False Advertising

News & Analysis as of

Week in Review: Proposed Rule Changes and Another Data-Breach Decision

Today’s round-up takes a look at the potential impact on class-action litigation of some recently proposed amendments to the Federal Rules of Civil Procedure, and continues our exploration of what type of injury it takes to...more

NYAG Announces Settlement with Synergy Fitness for Improper Billing

This week, the New York State Attorney General (the “Attorney General”) announced that it had settled with nine Synergy Fitness (“Synergy”) health clubs over alleged deceptive and improper billing practices. Specifically,...more

2 for 1—Private and Government Actions Regarding Price Comparisons

Amazon made recent news for pricing items without stating a list price or whether an article was on sale or was offered at a discounted cost. The policy was based on the idea that Amazon's numerous Prime members would buy...more

FTC Announces Dog Food False Advertising Settlement

Last Thursday, the Federal Trade Commission (“FTC”) announced that it had settled with Mars Petcare US, Inc. (“Mars Petcare”) concerning allegedly false advertising claims relating to its Eukanuba brand dog food. ...more

New Federal Law Will Require Disclosure of GMO Content in Food

A new federal law will require food makers to disclose when foods contain genetically modified ingredients. The law, which was recently signed by President Obama, will require such food products to be labeled with text,...more

Not So Sweet: The Debate Over Evaporated Cane Juice

FDA’s final guidance expresses its view that the phrase “evaporated cane juice” is false and misleading. “Evaporated cane juice” has become a popular ingredient in everything from yogurt to cookies, attracting consumers...more

Advertising Law - August 2016 #2

Electric Toothbrushes Battle It Out Before NAD - In a battle over electric toothbrushes, the National Advertising Division determined that Procter & Gamble can support superiority claims for its Oral-B models challenged...more

Ninth Circuit Affirms Dismissal of Fraud-Based UCL Claims Based on Lack of Reliance

The Ninth Circuit Court of Appeals’ recent decision in Haskins v. Symantec Corp., Case No. 14-16141 (9th Cir. June 20, 2016), supports the requirement that plaintiffs must allege exposure to and reliance on specific...more

Lifestyle Blogging, Supplement Dust, and Third Party Liability

The NAD recently took a swipe at Goop, the lifestyle blog founded by Gwyneth Paltrow. To make “GP’s Morning Smoothie,” Goop had recommended using “dust” dietary supplements, such as Action Dust and Brain Dust, both sold by...more

Campbell Seeks Dismissal of “Healthy” Labeling Lawsuit

Campbell Soup Company (“Campbell”) has moved to dismiss a putative class action lawsuit alleging that Campbell’s Chunky™ Healthy Request® Grilled Chicken & Sausage Gumbo Soup product is falsely and misleadingly advertised as...more

Court Suggests Companies Can Be Liable as Soon as Claims Become Stale

It’s a common question. A company creates a product with a competitive advantage; it takes steps to substantiate a superiority claim; and, satisfied that it has met the legal standard, it bases an advertising campaign on that...more

District Court Further Limits Application of Professional Services Exclusion

One of the most heavily-litigated exclusions in modern insurance coverage practice was the subject of a recent district court decision involving allegedly misleading marketing by for-profit colleges. Exclusions for claims or...more

Advertising Law - August 2016

Court Awake To Plaintiff’s Deceptive Sleep-Tracking Claims Against Fitbit - A challenge to Fitbit’s claims that certain models of its exercise monitoring device tracked users’ sleep patterns will move forward after a...more

Food Manufacturer Sued for Allegedly Deceptive ”Slack-Fill”

Last Thursday, four New York City residents commenced a federal lawsuit and prospective class action against the world’s leading pasta maker, Barilla S.p.A., and its subsidiaries Barilla America, Inc. and Barilla USA...more

Second Trump University Class Action Proceeding to Trial

Class action trials, a rarity in Canada, are now set to proceed in two separate U.S. District Court cases involving U.S. Presidential candidate Donald Trump and “Trump University”. In a decision released this week, Judge...more

Advancing New Claims Under the Lanham Act

Implementing unique litigation tactics, on June 15, 2016, Foley & Larder LLP filed a complaint under Section 337 of the Tariff Act at the International Trade Commission (“ITC”) on behalf of Par Pharmaceutical and related...more

False Ad Claims Fail to Crystalize as Court Dismisses Amended Complaint against Sharp Electronics with Prejudice

Dismissals of class action complaints with prejudice are not as common as dismissals with leave to replead, but a recent decision in the District of New Jersey illustrates the circumstances under which a dismissal with...more

NY Attorney General Tightens the Screws on Direct Marketing Industry

In a move that will no doubt have ripple effects across the direct marketing industry, the New York Attorney General has reached a settlement with two marketers regarding allegations of deceptive advertising practices. If...more

NYAG Announces Deceptive Advertising Settlements

Last week, the New York State Attorney General (the “Attorney General”) announced settlements with two separate companies relating to claims involving allegations of deceptive advertising and billing practices. The...more

The FTC Social Media Consent Order Against SmartClick

The FTC continues its efforts to combat deceptive social media advertising. In June 2016, the FTC brought an enforcement action against SmartClick Media LLC and its owner. The FTC alleged that SmartClick engaged in the...more

American Spirit Cigarettes — Tobacco is back with ad deception…

On August 27, 2015, the Food and Drug Administration sent a warning letter to Santa Fe Natural Tobacco Co. Inc. and Reynolds American Inc., the company that owns Santa Fe Natural Tobacco and produces American Spirit...more

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

Slack-fill Litigation on the Rise

The recent filing of a proposed class action targeting Mondelez International, Inc. for the amount of empty space in its Sour Patch Watermelon candy boxes is the latest lawsuit targeting consumer goods manufacturers for...more

FTC Acts Against Warner Brothers’ YouTube Promotion Campaign: Disclosure of Affiliation Below the “Fold” Is Not Enough

Last week, the FTC announced an agreement containing a consent order, subject to final approval, resolving its claims against Warner Bros. Home Entertainment Inc. (“Warner Bros.”) for the company’s misleading use of social...more

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

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