False Advertising

News & Analysis as of

Advertising Law - June 2016 #3

FTC Targets Spam, False Claims by Weight Loss Products - Alleging violations of the Federal Trade Commission Act and the CAN-SPAM Act, the Federal Trade Commission filed suit in Florida federal court against a pair of...more

Retail and Consumer Products Law Roundup - June 2016

President Signs Legislation Modernizing Federal Chemical Regulation Law - Overhaul of Toxic Substances Control Act (TSCA) has important business implications for consumer product manufacturers and retailers. ...more

When Do "Made in USA" Claims Spark the FTC's Attention?

The Federal Trade Commission (FTC) is tasked with preventing deception and unfairness in the marketplace, including with respect to advertising. One type of deception that the FTC targets involves false claims in advertising...more

Taken for a Ride: Under-Fire Uber Pays the Price

A recent settlement between Uber and the Los Angeles and San Francisco County District Attorneys Offices presents an interesting opportunity to examine the tools available to California law enforcement to police potentially...more

Prosecutors win $67 million settlement with pharma firms accused of deceit

Federal prosecutors have wrung $67 million in a settlement with two pharmaceutical companies accused of deceiving doctors to prescribe a drug that the firms knew would be ineffective in treating lung cancer patients....more

Advertising Law - June 2016 #2

Dietary Supplement Makers Reach Deal With FTC - The makers of a dietary supplement touted to help users lose weight and aid with the symptoms of menopause settled with the Federal Trade Commission over charges that their...more

Smarter, Stronger, Faster: FTC Cracking Down on Deceptive Health-Related Advertising

In recent years, brands have become bolder in their representations to consumers. Our product is the safest. Our product is totally natural. Our product will make you smarter. However, the FTC is cracking down on instances of...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

State Safe Harbor Doctrines: A Life Preserver from False Advertising Claims Facing Alcohol Manufacturers?

Food and beverage companies, beset by lawsuits about their product labels, struggle to find consistent application of consumer protection laws across the country. The experience of one distiller and its use of one word on its...more

13 Questions to Ask Yourself About Marketing Claims to Help Avoid an FTC Enforcement Action

In the U.S., the promotion of nearly all consumer products and services is regulated by the Federal Trade Commission (FTC). In addition to the FTC regulations on advertising, in Title 16 of the Code of Federal Regulations,...more

Advertising Law - June 2016

First Circuit Affirms Ruling Against Jerk.com - In a victory for the Federal Trade Commission, the First Circuit Court of Appeals affirmed a Commission ruling that website Jerk.com, a self-described reputation management...more

A Tall Drink of Water: Ninth Circuit Affirms Dismissal of Costco VitaRain Class Action on Plausibility and Causation Grounds

On May 5, 2016, the Ninth Circuit affirmed a district court’s decision to dismiss, without leave to amend, a class action complaint alleging a violation of the Washington Consumer Protection Act against Costco for the...more

The FTC’s Analysis of Lord & Taylor’s Social Media Marketing Campaign

New ways of monetizing digital media has brought challenges in regulating advertising. The FTC has recently issued guidelines to provide businesses and advertisers with insights as to how to comply with the FTC Act. Despite...more

The Fountain of Youth May Not Be Stocked With Gin

A British hotel group recently introduced “Anti-aGin Gin,” a gin that “rejuvenates the skin while you drink.” The gin was marketed to people “who want to stay young but don’t want to give up alcohol.” The company advertised...more

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Its Formatting

Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Formatting

Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

Parks’ Allegations Against “Finest” Franks Not In the “Ball Park” of False Advertising Claims

On May 10, 2016, Judge Joseph F. Leeson, Jr. of the Eastern District of Pennsylvania granted summary judgment on false advertising and trademark claims in favor of defendant Tyson Foods, Inc. and a subsidiary, the makers of...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

Advertising Law - May 2016 #4

NAD Vacuums Up Preference Claims - In a challenge brought by a competing vacuum manufacturer, the National Advertising Division recommended that SharkNinja discontinue a claim that "Americans now choose Shark 2-to-1 over...more

Where’s the Octopus? New False Advertising Class Action against Goya Foods, Inc. Claims Octopus Is Missing from Products

A new putative consumer class action claiming damages in excess of $5,000,000 was filed earlier this month in the Northern District of California against Goya Foods, Inc. (“Goya”). The plaintiff, a purchaser of Goya octopus...more

Brainstorm: FTC Continues Enforcement Trend Against Cognitive Function Claims

Continuing its trend of scrutinizing claims touting improved cognitive function, the Federal Trade Commission recently announced a settlement with LearningRx Franchise Corp. (“LFC”), the developer and franchisor of a chain of...more

Tyson Foods Knocks It Out of the Park in Lanham Act Dispute over Hot Dogs

Baseball parks and hot dogs are staples of Americana. So, it is no surprise that both were recently on display in a Lanham Act dispute in the U.S. District Court for the Eastern District of Pennsylvania. The court’s...more

No Common Sense – Today’s Cost of Doing Business

What is a retailer to do? The world today is filled with people assuming they are being disrespected and believing they are being defrauded. It’s not just that some customers can be surly and demanding when they are in your...more

Supreme Court: Class Action Plaintiffs Must Show ‘Concrete’ Harm to Satisfy Article III

In a 6-2 decision, the Supreme Court, in an opinion authored by Justice Alito, held that the Ninth Circuit’s Article III standing analysis in Robins v. Spokeo was incomplete because it focused solely on whether the plaintiff...more

Advertising Law - May 2016 #3

Fake Subscription Notices, Real FTC Lawsuit - Fake subscription notices are the subject of a new lawsuit filed by the Federal Trade Commission in an Oregon federal court. The defendants, a web of dozens of...more

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