On April 17, 2019, the United States Environmental Protection Agency (EPA) issued a final “significant new use rule” (SNUR) prohibiting over one dozen uses of asbestos from returning to the marketplace without EPA review and approval.
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The U.S. Department of Justice announced major news in the world of consumer products this month. A federal grand jury recently indicted two corporate executives for their roles in an alleged scheme involving residential dehumidifiers. The executives were charged with conspiracy to commit wire fraud, conspiracy to defraud the CPSC, and failure to furnish timely information under the Consumer Product Safety Act. This month also confirmed the CPSC’s continued focus on off-road vehicles.
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The FTC teamed up with the U.S. Food and Drug Administration, sending warning letters to three companies: NutraPure, LLC, PotNetwork Holdings, Inc., and Advanced Spine and Pain LLC (d/b/a Relievus) that advertised CBD supplements as treatments for serious diseases such as cancer, Alzheimer’s disease, fibromyalgia and “neuropsychiatric disorders.”
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In a case signaling that the FTC intends to continue its crackdown on review manipulation, snack company UrthBox, Inc. has reached a settlement with the FTC after allegedly misrepresenting that its customer reviews were independent, despite the fact that reviewers had been incentivized with free products and other goodies.
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The FTC has announced that it will host a workshop on July 16, 2019, called Nixing the Fix: A Workshop on Repair Restrictions, aimed at examining manufacturer restrictions on consumer and third-party product repairs and the extent to which such restrictions implicate consumer protection. The announcement lists covered topics, including the interplay between repair restrictions and consumer protection laws like those in the Magnuson-Moss Warranty Act; the impact of repair restrictions on extended warranties and service agreements; the types of repair reductions in the United States and extent to which these restrictions are used; and consumers’ understanding about the existence and effects of repair restrictions, among other subjects.
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On February 26, the FTC announced a settlement with a weight-loss pill company that is alleged to have purchased 5-star Amazon reviews from a third party. The settlement includes a judgment of $12.8 million (which will be suspended upon payment of $50,000 to the FTC and payment of outstanding taxes), and ongoing compliance requirements for 10 years.
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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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