2022 | Consumer Products Law Watch

Over a Fortnite: Epic Games to Pay Record US$520 Million to Settle FTC Claims of Children’s Privacy Violations and Digital Dark Patterns, Which Continued for Years

Dec 28 2022

The Federal Trade Commission (FTC) has reached its largest administrative settlement to date: US$245 million. The proposed settlement is with Epic Games, Inc. (Epic Games), the company that developed and offers the multiplayer, online game Fortnite, and stems from Epic Games’ unlawful collection of personal information and illegal use of digital dark patterns to bill Fortnite users for unintentional in-game purchases. In total, Epic Games will be responsible for US$520 million, which includes a US$275 million penalty.

FTC and NLRB Enter into an Information Sharing Agreement as a Likely Precursor to New Enforcement Activity

Dec 20 2022

By: Gene Ryu, Katie Staba & Jonathan Rue

In light of the NLRB’s recent change to independent contractor rules, recent midterm elections and a focus on workers’ rights on many ballots, this article revisits an agreement between agencies that went largely unnoticed earlier this year.

FDA Proposes Updates to Regulatory Definition of “Healthy” for the First Time Since 1994

Oct 18 2022

By: Natalie Rainer, Alexa Sengupta

The U.S. Food and Drug Administration (FDA) has issued a proposed rule (“Proposed Rule”)[1] that updates the definition of the “healthy” nutrient content claim under 21 C.F.R. § 101.65(d) for the first time since its issuance in 1994. The Proposed Rule, published on September 29, 2022, notes that “nutrition science has evolved since the 1990s” and that the proposed changes are intended to make the regulation “consistent with current nutrition science and Federal dietary guidance.”[2]

QR Code and Text Messaging Alone Are Insufficient to Disclose Bioengineered Food Ingredients

Sep 29 2022

By: Natalie E. Rainer and Amy Wong

Due to a recent decision in the Northern District of California, the U.S. Department of Agriculture (USDA) will be required to revise current electronic and text message disclosure options under its Bioengineered (BE) Food Labeling Rules, also known as the National Bioengineered Food Disclosure Standard (NBFDS or Standard). Plaintiffs successfully argued that these methods of disclosure did not meet Congress’s requirement that these methods be adequately accessible to consumers.

Kind, LLC Wins a Decisive Victory in an “All Natural” Case When Plaintiffs Failed to Prove that Reasonable Consumers Had A Specific Understanding of “All Natural” That Rendered Kind’s Labels Misleading

Sep 20 2022

By: Matthew G. Ball

Energy bar-maker Kind, LLC (“Kind”) has won a decisive victory in a multidistrict litigation matter pending in the Southern District of New York. In re Kind LLC “Healthy and All Natural Litigation”, No. 15-MD-2645 (NRB) (September 9, 2022) (“Order”). In the Kind Order, the district court made various rulings – of which the consumer class action defense bar should take note. Before the Court were Kind’s Motions for Summary Judgment, to exclude Plaintiffs’ experts, and to decertify the class. Kind ran the table, with the Court granting all three motions, and giving defense counsel a roadmap to victory in similar cases.

Archive: 2022