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Consumer Protection
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November 06, 2024
FTC Slams AI-Enabled Review Site Over 'Inflated' Ratings
Consumer review platform Sitejabber has agreed to stop misrepresenting that its content comes from individuals who have already received the rated product in order to resolve the Federal Trade Commission's claims that this conduct led to the inflation of average metrics on its site, the agency said Wednesday.
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November 06, 2024
Intel Accused Of Touting 'Defective' Raptor Lake Processors
Intel has continued to promote the purported speed and performance of its "defective" 13th and 14th generation desktop processors, which go by the code name Raptor Lake, according to a proposed class action filed Tuesday in California federal court.
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November 06, 2024
Danone Beats Suit Alleging Microplastics In Evian, For Now
An Illinois federal judge on Tuesday granted Danone Waters of America's request to dismiss a putative class action accusing the Evian-maker of violating Illinois and California state consumer fraud statutes by labeling its spring water as "natural" even though the product contains microplastics, finding the claims are preempted by federal law.
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November 06, 2024
FTX Exec Looks To Avoid Prison For 'Smallest Share' Of Crime
Former FTX technology chief Zixiao "Gary" Wang on Wednesday asked a Manhattan federal judge not to give him prison time for his part in the $11.2 billion fraud case, calling himself "the one who stands convicted of the smallest share of misconduct" among former CEO Sam Bankman-Fried's lieutenants.
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November 06, 2024
LGBcoin Trustee Can't Get SEC Subpoena Stayed Amid Appeal
A hedge fund manager associated with the political-meme-inspired digital asset LGBcoin can't get an administrative subpoena from the U.S. Securities and Exchange Commission stayed while he seeks an appeal, a Miami federal judge has decided.
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November 06, 2024
Nike False Ad Claims In StockX TM Fight Must Go, Judge Told
Online resale marketplace StockX has asked a New York federal judge to end Nike's counterfeiting and false advertising claims, saying that StockX has actually prevented the sale of millions of suspected counterfeits and that "Nike strains credulity when it claims StockX is a willful counterfeiter."
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November 06, 2024
Natera Declared 'War' On Guardant, Jury Told At Trial's Start
Guardant on Wednesday told a California federal jury during opening statements in its false advertising lawsuit that rival Natera saw Guardant's competing colorectal cancer detection test as "an existential threat" and declared "war" while Natera maintained that its ads to doctors comparing the tests were meant "to educate, not deceive."
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November 06, 2024
SEC Moves To Ax Key Defenses In Kraken Crypto Fraud Row
The U.S. Securities and Exchange Commission has urged a California federal court to ax three of crypto exchange Kraken's defenses in a case alleging it violated securities laws by offering crypto assets without proper registration, arguing that the court has already rejected Kraken's claims that the agency lacks authority to bring the case and that existing law is too vague.
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November 06, 2024
Albertsons Hit With Discovery Sanctions In Wash. Opioid Suit
A Washington state judge has partially granted the state's sanctions request in its suit accusing Albertsons of exacerbating the opioid crisis, agreeing that the grocery store chain took an "unreasonable" stance in refusing to respond to outstanding discovery requests because a deadline had passed while the case was paused.
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November 06, 2024
Trump Win Set To Reshape FCC, Push Policies Rightward
Donald Trump's return to the White House following Tuesday's election will usher in new political appointees at federal agencies to carry out conservative tech and telecom policies, leading to a reshuffling of priorities at the Federal Communications Commission.
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November 06, 2024
Customers Look To Preserve Lead Class Action Against AT&T
AT&T shareholders are telling a Texas federal judge that the company acted with scienter when it allegedly misled investors about the removal of lead-covered copper cables from its network, pushing back on AT&T's motion to dismiss the suit stemming from a drop in the company's stock price.
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November 06, 2024
Hyundai, Kia Rip Cities' Bellwether Trial Bid In Car-Theft MDL
Hyundai and Kia have asked a California federal judge to reject several cities' request for bellwether trials in consolidated litigation alleging that the automakers knowingly sold vehicles with design flaws that spawned a car-theft crime wave after a viral TikTok trend popularized tips for breaking into their cars.
