The Federal Trade Commission recently sent more than 90 letters to celebrities, athletes, and other influencers reminding them that brand endorsements made in social media posts must comply with the FTC’s Endor
Why limit yourself to simply traveling in style when you could also live it? Over the years, fashion designers have branded everything from furniture to luxury food products, yet the emerging trend of branching out into hotel design is becoming increasingly popular. While some have partnered with existing spaces to curate custom suites, others have gone a step further and have actually acquired high end premises to showcase their brands.
Omaha Steaks International Inc. recently became the target of a proposed class action lawsuit, in which the company is accused of charging unreasonable shipping fees that were excessive compared to the company’s actual costs.
A dispute that began with an unauthorized burger placed on a menu by a licensee recently culminated in the dismissal of the latest lawsuit between feuding factions of Benihana, the Japanese teppanyaki restaurant chain. In early March, the US District Court in the Southern District of New York dismissed a lawsuit brought by Benihana of Tokyo LLC (BOT) against its American counterpart, Benihana, Inc. (BI) that raised claims of breach of contract and breach of good faith, and highlighted the risks of splitting trademark rights between geographic territories.
On March 22, 2017, the Supreme Court issued a ruling in Star Athletica, L.L.C. v. Varsity Brands, Inc., et al, No 15-866, clarifying that the Copyright Act protects applied artistic elements appearing on utilitarian objects, including apparel.
Gone are the days where a brand's DNA is defined solely by clothing and accessories. With the luxury goods sector experiencing a recent downturn, more and more companies are breaking into the perfume and cosmetic spheres. The movement may be attributed, in part, to the "lipstick index," a phrase coined in 2001 by Leonard Lauder, then-chairman of Estee Lauder, to describe how beauty products may act as affordable indulgences during times of economic recession.
Based on recent federal court filings in the Central District of California, it appears that plaintiff lawyers have found a new way to threaten retailers with class action litigation. In January of this year, two class action complaints were filed on behalf of consumers who allegedly were charged shipping and handling fees “not reasonably related to Defendant’s actual costs of shipping or delivering the items to consumers but instead greatly exceeded those costs.” The complaints assert that the shipping and handling fees violate “established ethical principles” and California law.
The Federal Trade Commission (FTC) has just announced that it will be closing its "Made in USA" investigation of certain Target pillow products. According to the FTC, the outer packaging of the pillow products bore an unqualified "Made in USA" claim while the packages' contents – the pillows themselves – bore a "Made in China" label claim. FTC's investigation began in response to numerous consumer complaints regarding this conflicting origin labeling.
What’s the News?
Before leaving office, President Obama signed into law the Consumer Review Fairness Act of 2016 (CRFA), which protects consumers engaging in consumer reviews. The CRFA voids a contract if it prohibits or restricts an individual from reviewing a seller's goods, services, or conduct.
Who is Affected?
All companies that have the prohibited clauses (see below) in their consumer contracts will have to review and update these contracts for compliance with the CRFA.
The Federal Trade Commission has announced a proposed settlement and consent order in its investigation of a US-based water filtration company, iSpring Water Systems, concerning that company’s representations that its products are "Proudly Built in the USA," which is considered an unqualified "Made in USA" claim that the products were all or virtually all USA-made. These representations appeared on the company’s own websites, as well as those of other online retailers who sold the products.