Consumer Protection Franchise

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Franchise and Distribution News - January 2015

TAKE ACTION NOW TO AVOID UNEXPECTED STATE TAX LIABILITIES - Traditionally, nexus for state income tax liability has required some type of physical presence or continuous contacts by the franchisor/distributor with a...more

FRANCHISEE 101: Complying with the FDA's New Menu Labeling Requirement

On November 25, 2014, the Food and Drug Administration (FDA) released final rules governing menu and vending machine labeling to implement some of the Affordable Care Act's nutrition labeling requirements. The final...more

Navigating the Cyber Liability Storm - Part II

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Navigating the Cyber Liability Storm Part I

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Will 2015 Be The Year of the Data Breach Class Action?: Target Data Breach Claims Survive Motions to Dismiss

Various media outlets dubbed 2014 “the Year of the Data Breach.” Unfortunately for businesses, breach of their secure systems by hackers may be only the beginning of the bad news – which often culminates in class action...more

Restaurant Franchisors: Prepare to Comply With New FDA Menu Labeling Rules

The U.S. Food and Drug Administration (FDA) released its final rules for menu labeling on November 25, 2014. The long-awaited rules stem from provisions in the Affordable Care Act (ACA), the comprehensive health care reform...more

Regulators Jointly Approve Final Risk Retention Rule

On October 22, coordinated by the Department of Treasury, six federal agencies – the Board of Governors, HUD, FDIC, FHFA, OCC, and SEC – approved a final rule requiring sponsors of securitized transactions, such as...more

CFPB announces November 13 “mystery” field hearing

Departing from its past practice, the CFPB has announced that it will hold a field hearing in Wilmington, Delaware on November 13 but has not yet disclosed what the hearing will be about. Instead, the announcement says only...more

Ninth Circuit Weighs in on When Franchisors May Be Liable for Franchisees' Unlawful Text Messaging Campaigns

In Thomas v. Taco Bell Corp.,[3] a franchisee association planned a promotion in which text messages were sent to 17,000 people in the Chicago area to promote a local sweepstakes contest. The lower court dismissed the case...more

Breach of the Australian Franchising Code to result in fines

As foreshadowed by the Coalition Government earlier this year (see our previous update), penalties for breach of the Franchising Code of Conduct (Franchising Code) are to be introduced....more

Doing Business in Canada: Marketing & Labeling Legislation

MARKETING & LABELING LEGISLATION - In Canada, the federal Competition Act prohibits certain marketing activities, which include: • Resale price maintenance • Predatory pricing • Price discrimination •...more

Heads Up: Canada’s Anti-Spam Legislation (CASL) Takes Effect on July 1st

Once CASL takes effect, you will need express or implied consent before you (or your franchisees) can send a commercial electronic message (CEM). While franchisors are well aware of the pending impact of CASL and have been...more

Franchise & Distribution News - June 2014

In This Issue: - NEW FRANCHISE LEGISLATION IN CANADA: British Columbia, which presently does not have a franchise specific statute, recently took one step closer to implementing such legislation when the British...more

FTC and the “Internet of Things”: Franchisor on the hook

Last fall the Federal Trade Commission brought cases against a software developer and rent-to-own stores that secretly monitored people in their homes. The developer provided the stores with software that had a “Detective...more

Rent-to-Own Franchisees Use Spyware to Gather Passwords, Intimate Conduct

Some franchisees of Aaron’s, Inc., the rent-to-own retailer, leased computers with programs that spied on their customers with the franchisor’s knowledge and assistance. Aaron’s, Inc. agreed to a consent decree with the...more

Credit and Debit Card Payment Regulations and Laws

Legal Alert – Credit and Debit Card Payment Regulations and Laws Introduction To curb money laundering, corruption and tax evasion, the Nigerian apex regulatory Bank, the Central Bank of Nigeria (“CBN”) has continued...more

Robocalls: vicarious liability of franchisors under the TCPA

In a FranCast issued last year, we reported on a case called Carolyn Anderson v. Domino’s Pizza, Inc., in which a district court dismissed a claim filed under a state version of the federal Telephone Consumer Protection Act...more

Mobile Wallet Systems May Be a Boon for Sales, But What Are the Risks?

One trend is clear: more and more retailers are accepting payment through so-called "mobile wallets" in lieu of traditional plastic credit cards. Experts predict that in coming years, the local and global market for mobile...more

Craft Beer Boom in Michigan [Video]

Michigan is going through a significant boom in its alcoholic beverage manufacturing. In a video produced by Crain's Detroit Business and Miller Canfield, lawyer Joe Infante discusses what this means for Michigan and...more

Attorney General Prevails In Lawsuit Against Income Tax Preparation Company

The Attorney General brought a lawsuit against an income tax preparation business alleging violations of state and federal lending, consumer protection, unfair competition, and false advertising laws. The court of appeal...more

Franchising Update - Febuary, 2013

This edition of our Franchising Update includes the following articles: - The recently announced review of the Franchising Code. - The Pie Face dispute – misleading information or inadequate due...more

The Legal Framework on Commercial Franchise of In-home Care Business

To conclude a little bit on some of the most concerned questions from investors in the franchise regulatory environment, I will, in this article, introduce the legal system in China on commercial franchise, what are the...more

USPTO Finds Dunkin' Donuts Slogan Mere Puffery

Dunkin’ Donuts may claim it has the “Best Coffee in America” but the U.S. Patent and Trademark Office (USPTO) found the phrase was mere “puffery” and had not acquired a secondary meaning sufficient to be registered on the...more

Use Your Phone To Pay For Products And Services

Businesses trying to stay ahead of the curve, and jumping on any possible competitive advantage, may now be looking towards the revolution in the payment process. Cash was once (maybe still is) king. Barter has been around...more

Hotel Franchisor Challenges FTC's Expanded Enforcement Efforts Targeting Franchise System's Data Security and Privacy Policies

The Federal Trade Commission’s recent lawsuit against Wyndham Worldwide may mark the beginning of FTC enforcement actions targeting franchise systems through allegations of customer data security vulnerabilities in...more

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