News & Analysis as of

Consumer Protection Franchise

Read Consumer Protection updates, news, and legal commentary from leading lawyers and law firms:

FRANCHISOR 101: Donut Franchise Relationship Dissected by Court

by Lewitt Hackman on

The parent of Dunkin' Donuts was named along with Starbucks and about 80 other coffee sellers, distributors and retailers in a 2010 lawsuit alleging violations of California's Proposition 65 and Safe Drinking Water and Toxic...more

Franchise agreements under the South African Consumer Protection Act

by Dentons on

Prior to the enactment of the Consumer Protection Act 68 of 2008 (the CPA), there was no specific piece of legislation that regulated franchises. In this article, we provide a brief overview of some important aspects related...more

PowerPoint Slides: Does Your Company's Distribution Strategy Create Legal Risk?

by Pepper Hamilton LLP on

What does in-house counsel need to consider when reviewing pricing and marketing decisions in a dual-distribution system? The internet can extend the geographic reach of your product, but what issues must in-house counsel...more

Does Your Company's Distribution Strategy Create Legal Risk?

by Pepper Hamilton LLP on

What does in-house counsel need to consider when reviewing pricing and marketing decisions in a dual-distribution system? The internet can extend the geographic reach of your product, but what issues must in-house counsel...more

N.Y.’s New Cybersecurity Regulations: What Financial Services Companies Need to Know

With corporate data security breaches on the rise, the New York State Department of Financial Services (NYDFS) has adopted rules requiring financial institutions to take certain measures to safeguard their data and inform...more

FACTA Suits Still Bite - $31 Million Subway Class Action Settlement Approved

Ten years ago, hundreds of retailers, chain restaurants and others were targeted nationwide as defendants in class action suits under the Fair and Accurate Credit Transactions Act (FACTA) for violating the so-called...more

Correcting an Accidental Franchisor Violation

by LeClairRyan on

What’s a franchise? Franchise registration and disclosure laws define a “franchise” more broadly than people generally realize. A company may be franchising without knowing it. The “license” agreement may have been...more

District Court: CFPB May Hold Law Firm Owners Individually Liable for Alleged Violations

by Holland & Knight LLP on

The U.S. District Court for the Western District of Wisconsin ruled on July 20, 2016, that the Consumer Financial Protection Bureau (CFPB) may hold the owners of two law firms offering debt relief services liable for alleged...more

What’s an FPR?

by LeClairRyan on

Every franchise buyer wants to know how much money he or she can make from the franchised business. Franchise sellers naturally want to answer that question in order to make the sale. But many say that they cannot give...more

What’s a Biz Op?

by LeClairRyan on

What’s a business opportunity or, as we often say, a “biz op”? The Federal Trade Commission (FTC) regulates biz op sales under its authority to regulate unfair or deceptive trade practices. The FTC’s definition of a business...more

What’s an Exclusive Territory?

by LeClairRyan on

The extent of a franchisee’s territorial rights is the subject of Item 12 of the franchise disclosure document (FDD). One of the questions franchisors must address in Item 12 is whether the territory is exclusive....more

McDonald's Mandatory Use of Payroll Cards Violates Pennsylvania's Wage Payment and Collection Law

by Barley Snyder on

Over 2,300 current and former employees of 16 McDonald’s franchisee locations in Pennsylvania claim that requiring the use of payroll debit cards to get paid violates the Pennsylvania Wage Payment and Collection Law (WPCL),...more

Objections To Radioshack’s Sale of Customer Data Cause Static In Advance of Auction

by Robinson & Cole LLP on

Uncertainty will hang over the upcoming bankruptcy auction of RadioShack’s intellectual property, franchise infrastructure, and customer data pending resolution of an ongoing struggle between RadioShack and several states’...more

FTC settles with two companies over misrepresentations of safe harbor compliance

by Robinson & Cole LLP on

The Federal Trade Commission (FTC) announced last week that it is settling investigations against American International Mailing, Inc. and TES Franchising LLC alleging that each were misrepresenting to consumers that they...more

Franchise and Distribution News - January 2015

by Dickinson Wright on

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

by Lewitt Hackman on

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

by Dickinson Wright on

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

by Dickinson Wright on

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

by Carlton Fields on

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

by Faegre Baker Daniels on

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

CFPB announces November 13 “mystery” field hearing

by Ballard Spahr LLP on

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

by Faegre Baker Daniels on

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

by DLA Piper on

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

by Dickinson Wright on

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

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