Considering Use in Commerce, Source-Identifying-Function, and Conduct vs. Confusion

On June 29, 2023, the Supreme Court vacated the 10thCircuit’s decision in Abitron Austria GmbH et al. v. Hetronic International Inc(“Hetronic”). The Supreme Court principally held that the Lanham Act does not have extraterritorial application. As Crowell previously discussed, the Supreme Court sought briefing on Hetronic from the U.S. Solicitor General, signaling an interest in addressing the Tenth Circuit’s decision, the extraterritoriality of the Lanham Act, and the complex circuit split that has at least three distinct tests. Although the Court agreed 9-0 that the lower court’s decision should be vacated, Justice Alito’s majority opinion and Justice Sotomayor’s concurring opinion disagreed on the second step of the extraterritoriality test, specifically regarding whether foreign conduct can have domestic implications. The majority disagreed with both the Tenth Circuit and the Solicitor General, concluding that the Lanham Act cannot apply to foreign defendants’ foreign conduct.

Continue Reading The Unanimous, but Contentiously Fractured, Supreme Court Decision on Extraterritoriality of the Lanham Act

In March 2023, the White House published its National Strategy to Advance Privacy-Preserving Data Sharing and Analytics.  Buried in the report was a quiet, but notable, concern related to the possibility of deanonymizing a consumer due to “insufficient disassociability”.  See Report, pg. 6.  A new wave of class action lawsuits in California—already over three dozen at the time of writing—now seeks to turn a spotlight on these practices, claiming that companies are using “grey market” data to match user patterns with personal identifiable information (PII).

Continue Reading Another Wave of California Privacy Suits—Deanonymization as “Doxing”

On Thursday July 27, the CPSC will host a hybrid forum on lithium-ion battery safety, specifically focusing on fires in e-bikes and other micromobility products as well as the fire risks that may arise with the growing consumer market for other products containing such batteries.

Continue Reading CPSC to Hold Forum on Lithium-Ion Battery Safety and Micromobility Products

It seems most everyone has been closely monitoring Taco Bell’s cancellation proceedings directed to federal trademark registrations covering the TACO TUESDAY trademark.  On July 15, 2023, one of the registrants, Spicy Seasonings, LLC, withdrew its registration after decades of ownership, supporting Taco Bell’s allegations that the phrase is generic and therefore not protectable as a trademark.

Continue Reading Something to Taco-Bout: Taco Bell Takes on TACO TUESDAY Trademark Registrations

The FTC has remained active this summer, concluding June with two major notices of proposed rulemaking. One related to the Premerger Notification Rule from the Bureau of Competition and the other related to the Use of Consumer Reviews and Testimonials from the Bureau of Consumer Protection. These stories and more regarding specific matter updates ranging from “Made in USA” advertising to deceptive Delta-8 THC advertising after the jump.

Continue Reading FTC Updates (June 27 – July 7, 2023)

Products are commonly recalled due to a hazard (i.e., a risk of harm), even where large swaths of consumers have never had a problem with the products they purchased. When those consumers then file suit, they often seek to recover economic harm based on the “benefit of the bargain” theory—because the recalled products that they previously purchased are now worth less than what they paid for them. Where a consumer does experience the hazard (i.e., suffers personal injury or property damage) and subsequently files suit, that suit often seeks to recover not just economic harm but also for personal injury or property damage. Regardless of the nature of the harm, the alleged injury naturally precedes any recall of the product.

Continue Reading Recall Litigation Report: Consumer Lawsuit Alleges Electrolux Dehumidifier Caused Church Fire Years After Recall

New considerations have emerged for advertisers who publish reviews or endorsements. On June 29, 2023, the FTC finalized its updated Endorsement Guides, which provide insights to businesses on how the use of reviews and endorsements might be considered unfair or deceptive in violation of Section 5 of the FTC Act. Over the past several months, the FTC sought public comments on proposed updates to the Endorsement Guides to accurately reflect the modern landscape of advertising, which includes reliance on social media and content creators.

Continue Reading Reviews and Endorsements Say What? FTC Finalizes Updates to Endorsement Guidelines

Advances in artificial intelligence have become front and center in the minds of many, including attorneys general focused on consumer protection. Although concerns exist for consumer protection, the advancement of artificial intelligence has the opportunity to add value to consumers.  This is especially true in healthcare. Recently, attorneys general gathered to discuss these issues at the Attorney General Alliance Annual Meeting, during a panel that discussed  The Value of Disruptive Healthcare. In the last few years, the growth of telemedicine has dramatically changed the delivery of healthcare. While these changes were already afoot, the pandemic highlighted the need for virtual access to healthcare and wellness tools. That disruption has added value in many ways to consumers and health care providers managing care for their patients. Similarly, in the coming years, we can expect artificial intelligence to drive even more changes in treatment, therapies, and standards of care in the healthcare sector. During these periods of major technological advancements attorneys general should consider consumers’ safety, privacy, security and consumers’ overall livelihood and health. Dramatic changes in healthcare business and technology are already challenging existing laws in unexpected ways, often creating gaps between the law and what consumers and producers need or want the law to say. This gap period, or regulatory lag, will require producers to assume some regulatory risk and for attorneys general to monitor business activities that they believe create too much risk for consumers.

Continue Reading Attorneys General Consider Consumer Protection Issues Related to Artificial Intelligence in Consumer-Facing Healthcare Technology

On Tuesday, June 20, 2023, the Federal Trade Commission sent letters to 50 online marketplaces notifying them of their responsibility to fully comply with the new Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – as soon as the law takes effect on June 27, 2023.

Continue Reading Consumer Protection Law Taking Effect This Month Could Subject Online Marketplaces to Civil Penalties of up to $50,120 Per Violation

The FTC is taking no breaks this summer with an active first half of June. The FTC released two annual reports regarding refunds and consumer finance and credit protection activity as well as initiating a request for public information on collaboration efforts with State Attorneys General. These stories and more regarding specific matter updates, ranging from false advertising to data privacy, after the jump.

Continue Reading FTC Updates (June 5 – June 16, 2023)