Hunton Retail Law Resource

As California continues to advance its reopening efforts, the state’s retailers are grappling with rapid changes to the law surrounding their operations and the management of their workforce during the COVID-19 pandemic.  One area that has seen frequent change is the sick leave landscape in California.  While the last statewide California sick leave law (applying to businesses with 500+ employees) expired on December 31, 2020, the state has now created a new sick leave entitlement that will create new challenges for retailers in the Golden State.

A new bill in the California Assembly has the potential to alter substantially the existing legal framework of products liability for online retailers. Assembly Bill No. 1182 (“AB 1182”), which was introduced on February 18, 2021, would impose strict products liability on online retailers who (1) communicate offers of sale and (2) facilitate payment between a third-party seller and a purchaser, even if the online retailer never takes physical possession of the product.

The CPSC recently announced its first civil penalty of 2021.  Cybex International, Inc. (Cybex) agreed to pay $7.95 million after the workout equipment manufacturer allegedly failed to immediately report to the CPSC the defects in two of its products.

Gennex Media LLC, a customizable product online marketplace, and its sole officer and shareholder Akil Kurji, have agreed to an FTC consent decree resolving allegations the company falsely claimed its Brandnex novelty products were “Made in USA,” “USA MADE,” and “Manufactured Right Here in America!” when, in many instances, they were wholly imported from China. Gennex heavily promoted its products’ domestic origin on social media, declaring they “support USA jobs.” In a unanimous decision, Gennex and its principal were ordered to pay $146,249.24 and were required to cease making claims that its customizable promotional products, including wristbands, lanyards, temporary tattoos, and buttons, are made in America.

Signed into law on December 27, 2020, the Trademark Modernization Act of 2020 (TMA) provides amendments to existing federal trademark law that will assist US retailers and other businesses with branding decisions. Congress passed the TMA as part of the COVID-19 relief and government-funding bill.