The SEC instituted settlement proceedings against Kim Kardashian on Monday, alleging that the reality television star and entrepreneur violated the SEC’s anti-touting statute when she failed to disclose compensation that she received in exchange for an Instagram post endorsing cryptocurrency tokens.
Continue Reading Kim Kardashian Ordered to Pay Over $1.26 Million for Securities Violation Arising Out of Crypto Endorsement

In the past year, the FTC has promoted consumers’ so-called “right to repair.” In particular, the FTC has focused on the “Anti-Tying Rule” of the Magnuson-Moss Warranty Act (the “MMWA”), which limits manufacturers’ ability to steer consumers to manufacturer-affiliated repair shops. Plaintiffs’ firms have taken notice, filing a spate of class actions based on purported violations of the Anti-Tying Rule. These same firms have also filed a spate of consumer class actions against retailers alleging violations of the MMWA’s “Pre-Sale Availability Rule.” Manufacturers and retailers should confirm they are complying with the MMWA and state law.
Continue Reading FTC Complaints and Class Actions Send Warning to Consumer Product Manufacturers and Retailers: Double-Check Your Product Warranties

The FTC unanimously agreed to an enforcement action against American textile manufacturer Electrowarmth Products, LLC and the company’s owner for deceptively marketing its heated “bunk warmer” mattress pads products as Made in the USA.
Continue Reading FTC Brings Action Against Company Calling its Chinese-Produced Mattress Pads “Made-in-America”

The Federal Trade Commission and six states have filed suit against Roomster Corp. and two corporate executives, accusing the residential rental listing platform of using fake reviews and unverified listings to generate tens of millions of dollars in business. According to the complaint, these practices often occur at the expense of vulnerable customers who rely on Roomster to find safe low-cost housing within expensive housing markets.
Continue Reading Retailers Have No Room to Manipulate Reviews: FTC and States Sue Rental Listing Platform Roomster for Bogus Listings

In a case sure to send retail pharmacy corporate-types scurrying to board room meetings to ensure their bases are covered, a Northern District of California federal judge held that Walgreens’ Co.’s 15 year-long pattern of filling opioid prescriptions for customers without performing adequate due diligence as to the medical legitimacy of the prescription substantially contributed to the opioid crisis in San Francisco.
Continue Reading Seller Beware—Considering How Walgreens’ Liability for the San Francisco Opioid Epidemic Applies to Retail Pharmacies Everywhere

CARU, the Children’s Advertising Review Unit of BBB National programs, issued a compliance warning last week, reminding industry that the self-regulating body on children’s advertising and privacy intends to enforce its advertising guidelines in the metaverse, just like in the real world.
Continue Reading Children’s Advertising Rules Apply in the Metaverse Too, CARU Says.

On August 24, 2022, California Attorney General Rob Bonta announced the Office of the Attorney General’s (“OAG’s”) first settlement of a California Consumer Privacy Act (“CCPA”) enforcement action, against Sephora, Inc.
Continue Reading First CCPA Enforcement Action Settlement Announced by California AG

The Children’s Advertising Review Unit of BBB National Programs (CARU) has issued two recommendations this summer addressing negative social stereotypes in children’s advertising. The first decision involves fashion retailer Primark and the second decision, involved Moose Toys.
Continue Reading CARU Recommends Companies Modify Advertising that Perpetuates Gender and Cultural Stereotyping

The Recall Roundup is a monthly survey of regulatory activity affecting the manufacture, distribution, and sale of consumer products.  Subject matter may include the latest product recalls, major federal agency developments, and proposed or new federal rules.  The blog’s goal is to provide an overview, rather than a comprehensive report on every development that could potentially affect businesses or consumers.  Nothing herein constitutes legal advice.  If you have questions or comments about the blog, please reach out to the authors.
Continue Reading Recall Roundup: April

On April 14, 2022, the United States Environmental Protection Agency released an updated draft risk assessment for formaldehyde, in which it links long-term, low-dose inhalation of the common chemical to leukemia and various cancers involving the head and neck.  EPA has also identified potential links to non-cancer health outcomes, including sensory irritation, respiratory problems, reproductive and developmental toxicity, and nervous system effects.  The risk assessment associates these potentially adverse health effects with lifetime doses even lower than those identified by EPA in its 2010 draft, which EPA had agreed to revisit after the scientific community and industry stakeholders criticized its methodology.    
Continue Reading EPA Draws Link Between Low-Dose Formaldehyde Exposure and Cancer