Key Update:
Made In USA: Increasing Challenges to False or Misleading U.S.-Origin Claims (Repost)
Consumers notice and are more likely to buy products that are marketed as Made in USA, but companies face significant legal risk, negative publicity, and decades of government oversight if they overstate the extent to which their products are made in the United States.
- Companies marketing their products without qualification as Made in USA
National Advertising Division Recommends that Maker of Flashlights Discontinue Comparative Advertising and Made in USA Claims
Takeaways:
- Support any comparative claims and clearly disclose the basis of the comparison.
- Be specific about claims regarding products or components made in the United States.
Last month, the National Advertising Division (NAD), a self-regulatory body, recommended that Telebrands, Corp., discontinue certain advertising claims for the company’s Atomic Beam flashlight, including claims comparing its brightness
National Advertising Division Recommends that VH Nutrition Discontinue Claims for TriDrive Supplement Marketed to Athletes
Takeaways:
- Health-related advertising claims must be supported by competent and reliable scientific evidence, generally consisting of human clinical trials that are methodologically sound and statistically significant to the 95% confidence level.
- Advertising claims must be clearly expressed as ingredient claims if the substantiation addresses only the efficacy of the ingredients in the product, not the product itself.
J.C. Penney Loses Bid to Compel Arbitration in Class Action Stemming from an In-Store Transaction
Because pricing discount and sales class actions are likely to continue and retailers, especially brick-and-mortar ones, may have difficulty enforcing arbitration agreements and class action waivers, companies will want to not only check the ways in which they draft and enforce arbitration agreements, but carefully monitor compliance with pricing laws.
The Tenth Circuit recently affirmed