Advertising Litigation Report: Vol. 2, No. 1

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• Martin v. Living Essentials, LLC, 160 F. Supp. 3d 1042 (N.D. Ill. 2016), aff’d 653 F. App’x 482 (7th Cir. 2016) (nonprecedential)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• Luman v. Theismann, 647 F. App’x 804, No. 14–15385, 2016 WL 1393432 (9th Cir. Apr. 8, 2016) (unpublished)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• Boris v. Wal-Mart Stores, Inc., --- F. App’x ---, No. 14–55752, 2016 WL 1622207 (9th Cir. Apr. 25, 2016) (unpublished)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