Unfair or Deceptive Trade Practices False Advertising

News & Analysis as of

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

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

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

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

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

Resource for Doing Business in the U.S. – Installment #8 – Consumer Protection

Almost everyone approaching the U.S. consumer market has heard nightmares about lawsuits and read damaging headlines from consumer claims. These range from industry wide antitrust investigations to criminal indictments for...more

Ninth Circuit: Food Manufacturers May be Liable for Misleading Consumers if They Label Foods Containing Synthetic Citric and...

On September 30, the Ninth Circuit Court of Appeals reversed in part a district court decision granting summary judgment to Dole Packaged Foods, LLC (“Dole”), finding that a reasonable fact finder could conclude that Dole’s...more

A Berry Mixed Decision: Consumer Class Action Challenging Packaging of “Himalania” Goji Berries Largely Survives Motion to...

On September 2, 2016, United States District Judge Dean P. Pregerson for the Central District of California granted in part and denied in part a motion to dismiss a class action complaint alleging violations of the UCL and...more

FTC Wins Health Benefit-Related Deceptive Advertising Lawsuit

The Federal Trade Commission (“FTC”) recently prevailed in a deceptive advertising lawsuit against COORGA Nutraceuticals Corporation (“COORGA”) and its principal. The judgment provides for, among other things, a monetary...more

Marketing your brand with influencers? Make sure the FTC hits the “Like” button

Brand owners and their attorneys are grappling with an important question: how to disclose their connections to luminaries like PewDiePie. If you haven't heard of PewDiePie, don't worry—he's a 26-year old Swedish...more

Advertising in MA: Can Consumers Bring Class Actions for ‘Deceptive’ Advertising that has Neither Deceived Nor Harmed Them?

If your company advertises and sells products in Massachusetts, it could be subjected to a class action lawsuit by Massachusetts consumers who purchased one of its products if the consumers can show that a reasonable person...more

I May Not Be Able To Pronounce Acai But I Know It Doesn’t Burn Fat Cells: 5 Recent Over-the-Top Weight Loss Advertising Claims And...

Some say “ah-sigh;” I say “ah-kai;” but apparently the proper pronunciation of “acai” — the so-called super berry — is actually “ah-sigh-ee.” Who knew? Acai berries are native to the Amazon rainforest and have been hailed...more

Empty spaces causing big problems: the rise of slack-fill litigation

Last month, a district court judge in California dismissed a highly publicized lawsuit in which the plaintiff claimed that Starbucks’ iced beverages contained too much ice and not enough coffee. The suit was the subject of...more

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