The Federal Communications Commission (FCC) announced today that AT&T Services, Inc., will pay $25 million to resolve an investigation into whether the company violated Sections 201(b) and 222 of the Communications Act relating to consumer privacy at AT&T call centers in Mexico, Colombia, and the Philippines. According to the FCC’s order and consent decree,
CPSC Versus FDA Recalls: What You Need to Know
Selling to consumers is generally a beneficial enterprise for all involved, but occasionally businesses will need to recall products, for a myriad of reasons. When that happens, different sets of rules apply depending on the type of product that is impacted. If your product falls under the U.S. Consumer Product Safety Commission’s (CPSC) jurisdiction, one
Vermont Proposes SKU-Level Reporting in GreenChem Rulemaking
For everyone concerned about the expanding burden of green chemistry reporting, here’s something that will really make your hair – and bankbook – stand on end: Vermont is proposing to implement the green chemistry law adopted last year by mandating SKU-level reporting. Yes, you read that correctly. (Read the proposed rule here.) The impact
Industry Victory in Prop 65 Appeal: Exposure Averaging Upheld
A California appeals court has affirmed a trial court ruling that averaging exposure to reproductive toxicants over a relevant “window of susceptibility” time period specific to the chemical, and across product lots, was appropriate in a Proposition 65 case involving lead in baby and toddler foods. Environmental Law Foundation v. Beech-Nut Corp., (A129831, Alameda County
Watch What You Listen To (and Watch)
The flow of data over the Internet creates privacy concerns in strange situations. For instance, when Pandora, the music streaming service, integrated its subscribers’ profile pages with their Facebook accounts, Pandora apparently made music preferences and listening choices available to the subscribers’ friends. The result was a suit alleging a violation of a Michigan statute
FTC Diagnosis: App Health Claims Need Life Support
Technology is advancing fast, but would you use an app to figure out if you had cancer? According the Federal Trade Commission (FTC), that’s just what two app developers were recommending, but the FTC said they lacked the evidence to back their claims up. The FTC entered into consent agreements with two companies, MelApp and
Green Chemistry – The State of the States
For the consumer products industry, there is little question that state green chemistry laws are becoming increasingly complex and challenging. Laws are in place from California to Maine, and proposals are bubbling up around the country. States as diverse as Connecticut, New York, Florida, Oregon, and even Mississippi are considering their own green chemistry laws.
FTC Proposes Updates to Fair Packaging and Labeling Rule
The Federal Trade Commission (FTC) is proposing updates to its labeling and packaging requirements under the Fair Packaging and Labeling Act (FPLA), including deleting specific requirements for commodities advertised using terms such as “introductory offer,” “cents off,” and “economy size.” The proposed changes would also modernize place-of-business requirements,
POM-eled: POM Wonderful, The FTC and Competitor Challenges (Hint – It’s All About Consumer Deception)
The name of POM Wonderful, LLC (“POM”) will now forever be linked to some important advertising rulings that are not only of central significance to the food industry, but have broader advertising significance as well. We are reminded of those actions today because POM’s advertising claims touting health benefits of pomegranate juice resulted in a ruling by the D.C. Circuit Court of Appeal upholding in part a January 2014 Federal Trade Commission (“FTC”) decision on POM’s health claim advertising, but rejecting one of the remedies of most concern to industry as a whole: a requirement that claims be supported by two (not one) well controlled, randomized clinical trials.
A statement by FTC Chairwoman Edith Ramirez rejected the notion that the Commission would be precluded from requiring two clinical trials in other circumstances. Chairwoman Ramirez explained that this court decision affirmed the January 2014 FTC decision that the marketers of POM Wonderful 100% Pomegranate Juice and POMx supplements deceptively advertised that the products could treat, prevent, or reduce the risk of heart disease, prostate cancer, and erectile dysfunction, and were clinically proven to have such benefits. She noted that the court did not uphold the FTC order requirement for two randomized well controlled human clinical trials by POM in that case. However, she explained that the court did affirm the FTC’s order requiring POM to have at least one such study before making disease prevention or treatment claims, and held out the possibility that two might be warranted in other cases.
POM of course was not just the recipient of a claim about allegedly false advertising claims. POM previously challenged successfully a competitor making “pomegranate” juice claims, resulting in an important 8 to 0 U.S. Supreme Court ruling in POM Wonderful LLC v. The Coca-Cola Company, 133 S. Ct. 2224 (Jun. 12, 2014). In that case, the Court ruled that regardless of whether a 100% juice product complies (or not) with Food and Drug Administration (“FDA”) labeling regulations under the federal Food, Drug and Cosmetic Act (“FDCA”), a competitor’s false advertising case under the federal Lanham Act could still proceed. Continue Reading POM-eled: POM Wonderful, The FTC and Competitor Challenges (Hint – It’s All About Consumer Deception)
Perception of Deception
In the advertising world, we know that deception lies in the eyes of the beholder. Agencies like the Federal Trade Commission (FTC), or self-regulatory bodies like the National Advertising Division (NAD), legally stand in the shoes of the consumer, in the absence of consumer perception studies. In private litigation, however, the question of consumer perception