This past week, several consumer, self-regulatory and regulatory actions made headlines:
Regulatory Actions
FTC Releases Newly Approved Energy Labeling Rules, Considering Other Changes
The FTC has approved changes to the Energy Labeling Rule, which it says are designed to improve access to energy labels and the labeling for refrigerators, ceiling fans, central air conditioners and water heaters. The labeling is designed to help consumers understand the energy cost of consumer products and make it easier for consumers to compare different product models.
The FTC also is seeking comment on proposed changes that would eliminate provisions for plumbing products, and new labeling for portable air conditioners, large-diameter and high-speed small-diameter ceiling fans, and instantaneous electric water heaters.
Victims of Telemarketing Scam to Receive More Than $1.3 million in Refunds from FTC
The FTC is sending out more than 6,000 checks totaling more than $1.3 million to individuals defrauded by Oro Marketing, Inc. The individuals receiving checks were victims of a telemarketing scheme that, according to the FTC, “targeted Spanish-speakers with false promises that they could make money by reselling high-end goods such as Gucci and Ralph Lauren.” The company allegedly charged more than $400 per package of goods, but delivered only poorly made, off-brand products.
According to the FTC, the victims of this scam will get about a third of their money back, averaging $216 each. Oro Marketing is also permanently barred from all telemarketing to consumers and must turn over their assets to pay for the refunds.
Consumer Litigation
CVS to Face Suit Related to Alleged Useless or Even Dangerous Vitamin E Pills
A putative class action against CVS Caremark Corp. over the company’s alleged promotion of its Vitamin E supplements’ “heart health” benefits has been reinstated by the First Circuit.
The court reversed a district court’s finding that the lawsuit was preempted by the Food, Drug and Cosmetics Act (“FDCA”), “[f]inding that federal law does not preempt [the plaintiffs] effort to maintain this action under New York’s consumer protection law.”
The First Circuit found the FDCA did not prevent a plaintiff from alleging that a manufacturer had made false or misleading statements about a supplement’s structure and function. The court said, “If Vitamin E's actual role is both to support and to harm heart health, depending on the dosage actually supplied, then a label on a product presented in the harmful dosage yet revealing only the former aspects of the vitamin’s role relative to health is incomplete in a way that could be material to the consumer's exercise of choice in deciding whether to buy the product.”
Twinings is Winning
Tea maker Twinings North America Inc. scored a second victory in a California putative class action lawsuit. Plaintiffs initially were seeking damages and an injunction that would prohibit Twinings from claiming its teas were a “natural source of antioxidants.”
Twinings argued it had previously ceased making these claims on its products and the Internet, and agreed it would not use such claims in the future. A California federal judge, who previously had denied the plaintiffs’ claims for damages, dismissed the case entirely, agreeing with defendants and finding that plaintiffs lacked standing because they “made no showing that Twinings will resume its use of the offending label statements or that [they] intend to purchase Twinings’ tea again in the future.”
Another Retailer Hit with Lawsuit Over Allegedly Misleading Outlet Prices
A putative class action suit was filed against AM Retail Group Inc., parent company of G.H. Bass & Co., in a California federal court over allegedly misleading outlet merchandise pricing.
The lawsuit alleges that shoppers visit Bass outlet stores in California based on the “commonly understood” idea that consumers can purchase merchandise that first appeared in non-outlet retail locations, but at a discounted price.
However, according to the allegations in the suit, the merchandise in Bass outlet stores were never sold at the alleged retail price or in any location other than a Bass outlet store. Thus, consumers are misled into believing that they are receiving a discount versus the “compare at” or “original” price even though the goods have never actually been sold at that higher price, and any represented savings is purely illusory. The complaint alleges defendant has engaged in a false advertising “campaign calculated to lure consumers into purchasing products they believe are significantly discounted,” and is in violation of California law.
The lead plaintiff has also filed similar suits recently against the parent companies of Van Heusen and BCBGMAXAZARIA.
Babyganics Sued Over Alleged “Organic” Products
KAS Direct LLC, the maker of Babyganics products, has been sued in a federal putative class action filed in New York by consumers alleging its infant products were organic, when in fact they were not.
According to the complaint, plaintiffs allege they purchased the company’s mineral-based sunscreens under the belief that it was organic and mineral-based, only to discover the product contained a number of synthetic ingredients.
The complaint alleges, “In reliance on defendant’s claims that the products are organic, plaintiffs were willing to pay more for the products than similar products that do not claim to be organic and in fact did pay a premium for the products.”
Plaintiffs allege they were principally misled by the company’s name, Babyganics, and the packaging which is white and green and dotted with plant graphics. As an example, plaintiffs point to the Babyganics’ mineral-based sunscreen, which in fact contain synthetic ingredients that are not approved for use in products labeled “organic,” including glycerin and butylene glycol.
Plaintiffs do not appear to allege that the packaging does not list the actual ingredients on the product, or that the ingredient list is misleading.
- Partner
A leader in the advertising bar with decades of experience both working at and practicing before the Federal Trade Commission (FTC), Phyllis brings a unique advertising and children’s privacy vantage point to our clients ...
Search
Recent Posts
- Ninth Circuit Continues to Clarify When Reference to Back Label is Appropriate in False Advertising Cases
- FTC adopts final “Click-to-Cancel” Rule aimed at recurring subscription services
- From Produce to Insurance Coverage: What Businesses Concerned About Illinois Biometric Information Privacy Act (BIPA) Risks Can Learn From Tony’s Finer Foods
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 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 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
- 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
- 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
- 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 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
- A. Todd Brown, Sr.
- Samuel L. Brown
- Tyler P. Brown
- Melinda Brunger
- Jimmy Bui
- M. Brett Burns
- Olivia G. Bushman
- Matthew J. Calvert
- 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
- 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
- Sarah Ingles
- 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
- 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