Unfair or Deceptive Trade Practices

News & Analysis as of

Mobile App Developer Settles with FTC and New Jersey AG Over Virtual Currency Mining

On June 29, a mobile app developer entered into an agreement with the FTC and the New Jersey AG to settle allegations that the developer engaged in deceptive and unfair practices by marketing its rewards app, called “Prized,”...more

FTC Resolves Claims Against Auto Dealers Based on Alleged Deceptive Advertising

On June 29, the FTC filed two administrative complaints and issued proposed orders against two Las Vegas auto dealers to resolve allegations that they engaged in misleading advertising practices that misrepresented the...more

CFPB Drives Action Against Auto-Finance Company

Putting the brakes on what it viewed as aggressive debt-collection tactics, the Consumer Financial Protection Bureau (CFPB) filed suit in Ohio federal court on June 17, 2015, against Security National Automotive Acceptance...more

Consumer Food Fraud Claim Sinks in Arkansas Safe Harbor

On this date in 1896 the Dutch completed the harbor at IJmuiden. (That capital J is not a mistake. The I and J go together as a digraph, and they form a ligature that effectively makes up a single letter in the Dutch...more

Class Certification of California Price Advertisement Case Gives Cause for Concern

A recent class certification decision in California involving challenges to a retailer’s price comparison advertisements should prompt retailers to carefully evaluate their sale advertising practices. Whether comparing to...more

FTC Shuts Down a Risky Risk-Free Offer

This morning, the FTC announced that it had stopped a group of 15 companies and 7 individuals from using deceptive “risk-free trial” offers to sell skincare products online. At the Commission’s request, a federal court issued...more

No Prescription For Consumer Protection

Allowing plaintiffs to pursue claims under consumer protection statutes in prescription medical product liability litigation is trying to pound a square peg into a ham sandwich. It doesn’t fit, and the combination isn’t very...more

New York AG Announces Nearly $14 Million Agreement with Local Auto Dealers Over Deceptive Sales Practices, Plans to Sue an...

On June 17, New York Attorney General Eric Schneiderman announced an approximate $14 million agreement with three jointly-owned auto dealers in connection with the alleged unlawful sale of add-on products, such as credit...more

RadioShack’s Consumer Data: A Highly Scrutinized Asset

Following the Texas Attorney General’s objection to the sale of RadioShack Corporation’s consumer data as an asset in its bankruptcy, 37 other state attorneys general and a large number of other consumer protection entities...more

CRA 2015 Briefing 06-15

The main provisions of the Consumer Rights Act 2015 (CRA) will come into force on 1 October 2015. The CRA consolidates key consumer rights covering contracts for goods, services, digital content and the law relating to unfair...more

EU/Swiss-U.S. Safe Harbor: More Scrutiny by the FTC?

On May 29, 2015, the Federal Trade Commission ("FTC") announced the approval of the final orders for two U.S. companies, TES Franchising, LLC ("TES") and American International Mailing, Inc. ("AIM"), settling complaints that...more

Procter & Gamble Must Say Goodbye to Proposed Amended Claim against Hello, while Hello Says Goodbye to Lawsuit

A lawsuit between Procter & Gamble (“P&G”) and Hello Products (“Hello”) – a toothpaste start up that promotes its products as “naturally friendly” – settled last week with the entry of a stipulated injunction, but Hello might...more

Free* to Play Means Only If You Pay

As online gaming companies compete for business, they are offering customers increasingly large incentives to play on their websites, often in the form of deposit bonuses. These deposit bonuses allow players to play with the...more

A Tale of Two Annuities: Exchange of Variable for Fixed Annuity Integral in SLUSA Dismissal

After attending an annuity seminar, Robert and Diane Ruud exchanged their variable annuity for a fixed annuity sold by PHL Variable. According to the Ruuds, seminar provider John Friendshuh represented the fixed annuity as...more

FTC Announces First Action Involving Crowdfunding

Last week, the FTC announced its first legal action involving crowdfunding. For those of you who don’t know, crowdfunding is the practice of raising money for a project by seeking contributions from a large number of people,...more

Crowdfunding Project Creator Settles FTC Charges of Deception

In the FTC's first case involving crowdfunding, the agency took action against a project creator who was ostensibly raising money from consumers to produce a board game, but instead used most of the funds on himself....more

Getting the Deal Through - Advertising and Marketing 2015: Canada

Legislation and Regulation - What are the principal statutes regulating advertising generally? The principal federal statute regulating advertising in Canada is the Competition Act, which is a law of general...more

B.C. Court of Appeal Affirms Refusal to Certify Business Practices and Consumer Protection Act Claims

On June 3, 2015, in Marshall v. United Furniture Warehouse Limited Partnership (Marshall), the B.C. Court of Appeal dismissed the plaintiffs’ appeal from the application judge’s denial of certification of a proposed class...more

Procaps, Carlton Fields Getting Thoroughly Embarrassed in Antitrust Litigation vs. Patheon, Morgan Lewis

Anybody who litigates antitrust cases should pay attention to Procaps v. Patheon, currently pending in the Southern District of Florida. It’s a debacle. Procaps is getting crushed. Morgan Lewis is running circles around...more

Attorney Fees in 75-1.1 Cases and Unwarranted Refusals to Settle

A party who shows a violation of N.C. Gen. Stat. § 75-1.1 can sometimes recover attorney fees under N.C. Gen. Stat. § 75-16.1(1). Section 75-16.1(1), however, imposes two substantive conditions on such a fee award...more

Now is the time to reevaluate commercial sales contracts that incorporate other documents by reference

Legal documents of all kinds – everything from wills and trusts to commercial sales agreements – often reference other documents. This “incorporation by reference” comes with certain risks. Historically, courts looked beyond...more

Lack of Typicality and Adequacy of Representation Prevents Class Certification in Health Care Data Breach

The opinion from the Philadelphia Court of Common Pleas reinforces lack of standing as a defense for companies facing data breach–related class actions. On March 25, the Philadelphia Court of Common Pleas provided...more

Unfair Business Practices – Hospital’s “Facility Fee” Billed To New Patients

Justin Nolte et al., v. Cedars Sinai Medical Center - Court of Appeal, Second Appellate District (May 21, 2015) - Generally, a business practice is unfair if it violates established public policy or if it is...more

Trade Secrets Misappropriation Suit Over Solicitation of Employees - Cypress Semiconductor Corporation v. Maxim Integrated...

In Cypress Semiconductor Corporation v. Maxim Integrated Products, Inc., the California Court of Appeal affirmed a trial court’s award of $180,817.50 in attorneys’ fees plus costs to Maxim Integrated Products, Inc. as the...more

CFPB and Florida AG obtain judgments against foreclosure relief companies

The CFPB announced that, together with the Florida AG, it has obtained judgments against several Florida companies and their individual operators who were charged in a complaint filed in a Florida federal court with using...more

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