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CONSUMER PROTECTION CONCEPT

On May 5, 2023, the U.S. Consumer Product Safety Commission (“CPSC”) announced that it agreed to a civil penalty settlement with Generac Power Systems, Inc., (“Generac”) to resolve charges that Generac failed to report immediately to the CPSC under Section 15(b) of the Consumer Product Safety Act (“CPSA”). Specifically, the CPSC alleged that certain models of Generac’s portable generators contained a defect that could create a substantial product hazard and unreasonable risk of serious injury to consumers. This settlement includes a $15,800,000 civil penalty, and requirements that Generac (1) implement and maintain a compliance program and system of internal controls and procedures designed to ensure compliance with the CPSA; and (2) file annual reports with the agency for the next three years regarding the Company’s compliance program, internal controls and procedures, internal audits of the effectiveness of the new compliance program and internal controls.Continue Reading CPSC and Company Reach Agreement on $15.8 Million Civil Penalty for Failure to Report

CONSUMER PROTECTION CONCEPT

Last Thursday, April 6, the Department of Justice (DOJ) and Consumer Product Safety Commission (CPSC) sued SunSetter Products LP (SunSetter) in a Massachusetts federal court in a rare civil penalty lawsuit. SunSetter manufactures motorized retractable awnings for outdoor use. The Government alleges in its complaint that SunSetter knowingly failed to timely report under Section 15(b) of the Consumer Product Safety Act (CPSA) a hazardous defect related to vinyl covers for its retractable awnings. The complaint seeks permanent injunctive relief, including a third-party monitorship over the company, and civil penalties.Continue Reading CPSC Seeks Civil Penalty Against SunSetter in Rare Federal Court Action

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Since the start of the year, voluntary recalls have led to early dismissals in several putative class action cases. Courts issuing these rulings have based their decision on one of two grounds: (1) the prudential mootness doctrine, and (2) lack of Article III standing.Continue Reading Recall Litigation Report: Voluntary Recalls Continue To Lead To Early Dismissal

Consumer data & privacy

On March 15, the Iowa House passed Senate File 262 (SF 262), a comprehensive state privacy law bill. If enacted, SF 262 would be the sixth state level privacy legislation, following California, Virginia, Colorado, Utah, and Connecticut, and it would go into effect on January 1, 2025.Continue Reading Iowa to Introduce the Sixth Comprehensive State Privacy Law in United States

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On February 27, 2023, the Federal Trade Commission (“FTC”) Division of Advertising Practices updated their business guidance on the usage of Artificial Intelligence (“AI”) for 2023. In their post titled “Keep your AI claim in check”, the FTC guides marketers on how best to legally and efficiently utilize AI in advertising and avoid AI washing. Building upon the FTC’s previous AI guidance of 2020 and 2021, this year’s iteration emphasizes that false or unsubstantiated claims about a product’s efficacy—including those that involve promises about the ability of AI—runs afoul of the FTC Act. Specifically, the FTC reminds marketers of the following questions that they should consider with the increasing use of AI in products:Continue Reading Everyone’s Talking AI, Including the FTC: Key Takeaways from the FTC’s 2023 AI Guidance

Stove

On Wednesday afternoon, CPSC Chairman Alexander Hoehn-Saric addressed the annual conference of the International Consumer Product Health and Safety Organization (ICPHSO) for the second time as chairman. In his remarks, Hoehn-Saric looked back on his first year as chairman, including the recent controversy over gas stoves, and shared some of the agency’s priorities moving forward. But the central theme of Hoehn-Saric’s remarks could not have been clearer— consumers are first in everything the agency does.  Continue Reading CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference

Summary: In a recent “Law.com” article titled “Too Big to Succeed: Lessons from the Ye / Adidas Brand Partnership,” Crowell attorneys discuss the unraveling of Ye (Kanye) West’s brand partnerships; particularly with Adidas. In the article, they explore Ye’s partnership deal, how the deal was likely terminated, and what brands need to know to manage…

Recall

Companies faced with a potential product recall are often concerned with possible adverse publicity and increased litigation risk. But a quick and comprehensive recall can be the very tool that stops a lawsuit in its tracks. In a recent Law360 article titled, “Quick and Comprehensive Recall Moots Claims and Proves an Effective Tool in Defeating…

Companies take note: over the past month or so, the U.S. Consumer Product Safety Commission (CPSC) has issued four unilateral press releases instructing consumers to stop using a product. Since May of this year, that number rises to seven. If that number does not seem high, consider this: between 2011 and 2019—a nine-year period—the agency issued two. So, what exactly is a “unilateral press release” and what does the agency’s issuance of four over recent weeks mean for you?Continue Reading CPSC Enforcement Trend: Unilateral Press Releases

In a recent Law360 article titled, “Penn State TM Case’s Impact On Merchandising And Beyond,” Crowell attorneys Cheryl Howard and David Ervin discuss the broader industry ramifications of Pennsylvania State University’s lawsuit against Vintage Brand LLC and the favored outcome for Vintage Brand. In the case, Pennsylvania State University filed a lawsuit for trademark infringement against…