Archives: In the Courts

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FTC Settles Case For $25 Million With Dietary Supplement Sellers Over Cognitive Claims

Last month, the Federal Trade Commission (“FTC”) settled charges against 12 companies who deceptively marketed “cognitive improvement” supplements by using sham news websites containing false and unsubstantiated efficacy claims, referencing non-existent clinical studies, and advertising fraudulent consumer and celebrity endorsements. According to the FTC’s complaint, the defendants falsely claimed that their dietary supplements could enhance … Continue Reading

iSpring Water Settles Case With FTC For “Made In The USA” Claims

The Federal Trade Commission (“FTC”) announced that it reached a settlement with iSpring Water Systems, LLC for allegedly making false claims that its wholly imported Chinese water filtration systems were made in the U.S.A – in violation of a 2017 FTC consent order. In 2017, the company made certain claims that its water filtration systems … Continue Reading

Design Is Not Content: Wisconsin Supreme Court Holds That Communications Decency Act Provides Immunity to Website Against Negligent Web Design Claim

Does the Communications Decency Act (CDA) provide immunity to a website against allegations that its design and operation enabled a third party to buy a gun, which the third party then used as a murder weapon? In Daniel v. Armslist, the Wisconsin Supreme Court said “yes,” reversed the intermediate court of appeals, and reinstated an … Continue Reading

The FTC “Intravenes:” Final Consent Order Approved Against iV Cocktails

Last month, the Federal Trade Commission (“FTC”) approved a final consent order settling deceptive advertising charges against A&O Enterprises, Inc., d/b/a iV Bars regarding deceptive and unsupported health claims that iV Bars’ intravenously injected therapy products, or “iV Cocktails,” can safely and effectively prevent and treat such serious diseases as cancer, multiple sclerosis, and cardiovascular … Continue Reading

The FTC Takes a Bite out of Free Trials and Incentivized Reviews

This month, the Federal Trade Commission (“FTC”) announced a settlement with San Francisco-based food delivery service UrthBox, Inc. and its principal, Behnam Behrouzi, regarding the company’s failure to adequately disclose key terms of its “free trial” automatic renewal programs and its misrepresentation of customer reviews. According to the FTC’s complaint, from October 2016 to November … Continue Reading

FTC Continues Enforcement Actions To Stop Deceptive Free-Trial And Negative Option Schemes

The Federal Trade Commission (“FTC”) recently filed another case in a series of recent enforcement actions targeting allegedly deceptive online “free-trial” offers that tricked consumers into enrolling in negative option plans. The FTC charged Gopalkrishna Pai and eight (8) companies he owns and operates as a common enterprise with violating the FTC Act and the … Continue Reading

FTC Stops Fake Job Opportunity And Resume Repair Operation

The Federal Trade Commission (“FTC”) recently charged two companies, Worldwide Executive Job Search Solutions, LLC and PrivateEquityHeadhunters.com and their owner Craig Chrest with violating the FTC Act and the FTC’s Telemarketing Sales Rule and swindling hundreds of thousands of dollars annually from consumers for fake job placement and resume repair services. At the FTC’s request … Continue Reading

Denver Club “Stripped” Carmen Electra and Others of Compensation, Suit Says

Carmen Electra, joined by models Dessie Mitcheson and Lucy Pinder, sued a Colorado strip club over the club’s allegedly unauthorized use of its photographs on its website and social media in late January of this year. The aggrieved trio claims that the Denver club “Shotgun Willie’s” posted photos of the models in online advertisements for … Continue Reading

“Fiji Water Girl” Made Waves But Got Soaked, Alleges New Lawsuit

Model and meme icon Kelleth Cuthbert (real name Kelly Steinbach) became an overnight sensation as “Fiji Water Girl” after photobombing celebrities on the Golden Globes red carpet in January. Now, she is seeking to recover against Fiji Water Company and its parent company, The Wonderful Company, for allegedly misappropriating her likeness and violating her right … Continue Reading

Model Misbehavior? Gigi Hadid Faces Copyright Suit Over Instagram Post

Gigi Hadid found herself sued for copyright infringement by New York photo agency Xclusive-Lee, Inc. over a photo the fashion model posted to her Instagram account. The disputed photo was of Hadid herself, smiling at the camera while wearing a blue denim jacket and matching shorts with silver heels, and was snapped by paparazzi. Xclusive-Lee … Continue Reading

Federal Court Tosses False Advertising Suit Against Trader Joe’s Alkaline Water

A California federal court granted Trader Joe’s motion to dismiss a false advertising lawsuit with regards to Trader Joe’s alkaline water, finding that all but one of plaintiff’s claims were non-actionable puffery, and granting plaintiff leave to amend the single remaining claim. Plaintiff alleged that Trader Joe’s alkaline water product labelling, which included numerous plus … Continue Reading

