In the Courts

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A federal appeals court has agreed to put on hold a Texas social media law, HB 20, that restricts content moderation actions on social media platforms. The Fifth U.S. Circuit Court of Appeals announced that it was granting a September request from social media platforms to block enforcement of the law as trade associations appeal…

“30-day free trial,” “Cancel anytime,” “Risk-free” – if you’ve read or heard these terms associated with a subscription-based program, you may want to ensure that you are up to speed with the regulations governing automatic renewals.  Programs with automatic renewals have long been a source of regulatory scrutiny, as they can trigger consumer complaints when…

As anticipated by those watching this space, Hermès filed a lawsuit in New York federal court against Mason Rothschild, an individual who created a collection of non-fungible tokens (NFTs) called “MetaBirkins,” which depict fuzzy versions of the iconic Hermès Birkin bag. The complaint alleges that Rothschild advertises the MetaBirkins “using the Hermès Federally Registered Trademarks”…

The Southern District of New York dismissed a putative class action against Bimbo Bakeries (the parent company of Entenmann’s) that alleged the packaging on Entenmann’s “All Butter Loaf Cake” was misleading because the product contained soybean oil and artificial flavors, not only butter.
Continue Reading Bimbo Bakeries Beats Back All-Butter Label Suit

No one who plans and operates a promotional sweepstakes wants to litigate over the prizes. But one of the primary reasons an operator wants a set of experienced eyes on a set of Official Rules is to ensure that the operator is covered – just in case there is a dispute with one or more of the contestants. Sometimes, operators cleverly anticipate that an arbitration clause will help to lower the risk of a dispute involving a contest or sweepstakes. And, undoubtedly, there might be situations where arbitration can help the operator lower the risk of costly litigation. But, like many substantive provisions of the promotional contract between an operator of a sweepstakes and a participating consumer, the clever protections you and your attorney put in place are only effective if they are made a part of the contract.
Continue Reading Reliance on sweepstakes official rules to avoid litigation requires publication

A lucrative prize incentive can be the engine for an exciting and socially beneficial innovation competition. Despite the good intentions of the organizer, a lot can go wrong even when the sponsor is a nonprofit. An innovation contest generally promotes the generation of ideas or prototypes for new advancements in an industry. We have worked with many entities that seek to encourage innovation through prize incentives. Such promotions can involve very large prizes, and they can engender a lot of press coverage. Regardless of whether the purpose of the contest is for commercial, educational, or social purposes, a company or organization can still end up in federal court if the contest is not properly structured and conducted.
Continue Reading Personavera v. CHIME: An Innovation Contest Goes Sour

On April 12, 2021, Florida-based creative agency, Creative Klick Agency LLC, filed a lawsuit in the Southern District of Florida against Dan Bilzerian and his spirits company, Ignite Spirits Inc. and related companies. Creative Klick alleged that the spirits brand used its photos on various social media accounts, including those belonging to Bilzerian, and on…

Last week, a putative class action lawsuit was filed against Aldi Inc. regarding certain Beaumont Coffee products sold in its stores. According to the complaint, the packaging for the coffee product states that a single package will make “Up to 210 6 oz Cups.” According to package instructions, the plaintiffs assert that a single serving…

As we head into fall 2020, many advertising companies are beginning – if they have not already done so – to restart media shoots. Just as they did before the pandemic hit, media shoots raise a broad swath of questions on the employment law front. One of the principal issues in this regard is the…