Former Price Promotions, Current Legal Risk

Former price promotions, you say? Plus ça change, plus c’est la même chose. This isn’t just a quote from Jean-Baptiste Alphonse Karr or a line from Circumstances by Rush. It’s also a fitting description of the risks associated with California’s thorny and potentially unconstitutional Business & Professions Code § 17501. The combination of this statute and avaricious lawyers is...

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Children’s Privacy: Federal Regulations Are About To Change

Is Your Website “Directed to Children” Under 13? None of this matters unless you operate a website or provide an online service that is “directed to children” under the age of thirteen. Under COPPA, however, this is a holistic, i.e., mushy, question. And general businesses have gotten caught in the crosshairs. The FTC looks at...

Web Arbitration Clauses: Federal Court Upholds “Terms of Use”

On June 7, 2019, the United States District Court for the Northern District of Illinois ruled in favor of retailer Wayfair LLC, and its parent company, Wayfair Inc., in a decision that both (1) upholds a web arbitration agreement and (2) provides useful guidance in presenting “terms of use” to website shoppers. What can we...

Plain Meaning: Conservative Judges Reining In the FTC?

In recent decisions analyzing the plain meaning of the FTC Act, two federal district courts have held that the FTC cannot file suit under § 53(b) of the Act where the alleged misconduct has ceased.  If upheld on appeal, the impact of these cases could be extraordinary.

Autodialers: Ninth Circuit (Again) Opens Class Action Floodgates

Businesses who market by text or telemarketing beware.  On September 20, 2018, the Ninth Circuit adopted the most radical and expansive definition of what constitute autodialers for purposes of liability in the Telephone Consumer Protection Act (“TCPA”).  This startling interpretation of the TCPA, which could make even smartphones autodialers, is a potent reminder that, in...

Class Actions: What Might Be On Your Horizon as a Direct Marketer?

Companies who have faced class action lawsuits, even (and maybe especially) frivolous ones, won’t soon forget the experience.  Just getting a case dismissed, or fending off class certification in the first place, can be extraordinarily costly and stressful.   The amounts at stake are often huge–with potential downsides of “per violation” penalties in the four...

CAN-SPAM: Is the FTC Poised For Major Changes?

The FTC has asked interested parties to address a wide variety of questions concerning its CAN-SPAM rules, including whether the rules provide any benefits at all to consumers. Where might this lead?

Reference Prices: Are You at Risk?

Reference prices advise consumers that they are getting a bargain. The California Court of Appeal, however, just upheld a $6.8 million penalty on the grounds that a company’s use of list prices and comparison prices constituted a deceptive trade practice.  Amazon is also apparently under investigation for its use of list prices.  If past is prologue, we...

Former Prices: A Class Action Trap

Do you promote “former prices” to underscore the bargains you’re offering?  If so, you should be on high alert.  Increasingly, lawyers are targeting these kinds of promotions for sweeping class action lawsuits.

FTC Issues Long–Awaited Patent Troll Study

The Federal Trade Commission today announced the publication of its formal study of the problem of patent trolls—which the Commission more politely refers to as “patent assertion entities” or “PAEs.” Using its investigative authority, the Commission examined non–public information for 2009–2014 from 22 PAEs, 327 PAE affiliates, and 2,100 holding entities. The FTC divided the...