Updating a prior post, on May 2, 2016, the Federal Trade Commission (FTC) announced its receipt of a $13.4 million judgment against the CEO of BlueHippo, after the Second Circuit overturned the district court’s determination that BlueHippo’s damages were limited to $600,000 in 2014. BlueHippo marketed computers and electronics to consumers regardless of their … Continue reading
The FTC has recently proposed amendments to the Disclosure Rule and Pre-Sale Availability Rule it issued under the Magnuson-Moss Warranty Act, the federal law governing warranties on consumer products. These amendments come in response to the E-Warranty Act of 2015, which President Obama signed into law in September 2015. Click through to the full discussion that my colleagues, … Continue reading
President Obama has signed the E-Warranty Act of 2015 (PL 114-51). The new law amends the federal Magnuson-Moss Warranty Improvements Act (15 USC § 2302(b)) by permitting (not requiring) consumer product warranties to be made available online. If a consumer product manufacturer elects to make product warranties available online, the manufacturer will be subject to … Continue reading
We have been following California’s “Made in the USA” standard and recent cases interpreting it. While courts so far have been reluctant to dismiss claims at the pleading stage, last week a federal judge dismissed a class action claiming Lands’ End violated California’s “Made in the USA” standard. In Oxina v. Lands’ End, Inc., plaintiff filed a false … 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 … Continue reading
If a company sues a competitor about an advertisement that the company believes is false or misleading about the company’s product, a court victory is frequently cause for a press release, as well as announcements on social media and to bloggers. When the complaint is made to the National Advertising Division (NAD) of the Council … Continue reading
On September 18, 2014, a federal trial court in Missouri granted the Federal Trade Commission’s ex parte motion for a temporary restraining order, asset freeze, and appointment of a receiver for Butterfly Labs. Butterfly Labs made claims on its web site and on social media that its computers enabled consumers to “mine” a type of … 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” … Continue reading
Question: What’s the difference between $600,000 and $14 million in a contempt action? Answer: Presumption of consumer reliance, according to the Second Circuit Court of Appeals in Federal Trade Commission v. BlueHippo Funding, LLC. The case began in 2003, when BlueHippo first began marketing computers and electronic products to consumers regardless of their credit history. … Continue reading