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Over the 2024 summer, new EU rules entered into force regarding unsold consumer products under the new ESPR (i.e. the Ecodesign for Sustainable Products Regulation – Regulation (EU) 2024/1781).  The legal obligations themselves are relatively concise and short in number and therefore perhaps easy to overlook.  However, companies selling or supplying consumer products in the EU/EEA – particularly companies in the clothing, footwear, apparel, textile and retail sectors – should beware and not underestimate their importance or impact.Continue Reading Companies Selling Consumer Products in the EU (Particularly Clothing, Apparel, and Footwear Companies) Beware: The New ESPR Rules on Unsold Consumer Products Have Now Entered into Force

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The building of the Federal Trade Commission in downtown Washington DC.

Call it the summer of junk fees and drip pricing. In July, California’s new drip pricing law went into effect and in August the federal government announced further proposed rules into junk fees and subscription services. Regulators say these proposed price transparency laws and regulations are consumer protection tools that will save consumers money, help them avoid hidden fees and enable them to cancel recurring charges and subscriptions.

Here is what you need to know now:

Continue Reading Turning up the Heat on Junk Fees and Drip Pricing: Federal and State Regulations Require Increased Transparency into Pricing and Contract Cancellation

As we’ve previously reported, FTC practitioners and businesses alike have been anxiously awaiting details about the rule that will prohibit purportedly deceptive practices in connection with reviews and testimonials. Our readers likely recall the FTC’s advance notice of proposed rulemaking from November 2022, the notice of proposed rulemaking from June 2023, and the informal hearing on the proposed rule which occurred in February 2024. The wait is finally over: just yesterday, August 14, 2024, the agency announced the “Rule on the Use of Consumer Reviews and Testimonials” (the “Rule”). The final Rule, which the Commissioners unanimously approved, is a formal step to address alleged ongoing non-compliance with Section 5 of the FTC Act and the agency’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”), particularly in the consumer review space.Continue Reading Final Rule Announced: The FTC Strengthens Its Enforcement Capacity Against “Deceptive” Reviews and Testimonials

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Gone are the days of hidden fees and tacked on surcharges in California. Starting July 1, 2024, SB478 prohibits businesses in California from adding automatic service charges onto consumer bills. The law applies to the sale or lease of most consumer goods, including hotel and restaurant fees.

Significantly, the laws requires transparency in the advertised price. This means that businesses must disclose all costs and fees upfront – no more surprises in your shopping cart before checkout, or that mandatory “large group” fee at restaurants. It’s not even enough to disclose all the fees before the consumer finalizes the transaction or hits “buy”. The total cost must be the advertised price, disclosed at the top of the funnel. Some exceptions apply, but they are limited to items such as mandatory sales tax, shipping and voluntary tips. Penalties are stiff: consumers can bring claims against businesses, with a max of $1,000 per violation, and consumers can recover attorneys’ fees.Continue Reading California Is Tightening the Pipes on Drip Pricing

France is ramping up its enforcement efforts against counterfeit fashion as the 2024 Paris Olympics open. As it readied Paris for the Olympics, France reinforced existing efforts to dissuade consumers from purchasing and carrying knockoff goods and to target the vendors of these goods. In anticipation of a flood of tourists for the 2024 summer games, the French government has placed notices at its airports, warning consumers of the significant penalties they may face from buying and wearing counterfeit clothing and accessories, up to a €300,000 fine and three years’ imprisonment. It has also conducted raids on vendors selling counterfeit items, including an early April one where police shuttered almost a dozen sellers and seized 63,000 counterfeits, including bags and shoes, at the famed Saint-Ouen flea market.Continue Reading Authorities Go for Gold on Fake Fashion Enforcement as Paris Olympics Begin

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Last month, Senators Christopher Coons (D-Del.) and Chuck Grassley (R-Iowa), introduced a resolution designating July as “National Anti-Counterfeiting and Consumer Education and Awareness Month” (S. Res. 736). As counterfeits flood the market, totaling almost $3 billion in estimated retail value in 2023 alone, the resolution aims to increase anti-counterfeiting awareness for consumers and businesses alike.

In 2023, the United States seized over 23 million counterfeit goods, with an estimated retail value of $2.76 billion—nearly double the reported amount and value from 2020. Many things have contributed to this increase, including the continued expansion of e-commerce and a lack of consumer awareness.Continue Reading Keepin’ it Real: It’s National Anti-Counterfeiting Month

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For the first time since the summer of 2019, the U.S. Congress is holding an oversight hearing for the United States Consumer Product Safety Commission (CPSC). On July 23, 2024 at 2:00 PM ET, the U.S. House of Representatives Energy and Commerce Innovation, Data, and Commerce Subcommittee is holding an oversight hearing titled “The Fiscal…

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Talc is a mineral ingredient used in many cosmetic and personal care products, including baby powder, root touch-up products, and blush. Because both talc and asbestos are naturally occurring minerals that may be found in close proximity in underground deposits, there is risk for contamination of asbestos in talc-based products.Continue Reading Talc About Toxic-Free Cosmetics

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As we have previously discussed, in recent years, consumers have increasingly demanded “cleaner” beauty products and more transparency in product labeling. In addition to the FDA’s increased authority to regulate cosmetics under MoCRA, a number of states have now taken steps to regulate ingredients in cosmetics by limiting, and in some instances even banning, the use of certain ingredients that may be potentially harmful or toxic.Continue Reading Is it Allowed? Companies Face New Challenges with an Ever-Evolving List of “Off Limits” Ingredients in Cosmetic Products

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On April 30, 2024, the U.S. Consumer Product Safety Commission (“CPSC”) published a direct final rule related to pre-filled portable fuel containers and the Portable Fuel Container Safety Act (“PFCSA”), 15 U.S.C. 2056d. The Act directed the CPSC to require flammable, liquid fuel containers of fewer than five gallons and intended for transport to include devices that impede flames from entering the container. Congress gave the CPSC the authority to either promulgate a rule or adopt an existing standard. Additionally, the Act requires the CPSC to educate consumers about dangers associated with using or storing such containers near an open flame or a source of ignition.Continue Reading Changes to CPSC’s Portable Fuel Container Safety Act Regulation Could Come as Soon as This Summer