Last month, the FTC announced a $1,384,500 settlement with Michael Abdelmesseh and KMA Merchant Services, LLC in a lawsuit regarding a deceptive credit card laundering scheme. The FTC alleged that the defendants telemarketed fraudulent business opportunities to consumers that involved false promises of thousands of dollars in income as commission for loans made to small
Kelley Chittenden
Let the Chips Fall Where They May: Frito-Lay Litigates No Artificial Flavors Claim
Last month, a federal judge denied Frito-Lay’s motion to dismiss a lawsuit involving allegations that its “Salt and Vinegar Flavored Potato Chips” contain artificial flavors. Specifically, the plaintiffs asserted that Frito Lay: (1) did not specify the type of malic acid on the ingredient panel; and (2) falsely labeled the chips as containing no artificial…
Artist Sues Lollapalooza Over Advertising and Festival Merchandise
Last month, Juan Marco filed a copyright infringement suit against Live Nation and the other promoters of the summer music festival, Lollapalooza. According to the complaint, Marco granted a limited license to the concert promoters to use Marco’s artwork for three years and only for use in the United States and Chile. Marco alleges that…
FTC Refunds Victims of Tech Support Scam
The Federal Trade Commission (FTC) mailed over $668,000 in the form of 3,791 refund checks to victims of a tech support scam last month.
In July 2016, the FTC and the state of Florida alleged Big Dog Solutions LLC (doing business as Help Desk National and Help Desk Global) and related defendants operated a telemarketing…
Maine Supplements FTC Weight-Loss Enforcement Action
Marketing Architects, Inc. (“MAI”), an advertising agency specializing in direct response radio and television ads, will pay $2 million in equitable relief to the Federal Trade Commission (“FTC”) and the Office of the Attorney General of Maine for allegedly creating and disseminating deceptive radio ads for weight-loss products AF Plus and Final Trim. The joint…
Court Says Don’t Cry Over Steamed Milk
A federal court granted Starbucks’ motion for summary judgment in a putative class action in which plaintiffs alleged Starbucks underfills lattes and mochas. The plaintiffs alleged that the underfilling of Starbucks drinks was a breach of warranty and constituted unfair competition and false advertising based on three arguments: (1) consumers should receive beverage volume equal…
Class Action Aims to Catch Canned Salmon Manufacturer for False Advertising
A class action complaint was recently filed against Bumble Bee Foods, LLC (“Bumble Bee”), the makers of canned fish and seafood. The false advertising lawsuit stems from the plaintiff’s assertion that Bumble Bee falsely implies its Premium Select Medium Red Smoked Salmon Filets in Oil are high quality, wild-caught, and naturally smoked. The plaintiffs believe…
Brands Tap Into GM’s In-Vehicle Marketplace Feature
In early December, General Motors Co. (“GM”) unveiled Marketplace, an in-vehicle commerce platform facilitating on-demand goods and services, including the ability to make reservations, order food, and locate the nearest gas station through dashboard screens of eligible Chevrolet, Buick, GMC, and Cadillac vehicles. Brand partners include Dunkin’ Donuts, Wingstop, IHOP, Priceline.com, Parkopedia, and delivery.com.…
Ride Sharing App Lyft Hit With TCPA Claim Based on Marketing Partner
Lyft, Inc. was hit with a putative class action under the Telephone Consumer Protection Act (“TCPA”) this month. The plaintiffs allege that Lyft is liable for text messages sent by Jobcase, Inc., Lyft’s marketing agency. Notably, the plaintiffs believe that Jobcase sent text messages to prospective drivers on behalf of Lyft, including “Maria, START NOW:…
Quaker Oats Succeeds in Maple Syrup Suit
The Central District of California granted Quaker Oats Company’s Motion to Dismiss a Consolidated Class Action Complaint on October 10. Plaintiffs alleged Quaker Oats Company was liable for labeling its “Maple & Brown Sugar”-flavored instant oatmeal as “Quaker Instant Oatmeal, Maple & Brown Sugar” alongside an image of a pitcher of maple syrup. The plaintiffs…