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High Profile Data Breaches Spur Legislative Action on Cyber Security

What’s Making News? After a spate of high-profile data security breaches, many legislators, businesses, and consumers are asking what can be done to prevent such security lapses and who should be held responsible. The increased attention to data security has led to a flurry of recent activity in state legislatures and in Washington.

Macy’s and Foot Locker Sued for Improper Collection of Customer Data

Last week, Macy’s and Foot Locker became the latest retailers to be forced to defend allegations that they illegally collect personal information from California shoppers. In two separate suits filed on the same day by the same attorneys, the class plaintiffs allege that customers at the two stores were required to disclose personal information in order to complete purchases with their credit cards.

Being Labeled: FTC Amends Wool Products Labeling Rules

What Made News? The Federal Trade Commission (FTC) has recently approved changes to its Wool Products Labeling Rules (Wool Rules) in order to allow wool manufacturers and sellers greater flexibility and bring the Wool Rules into line with the Wool Suit Fabric Labeling Fairness and International Standards Conforming Act, as well as the FTC’s textile labeling regulations.

Major Retailers Sued for Point of Sale Devices Inaccessible to the Blind

What Made News? Major retailers from Apple to Lucky Brand to J. Crew are being sued for violating the Americans with Disabilities Act (ADA) by failing to provide point of sale (POS) devices that are accessible to the blind.

Urban Outfitters Faces Another Lawsuit for Collecting Customer ZIP Codes

What Made News? Urban Outfitters is facing yet another putative class action lawsuit over its practice of collecting customers’ ZIP codes in connection with credit card purchases at its retail locations. Last June, Urban Outfitters faced a similar suit regarding this practice in its Urban Outfitters and Anthropologie stores. This time, Free People, an Urban Outfitters subsidiary, is the subject of the suit.

FTC Warns Cole Haan Over Pinterest Contest

What Made News? In a recent letter, the Federal Trade Commission (FTC) alleged that a promotional contest on Pinterest violated Section 5 of the FTC Act. Although the FTC did not take any direct enforcement action against Cole Haan, the letter forced Cole Haan to discontinue the contest and is one of the first instances in which the FTC has offered an opinion about what it takes to keep social media contests and promotions on the right side of federal advertising laws.

Arent Fox Partner Anthony Lupo Speaks in Panel Discussion at 2014 Legal and Regulatory Conference

On April 9, 2014, Anthony V. Lupo will participate in a panel discussion about advertising and updates in the FTC at the 2014 Legal and Regulatory Conference. The panel, titled “Don Draper in the Digital Age: How Technology is Changing the Law of Advertising,” will cover topics such as native advertising, social media, the internet of things and consumer consent, and behavioral advertising.

Do Clothing Manufacturers Need to Rethink Marketing Tactics for Outlets?

What Happened? Four members of Congress recently asked the Federal Trade Commission (FTC) to launch a federal investigation into the marketing practices conducted by outlet stores. In their letter, US Sens. Sheldon Whitehouse (D-RI), Richard Blumenthal (D-CT), Ed Markey (D-MA), and Rep. Anna G. Eshoo (D-CA) called on the FTC to look into claims that merchants may be selling lower quality items produced specifically for outlet stores without properly informing consumers.

California State Court Decision Could Spell Trouble for Some Online Retailers

A recent state court decision in California could prove a major headache for online retailers that engage in comparative price advertising. Although the decision — People of the State of California v. Overstock.com — is not binding precedent and its future on appeal is far from clear, the decision suggests that retailers may be forced to adopt more rigorous internal standards when engaging in comparative price advertising.