Tenth Circuit Reverses, Finds Bakery’s Lanham Act Claim Under-Proofed
Patterson Belknap » False Advertising
by
2M ago
A common maxim in the service industry is that the customer always knows best. But a recent decision from the Tenth Circuit suggests that the maxim has its limits when it comes to interpreting ambiguous marketing claims.  In Bimbo Bakeries USA, Inc. v. Sycamore , the court held that the advertiser’s use of the word “local” in promoting its bread was not actionable under the Lanham Act, even though both a consumer survey and a jury of consumers had found the term to be misleading.  The decision reflects courts’ growing comfort in rejecting proffered interpretations of labeling claims ..read more
Visit website
Federal Court to Consider Constitutionality of Juiced-Up Statutory Damages Awards in Consumer Class Actions
Patterson Belknap Blog » False Advertising
by
2M ago
New York’s consumer protection laws are particularly attractive to the plaintiff’s bar.   One reason is the availability of “statutory” damages under New York’s General Business Law (“GBL”).  While most states’ consumer protection laws limit plaintiffs’ recovery to their actual damages, if any, Sections 349 and 350 of the GBL guarantee minimum statutory damages of $50 (for a violation of § 349) and $500 (for a violation of § 350).  So, for example, a consumer who paid $5 for a bottle of juice with a purportedly deceptive label (and paid only a fraction of that price as the “prem ..read more
Visit website
Johnson Stands (For Now): Eleventh Circuit Keeps Its Ban on Class Rep Incentive Awards
Patterson Belknap Blog » False Advertising
by
2M ago
For decades, Plaintiffs and defendants have fought bitterly over most aspects of class-action law.  One issue, however, had managed to escape serious contention: the propriety of paying “incentive awards” (also known as “service awards”) to class representatives.  Broadly speaking, such awards are sums paid to named plaintiffs—above and beyond what they receive as ordinary class members—to compensate them for the time, effort, and inconvenience their role may require.  According to , these awards are generally modest, averaging 0.16% of the class-wide recovery, with a median of ..read more
Visit website
Joint Juice Ruling Fails to Quench Thirst for Guidance on Class-Wide Statutory Damages Awards
Patterson Belknap Blog » False Advertising
by
2M ago
A few months ago, we an imminent decision that would address, for the first time, a long-unsettled question for class actions brought under New York’s General Business Law (“GBL”): can a class of consumers obtain class-wide statutory damages under the GBL in federal court, even though the New York legislature has expressly prohibited statutory damages for GBL class actions brought in state court ..read more
Visit website
Fowl Ground: Ninth Circuit Reaches Unusual Result Applying Federal Preemption Law in Poultry Labeling Case
Patterson Belknap Blog » False Advertising
by
2M ago
A few months ago, we analyzed the Ninth Circuit’s decision in , No. 19-56389 (June 4, 2021), which held that a private plaintiff’s challenge to poultry labeling claims were preempted by federal law, warranting dismissal at the pleadings stage.  However, the Ninth Circuit’s recent decision in , No. 20-55969 (Oct. 26, 2021), declined to apply preemption in a similar challenge to labeling claims on poultry products.  In this post, we examine the two decisions and conclude that, notwithstanding remains the benchmark for future litigation in this area ..read more
Visit website
In Kibble Quibble, Tenth Circuit Reaffirms That False Advertising Plaintiffs Must Have A Bone to Pick With a Specific, Falsifiable Statement
Patterson Belknap » False Advertising
by
2M ago
, the Tenth Circuit affirmed a district court’s dismissal of a putative class action alleging that Champion Petfoods had deceptively marketed its Orijen-brand dog food.  The plaintiffs’ claim centered around an incident in 2018, when Champion Petfoods learned that some ingredients it had sourced for Orijen had been contaminated.  According to the plaintiffs, this incident—as well as other aspects of Champion’s sourcing and manufacturing process—rendered false Champion’s marketing claims that the products’ ingredients were generally high-quality.  In rejecting this contention, th ..read more
Visit website
Buttery Smooth Application: District Courts Narrowly Apply Second Circuit Precedent in False-Ad Cases
Patterson Belknap Blog » False Advertising
by
2M ago
Consumers in false-advertising cases have long targeted food packaging for purportedly misrepresenting the presence or quantity of an ingredient in a product.  These litigants typically contend that a product’s name—e.g., “All Butter Loaf Cake””—or other labeling text—e.g., “Made With Whole Grain”—creates expectations that the product be made entirely or predominantly with the advertised ingredient.  And when these products do not contain “sufficient” amounts of the advertised ingredient, consumers claim to have been deceived.  In response, manufacturers often point to the speci ..read more
Visit website
Burned Again: District Court Dismisses Putative Class Action Alleging Sunscreen Adulteration Due to Lack of Article III Standing
Patterson Belknap Blog » False Advertising
by
2M ago
In this age of mass manufacturing, each unit in a product line is usually the same as every other.  But manufacturing isn’t perfect.  Sometimes, for various reasons, some units in a product line will deviate from the manufacturer’s intended specifications.  When this happens, consumer class actions often follow, on the theory that the manufacturer misled consumers by failing to disclose the defect or by selling goods that didn’t conform to the manufacturer’s promises.  But these actions pose serious challenges.  For one thing, when the alleged defect is subtle (like th ..read more
Visit website
New Decision on “Free Range” Hens Has Manufacturers Walking On Eggshells
Patterson Belknap Blog » False Advertising
by
2M ago
about the growing trend of “ethical sourcing” or “ethical production” class actions, which challenge manufacturers’ claims (or nondisclosures) about the humane (or inhumane) way their ingredients or materials are grown, caught, or harvested.  A recent decision out of the Southern District of New York in a case involving “free range” eggs typifies this litigation trend and the danger it poses to food and beverage manufacturers ..read more
Visit website

Follow Patterson Belknap Blog » False Advertising on Feedspot

Continue with Google
OR