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”).
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.
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.
The App Code
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.
What’s the News?
Background on the Case
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
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.
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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