Because the interaction between online retailers and their customers is limited, online retailers have little choice but to present terms and conditions of sale on their websites. These online terms and conditions present concepts important to online retailers, including arbitration and choice of law provisions. The way in which online retailers present these terms and conditions to customers, and the way in which the customers manifest assent, is crucial to determining whether these terms and conditions are enforceable. Here are some key considerations in presenting online terms and conditions that may help to avoid court when you’re expected to be … Continue Reading
As we previously posted in “All natural: FDA silence continues to create problems for false advertising defendants”, the Food and Drug Administration’s failure to provide a definition of what a “natural” ingredient is makes it difficult for companies defending against false advertising claims based on allegations that food products are marketed as “natural” when the product allegedly contains an artificial or synthetic product because there is no governing standard.
Although the FDA has not promulgated a formal definition, the FDA maintains a policy that “natural” in food products means “nothing artificial or synthetic (including all color additives regardless of … Continue Reading
A California federal district court judge recently provided some clarity on the apparent disparity between California’s “Made in the USA” law and the standard set forth by the Federal Trade Commission.
The Southern District Court of California’s recent decision in Paz v. AG Adriano Goldschmied confirms that California’s “Made in the USA” standard sets forth more stringent requirements than the FTC standard.
In Paz the plaintiff filed a class action complaint against AG Adriano Goldschmied and retailer Nordstrom, alleging that AG falsely labeled its jeans “Made in USA.” The plaintiff alleged that AG’s jeans actually contained fabric, thread, buttons, rivets, … Continue Reading
A number of recent cases show courts taking a more active role in approving class action settlements, more closely scrutinizing settlements meant to benefit class members.
Just last month in Redman v. RadioShack Corporation the Seventh Circuit rejected a class action settlement providing for dissemination of $10 coupons to class members and $1 million in attorneys’ fees to class counsel.
Although there were an estimated 16 million RadioShack customers in the class, notice of the proposed settlement was sent to less than 5 million. Of those receiving notice, only 83,000 submitted claims for the coupon—about one half of one percent … Continue Reading
Labeling products as “Made in the USA” has seen increased popularity recently, as retailers and manufacturers attempt to capitalize on consumers’ desire to support domestic jobs and US-made goods. Despite the seeming cachet of these statements, they may open companies up to false and misleading advertising claims, particularly in plaintiff-happy California.
“Made in the USA” representations are regulated in both the federal and state-law spheres.
According to the Federal Trade Commission, for a product to be marketed as “Made in the USA,” “all or virtually all” of the product must be made in the U.S, meaning that all significant parts … Continue Reading