On June 28, 2016, the Federal Trade Commission and the DOJ announced a preliminary 14.7 billion dollar settlement with German auto-manufacturer, Volkswagen AG, for allegedly cheating diesel emissions tests for nearly 500,000 vehicles over a six year period.
Continue Reading Volkswagen Settles Record-Breaking Class-Action for Allegedly Cheating Emissions Standards

An important Federal Trade Commission (FTC) decision was announced yesterday that trains a spotlight on claims of “biodegradability.” The FTC found that a manufacturer’s unsubstantiated claims regarding the biodegradability of plastic pellets used as product additives deceived industry and end-use customers. The case reemphasizes the FTC’s intent to enforce the FTC Act against unsupported “green” claims. For retailers and consumer product manufacturers, this case and the recent increase in consumer false advertising class actions emphasizes the importance of:

  • due diligence regarding product claims made by vendors – ask for and maintain material to back up the claims and stick to the claims that can be supported; and
  • strong indemnities against false and deceptive advertising claims.

Continue Reading FTC takes Aggressive Stand on Unqualified ‘Biodegradable’ Claims: Products Must Completely Break Down in 5 Years

Most marketers and retailers know that the consumer protection laws require that their advertising claims be substantiated, truthful and not misleading. But the new year is a good time to take stock of advertising campaigns, practices and procedures to make sure they pass muster under the Federal Trade Commission’s (FTC’s) latest guidance. The FTC’s recent