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Advertising Law - July 2016 #3

Wikipedia Link Trips up Ninth Circuit False Ad Suit - Ruling that a California federal court incorrectly relied upon a Wikipedia link when considering a summary judgment motion in a false advertising suit, the Ninth...more

Advertising Law - June 2016 #4

FTC Shuts Down Scam Touting Aid for Disabled Individuals - A telemarketer faces a Federal Trade Commission ban on claims that the sales of products would help disabled individuals....more

Supreme Court Declines to Review Second Circuit Decision Subjecting Defaulted Debt Buyers to State Usury Laws

On June 27, the United States Supreme Court declined to review the Second Circuit’s decision in Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015). By denying Midland Funding, LLC’s petition for a writ of...more

LogMeIn Class Action Dismissed: Termination of Free App Not False Advertising

A judge in the Eastern District of California recently dismissed a class action filed against LogMeIn based on the company’s decision to terminate its free app, which allowed users to access a remote desktop computer via a...more

Supreme Court Denies Certiorari Petition in Madden Case

Although it is reasonably unlikely that other circuit courts will follow the Second Circuit decision, it is uncertain whether application of the Madden case in the Second Circuit will be confined to its facts....more

Leveraging Government's Brief, Midland Pushes for Cert

Capitalizing on the government's position in its brief to the U.S. Supreme Court, Midland Funding filed a supplemental brief in support of its quest to have the justices overturn a Second Circuit Court of Appeals opinion...more

Novel Reading Of Statute Widens CFPB Jurisdiction

Tucked away in a seemingly innocuous paragraph in a complaint, the Consumer Financial Protection Bureau has asserted an extraordinary and potentially far-reaching expansion of its authority. On June 6, 2016, the CFPB...more

The Devil’s in the Details: Court Dismisses “Made in the U.S.A.” Fraud Claims against Heinz Because Plaintiff Failed to Allege...

On April 22, 2016, in Alaei v. Kraft Heinz Food Co. (“Heinz”), No. 3:15-cv-02961, Southern District of California Judge Michael M. Anello granted defendant Heinz’s motion to dismiss without prejudice plaintiff Suzanne Alaei’s...more

California Plaintiffs Say that Size Matters: Consumer Fraud Class Action Challenges Slack-Fill in Protein Products

According to named plaintiffs in a consumer fraud action filed in December in the Southern District of California, size matters when making it comes to making a purchase. In fact, Plaintiffs claim that the average consumer’s...more

First Circuit Affirms FTC Social Media Order: Jerk.com users Jerked Around By Material Misrepresentations

In Fanning v. Federal Trade Commission, the First Circuit affirmed a summary decision of the Federal Trade Commission (FTC), which found that Jerk LLC, the operator of Jerk.com, materially misrepresented both the source of...more

Arbitration Provisions Mauled by Consumer Watchdog

Companies offering payment services or financial products to consumers are facing a proposed rule from the CFPB that would prohibit class action waivers in binding pre-dispute arbitration agreements. Although the information...more

Michigan Consumer Protection Act Claims Do Not Require Proof of Intent to Deceive

Because the Michigan Consumer Protection Act (MCPA) was derivative of common law fraud, many have argued that all claims brought under the MCPA require a plaintiff to prove fraud-like elements in order to create liability...more

What’s That Smell?: Eleventh Circuit Vacates Class Certification for Failure to Show Classwide Exposure to Misrepresentations in...

On March 21, 2016, the Eleventh Circuit vacated a district court’s decision to grant class certification to California and Texas consumers claiming that Electrolux washing machines have a design defect that makes them prone...more

CFPB announces consent orders with debt collection law firm, two law firm partners, debt buyer

The CFPB announced that it has entered into two consent orders involving debt collection litigation practices. A debt collection law firm and two of its partners are the subject of one consent order and a debt buyer is the...more

New York’s Appellate Division Reinstates Attorney General’s Statutory Fraud Claim Against “Trump University”

In State of New York v. Trump Entrepreneur Initiative LLC, New York’s Appellate Division recently denied a motion by Donald Trump’ organization to dismiss a fraud claim brought by the New York Attorney General (“AG”) under...more

4 takeaways for higher ed from the Alaburda student lawsuit verdict

Last week a California jury rejected a law school graduate’s claim that her alma mater falsified graduate-employment data in the much-anticipated Alaburda v. Thomas Jefferson School of Law trial. The lawsuit was filed on May...more

Advertising Law - March 2016 #3

New in False Advertising Lawsuits: Security Systems and Oatmeal - Class action complaints alleging false advertising run the gamut of products and services, and recent lawsuits filed across the country bear this...more

Chocolate Giant Need Not Disclose Child Labor in Supply Chain

Judge Richard Seeborg of the Northern District of California ruled earlier this month in Hodsdon v. Mars, Inc., Case No. 3:15-cv-04450, that neither the FAL, the UCL, nor the CLRA require a company to disclose on its labels...more

Consumer Fraud, Unfair Trade Practices, and Internet Purchases

If you buy a product through a website, and then the product doesn’t live up to its promises, can you sue the manufacturer for violating N.C. Gen. Stat. § 75-1.1? A recent decision by the federal court in Boston...more

An Honest Struggle to Advertise "Natural" Products

On February 12, 2016, two consumers brought a proposed New York state class action lawsuit against The Honest Company, Inc., a personal care products company co-founded by actress Jessica Alba. The lawsuit alleges that The...more

Ninth Circuit Resolves Federal/State Court Split Regarding Whether “Latent” Defects Discovered After Duration of Warranty Period...

In Daniel v. Ford Motor Company (filed 12/02/15), the Ninth Circuit resolved a federal and state court split on the issue of whether consumers can sustain a breach of implied warranty claim under California’s Song Beverly...more

Take-Off Denied for Airline Fuel Surcharge Class Action

Last week, the British Columbia Supreme Court dismissed five class action certification applications in Unlu v. Air Canada (Unlu), which were brought against airlines regarding the manner in which fuel surcharges are...more

Federal Judge Permits MPHJ’s Suit Challenging Vermont’s Bad Faith Patent Demand Letter Law To Proceed

We previously discussed the Vermont attorney general’s enforcement action against MPHJ Technology Investments, LLC, a non-practicing entity that has recently been the subject of regulatory scrutiny. The attorney general’s...more

B.C. Court of Appeal Confirms No Cause of Action for Cellular “System Access Fees” Claim

In Ileman v. Rogers Communications Inc., released on June 9, 2015, the B.C. Court of Appeal dismissed an appeal from the B.C. Supreme Court’s refusal to certify a class proceeding against various cellular telephone companies...more

CFPB's Federal Court Action Against PayPal Sheds Further Light on the Meaning of 'Abusive' Acts or Practices

On May 19, 2015, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) filed a complaint and proposed consent order against PayPal, Inc. and its subsidiary Bill Me Later, Inc. (collectively, “PayPal”) in the U.S....more

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