Consumer Products Law Watch – Page 2 – Legal issues, law and regulations concerning the world of consumer products.

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

Sep 29 2022

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.

What The Fudge?! Popular Breakfast Snack’s Lack of Key Ingredient Did Not Trigger Liability Under State Consumer Fraud and Magnuson-Moss Warranty Acts

Aug 03 2022

By: Ketajh M. Brown

A recent ruling from the United States District Court for the Central District of Illinois served as an important reminder to the Plaintiffs Bar regarding a significant and continuing shift in judicial attitude toward speculative class action allegations of consumer fraud and breach of warranty. In this case, the Court’s order is a cautionary tale for those who make a living firing off indiscriminate legal claims without stopping to ensure all essential elements of their clients’ claims are sufficiently alleged.

Don’t Lead Me On: FTC Issues Complaint Against HomeAdvisor

May 09 2022

By: Ewa A. Wojciechowska

In order for the FTC to issue an administrative complaint: (1) the FTC must have “reason to believe” that the law has been or is being violated; and (2) it must appear to the FTC that instituting a proceeding is in the public interest.

On March 11, 2022, the Federal Trade Commission (“FTC”) issued a Complaint against HomeAdvisor, Inc., also doing business as Angi Leads, also doing business as HomeAdvisor Powered by Angi (collectively, “HomeAdvisor”) (In the Matter of HomeAdvisor, Inc., a corporation, d/b/a Angi Leads, d/b/a HomeAdvisor Powered by Angi, FTC Docket No. 9407). The Complaint alleges that HomeAdvisor used deceptive business practices in relation to its members, many of whom are small business, by misleading them about the quality and source of, as well as general information about, the leads HomeAdvisor provided.

Wine Labelling: A New EU Regulation is Coming Into Force in 2023

Mar 24 2022

By: Serena Totino, Judith Rinearson

The European Union reform of Common Agricultural Policy (“CAP”), published on 6 December 2021, will enter into force on 1 January 2023. (See more here.) Such reform consists of a number of changes to the existing regulations.

Specifically, wine labelling will be regulated by EU Regulation 2021/2117, which amended four EU regulations, namely Regulations (EU) No. 1308/2013, 1151/2012, 251/2014, and 228/2013. Consultations on modernization of the CAP started in 2017, and the legislative procedure was completed at the end of 2021. While a mid-term review will take place in 2025, the CAP is meant to cover the period 2023–2027.

Second Circuit Sets the Stage for Standing in Crypto Class Action

Mar 21 2022

By: Christian A. Zazzali

Earlier this month, Judge George B. Daniels, sitting in the Southern District of New York, adopted the recommendation of Magistrate Judge Robert W. Lehrburger in certifying a limited class in a suit against online digital asset exchange, KuCoin.

Court Dismisses False Advertising Suit Over Chocolate-Dipped Ice Cream Bars

Mar 21 2022

By: Amy Wong

Summary: Plaintiff filed a putative class action complaint in New York federal court against Mars Wrigley Confectionery US, LLC, alleging it deceived consumers into believing that its chocolate-coated ice cream bars contained only milk chocolate when they actually contain vegetable oils, which Plaintiff contends are not found in real chocolate. Plaintiff’s primary cause of action arises under New York’s false advertising and deceptive practices statutes, General Business Law §§ 349 and 350. Beers v. Mars Wrigley Confectionery US, LLC, No. 21-CV-2 (CS), 2022 WL 493555, at *2 (S.D.N.Y. Feb. 17, 2022).

New U.S. Sanctions on Russia and Belarus Impose Trade and Investment Restrictions on Luxury Goods and Russia’s Energy Sector

Mar 17 2022

Originally posted on the K&L Gates Hub

By: Jeffrey Orenstein, Steven F. Hill, Stacy J. Ettinger, Erica L. Bakies, Jerome J. Zaucha, Donald W. Smith

As an update to K&L Gates’ previous alerts of 24 February and 25 February, U.S. President Joe Biden issued two executive orders (EOs) last week imposing additional sanctions against Russia. The first order, EO 14066, issued on 8 March 2022, prohibits: (1) U.S. imports of Russian oil and other energy products, and (2) new investments by U.S. persons in Russia’s energy sector. The second order, EO 14068, issued on 11 March 2022, restricts: (1) exports of luxury goods to Russia and Belarus, (2) U.S. imports of Russian alcohol, seafood, and diamonds, and (3) the supply of U.S. dollar-denominated banknotes to Russia and the Russian Government worldwide. This alert describes these new developments in more detail.

Annie’s Hops Away from Proposed Slack-Fill Class Action

Mar 15 2022

By: Ashley Song

Summary: Annie’s, Inc. recently defeated a proposed class action that alleged its tropical-flavored bunny-shaped fruit snacks contained non-functional slack-fill and therefore misled consumers as to the amount of product contained therein.

Key Takeaways: Annie’s, Inc. defeated a proposed class action in the Southern District of New York that alleged that its tropical-flavored bunny-shaped fruit snacks (“Fruit Snacks”) deceived consumers by containing “non-functional slack-fill” (i.e., unnecessary empty space) and misled consumers as to the amounts of snacks contained in each package.

NAD Initiating Review of Brand Claims of Social Justice Initiative Support

Mar 15 2022

By: Meg Tierney

Summary: In February 2022, the National Advertising Division (NAD) of the Better Business Bureau published two decisions related to truth in advertising when making claims about a company’s social justice initiatives. As part of its ongoing monitoring program, the NAD initiated challenges of advertising claims made by Niantic, Inc. (Niantic)[1] and DoorDash, Inc. (DoorDash)[2] regarding allied monetary donations to a variety of social justice initiatives and organizations.