, PhD, DABT
- Brandon Bell
- Fawaz A. Bham
- Michael J. “Jack” Bisceglia
- Jeremy S. Boczko
- Brian J. Bosworth
- Shannon S. Broome
- Samuel L. Brown
- Tyler P. Brown
- Melinda Brunger
- Jimmy Bui
- M. Brett Burns
- Olivia G. Bushman
- Matthew J. Calvert
- María Castellanos
- Grant H. Cokeley
- Abigail Contreras
- Alexandra B. Cunningham
- Merideth Snow Daly
- Javier De Luna
- Timothy G. Decker
- Andrea DeField
- John J. Delionado
- Stephen P. Demm
- Mayme Donohue
- Nicholas Drews
- Christopher J. Dufek
- Robert T. Dumbacher
- M. Kaylan Dunn
- Chloe Dupre
- Frederick R. Eames
- Maya M. Eckstein
- Tara L. Elgie
- Clare Ellis
- Latosha M. Ellis
- Juan C. Enjamio
- Kelly L. Faglioni
- Ozzie A. Farres
- Geoffrey B. Fehling
- Hannah Flint
- Erin F. Fonté
- Kevin E. Gaunt
- Andrew G. Geyer
- Armin Ghiam
- Neil K. Gilman
- Ryan A. Glasgow
- Tonya M. Gray
- Aidan Gross
- Elisabeth R. Gunther
- Steven M. Haas
- Kevin Hahm
- Jason W. Harbour
- Jeffrey L. Harvey
- Christopher W. Hasbrouck
- Eileen Henderson
- Gregory G. Hesse
- Kirk A. Hornbeck
- Rachel E. Hudgins
- Jamie Zysk Isani
- Nicole R. Johnson
- Roland M. Juarez
- Suzan Kern
- Jason J. Kim
- Scott H. Kimpel
- Andrew S. Koelz
- Leslie W. Kostyshak
- Perie Reiko Koyama
- Torsten M. Kracht
- Brad Kuntz
- Kurt G. Larkin
- Tyler S. Laughinghouse
- Matthew Z. Leopold
- Michael S. Levine
- Ashley Lewis
- Abigail M. Lyle
- Maeve Malik
- Phyllis H. Marcus
- Eric R. Markus
- Brandon Marvisi
- John Gary Maynard, III
- Aubrianna L. Mierow
- Gray Moeller
- Reilly C. Moore
- Michael D. Morfey
- Ann Marie Mortimer
- Michael J. Mueller
- J. Drei Munar
- Marcus E. Nelson
- Matthew Nigriny
- Justin F. Paget
- Christopher M. Pardo
- Randall S. Parks
- Katherine C. Pickens
- Gregory L. Porter
- Kurt A. Powell
- Robert T. Quackenboss
- D. Andrew Quigley
- Michael Reed
- Shawn Patrick Regan
- Jonathan D. Reichman
- Kelli Regan Rice
- Patrick L. Robson
- Amber M. Rogers
- Natalia San Juan
- Katherine P. Sandberg
- Arthur E. Schmalz
- Daniel G. Shanley
- Madison W. Sherrill
- Kevin V. Small
- J.R. Smith
- Bennett Sooy
- Daniel Stefany
- Katherine Tanzola
- Javaneh S. Tarter
- Jessica N. Vara
- Emily Burkhardt Vicente
- Mark R. Vowell
- Gregory R. Wall
- Thomas R. Waskom
- Malcolm C. Weiss
- Holly H. Williamson
- Samuel Wolff
- Steven L. Wood
- Jingyi “Alice” Yao
- Jessica G. Yeshman