Consumer Protection – Consumer Products Law Watch

Emma Sleep Hit Snooze on CMA’s Guidance and Got a Rude Awakening—a Warning for Online Traders to Check Their Sales Tactics Are Compliant

Nov 11 2024

by Aurelija Grubyte, Gabriela da Costa, Laura Scott

In the lead-up to Black Friday, online traders should take heed of the latest laws governing online pricing practices and displays to avoid being “marked down” by the regulators, who are flexing their muscles in this space.

Last year we highlighted how the Competition and Markets Authority (CMA), the UK regulator charged with overseeing enforcement of consumer protection laws, is taking a tough stand against so-called “dark patterns” deployed by e-commerce traders to coerce or rush customers into making purchases.

Tea Parties Certified for Class Action

Aug 14 2023

By: Conor J. Mannix

On 31 July 2023, the Central District of California granted class certification in a false advertising lawsuit against tea-maker R.C. Bigelow, Inc.[1] The suit alleges that Bigelow’s tea labels, which state “Manufactured in the USA 100%,” either intentionally or negligently misrepresent the origins of the tea because the tea itself is primarily grown internationally, and at least partially processed abroad before being packaged in the US

It’s the final countdown…or is it?: CMA issues decision on online pressure-selling tactics

Aug 01 2023

By: Arthur Artinian, Gabriela da Costa, Georgina Rigg, and Maya Ffrench-Adam

Countdown clocks are a useful feature of digital advertising. Think “Sale ends midnight!” accompanied by a clock counting down the minutes you have left to make an order. When used correctly these urgency claims can help drive interest in a sale. However, they can also easily become misleading and breach UK consumer protection laws.

These types of “urgency claims” include scarcity, popularity, act fast, or time limited claims and have recently come under the spotlight of the UK Competition and Markets Authority (“CMA”).

Does your Marketplace need to be “INFORM-ed” by June 27th?

May 22 2023

The New INFORM Consumers Act Could Significantly Impact Online Marketplace Operations

By: John ReVeal, Judie Rinearson and Katie Staba

The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (the “INFORM Consumers Act” or “Act”) (https://www.congress.gov/117/bills/s936/BILLS-117s936is.pdf ) which passed on December 29, 2022 will come into effect on June 27, 2023. Originally intended to address increasing consumer complaints about online marketplace purchases of counterfeit or defective products from third party sellers, the Act requires both collection, verification and, in certain cases, disclosure of third party seller information to combat this perceived marketplace unaccountability.

K&L Gates’ Verticals Predictions for 2023: Top Trends, Opportunities and Pitfalls

Jan 12 2023

By: Gabriela da Costa, Jennifer P.M. Marsh, Dr. Annette Mutschler-Siebert, M. Jur. (Oxon), Francesco Carloni, Michal Kocon, Nikolaos Peristerakis

It has now been six months since the new vertical distribution laws came into effect in the European Union (EU) and United Kingdom (UK). With many consumer brands starting 2023 looking for ways to shore up their resilience and profitability in a challenging market, our EU and UK Antitrust and Competition Law team has jotted down our thoughts on the trends that have gained the most traction under the new rules, big opportunities up for grabs, and lessons learned on pitfalls to avoid.

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

By: Katie Staba and Desirée Moore

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.

FDA Updates 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 Proposes Updates to 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.

Tag:Consumer Protection

The New INFORM Consumers Act Could Significantly Impact Online Marketplace Operations