Hunton Retail Law Resource

On Friday, December 6, 2019, a business coalition led by the US Chamber of Commerce filed suit challenging a new California law that forbids employers from offering and entering into certain arbitration agreements with their workers. Signed into law by California Governor Gavin Newsom on October 10, 2019, Assembly Bill 51 (AB 51) will impose criminal liability on employers who require applicants or employees, “as a condition of reemployment, continued employment, or the receipt of any employment-related benefit,” to “waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act” and other related employment statutes. Additionally, AB 51 will impose criminal liability on employers who retaliate against applicants or employees who refuse to enter into banned mandatory arbitration agreements.

Last month, the CPSC and three affiliated retailers issued a joint warning to consumers after the retailers discovered they sold nearly 1,200 units of 19 previously recalled consumer products between 2014 and 2019. The range of products at issue varied, including infant sleepers, scarves, portable speakers, barstools, children’s cardigan sets, hoverboards, beer mugs, coffee presses and infant rattles. It remains to be seen whether any further CPSC action, such as a civil penalty or a requirement to implement stronger recall systems and protocols, will be taken with respect to these three retailers.

On December 5, 2019, the Federal Trade Commission (FTC) announced a $4.1 million settlement against A.S. Research, LLC (ASR), the marketer of the dietary supplement Synovia. The Commission alleged that ASR misled consumers by purporting Synovia could dramatically reduce or cure chronic joint pain, stiffness and swelling caused by arthritis, carpal tunnel syndrome, tennis elbow and muscular atrophy.

Imagine a future in which Artificial Intelligence (AI) does the recruiting and hiring at US companies. Every new hire will be the uniquely perfect candidate whose skills, personality, presence, temperament and work habits are a flawless match for the job. Performance management and poor performance become extinct, relics from an age in which humans brought primitive instincts, biases and flawed intuition to hiring and employment decisions. While there are risks and challenges to employers in introducing this technology, manufacturers of AI software say that some version of that future may not be too far off. AI software such as Mya, HireVue and Gecko are among the numerous platforms that retail employers are now leveraging to hone in on and hire the best candidates more quickly. Generally speaking, AI interviewing products combine mobile video interviews with game-based assessments. The AI platform then analyzes the candidate’s facial expressions, word choice and gestures in conjunction with game assessment results to determine the candidate’s work style, cognitive ability and interpersonal skills.

As reported on the November 14, 2019 posting to the Hunton Insurance Recovery Blog, last week, in an exciting moment, the U.S. House of Representatives voted 321 to 103 in favor of H.R.1595, the Secure and Fair Enforcement Banking Act of 2019 (“SAFE Banking Act”). If enacted into law, the SAFE Banking Act, would provide financial institutions, including insurers, a safe harbor to do business with “cannabis-related legitimate businesses” in the United States. In particular, the act would protect insurers, independent agents, and brokers from criminal and civil liability ...

On October 28, 2019, the US Chamber of Commerce, along with two other business-oriented groups—the National Retail Federation and the Retail Litigation Center, Inc.—filed an amicus brief urging the Ninth Circuit to overrule a $102 million judgment against Wal-Mart.

This month, the US Senate Committee on Commerce, Science, and Transportation released its investigative report on the CPSC’s data handling breaches from the spring. In April, the CPSC issued notices to multiple manufacturers explaining that “nonpublic manufacturer information” was released to the public without complying with Section 6(b) of the Consumer Product Safety Act. Section 6(b) prohibits the CPSC from disclosing information reported by product manufacturers without complying with the procedures for and restrictions on the commission’s public disclosure of such information. Section 6(b) aims to incentivize manufacturers to provide more safety information without fear of public backlash. The Senate committee’s report is troubling. It found that the CPSC made “improper disclosures to 29 unique entities” that “contained information on approximately 10,900 unique manufacturers, as well as street addresses, ages, and genders of approximately 30,000 consumers.” The Senate committee reviewed “hundreds of documents and emails and conducted multiple interviews” to conclude that the CPSC’s violations of Section 6(b) “were due to a lack of training, ineffective management, and poor information technology implementation.” The report cited several examples, such as that CPSC employees had “little to no Section 6(b) training” and were provided with “three different software applications to access and process relevant data without the necessary training on how to use these often confusing and idiosyncratic systems.” The Senate committee ended with a list of recommendations for the CPSC to remedy these problems and avoid future data-handling breaches.

As marijuana sales become increasingly legal in many states across the US, a growing number of commercial property owners will be faced with the decision of whether to lease their space to a marijuana-related business. There are many factors that potential landlords and tenants must keep in mind, not the least of which is federal law.

For the past few years, retailers have been confronted with a tidal wave of litigation alleging that their websites are inaccessible in violation of the Americans with Disabilities Act (ADA). Indeed, in 2018 alone, one analysis determined that there were at least 2,258 web accessibility cases filed in federal court, a 177 percent increase from the previous year.^[1] Of these cases, a total of 1,564—over 69 percent—were filed in New York federal courts by just a handful of lawyers, including Jeffrey Gottlieb, Bradley Marks, C.K. Lee, Joseph Mizrahi, Jonathan Shalom and Doug Lipsky, with a surge following two unsuccessful motions to dismiss in cases involving Five Guys and Blick Art.

As reported on the Hunton Andrews Kurth Privacy & Information Security Law Blog last week, on October 21, 2019, the Federal Trade Commission took action against two companies alleged to have engaged in the business of false online reviews and social media influence. In the first case, the FTC entered into a consent decree with cosmetics marketer Sunday Riley, LLC, and the company’s owner, who sell products at Sephora stores and online at Sephora.com. According to the FTC’s complaint, disguised as ordinary consumers, Sunday Riley employees and Ms. Riley herself posted fake ...