Hunton Retail Law Resource

Last week, the Securities and Exchange Commission (SEC) revealed its much-anticipated proposal to require that public companies disclose climate-related information. The proposed rule is significant because, for the first time, the SEC would mandate that companies (including foreign companies) publicly traded in the US disclose climate-related risk and greenhouse gas (GHG) emissions information beyond the information currently required by existing SEC rules applicable to registration statements and annual reports.

The Children’s Advertising Review Unit (CARU) has recommended that Moose Toys, an Australian toy company, modify ads and packaging of its “Little Live Pets Gotta Go Turdle” toy to disclose that kids should not eat the synthetic “Turdle food” that comes with the toy. CARU also recommended that future promotions of the toy depict adult supervision.

In a rare “some assembly required” and “parts not included” decision, the Children’s Advertising Review Unit (CARU), a division of BBB National Programs, scrutinized advertising for Micro Machine toys. CARU determined that Jazwares LLC’s advertising for the toys misled children about what was included in the purchase of the products, what must be purchased separately, and the ease of assembly. CARU also found the ads unrealistically depicted how the toys can perform.

Two leading international brands have filed lawsuits in 2022 to prevent the sale of digital NFTs depicting their physical products, and both cases will test existing trademark law and impact online retailers of NFTs.

The metaverse is a new way to engage with computers through artificial intelligence (AI), widespread connectivity, augmented reality (AR) and virtual reality (VR). Instead of interacting with a two-dimensional application or website via screen and keyboard, the metaverse adds a figurative “third dimension” for users to explore in an intuitive, realistic manner. The metaverse is also an opportunity for a new digital economy. Users can buy and sell goods, services, and property, and even attend events virtually. Like the Internet before it, the metaverse is expected to lay a foundation for the creation of business, art, and technology.

On March 9, 2022, the Securities and Exchange Commission (“SEC”) held an open meeting and proposed new cybersecurity disclosure rules for public companies by a 3-1 vote. If adopted, the new rules would impose substantial new reporting obligations with respect to material cybersecurity incidents and cybersecurity risk management, strategy, and governance for both domestic and foreign private issuers subject to the reporting requirements under the Securities Exchange Act of 1934.