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November 06, 2024
4th Circ. Won't Allow Appeal In Crash Privacy Suit
The Fourth Circuit has rejected the city of Charlotte's attempt to appeal a North Carolina federal judge's finding that it violated privacy law by making car accident reports public, which allowed law firms to use the data for marketing purposes.
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November 06, 2024
Seattle Judge Wants Plaintiff's Comms In IPad Antitrust Suit
A Seattle federal judge has ordered Hagens Berman Sobol Shapiro LLP to produce its communications with a client who allegedly ghosted the firm before determining if the attorneys may withdraw from representing the class representative in a proposed antitrust class action against Apple and Amazon.
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November 06, 2024
Data Tracking Suit Against California Hospital Gets 'Last' Try
A California federal judge gave a plaintiff "one last opportunity" to amend her proposed class action accusing Santa Clara Valley Medical Center of unlawfully sharing sensitive data with Meta and Google through online tracking tools embedded in its website and patient portal.
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November 06, 2024
Tempur Sealy, Mattress Firm Ask Court To Pause FTC Case
Tempur Sealy and Mattress Firm asked a Texas federal court to prevent the Federal Trade Commission's in-house merger case from moving ahead until after there is a decision on their constitutional challenge of the agency's process.
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November 06, 2024
Amazon Can't 'Just Walk Out' On BIPA Claims
An Illinois federal judge largely allowed two biometric privacy suits to proceed against Amazon and a Midway Airport shop operator over Amazon's Just Walk Out cashierless checkout technology, trimming just an unlawful profiting claim against the travel retailer.
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November 06, 2024
Kratom Co. Failed To Warn Of 'Addictive Potential,' Suit Says
The company behind Kryptic Kratom and K-Chill branded supplements was hit with a proposed class action accusing the company concealing the "addictive potential" of kratom, which the suit likens to opioids, morphine and heroin.
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November 06, 2024
Coinbase, CFTC Reach Discovery Agreement For SEC Case
Coinbase said it has reached an agreement with the U.S. Commodity Futures Trading Commission on certain search terms that it believes satisfies its discovery needs in its ongoing securities enforcement case, resolving an earlier motion to compel the futures regulator to provide certain communications with crypto firms.
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November 06, 2024
Business Groups Urge Calif. Justices To Nix HIV Drug Ruling
Business groups led by the U.S. Chamber of Commerce are asking the California Supreme Court to throw out a suit alleging Gilead Sciences Inc. deprived customers of a safer form of its HIV drug for profits, saying the current ruling creates an untenable duty and liability even when there's no harmful defect in a product.
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November 06, 2024
NJ Co. Not Giving Refunds For Lead-Tainted Toys, Suit Claims
Three consumers have alleged in Garden State federal court that New Jersey-based toy-maker Red Toolbox is refusing to issue refunds for a gardening toy set that was recalled because it contained levels of lead that exceed the federal lead paint threshold, according to a proposed class action.
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November 06, 2024
What A Second Trump Term Could Mean For FDA And CPSC
The historic reelection of former President Donald Trump could lead to shake-ups at the U.S. Food and Drug Administration and the U.S. Consumer Product Safety Commission, while questions remain about what policies he will enact.
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November 06, 2024
Calif. DA Recalled In Latest Blow To Progressive Prosecutors
San Francisco Bay Area residents have voted to recall Alameda County District Attorney Pamela Price less than two years after she took office, following a multimillion-dollar campaign backed by conservative-tied nonprofits that criticized Price's prosecution policies for being overly liberal.
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November 06, 2024
Tobacco Cos. Side With FDA In Menthol Cigarette Ban Fight
Tobacco giants R.J. Reynolds and Philip Morris have come to the aid of the U.S. Food and Drug Administration in a pair of friend-of-the-court briefs, urging a federal court to toss a suit against the agency over its purported delays in implementing a ban on menthol cigarettes.
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November 05, 2024
What Trump's Return Means For Bank Regulation: 5 Questions
With former President Donald Trump now projected to return to the White House, financial services attorneys are predicting the banking industry will see a sharp rightward turn at the Consumer Financial Protection Bureau and a much softer touch elsewhere in the federal regulatory arena.
