The FTC announced a settlement with Cycra, Inc., a manufacturer of motocross and ATV parts, and the company’s owner for falsely claiming their products were made in the USA while importing parts from Asia and Europe.
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FTC puts nearly 700 companies on notice of potential penalties for deceptive health claims
Nearly 700 companies (670 to be exact) are recipients of a letter from the Federal Trade Commission, putting the companies on formal notice that failing to have proper substantiation for health claims (the Substantiation Notice) or engaging in misleading use of testimonials or endorsements (the Endorsement Notice) could result in civil penalties.
Continue Reading FTC puts nearly 700 companies on notice of potential penalties for deceptive health claims
Third Circuit Dismisses Talc Bankruptcy
On Monday, January 30, 2023, the Third Circuit in In re LTL Management, LLC ordered debtor LTL Management, LLC’s chapter 11 petition dismissed for failure to demonstrate that the petition was filed in good faith pursuant to the Bankruptcy Code.
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United States Supreme Court to Weigh in on Consent-by-Registration Theory of Personal Jurisdiction
On April 25, 2022, the United States Supreme Court agreed to hear the plaintiff’s appeal in Mallory v. Norfolk Southern Railway Company, 266 A.3d 542 (Pa. 2021), in which the Pennsylvania Supreme Court struck down the increasingly contentious “consent-by-registration” theory of personal jurisdiction. The theory deems corporate defendants to have consented to general personal jurisdiction (also known as “all-purpose” jurisdiction) in a forum based solely on its registration to conduct business there.
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New California Bill Would Impose Strict Products Liability on All Online Retailers
A new bill in the California Assembly has the potential to alter substantially the existing legal framework of products liability for online retailers.
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Recall Roundup: March 2020
The COVID-19 pandemic has changed most aspects of the economy. The world of consumer products is no exception to this trend.
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Recall Roundup: February 2020
This month’s Recall Roundup starts with the wish that the coronavirus could be recalled. Perhaps the would-be CPSC commissioner who could deliver that recall would be unanimously approved.
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FTC targets Teami’s Unsupported Health Claims and Use of Social Media Influencers
On March 6, 2020, the FTC announced a settlement with Teami, LLC and its owners over allegations that the company falsely promoted its Teami brand tea products as capable of curing serious health conditions and causing significant weight loss, supported by endorsements by well-known social media influencers who did not adequately disclose that they were being paid to promote their products.
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Recall Roundup: January
The new year ushered in a series of warnings from the CPSC about inclined infant sleepers posing suffocation risks and dressers posing tip-over risks to consumers. Both products have been under scrutiny by the CPSC over the past year.
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SHARE Information Act Could Increase Companies’ Product Liability Litigation Risk
A new bill introduced in Congress earlier this month could increase litigation risk for the retail industry by leaving companies unable to prevent the Consumer Product Safety Commission (CPSC) from disclosing inaccurate or premature information about potential product hazards. The Safety Hazard and Recall Efficiency (SHARE) Information Act, introduced on January 9, 2020, by U.S. Representative Bobby L. Rush (D-IL), would also increase the maximum civil penalty for violations of the Consumer Product Safety Act (CPSA) from $15 million to $50 million. Largely seen as a response to public criticism over the perceived delays in the CPSC’s disclosure of hazards associated with infant inclined sleepers over the last year, the SHARE Information Act would allow the CPSC to tell the public that a product may pose a safety issue before the hazard has been confirmed.
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