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Advertising Litigation Report: Vol. 2, No. 1

January 30, 2017

In this issue:

Lanham Act False Advertising

Lanham Act Liability for Native Advertising Violations

  • Casper Sleep, Inc. v. Mitcham, --- F. Supp. 3d ---, No. 16 Civ. 3224 (JSR), 2016 WL 4574388 (S.D.N.Y. Sept. 1, 2016)
  • Vitamins Online, Inc. v. HeartWise, Inc., d/b/a NatureWise, No. 2:13-CV-982-DAK, 2016 WL 5106990 (D. Utah Sept. 19, 2016)  

Fake Online Reviews May Be Actionable as False Advertising

  • Romeo & Juliette Laser Hair Removal, Inc. v. Assara I LLC, No. 08 CV 442 (DLC), 2016 WL 815205 (S.D.N.Y. Feb. 29, 2016)

The Parameters of Puffery

  • Tempur Sealy Int’l, Inc. v. WonderGel, LLC, No. 5:16-cv-83, 2016 WL 1305155 (E.D. Ky. Apr. 1, 2016)
  • Martin v. Living Essentials, LLC, 160 F. Supp. 3d 1042 (N.D. Ill. 2016), aff’d 653 F. App’x 482 (7th Cir. 2016) (nonprecedential)
  • Chobani, LLC v. Dannon Co., 157 F. Supp. 3d 190 (N.D.N.Y. 2016); Gen. Mills, Inc. v. Chobani, LLC, 158 F. Supp. 3d 106 (N.D.N.Y. 2016)
  • XYZ Two Way Radio Serv., Inc. v. Uber Techs., Inc., --- F. Supp. 3d ---, No. 15-cv-3015 (FB) (CLP), 2016 WL 5854224 (E.D.N.Y. Oct. 6, 2016)

Consumer Fraud Class Action

Impact of Offers of Judgment on Class Actions

  • SCOTUS: Rule 68 Offer Does Not Moot Class Action Campbell-Ewald Co. v. Gomez, 136 S. Ct. 663 (2016)
  • Ninth Circuit Closes Door Left Open by Supreme Court: Depositing Payment Does Not Moot Class Action Chen v. Allstate Ins. Co., 819 F.3d 1136, No. 13–16816, 2016 WL 1425869 (9th Cir. Apr. 12, 2016)
  • Sixth Circuit: Class Claims Mooted by Accepted Offer of Judgment Montgomery v. Kraft Foods Global, Inc., Case No. 25-1238 (6th Cir. May 16, 2016)
  • Second Circuit: Satisfaction of Judgment Mooted Plaintiff’s Individual and Class Claims Bank v. Alliance Health Networks, LLC, 2016 WL 6128043 (2d Cir. Oct. 20, 2016)

Purchasers With No Threat of Future Injury Lack Article III Standing to Seek Injunctive Relief

  • Nicosia v. Amazon.com, Inc., 834 F.3d 220 (2d Cir. 2016)
  • Luman v. Theismann, 647 F. App’x 804, No. 14–15385, 2016 WL 1393432 (9th Cir. Apr. 8, 2016) (unpublished)
  • Torrent v. Yakult U.S.A., Inc., No. SACV 15-00124-CJC(JCGx) (C.D. Cal. Jan. 5, 2016)

Premium Price Alone Is Not Actionable

  • Boris v. Wal-Mart Stores, Inc., --- F. App’x ---, No. 14–55752, 2016 WL 1622207 (9th Cir. Apr. 25, 2016) (unpublished)
  • Parent v. MillerCoors LLC, No. 3:15-cv-01204, 2016 WL 3348818 (S.D. Cal. June 16, 2016)

Slack-Fill in Accurately Labeled Package Held to Be Not Misleading as a Matter of Law

  • Ebner v. Fresh, Inc., 838 F.3d 958, No. 13–56644, 2016 WL 1056088 (9th Cir. Sept. 27, 2016)
  • Bush v. Mondelez Int’l., Inc., No. 16-cv-02460-RS, 2016 WL 5886886 (N.D. Cal. Oct. 7, 2016)

“Natural” Food Claims Stayed Pending Conclusion of FDA Proceedings

  • Kane v. Chobani, LLC, 645 F. App’x 593, No. 14–15670, 2016 WL 1161782 (9th Cir. Mar. 24, 2016) (unpublished)
  • In re Kind LLC “Healthy & All Natural” Litig., No. 15-MD-2645 (WHP), 2016 WL 4991471 (S.D.N.Y. Sept. 15, 2016)

National Advertising Division (NAD) and National Advertising Review Board (NARB)

Decisions Addressing Both NAD Jurisdiction and Merits

  • The Colgate-Palmolive Company (Tom’s of Maine “Naturally Dry” Antiperspirant), NAD Case No. 6001 (Sept. 15, 2016)
  • Bayer Crop-Science US (Bayer Advanced 3-in-1 Weed and Feed for Southern Lawns), NAD Case No. 6033 (Dec. 8, 2016)

NAD Addresses Consumer-Focused Advertising Claims

  • SharkNinja Operating, LLC (Shark Rotator Powered Lift-Away and Shark Rocket Powerhead Vacuum Cleaners), NAD Case No. 5948 (Apr. 25, 2016)
  • Vapore, LLC (MyPurMist Handheld Steam Inhaler), NAD Case No. 5971 (July 12, 2016)
  • Nootrobox, Inc. (Advertising for Nootropics), NAD Case No. 5995 (Aug. 30, 2016)

NARB Recommends Discontinuance of Performance Claim as Part of Product Name

  • Rust-Oleum Corporation (Painter’s Touch Ultra Cover 2X Spray Paint), NAD Case No. 5934, NARB Case No. 213 (July 14, 2016)

Regulatory

Native Advertising Enforcement Begins

  • Lord & Taylor, LLC, No. 152-3181 (F.T.C. Mar. 15, 2016)
  • In the Matter of Warner Bros. Home Entm’t, Inc., No. 152 3034 (Order Entered July 11, 2016)
  • FTC v. LeadClick Media, LLC, --- F.3d ---, No. 15-1009-cv, 2016 WL 5338081 (2d Cir. Sept. 23, 2016)

Nutrition Label Redesign

  • New FDA Guidance Articulates Alternative Criteria for “Healthy” Claims Based on Fat Content or Beneficial Nutrients

Sugar & Salt

  • FDA Declares Label “Evaporated Cane Juice” False and Misleading in New Guidance
  • “Short-Term” and “Long-Term” FDA Guidance Issued on Salt Content

Consumer Privacy and Data Security

Supreme Court Weighed In On Article III Standing To Bring Class Action Claims On Bare Violation of Statute

  • Spokeo v. Robins, 2016 WL 2842447, 578 U.S.— (May 16, 2016)

District and Circuit Courts Around the Country Interpret Spokeo

National Institute of Standards and Technology Unveils Internet of Things Cybersecurity Guidance

Notable Settlements

Related Attorneys
Related Practices
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