The Securities and Exchange Commission (the “SEC”) on October 26, 2022, adopted new executive compensation “clawback” rules, thus fulfilling its 2010 mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). The purpose of this alert is to briefly summarize the rules and some related considerations and highlight next steps that issuers should be considering as they plan to comply with the new rules.
Continue Reading Absorbing and Reacting to the SEC’s New Clawback Rules

The Federal Trade Commission published an Advanced Notice of Proposed Rulemaking (ANPR) on October 20 seeking public comment on a potential regulation aimed at curbing deceptive consumer reviews and endorsements. In its announcement, the FTC highlighted the prevalence of false and misleading reviews online and the harms they cause consumers and competitors.
Continue Reading FTC Exploring Rule to Crack Down on Deceptive and Fake Consumer Reviews

On October 18, 2022, the New York State Department of Financial Services announced that EyeMed Vision Care LLC agreed to a $4.5 million settlement for violations of the Cybersecurity Regulation that contributed to the exposure of hundreds of thousands of consumers’ health data in connection with a cybersecurity event in 2020.
Continue Reading NYDFS Fines EyeMed $4.5 Million for Cybersecurity Violations

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, through the Department of Justice, has entered a settlement with two companies and the joint corporate President for falsely claiming that the LED lighting products and personal protective equipment they sold were “Assembled in the USA,” “Buy American Act Compliant,” “Manufactured in the USA” and “100% Made in the USA,” despite having been imported from China.
Continue Reading FTC Sues Importer of LED Bulbs and COVID-19 PPE for “Made in USA” Violations

As part of a broader regulatory roll-back intended to stimulate business and economic activity post-pandemic, the New York City Counsel repealed regulations affecting the auction industry. Generally, the repeal’s effect is to remove rules that regulate the conduct of auctioneers and auction houses, including licensing and disclosure requirements.
Continue Reading New York City Lifts Rules Governing Auctions