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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 an August 2022 decision, the California Court of Appeal, Second Appellate District, held that retail websites without any connection to a physical space, such as a brick-and-mortar store, do not constitute “places of public accommodation” and, thus, are not within the purview of Title III of the American with Disabilities Act (“ADA”) or the Unruh Civil Rights Act (the “Unruh Act”).
Continue Reading California Court of Appeal Narrows Reach of ADA and Unruh Civil Rights Act as They Apply to Ecommerce Businesses

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

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 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

In late 2021, the California Statewide Commission on Recycling Markets and Curbside Recycling asked the state’s Attorney General, Rob Bonta, and the California Department of Resources Recycling and Recovery to crack down on inappropriate use of recycling symbols on plastic bags, including the “chasing arrows” logo and the words “recycle” and “recyclable.” According to the Commission, confused California consumers place these mislabeled bags out for curbside collection, which forces recycling companies to spend time pulling these soft plastics out of the waste stream or fixing jammed machines.
Continue Reading California to Shore up Already-Robust Plastic Bag Enforcement

“Buy now, pay later” companies have exploded in popularity over the past year, largely through integration into retailers’ online checkout platforms. Often presented during checkout next to traditional payment methods like credit and debit cards, BNPL companies invite consumers to make purchases over a few payments with zero interest. There are, however, fees for missed payments, late payments, or payments rejected for insufficient funds. Moreover, BNPL offerings may occupy a gray zone apart from typical credit transactions or loans which could exempt them from all sorts of laws and regulations.
Continue Reading Challenges for “Buy Now, Pay Later” Industry May Affect Retailers

In the retail industry, staff shortages caused by COVID-19 exposure and positive cases can significantly disrupt business operations, particularly during this time of unprecedented turnover and resignations in the retail labor market.  During this latest surge in COVID-19 cases, retail employers should be aware of recent changes in federal, state, and local guidance related to COVID-19 isolation and quarantine requirements.
Continue Reading California Adopts New CDC Guidance Regarding Quarantine and Isolation Periods With Its Own Twists

A group of Democratic representatives led by Rep. Jan Schakowsky (D-IL) have introduced a “Safer Beauty” bill package that would ban certain chemicals in cosmetics and require more ingredient transparency in the supply chain.
Continue Reading “Safer Beauty” Bill Package Targets PFAS, Phthalates, Formaldehyde, and Other Common Chemicals in Cosmetics

Following the recent trend of retailers abandoning gendered store sections and product lines, California has passed legislation that will force certain large retailers to adopt non-gendered children’s sections in California store locations.
Continue Reading New California Legislation will Require Some Retailers to Adopt Gender Neutral Children’s Sections by 2024