2022 – Consumer Products Law Watch

Over a Fortnite: Epic Games to Pay Record US$520 Million to Settle FTC Claims of Children’s Privacy Violations and Digital Dark Patterns, Which Continued for Years

Dec 28 2022

The Federal Trade Commission (FTC) has reached its largest administrative settlement to date: US$245 million. The proposed settlement is with Epic Games, Inc. (Epic Games), the company that developed and offers the multiplayer, online game Fortnite, and stems from Epic Games’ unlawful collection of personal information and illegal use of digital dark patterns to bill Fortnite users for unintentional in-game purchases. In total, Epic Games will be responsible for US$520 million, which includes a US$275 million penalty.

FTC and NLRB Enter into an Information Sharing Agreement as a Likely Precursor to New Enforcement Activity

Dec 20 2022

By: Gene Ryu, Katie Staba & Jonathan Rue

In light of the NLRB’s recent change to independent contractor rules, recent midterm elections and a focus on workers’ rights on many ballots, this article revisits an agreement between agencies that went largely unnoticed earlier this year.

FDA Proposes Updates to Regulatory Definition of “Healthy” for the First Time Since 1994

Oct 18 2022

By: Natalie Rainer, Alexa Sengupta

The U.S. Food and Drug Administration (FDA) has issued a proposed rule (“Proposed Rule”)[1] that updates the definition of the “healthy” nutrient content claim under 21 C.F.R. § 101.65(d) for the first time since its issuance in 1994. The Proposed Rule, published on September 29, 2022, notes that “nutrition science has evolved since the 1990s” and that the proposed changes are intended to make the regulation “consistent with current nutrition science and Federal dietary guidance.”[2]

FDA Updates Regulatory Definition of “Healthy” for the First Time Since 1994

Oct 18 2022

By: Natalie Rainer, Alexa Sengupta

QR Code and Text Messaging Alone Are Insufficient to Disclose Bioengineered Food Ingredients

Sep 29 2022

By: Natalie E. Rainer and Amy Wong

Due to a recent decision in the Northern District of California, the U.S. Department of Agriculture (USDA) will be required to revise current electronic and text message disclosure options under its Bioengineered (BE) Food Labeling Rules, also known as the National Bioengineered Food Disclosure Standard (NBFDS or Standard). Plaintiffs successfully argued that these methods of disclosure did not meet Congress’s requirement that these methods be adequately accessible to consumers.

Kind, LLC Wins a Decisive Victory in an “All Natural” Case When Plaintiffs Failed to Prove that Reasonable Consumers Had A Specific Understanding of “All Natural” That Rendered Kind’s Labels Misleading

Sep 20 2022

By: Matthew G. Ball

Energy bar-maker Kind, LLC (“Kind”) has won a decisive victory in a multidistrict litigation matter pending in the Southern District of New York. In re Kind LLC “Healthy and All Natural Litigation”, No. 15-MD-2645 (NRB) (September 9, 2022) (“Order”). In the Kind Order, the district court made various rulings – of which the consumer class action defense bar should take note. Before the Court were Kind’s Motions for Summary Judgment, to exclude Plaintiffs’ experts, and to decertify the class. Kind ran the table, with the Court granting all three motions, and giving defense counsel a roadmap to victory in similar cases.

What The Fudge?! Popular Breakfast Snack’s Lack of Key Ingredient Did Not Trigger Liability Under State Consumer Fraud and Magnuson-Moss Warranty Acts

Aug 03 2022

By: Ketajh M. Brown

A recent ruling from the United States District Court for the Central District of Illinois served as an important reminder to the Plaintiffs Bar regarding a significant and continuing shift in judicial attitude toward speculative class action allegations of consumer fraud and breach of warranty. In this case, the Court’s order is a cautionary tale for those who make a living firing off indiscriminate legal claims without stopping to ensure all essential elements of their clients’ claims are sufficiently alleged.

Don’t Lead Me On: FTC Issues Complaint Against HomeAdvisor

May 09 2022

By: Ewa A. Wojciechowska

In order for the FTC to issue an administrative complaint: (1) the FTC must have “reason to believe” that the law has been or is being violated; and (2) it must appear to the FTC that instituting a proceeding is in the public interest.

On March 11, 2022, the Federal Trade Commission (“FTC”) issued a Complaint against HomeAdvisor, Inc., also doing business as Angi Leads, also doing business as HomeAdvisor Powered by Angi (collectively, “HomeAdvisor”) (In the Matter of HomeAdvisor, Inc., a corporation, d/b/a Angi Leads, d/b/a HomeAdvisor Powered by Angi, FTC Docket No. 9407). The Complaint alleges that HomeAdvisor used deceptive business practices in relation to its members, many of whom are small business, by misleading them about the quality and source of, as well as general information about, the leads HomeAdvisor provided.

Wine Labelling: A New EU Regulation is Coming Into Force in 2023

Mar 24 2022

By: Serena Totino, Judith Rinearson

The European Union reform of Common Agricultural Policy (“CAP”), published on 6 December 2021, will enter into force on 1 January 2023. (See more here.) Such reform consists of a number of changes to the existing regulations.

Specifically, wine labelling will be regulated by EU Regulation 2021/2117, which amended four EU regulations, namely Regulations (EU) No. 1308/2013, 1151/2012, 251/2014, and 228/2013. Consultations on modernization of the CAP started in 2017, and the legislative procedure was completed at the end of 2021. While a mid-term review will take place in 2025, the CAP is meant to cover the period 2023–2027.

Second Circuit Sets the Stage for Standing in Crypto Class Action

Mar 21 2022

By: Christian A. Zazzali

Earlier this month, Judge George B. Daniels, sitting in the Southern District of New York, adopted the recommendation of Magistrate Judge Robert W. Lehrburger in certifying a limited class in a suit against online digital asset exchange, KuCoin.

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