Unfair or Deceptive Trade Practices False Advertising

News & Analysis as of

The Quarter Ham: California Court of Appeal Affirms Judgment in Unfair Competition and False Advertising Case

You can still get your quarter ham “STARTING AT $23.99” from Honey Baked Ham, Inc. according to the California Court of Appeal in its unpublished decision on November 8, 2016. The Court of Appeal affirmed a trial court’s...more

"The Class Action Chronicle - Winter 2016"

This is the 14th edition of The Class Action Chronicle, a quarterly publication that provides an analysis of recent class action trends, along with a summary of class certification and Class Action Fairness Act rulings issued...more

Ninth Circuit Lowers Hurdle for Class Certification

On January 3, 2017, the Ninth Circuit Court of Appeals declined to adopt “administrative feasibility” as an independent requirement for class certification. It held that Rule 23 does not require class counsel to show at the...more

When the Strength of the Facts Cannot be Lifted – SDNY Dismisses Muscle Maker Slack-Fill Class Action

The Southern District of New York recently dismissed a putative class action against Cytosport, the maker of Muscle Milk protein powder. The plaintiff, Orlando Bautista, alleged that he bought a container of Muscle Milk...more

FTC Grants Summary Judgment Against California Naturel, Inc. Falsely Advertising “All Natural” Sunscreen Products

In its opinion in In re California Naturel, Inc., the Federal Trade Commission held that the California Naturel, Inc. advertising promoting its “all natural” sunscreen on its website as containing “only the purest, most...more

Advertising Law - December 2016 #4

FTC Rules Against "All Natural" Sunscreen Maker - In a final order, the Federal Trade Commission granted summary decision against California Naturel, Inc. for falsely advertising its sunscreen products as "all natural"...more

CFPB Acts Against Three Reverse Mortgage Companies

The Consumer Financial Protection Bureau entered into consent orders with three reverse mortgage companies alleging each committed deceptive advertising in connection with the marketing of their products....more

DeVry University Settles with FTC for a Whopping $100 Million

The Federal Trade Commission announced this week that it has settled with DeVry (DeVry) for $100 million over allegations that it misled prospective students with ads that promised higher employment success and income upon...more

Coming to a Retailer Near You: Made in USA Labeling Requirements

Patriotism is a hot topic in the United States. One study shows 51% of American consumers will pay higher prices to buy American made products. Not surprisingly, manufacturers actively promote products with the red, white and...more

How Big Retailers Can Avoid Newest Wave of Deceptive Price Advertising Lawsuits

Los Angeles City Attorney Mike Feuer last week announced the filing of four lawsuits against some of the largest retailers in the United States, accusing them of misleading customers by advertising a “sales price” alongside...more

CFPB Enters Consent Order with Seattle-Based Payday Lender

On December 16, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order relating to a Seattle-based payday lender and check-cashing company’s allegedly deceptive online...more

CFPB enters into consent order with lender to settle claims alleging deceptive advertising and collection letters, unauthorized...

The CFPB announced that it has entered into a consent order with Moneytree, Inc. to settle allegations that the company engaged in deceptive advertising, sent consumers deceptive collection letters, and did not obtain written...more

How Big Retailers Can Avoid Newest Wave of Deceptive Price Advertising Lawsuits

Los Angeles City Attorney Mike Feuer last week announced the filing of four lawsuits against some of the largest retailers in the United States, accusing them of misleading customers by advertising a “sales price” alongside...more

CFPB enters into consent orders with reverse mortgage companies to settle alleged advertising violations

The CFPB announced that it entered into consent orders with three reverse mortgage companies to settle the CFPB’s allegations that the companies engaged in deceptive advertising in violation of the Mortgage Acts and...more

NY Medical Providers: Use Caution When Soliciting Positive Reviews on Consumer-Review Websites

Consumers often seek online reviews of a business on platforms such as Yelp, CitySearch, Yahoo and Google Plus Pages before purchasing products or services. This includes patients seeking online reviews of a physician or...more

Court Issues $29 Million Judgment Against Pure Green Coffee Weight-Loss Pills in FTC Deceptive Advertising Suit

On November 2, 2016, a Florida Federal District Court issued a $29 million judgment against the marketer of Pure Green Coffee extract weight-loss pills in a deceptive advertising suit brought by the Federal Trade Commission....more

Don’t Wish Too Hard: Ohio Federal Court Tosses Class Claims in Consumer Case for Failure to Allege Actual Damages

Wish.com is a website that sells, you guessed it, goods. Lots of them. Clothing, watches, smartphone cases, fishing lures, jewelry, handbags, Pokémon cards, electronics, shoes. Most are inexpensive and made in China, from...more

Deceptive Weight Loss Marketing Results in $30 Million Judgment

A federal judge for the Middle District Court of Florida has entered a $30 million judgment in favor of the Federal Trade Commission (“FTC”) and against NBA Advertising, Inc. and its owner. We had previously blogged about...more

Advertising Law - November 2016 #2

Advertiser’s Claims for Sex Supplement Too Vague for Lawsuit - An advertiser’s claims were too vague to be actionable, a California federal court held when dismissing a false advertising class action. Jonathan...more

The FTC's Crackdown on Social Media #Ads

In the ongoing effort to reach the hearts and minds of consumers, brands are increasingly looking beyond the traditional media outlets of radio, print and television. The recent meteoric rise and diversity of social media...more

FanDuel, DraftKings Settle Fantasy Sports Lawsuit with New York AG

This week, the office of the New York Attorney General (the “AG”) announced that it had reached a settlement with both FanDuel and DraftKings, resolving the State’s deceptive marketing practices lawsuit. We had previously...more

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

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

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

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

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