Hunton Retail Law Resource

Trademarks allow businesses to protect brand names and logos used on their goods and/or services. Unlike other IP, rights in a registered trademark can last indefinitely as long as the mark is in continuous use and all the required maintenance documents are filed. Failure to file such documents results in the cancellation of the trademark registration. Once canceled, the mark can still be re-applied for by the original owner and, in certain instances, another enterprising business. Specifically, assuming the mark has been legally abandoned, the other enterprising business can file its own trademark registration application for the mark.

On February 19, 2020, the Seventh Circuit, aligning with previous decisions of the Eleventh and Third Circuits, held in Gadelhak v. AT&T Services, Inc. that a defendant’s dialing system did not constitute an “automatic telephone dialing system” (ATDS) under the meaning of the Telephone Consumer Protection Act where it was not capable of generating random and sequential numbers. The court analyzed the language of the TCPA and determined that, as written, there were four potential ways to interpret the statutory language. However, based on both basic rules of grammar and punctuation, as well as the technology that was available at the time the TCPA was enacted into law in 1991, the Seventh Circuit decided that the Eleventh Circuit’s interpretation in Glasser v. Hilton Grand Vacations Company was the most persuasive. Therefore, the court concluded that, to be an ATDS, a device must be capable of generating random and sequential numbers. In other words, the Seventh Circuit agrees that a device is not an ATDS merely because it dials from a stored list of numbers.

As previously reported in the Hunton Employment & Labor Perspectives Blog, last Thursday the California Supreme Court ruled that employees must be paid for time spent undergoing security checks before leaving work. The ruling comes two years after the Ninth Circuit Court of Appeals sought guidance on this issue under California law in the case of Amanda Frlekin v. Apple Inc.  The question presented to the California Supreme Court was:  Is time spent on the employer’s premises waiting for, and undergoing, required exit searches of packages, bags, or personal technology devices ...

The new year ushered in a series of warnings from the CPSC about inclined infant sleepers posing suffocation risks and dressers posing tip-over risks to consumers. Both products have been under scrutiny by the CPSC over the past year.

On February 12, 2020, the FTC announced its intention to review its Endorsement Guides (formally known as the “Guides Concerning the Use of Endorsements and Testimonials in Advertising”). These guides, first enacted in 1980 and revised in 2009, provide guidance to businesses, influencers and endorsers on how to make sure endorsements or testimonials abide by the requirements of the FTC Act. While advisory in nature, the Commission can take action under the FTC Act if an endorsement or testimonial is inconsistent with the Guides.

Most retailers have yet to fully embrace blockchain technology. Perhaps for good reason. Applying new technology, particularly that aimed at changing legacy systems, comes with certain risks. That being said, cryptocurrencies and blockchain have the potential to transform retail and commercial real estate. As previously shared by this blog, blockchain can be used to streamline inventory management, administer consumer loyalty programs and authenticate high-value assets or the supply chain, generally. Blockchain can also be used more simply to boost consumer sales or process tenant rent payments. Shifting away from the consumer end of retail, below are some novel ways blockchain technology, specifically tokenization, can modernize real estate acquisitions, dispositions and financing.

As reported on the Hunton Employment & Labor Perspectives Blog last week, although the World Health Organization (“WHO”) has declared the coronavirus outbreak a “public health emergency of international concern,” WHO has not yet declared the outbreak as a pandemic. Nevertheless, the emergence of the latest coronavirus is an opportunity for employers, as it reminds them to consider policies and procedures related to pandemic planning.  The following are a few of the key considerations for employers when planning for or responding to an outbreak.

Continue Reading

As reported in the Hunton Insurance Recovery Blog, a Maryland federal court awarded summary judgment to policyholder National Ink in National Ink and Stitch, LLC v. State Auto Property And Casualty Insurance Company, finding coverage for a cyber-attack under a non-cyber insurance policy after the insured’s server and networked computer system were damaged as a result of a ransomware attack.  This is significant because it demonstrates that insureds can obtain insurance coverage for cyber-attacks even if they do not have a specific cyber insurance policy.

Continue Reading

Since previous FCC interpretations of the Telephone Consumer Protection Act (“TCPA”) were invalidated by the DC Circuit in 2018, the definition of an “automatic telephone dialing system” (“ATDS”), has been hotly contested. The Ninth Circuit has held that merely calling numbers from a stored list is sufficient to meet the definition of an ATDS, while the Second and Third Circuits have at least indicated that the ability to generate numbers randomly or sequentially is the defining characteristic. Compare Marks v. Crunch San Diego, LLC, 904 F.3d 1041, 1043 (9th Cir. 2018), with Dominguez v. Yahoo, Inc., 894 F.3d 116, 121 (3d Cir. 2018) and King v. Time Warner Cable, Inc., 894 F. 3d 473, 479 (2d Cir. 2018).

As reported on the February 7, 2019 posting to the Hunton Privacy & Information Security Law Blog, at least one class action lawsuit has been filed that expressly references the CCPA.

Continue Reading

On February 5, 2020, the FTC announced two settlements totaling nearly $3.4 million against Quantum Wellness Botanical Institute, LLC and their principals for claims made to older adults that the “ReJuvenation” pill was an “anti-aging wonder drug.” For example, they represented that the pill could boost HGH levels and add stem cells to the body, thereby repairing age, cell, and heart attack damage; reversing deafness or blindness; and reversing damage from any disease, including Alzheimer’s, Parkinson’s, and Crohn’s disease. The FTC’s complaint alleged ...

On February 3, 2020, the FTC announced a $350,000 settlement with Shop Tutors Inc., d/b/a LendEDU, a website that ranks and rates consumer financial products such as student and personal loans. The FTC’s complaint alleged that LendEDU and its principals violated the FTC Act by misleading consumers into believing that their website offered consumers “objective,” “accurate” and “unbiased” information, despite the fact that the company was alleged to be selling rankings and ratings to the highest bidder. The FTC also alleged that LendEDU touted unbiased positive reviews of its website, when the vast majority of those reviews had been written by persons closely associated with the company or were altogether fabricated.

As publicly traded retailers begin to prepare their annual reports and 2020 proxy statements, they should keep in mind a number of new and amended SEC disclosure items. As detailed in our recent client alert, hot topics for proxy statements include hedging policy disclosure, board diversity disclosure and overboarding of directors.  In annual reports on Form 10-K, public retailers must consider new cover page requirements; new disclosure rules for material property, management’s discussion and analysis (MD&A) and exhibit filings; and most retailers will now disclose ...