Expert Analysis
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Earned Wage Access Laws Form A Prickly Policy Patchwork
Conflicting earned wage access laws across the country, including the Consumer Financial Protection Bureau's recently issued rule, mean providers must adopt a proactive compliance approach and adjust business models where needed, say attorneys at Sheppard Mullin.
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What FDIC Expansion Of Change In Bank Control Could Mean
A recent Federal Deposit Insurance Corp. proposal pertaining to the Change in Bank Control Act has the potential to create uncertainty around investments by mutual fund complexes in banking organizations, which represent a stable source of capital for the banking industry, say attorneys at Sullivan & Cromwell.
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HSR Amendments Intensify Merger Filing Burdens, Data Risk
The antitrust agencies' long-awaited changes to premerger notification rules under the Hart-Scott-Rodino Act stand to significantly increase the time and cost involved in preparing an initial HSR notification, and will require more proactive attention to data issues, says Andrew Szwez at FTI Technology.
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Deadline Extension Highlights PFAS Reporting Complexities
The U.S. Environmental Protection Agency's recent extension of reporting and recordkeeping timelines for per- and polyfluoroalkyl substances under the Toxic Substances Control Act offers relief to the regulated community, but the unprecedented volume of data required means that businesses must remain diligent in their data collection efforts, say attorneys at Alston & Bird.
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6th Circ. Preemption Ruling Adds Uncertainty For Car Cos.
Automakers and their suppliers need uniformity under the law to create sufficient scale and viable markets — but the Sixth Circuit's recent decision in Fenner v. General Motors creates more uncertainty around the question of when state law consumer claims related to violations of federal vehicle emissions and fuel economy standards are preempted, say attorneys at Sidley.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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How Biden Admin Has Used Antitrust Tools, And What's Next
The last four years have been marked by an aggressive whole-of-government approach to antitrust enforcement using a broad range of tools, and may result in lasting change regardless of the upcoming presidential election result, say attorneys at Norton Rose.
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Cos. Face Increasing Risk From Environmental Citizen Suits
Environmental citizen suits stepping in to fill the regulatory vacuum concerning consumer goods waste may soon become more common, and the evolving procedural landscape and changes to environmental law may contribute to companies' increased exposure, say J. Michael Showalter and Bradley Rochlen at ArentFox Schiff.
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How BIS' Rule Seeks To Encourage More Voluntary Disclosure
Updated incentives, penalties and enforcement resources in the Bureau of Industry and Security's recently published final rule revising the Export Administration Regulations should help companies decide how to implement export control compliance programs and whether to disclose possible violations, say attorneys at Freshfields.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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Navigating Complex Regulatory Terrain Amid State AG Races
This year's 10 attorney general elections could usher in a wave of new enforcement priorities and regulatory uncertainty, but companies can stay ahead of the shifts by building strong relationships with AG offices, participating in industry coalitions and more, say Ketan Bhirud and Dustin McDaniel at Cozen O’Connor.
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Challenge To Ill. Card Fee Law Explores Compliance Hurdles
A recent federal lawsuit challenging an Illinois law that will soon forbid electronic payment networks from charging fees for processing the tax and tip portions of card transactions, fleshes out the glaring compliance challenges and exposure risks financial institutions must be ready to face next summer, says Martin Kiernan at Amundsen Davis.
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Recent Securities Cases Highlight Risks In AI Disclosures
Increasing public disclosure about the use and risks of artificial intelligence, and related litigation asserting that such disclosures are false or misleading, suggest that issuers need to exercise great care with respect to how they describe the benefits of AI, say Richard Zelichov and Danny Tobey at DLA Piper.
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Harris Unlikely To Shelve Biden Admin's Food Antitrust Stance
A look at Vice President Kamala Harris' past record, including her actions as California attorney general, shows why practitioners should prepare for continued aggressive antitrust enforcement, particularly in the food and grocery industries, if Harris wins the presidential election, says Steve Vieux at Bartko.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.