A New York federal court recently granted Apple a motion to dismiss a case where an alleged class accused Apple of misleading consumers about the waterproof nature of their iPhones. Apple had several allegedly misleading advertisements about their iPhones, with advertisements stating that the iPhone 11 is “water resistant up to 2 m for 30 min.” The court granted Apple’s motion to dismiss because the plaintiffs did not allege how they were harmed by Apple’s advertisements. Apple’s user manuals and warranties also disclaimed coverage for liquid damage. While the plaintiffs’ phones allegedly malfunctioned due to some amount of water contact, the court found that the plaintiffs failed to plead that their iPhones were damaged due to their reliance on the advertisements. Additionally, the plaintiffs failed to identify any warranty claiming that Apple’s products could withstand water damage.
Continue Reading The Latest Win for Apple: Dismissal of Class Action about iPhones

In October 2021, Governor Gavin Newsom signed into law a sweeping package of six bills aimed at reducing plastic waste, improving recycling efforts, and clarifying labeling standards for recyclables and compostables.  These new laws will likely mean significant changes for many companies.  They come at a time when multiple states are passing similar environmentally focused bills, signaling a renewed effort to promote recycling and regulate green advertising.
Continue Reading California Passes Sweeping Package of “Green” Bills

The FTC has sent a strong message to industry that it plans to hold companies responsible for using endorsements and customer testimonials that deceive consumers.  The recent warning signals the FTC’s focus on fake reviews and endorsements and the agency’s intent to hold brands and advertising service providers accountable where necessary.  The agency is paying particularly close attention to how brands communicate with customers through third party influencers on social media.
Continue Reading FTC Signals Plan to Enforce Civil Penalties for Deceptive Endorsements

On January 25, 2021, President Joe Biden issued an Executive Order entitled “Ensuring the Future is Made in America by All of America’s Workers,” which directs a broad review and strengthening of governmental procurement and financial assistance policies and regulations which require or provide a preference for goods, products or materials produced in the United States.[1]  While US content must be disclosed on automobiles, textile, wool and fur products sold in the US[2] and there is no law which requires a company to disclose the amount of US content or that a product is manufactured in the US, manufacturers and retailers who make claims about the amount of US content in their products must comply with the  “MADE IN USA” Enforcement Policy Statement issued by the Federal Trade Commission (“FTC”).[3]  The Enforcement Policy Statement applies to all products advertised or sold in the US, except those specifically subject to country-of-origin labeling requirements and “MADE IN USA” claims, express and implied, that appear on products and labelling, advertising and promotional materials and other forms of marketing including digital marketing and social media.[4]  In order to make an unqualified claim that a product is “MADE IN USA”, a manufacturer or marketer should have competent and reliable evidence (“a reasonable basis”) to support a claim that the product is “all or virtually all” made in the US.[5]
Continue Reading Seeking to Stop Deceptive ‘MADE IN USA’ Claims, the FTC Takes Action Against Brandnex

In today’s COVID-era, more retailers are offering innovative solutions for customers to shop with minimal brick-and-mortar browsing time. Options to place an order online and pick up your items in the store are extremely popular and will likely stick around post-pandemic. These options are convenient and allow customers to avoid dealing with delayed shipping.
Continue Reading Best Practices for In-Store and Curbside Pickup

Overriding the governor’s veto of H.B. 732 (2020), the Maryland Senate on February 12, 2021 passed the nation’s first state tax on the digital advertising revenues pulled in by large companies. This development follows attempts by various other states like New York to directly regulate digital advertising and ecommerce services in new ways. We took a look at the Maryland bill to find out what advertisers – and specifically retailers – need to know about its details and potential pitfalls.
Continue Reading Maryland Breaks Ground with Digital Advertising Tax

New York has enacted a sweeping law that regulates automatic renewal programs (subscriptions) modeled after California’s automatic renewal law.

The law impacts retailers and brands that offer membership and other subscription-based business models, including loyalty programs and rewards programs.
Continue Reading New York Passes Wide-Ranging Automatic Renewal (Subscription Model) Law

Enter for a chance to win!  Advertising lawyers are forever reminding their clients to be clear that when a promotion is a sweepstakes, messaging needs to be clear that it is a random drawing and not a giveaway.  Recently, fashion brand Draper James reminded us all why that distinction is so important.
Continue Reading Sweepstakes or Giveaway? Make Sure Your Advertising Is Clear!

With the continuing spread of the Coronavirus Disease 2019 (“COVID-19” or “coronavirus”), retailers are sure to face a number of issues that they can and should prepare for. The primary issues facing retailers will likely be supply chain issues, covered here (The Impact of Coronavirus on Supply Chain), and employment issues, covered here (What Employers Need to Know to Prepare for Coronavirus). This post addresses certain pricing and advertising issues that may also arise as a result of the spread of coronavirus.
Continue Reading Coronavirus And The Retail Industry: Pricing and Advertising Issues