Douglas Wood, Reed Smith Partner and General Counsel to the Association of National Advertisers, Discusses Growth Issues Facing Brands For 2019

Douglas Wood published an article for the Association of National Advertisers on January 2nd titled “Growth in 2019: A Legal Perspective.” In the article, Doug discusses how legal issues will affect brands and growth in years to come and provides an outlook on legal challenges marketers who care about growth need to keep in mind … Continue Reading

Federal Court Tosses TCPA Suit Over Hotel Booking Text Messages

A California federal court granted Singapore-based hotel booking firm Agoda Company Pte. Ltd.’s (“Agoda”) motion for summary judgment in a case involving alleged violations of the Telephone Consumer Protection Act (“TCPA”). The plaintiff alleged that the confirmation text he received after booking travel on Agoda’s website [“Good news! Your Agoda booking [number] is confirmed. Manage … Continue Reading

Federal Court Tosses False Advertising Suit Over Angie’s List Rankings

A Kansas federal court granted Angie’s List’s motion to dismiss a class action lawsuit alleging false advertising, finding that most of plaintiff’s claims were time-barred and the rest were not properly pled. The owner of a tree trimming business spent over $200,000 in advertising on Angie’s List from 2005 and 2013. According to the plaintiff, … Continue Reading

Litigation in the Forecast for Weather Channel App

On January 3, the city of Los Angeles accused TWC Product and Technology, LLC (“TWC”) (an International Business Machines Corporation subsidiary) of violating millions of American consumers’ privacy. In the civil lawsuit, Los Angeles City Attorney Michael Feuer alleged TWC misled users of its Weather Channel app to turn on precise location tracking by suggesting, … Continue Reading

Who Owns That Dance Move?

On December 5th, 2018, Terrence Ferguson, better known as 2 Milly, filed a complaint in the United States District Court for the Central District of California alleging that Epic Games, Inc. committed copyright infringement and violated right of publicity and unfair competition laws by implementing the “Milly Rock” dance into their free-to-play video game Fortnite. … Continue Reading

“As Seen on TV” Means Exactly That, Court Finds

In a recent false advertising case, the court reminded everyone again that if you say something about your product, you had better mean it. Emson, which sells cookware products largely through direct response television spots, brought a false advertising claim against Masterpan and Smart & Eazy Corp. (“S&E”). According to Emson, both defendants made false … Continue Reading

A License to Kill a License? SCOTUS to Resolve Trademark Bankruptcy Split

Trademark licensing is a driving force in business relationships. One common example is where one business owns a trademark, which it licenses out to other companies who manufacture and sell the products bearing the mark. But, what happens if the trademark owner goes bankrupt? Bankruptcy law gives a debtor the right to “reject” contracts to … Continue Reading

New SCOTUS Case Could Sharpen FCC’s Teeth in the Courtroom

Earlier this month the Supreme Court granted certiorari in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., the resolution of which will impact the judiciary’s power to interpret agency rules. The facts underlying case appear unremarkable on their face; a health information service and publisher sent a single fax to a chiropractor’s office in … Continue Reading

Sunkist’s New Candy Packaging Is Forbidden Fruit, Welch’s Infringement Suit Says

Promotion in Motion Inc. (“PIM”) makes the popular Welch’s Fruit Snacks under a licensing deal with Welch’s, and Kervan USA LLC is a rival candymaker that has a similar licensing arrangement with Sunkist Growers Inc. PIM, however, contends that Kervan sought to capitalize on the fruits of PIM’s labors, and sued Kervan in the District … Continue Reading

NRA Is Full of Beans, Claims Sculpture Artist in Copyright Suit

The British artist Anish Kapoor, sculptor of the iconic Chicago art piece Cloud Gate, known colloquially as the Bean, filed suit against the National Rifle Association (“NRA”) for using imagery of Cloud Gate in online videos without his permission. Kapoor registered Cloud Gate with the U.S. Copyright Office in January 2016, and was “shocked and … Continue Reading

Harshing My “Vibes”: Kim Kardashian Fragrance Line Faces Trademark Infringement Suit

Kim Kardashian West’s fragrance company, KKW Fragrance LLC, is the target of a reverse confusion trademark infringement suit launched by Chicago-based mobile marketing company, Vibes Media, LLC. According to Vibes’ complaint, KKW Fragrance intentionally copied Vibes’ name and speech bubble logo in a new perfume also called “Vibes” that Kardashian launched as part of her … Continue Reading

Scientific Studies Are “SuperStarch” Kryptonite, Class Action Suit Says

Plaintiff Kevin McCann launched a putative class action against The UCAN Company (“UCAN”), which markets and distributes a line of sports performance products including “Generation UCAN SuperStarch Drink Mix,” “Generation UCAN Protein Drink Mix,” and “UCAN Snack Bars powered by SuperStarch.” The products all contain “SuperStarch,” which UCAN claims to be an easily digestible carbohydrate … Continue Reading
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