Archives: Industry

Subscribe to Industry RSS Feed

FTC Sends Warning Letters to Companies Over Warranty Claims

Earlier this week, the Federal Trade Commission (“FTC”) sent warning letters to six (6) major companies that market and sell automobiles, cellular devices, and video gaming systems. The FTC indicated that it has concerns about the companies’ statements that consumers must use specified providers to keep their warranties intact. Unless warrantors provide the parts or … Continue Reading

“Weight Loss” vs. “Weight Management”: Vitamin Shoppe Sidesteps False Advertising Suit

Putative class representative Andrea Nathan renewed her efforts to hold Vitamin Shoppe, Inc. liable under California’s Unfair Competition Law, False Advertising Law, Consumer Legal Remedies Act, and breaches of express and implied warranties over Vitamin Shoppe’s “Garcinia Cambogia” dietary supplements after a California district court judge tossed the suit in February of this year. Vitamin … Continue Reading

FTC Slams Anti-Aging Supplement Seller for False Advertising

The Federal Trade Commission (“FTC”) recently reached an agreement with New York-based Telomerase Activation Sciences, Inc. and its CEO Noel Patton (collectively, “TA Sciences”), barring TA Sciences from making false or unsubstantiated claims regarding the efficacy and health benefits of two of TA Sciences’ products. According to the FTC’s administrative complaint, TA Sciences falsely advertised … Continue Reading

High Stakes: Iowa Ends Up Paying $1M For Blocking Pro-Marijuana T-Shirts

The state of Iowa will be covering the bill in a protracted lawsuit over Iowa State University’s decision to bar a chapter of the National Organization for the Reform of Marijuana Laws (“NORML”) from using the university’s trademarks on T-shirts. ISU students won approval in 2012 to use the ISU mascot bearing a marijuana leaf … Continue Reading

Reed Smith Incoming First-Year Associate Erika Auger Publishes Law Review Note

Erika Auger, a third-year law student at Chicago-Kent College of Law, will have her note published in The Chicago-Kent Law Review.  Erika’s note, The “Art” of Future Life: Rethinking Personal Injury Law for the Negligent Deprivation of a Patient’s Right to Procreation in the Age of Assisted Reproductive Technologies 94 Chi.-Kent. L. Rev. __ (2018), … Continue Reading

The Chain Gang – FTC’s New Blockchain Working Group May be Good News for Marketers

One of the greatest developments for marketers in 2018 is likely to be the proliferation of new and innovative applications on the blockchain in the context of marketing and promotion, particularly in connection with loyalty programs, ad fraud mitigation, and ongoing CRM activities that combine brand affinity and peer-to-peer influencing.  The potential magnitude of the … Continue Reading

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 … Continue Reading

Out of Juice: Judge Denies Class Cert. in Tropicana False Label Suit

In 2011, plaintiffs launched a putative class action with class members from California, New York, New Jersey, and Wisconsin in a New Jersey district court against Tropicana Products, Inc., a division of PepsiCo, Inc. over Tropicana’s claim that its not-from-concentrate orange juice is “100% pure and natural.” The plaintiffs asserted that Tropicana’s processing methods—which allegedly … Continue Reading

Nine Lives Indeed: Grumpy Cat Wins IP Lawsuit Against Beverage Company

Anyone who has been on the internet since 2012 likely recognizes the ubiquitous frowning face of “Grumpy Cat,” real name Tardar Sauce, emblazoned upon memes, videos, and products. Her fame and market power is far from restricted to the internet though; since her internet debut, she has appeared on television shows, starred in advertisements for … Continue Reading

FTC Doubles Down on Cedar Oil Bed Bug Product Marketer

In 2013, the Federal Trade Commission (“FTC”) and Chemical Free Solutions LLC (“CFS”) reached a settlement barring CFS from making scientifically unsupported claims regarding the efficacy of its cedar oil-based bed bug eradication product Cedarcide Original. CFS made various false claims about its “BEST Yet!” bed bug and head lice products, including that it was … Continue Reading

Naked Juice Urges California Court to Defer to FDA on Use of “No Sugar Added”

Naked Juice, which is owned by PepsiCo (“Naked”), filed a Motion for Summary Judgment in a pair of class action lawsuits that claim its “No Sugar Added” labels on coconut water and orange juice are misleading and deceptive. Naked’s argument is that the U.S. Food and Drug Administration (“FDA”) already cleared use of the “No … Continue Reading

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 … Continue Reading

College Athletes Appeal to Seventh Circuit Against FanDuel’s and DraftKings’ Use of Images

A proposed class of approximately 3,000 former college athletes recently filed an appeal in the Seventh Circuit against FanDuel and DraftKings. The players are reviving their proposed class action, claiming that FanDuel’s and DraftKings’ use of the players’ images on their websites does not fall within the newsworthy or public interest exceptions to Indiana’s right … Continue Reading

Throwing Shade: Upscale Manhattan Bar Calls Out “Basic” Would-be Infringer

Not since Mariah Carey claimed “I don’t know her” about Jennifer Lopez has such supreme shade been thrown on public record. Filo Promotions owns a self-described “premier, well-appointed bar/lounge with a posh upscale atmosphere and a focus on high quality drinks, creative new sounds and a small plates menu with exceptional tapas” named Bathtub Gin … Continue Reading

Telemarketing Giant to Pay $250,000 Penalty to FTC

InfoCision, Inc., an Akron, Ohio-based company, agreed last month to pay a $250,000 civil penalty and implement recordkeeping and monitoring practices to settle Federal Trade Commission (“FTC”) charges brought by the Department of Justice on the FTC’s behalf. The FTC alleged that since at least 2013 InfoCision conducted hundreds of telemarketing campaigns on behalf of … Continue Reading

Don’t Have a Cow! Court Dismisses GMO Labelling Suit Against Dannon

Last month, a New York federal judge dismissed a proposed class action that alleged Dannon Company, Inc. unlawfully labelled its yogurt products as “natural” when in fact the cows that produced the milk that produced the yogurt may have eaten feed made from corn that was genetically modified or were raised using hormones or antibiotics. … Continue Reading

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 … Continue Reading

Kentucky Fried Justice: Court Dismisses KFC Bucket Dispute

A New York District Court dismissed the complaint of Anna Wurtzburger against fast food staple KFC over the size of KFC’s $20 “fill up” bucket. Wurtzburger alleged she purchased KFC’s “fill up” bucket meal advertised as consisting of “an eight piece bucket of chicken,” relying on the advertisement’s depiction of a bucket that may have … Continue Reading

Reed Smith partner Douglas Wood is honored to be co-chairing the 2018 Association of National Advertisers (ANA) Advertising Law & Public Policy Conference.

The ad industry – and the brands that are its anchors to success – are under attack. Two articles appearing in major publications take publishers, brands and agencies to task on legal issues. Please see the BuzzFeed article and the New York Times article. On the other hand, occasionally there is some good news. Brian Jacobs’ article in … Continue Reading

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 … Continue Reading

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 … Continue Reading
LexBlog