Just days before it was set to take effect, the U.S. Court of Appeals for the Eighth Circuit struck down the Federal Trade Commission’s (FTC) much anticipated “Click-to-Cancel Rule” (the “Rule”), delivering regulatory whiplash to companies that had proactively geared up for the Rule’s arrival. As previously reported, the Rule sought to impose various
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Subscription Shake-Up: Navigating the FTC’s Click-to-Cancel Rule
In October 2024, the Federal Trade Commission (“FTC”) updated its 1973 Negative Option Rule to address unfair and deceptive online subscription practices. See 16 C.F.R. § 425 (2024) (the “Negative Option Rule” or the “Rule”). The Rule sparked significant debate, with the original proposal garnering over 16,000 comments. Following some revisions based on this feedback,…
S.D.N.Y. Waters Down Prior Ruling on “Carbon Neutral” Consumer Deception Claim
The Southern District of New York recently reconsidered its partial denial of Defendant Danone Waters of America’s motion to dismiss claims alleging Danone falsely advertised Evian water as “carbon neutral.” Reversing his prior ruling, Judge Nelson S. Román concluded that the carbon neutral labeling on Evian water bottle products was not plausibly misleading to reasonable…
Amid Rise in Forever Chemicals Cases, Courts Dismiss PFAS Claims Which Rely on Inadequate Product Testing
As chemicals of concern litigation continues to surge across the nation, companies increasingly find their products under scrutiny for alleged contamination of these “forever chemicals.” These “forever chemicals” have become a focal point for environmental and consumer protection lawsuits, as plaintiffs’ attorneys increasingly target companies to leverage the frequent media attention surrounding per- and polyfluoroalkyl…
Game Over: Court Dismisses Class Action Lawsuit Over Gaming Computer Performance
The gaming industry is increasingly becoming a target for consumer class actions, as plaintiffs’ attorneys are scrutinizing the marketing and performance claims of gaming PCs and accessories. However, gaming companies are not without recourse. Recent legal decisions demonstrate that courts are willing to dismiss cases where plaintiffs fail to provide specific facts that support their…
Eco-Friendly Claims Under Fire: The Legal Risks of Greenwashing for Businesses
In today’s market, eco-friendly claims can serve as a tool for companies looking to attract environmentally conscious consumers. However, this surge in green marketing has also caught the attention of the plaintiffs’ bar, which is increasingly scrutinizing these claims for lucrative opportunities in potential lawsuits. As demonstrated by recent legal actions, companies must tread carefully…
What’s in a Word? The Legal Battle over “Natural” in False Advertising
While class actions centered around “natural” claims remain popular with the plaintiffs’ bar, this past year has seen some growing skepticism from courts towards such lawsuits, particularly where plaintiffs fail to adequately explain what is deceptive about the term.
In January, Judge Kimba M. Wood of the Southern District of New York granted summary judgment…
Reasonable Consumer Analysis Leads to Dismissal of Claims of Greenwashing
Many brands have reformulated beloved products with “cleaner” ingredients, while others have curated a special selection of “clean” products to offer their customers. Advertisers’ efforts, however, can run into trouble if consumers reasonably believe the “clean” labeling does not match what is contained in the product. Sephora recently faced this issue in a purported class…
Nothing Fishy About Whole Foods’ Fish Oil Supplement Product Label
In line with prior precedent, the Second Circuit recently affirmed that the product label for Whole Foods’ fish oil softgel product did not deceptively misstate the quantity of Omega-3s it contained. Foster v. Whole Foods Market Group, Inc., No. 23-285-cv (2d Cir. Dec. 8, 2023). The Court found that because the front label was…
Second Circuit Serves Up a Win for Subway in TCPA Case
While there might not be such a thing as a free lunch, Subway in 2016 texted a consumer that she could receive a free bag of chips with any purchase. The text let the consumer know she could respond STOP to opt out of the texts, which she did. Despite Subway responding that the consumer…