Behind the Scenes

Arent Fox's advertising law blog - latest news and trends in advertising, data security & privacy, and fashion & entertainment.

Behind the Scenes

Advertising

Arent Fox advises on all aspects of advertising and trade regulation law. We counsel businesses on how to avoid and respond to investigations by federal and state government agencies for alleged false advertising, unfair sales, and marketing practices. We litigate false advertising and unfair competition claims between competitors in court and in the industry’s self-regulatory proceedings. Representative clients include: Discovery Channel, Corbis Corporation, Google, Red Hat, Diesel, Benetton, Hasbro, The Limited, PlayStation and Victoria’s Secret.

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Lumos Labs Settles With FTC Over Brain Training Program Claims

The Federal Trade Commission announced this week that Lumos Labs had agreed to settle false and deceptive advertising claims related to the company’s promotion of its “Lumosity” cognitive training programs (commonly referred to as “brain training”).

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FTC Says Retailers Bamboozled Customers with Misleading “Bamboo” Products

What’s the News?

The Federal Trade Commission has a reached a settlement agreement with several major retailers, including Nordstrom, Bed Bath & Beyond, and JCPenney, over claims that they improperly labeled and advertised rayon products as being made of bamboo. According to the FTC, rayon—a chemically manufactured fiber that is sometimes created from bamboo—is not the same as bamboo, making the companies’ “bamboo” claims improper. In addition to injunctive relief, the companies have agreed to pay over $1 million dollars under the settlement. 

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After SCOTUS Declines CDA Defamation Appeal, Yelp Gives Court 5 Star Rating

The Lead

The Supreme Court gave Yelp and other interactive computer service providers reason to celebrate recently when it quietly declined to hear an appeal of a case charging Yelp with defamation in connection with one of the consumer reviews posted on the site. In refusing to hear the appeal, the Court left in place a Fourth Circuit decision that held that interactive computer service providers like Yelp cannot be held legally responsible for information created and developed by third parties.
 

The Facts

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National Advertising Initiative Updates Rules for Data Collection on Mobile Apps

The Network Advertising Initiative (NAI), an advertising industry trade group for third-party advertisers, recently released the 2015 update to its Mobile Application Code. The App Code is a set of self-regulatory principles governing the data collection practices of NAI member companies in the context of mobile app advertising. The purpose of the 2015 update is to clarify certain obligations for NAI member companies under the App Code. 
 

The App Code

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Nordstrom and Jeans Company Pay $4M to Settle “Made in USA” Claim

On Monday, November 30, 2015, Nordstrom and denim manufacturer AG Adriano Goldschmied filed a motion to approve a settlement in California federal court, agreeing to pay more than $4 million to settle a consumer class action suit that accused them of falsely labeling jeans as “Made in USA.” The settlement was agreed upon in October 2015 after over a year of intense litigation.
 

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Cross-Device Tracking: The New Frontier in Interest-Based Advertising

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Is the Price Right? Nordstrom Facing Class Action Over “Compare At” Pricing

What’s the News?

A federal judge for the Southern District of California recently held in Branca v. Nordstrom, Inc. that a class action could proceed with claims that Nordstrom made deceptive savings claims at a Nordstrom Rack store. In particular, the plaintiff alleged violations of California state law, claiming that Nordstrom listed higher “Compare At” prices next to sale prices, when the items had never been offered at that higher price by Nordstrom or other retailers.
 

Background on the Case

 
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FuelBand Advertising Claims Spark Settlement Agreement

Nike Inc. (Nike) recently agreed to pay more than $2.4 million to settle a class action lawsuit related to the Nike FuelBand activity tracker. The lawsuit, Levin v. Nike, was filed May 17, 2013, in California Superior Court in Los Angeles County. The Plaintiffs alleged violations of California unfair competition and false advertising laws, as well as breach of warranty.
 
The FuelBand Advertising Claims

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False Ad Plaintiffs Out of Joint and Out of Luck in Fourth Circuit

The Fourth Circuit has recently made it more difficult for false advertising plaintiffs to survive a motion to dismiss where their claims are based on an allegation of “literal falsity.” In the suit, plaintiffs, purchasers of certain joint health supplements, alleged that GNC and Rite Aid engaged in false advertising and violated various state consumer protection laws, deceptive advertising, and express warranty statutes in marketing joint health supplements containing glucosamine and chondroitin.

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Industrial Parts Manufacturer Rockwell Accuses Unauthorized Distributor of Lanham Act Violations

Rockwell Automation, Inc. (Rockwell), a leading industrial parts manufacturer, recently sued industrial parts distributor Radwell International, Inc. (Radwell), alleging numerous violations of the Lanham Act, including claims of trademark infringement and false advertising, as well as multiple violations of state unfair competitions laws.  According to the complaint, Radwell has sold various Rockwell-branded products without authorization, while falsely claiming that these products are warranted by Rockwell.  The case, Rockwell Automation, Inc., v.

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ABOUT ARENT FOX LLP

Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.