With the recent rise of federal Food & Drug Administration (FDA) warning letters to the manufacturers of various ingestible cannabidiol (“CBD”) products, we can expect an increase in false advertising claims against manufacturers, distributers and sellers of those products. Nonetheless, in an important case of first impression in this arena, a federal trial court in
Advertising & Product Risk Management
FDA Cracks Down on Health Claims in CBD Advertisements
When the U.S. Food & Drug Administration (FDA) issued 15 warning letters to companies selling CBD-infused products late last year, it more than doubled the number of warning letters directed to manufacturers of such products in 2019. The warning letters were announced in a November 25 press release in which FDA also stated that, at…
Will the FTC Crack Down on Online Influencers?
On November 5, 2019, the Federal Trade Commission released a, first-of-its kind, guidance targeting online influencers. The new guide titled “Disclosures 101 for Social Media Influencers” informs influencers when and how they must disclose sponsorships with brands to their followers. This is part of the FTC’s increasing focus on making product endorsements more transparent.
When…
Consumer Protection for Online Reviews and Influencers
How can you tell if an online review is truly genuine? Who’s regulating? Who’s watching?
Lauren Aronson, vice chair of the Consumer Protection Committee at the ABA Antitrust section, addresses these questions in Episode #7 of the ABA antitrust section’s podcast, “Our Curious Amalgam,” speaking on the topic, “Too Much Influence? Consumer Protection…
Rulemaking on the Way? The FTC is Seeking Input by October 11 on its “Made in USA” Claims Policy
The Federal Trade Commission (FTC) is soliciting comments on its 1997 Enforcement Policy Statement on U.S. Origin Claims and its ongoing enforcement of that policy. On September 26, 2019, the FTC held a workshop with key stakeholders to discuss how consumers perceive “Made in USA” claims, how advertisers and marketers comply with the standard, and…
The Peril of the Unreported Coffee Pot: Why a Failure to Report Is a Continuing Violation
“The hallmark of the continuing offense is that it perdures beyond the initial illegal act, and that ‘each day brings a renewed threat of the evil Congress sought to prevent’…” Toussie v. United States, 90 S. Ct. 858, 864 (1970). In a ruling issued May 9, the Seventh Circuit determined that a failure…
DOJ Indicts Two Executives for Failing to Report under Consumer Product Safety Act (CPSA)
On Friday, a federal grand jury in California returned an indictment against two business executives, Simon Chu and Charley Loh, for their alleged roles in distributing defective dehumidifiers and, critically, failing to report required information to the U.S. Consumer Product Safety Commission (CPSC). In announcing the indictment, the U.S. Department of Justice proclaimed that this…
Copycat-eye? Copyright protection in the beauty industry
Over the past couple of years there have been several important conversations regarding intellectual property issues in the beauty industry. This industry faces a persistent issue of copycat beauty looks that are not credited to the original inspiration. For example, earlier this year Instagram account Diet Prada called out two editorial beauty looks worn…
Lauren Aronson to Moderate Advertising Claims Panel at National Advertising Division Conference
On March 5, Lauren Aronson will moderate the panel, “Guidance on Reliable Testing to Support your Advertising Claims,” at the National Advertising Division’s West Coast Conference. Joining Lauren will be Benjamin Sarbo – Product Development Lead at Kimberly-Clark, Ray Iveson – Director and Senior Research Fellow, The Duracell Company, and Martin Zwerling – Deputy Director,…
Government Shutdown Does Not Postpone CPSC Product Safety Reporting Obligations
Do not assume a government shutdown means that reporting obligations at the CPSC are on hold. While the Commission’s staff designated as essential personnel are dedicated to protecting against substantial, immediate or “imminent threats to human safety” under the Commission’s shutdown directive[1], they will be reviewing reports to make that determination. The obligation…