Activist investors continue to make liberal use of the SEC’s Rule 14a-8 to submit proposals for inclusion in company proxy statements. One of the most important shareholder trends to emerge from 2018 is the increasing involvement and support of large institutional investors in certain campaigns. Crisis management was one area in particular that institutional investors prioritized and sought disclosure on in 2018. Highly charged current events such as the MeToo Movement, the opioid crisis and the debate over gun safety, for example, have led shareholders at some of the largest retailers and manufacturers to urge greater disclosure on the reputational risks of these issues.

Continue Reading Recent Trends in Shareholder Proposals

As reported on the Privacy & Information Security Law Blog on February 8, 2019, the European Commission has issued an EU-wide recall of the Safe-KID-One children’s smartwatch marketed by ENOX Group over concerns that the device leaves data such as location history, phone and serial numbers vulnerable to hacking and alteration.

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In a challenge brought by Aquasana, Inc., the NAD determined that Advanced Purification Engineering Corp. (APEC), a manufacturer of water filtration systems, was not responsible for substantiating or correcting “Made in USA” claims made in customer reviews posted on third-party sites.

Continue Reading NAD Finds Responsibility for “Made In USA” Does Not Extend to Third-Party Customer Reviews

The partial federal government shutdown forced the U.S. Consumer Product Safety Commission (“CPSC” or “Commission”) along with other agencies to close for 35 days. In fact, the last recall on the Commission’s website is dated December 20, 2018—two days before the unprecedented shutdown began.

Continue Reading Recall Roundup: January

On January 30, 2019, the US Court of Appeals for the Ninth Circuit issued a unanimous 11-judge opinion striking down San Francisco’s ordinance mandating health warnings on ads for sugary drinks. The judicial panel found that San Francisco’s proposed law violated beverage companies’ First Amendment rights to free speech.

Continue Reading Ninth Circuit Opinion Keeps San Francisco Health Warning On Ice

As reported on the Hunton Insurance Recovery Blog on January 18, 2019, policyholders facing any type of products liability scored a win in a recent decision from the District Court for the Northern District of Illinois. The court found that an insurance company must defend its insured against claims arising out of a recall while simultaneously funding the insured’s affirmative claims for recovery.

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As reported on Hunton Andrews Kurth’s Privacy & Information Security Law Blog on January 25, 2019, the Illinois Supreme Court ruled that an allegation of “actual injury or adverse effect” is not required to establish standing to sue under the Illinois Biometric Information Privacy Act.

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On January 7, 2019, California Assemblyman Phil Ting introduced Assembly Bill 161 which would prohibit businesses from providing paper receipts except upon request, citing “significant positive environmental and public health effects.” The goal of the Bill is to reduce consumers’ exposure to chemicals contained on paper receipts, such as BPA, and to reduce the carbon footprint.

Continue Reading Going “Paperless” May Soon Be Mandatory in California

The National Advertising Division of the Council of Better Business Bureaus (“NAD”) has settled competing challenges between Kraft Heinz, the maker of Heinz Real Mayonnaise, and Unilever, the maker of Hellmann’s REAL Ketchup.

Continue Reading NAD Stops Spread of Confusion After Condiment Makers Lay it on Thick