False Advertising

News & Analysis as of

Advertising Law - October 2016 #4

New in False Advertising Suits: "Natural" Claims, Healthy Beverages - Demonstrating that the focus on health-related claims has not abated, two new class actions were filed challenging the "natural" labels for deli meat...more

And the dream lives on: DraftKings and FanDuel Settle Remaining False Advertising Claims with New York AG

In June, we covered Daily Fantasy Sports (“DFS”) operators’ major legislative victory in New York: a bill legalizing and regulating their business, ending the potential for an outright prohibition on DFS in the state. That...more

Check the Box to Avoid Food & Beverage Packaging Litigation

Shagha Tousi, a partner in Nutter’s Litigation Department and a member of the firm’s Business Litigation and Product Liability and Toxic Tort Litigation practice groups, addressed product packaging litigation in the food and...more

Manufacturer Settles FTC “Made in USA” Lawsuit

Last week, the Federal Trade Commission (the “FTC” or “Commission”) announced that Georgia-based glue manufacturer Chemence, Inc. (“Chemence”) has agreed to pay $220,000 to settle a lawsuit filed in connection with Chemence’s...more

When “Organic” is Not “Organic,” Even When the USDA Says It Is

Producers of agricultural products go to great lengths to achieve the U.S. Department of Agriculture’s “organic” label. Under the USDA’s National Organic Program (NOP), organic certification is a complex time-consuming...more

Accurate Net Weight Disclosures May Defeat Slack-Fill Claims in California

Last April, we reported on Ebner v. Fresh, Inc., in which a Ninth Circuit panel held that the plaintiff failed to state a claim that Sugar lip balm packaging was misleading because it contained non-functional “slack-fill.”...more

Naturally Misleading? Ninth Circuit Keeps “All Natural” Fruit Labeling Dispute Alive

Does a food label advertising a product as “all natural fruit” mislead consumers when that product contains artificial preservatives? That is the question presented in Brazil v. Dole Food Co. Inc., which the Court of Appeals...more

Don’t Forget About FTC Compliance: Substantiating Claims to Avoid Misleading Consumers

Life sciences companies regularly review their labeling and promotional materials to ensure compliance with Food and Drug Administration requirements. FDA makes its Warning Letters publicly available, and failure to correct...more

S.D. Cal. Shows No Love for Aphrodisiac Class Certification

A class action claiming that a diet supplement was falsely advertised as being an aphrodisiac cries out for bad jokes and silly puns. Are we above all that? Er… sure. The supplement is called IntenseX. (Get it? Why don’t...more

Stuck in the Middle with the FTC

Legal actions regarding “Made in the USA” claims, whether prosecuted by the Federal Trade Commission (FTC) or through various state unfair trade practices acts, often settle early in the proceedings. For example, in 2014,...more

Hillary Clinton's IP Litigation Experience

Many people are surprised to learn that Hillary Clinton was an intellectual property attorney when she practiced law from 1977-1992 for the Rose Law Firm. While the New York Times has reported that former colleagues cannot...more

No Protection for Network Marketing Provider That Had Knowledge and Authority to Control Deceptive Conduct of Affiliates

In Federal Trade Commission v. LeadClick Media, LLC, 2016 U.S. App. LEXIS 17383 (2nd Cir. 2016), the Second Circuit recently held that an affiliate marketing network provider could be subjected to liability under the Federal...more

Starbucks Puts Another False Advertising Lawsuit On Ice

On Friday, the U.S. District Court for the Northern District of Illinois dismissed a class-action lawsuit against Starbucks. The class alleged a violation of Illinois’ Uniform Deceptive Trade Practices Act and the Illinois...more

De-certifiably Natural – Ninth Circuit Finds “All Natural” Label May be Misleading While Upholding Class Decertification

The Ninth Circuit Court of Appeals recently reversed in part and affirmed in part a Northern District of California ruling concerning the “All Natural Fruit” labeling on Dole’s packaged fruit products. Brazil v. Dole Packaged...more

Marketers of Health Supplement Settle FTC Charges Over Deceptive Advertising

Recent FTC action, and $150 million judgment, is a reminder that advertising rules must be followed and health claims need to be backed by scientific evidence. ...more

To Your Health: FDA Redefining the Term “Healthy” on Food Labels

On September 27, 2016, the U.S. Food and Drug Administration (FDA) announced that it has begun a public process to redefine the term “healthy” on food labels. As part of the public process, the FDA is soliciting input...more

Advertising Law - October 2016 #2

No Shades of Gray in Order Banning Supplement Claims - In a case based on a referral from the National Advertising Division, the Federal Trade Commission obtained summary judgment and a final order against an advertiser...more

FTC Targets Auto Dealers, Alleges Deceptive Financing Practices

The Federal Trade Commission (FTC) has filed an action against nine auto dealerships and their individual owners in a California federal court that the FTC described as its "first action against an auto dealer for 'yo-yo'...more

Deceptive trade practice claim to proceed based on ‘nothing artificial’ label

The Eastern District of Missouri (the Honorable John A. Ross, U.S. District Judge) recently issued an order denying a motion to dismiss claims involving an allegedly deceptive food label. Plaintiff alleged that she purchased...more

Summary Judgment Granted in Tito’s “Handmade” Vodka Case

On September 27, 2016, the Northern District of Florida issued a decision in Pye v. Fifth Generation, Inc., N.D. Fla. No. 4:14cv493-RH/CAS, one of many false advertising class actions brought against the makers of Tito’s...more

Retail and Consumer Products Law Roundup - October 2016

Supreme Court to Review Credit Card Surcharge Statutes - Why it matters: In an effort to resolve a conflict between Circuits, the Supreme Court has agreed to hear arguments in a challenge to New York’s credit card...more

A Step in the Right Direction: FDA Says It Will Refine Regulations on 'Healthy' Claims for Food

FDA recently announced that it will take a second look at its “healthy” regulations, and it is soliciting public comments on a dozen or so topics. Walk down any aisle at the grocery store and you will find foods...more

FTC Settles Supplement Maker Over Unsubstantiated Claims and Expert Endorsement

On October 5, 2016, the Federal Trade Commission (FTC) settled its case with Supple, LLC over certain advertising claims regarding its Supple joint supplement. Between 2011 and 2015, the company advertised (via social media,...more

Guidance on Deceptive Advertising Claims from 9th Circuit

Key Points - - The U.S. Court of Appeals for the 9th Circuit found that Dole’s “All Natural” food labels on products containing synthetic ingredients could be misleading to a reasonable consumer. - The 9th...more

PepsiCo Hit with False Advertising Suit for Marketing of Naked Juices

This week, the Center for Science in the Public Interest (CSPI), a nonprofit nutrition and food-safety watchdog group, filed a class action against PepsiCo, alleging that Pepsi misled consumers by marketing its popular Naked...more

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