In the latest false advertising decision regarding malic acid (see prior Inside Class Actions coverage here, here, and here), the Southern District of California dismissed with prejudice a plaintiff’s claim that defendant falsely advertised that its licorice was “naturally flavored” because testing allegedly showed that the product
Continue Reading California Federal Court Dismisses False Advertising Suit Based on Malic AcidSupreme Court Receives Filings with Key Implications for Climate Change Tort Suits
The Supreme Court will soon decide whether to hear two cases that could dictate the future of climate change tort suits. Such suits have proliferated in recent years: several dozen active cases assert state tort law claims—like nuisance, trespass, and strict liability—against oil and gas companies for fueling and misleading the public about climate change. The two pending cases go to the very foundations of these claims.
Continue Reading Supreme Court Receives Filings with Key Implications for Climate Change Tort Suits
Outlawing Hide-and-Seek: California’s Prohibition on “Hidden Fees” in Consumer Pricing Set to Take Effect
California’s prohibition on so-called “hidden” or “junk” fees in consumer transactions is set to take effect on July 1, 2024, with potentially wide-ranging ramifications for how prices are displayed or offered to consumers in the Golden State – and the potential for a significant wave of new class action litigation.
The law—often referred to by its bill number, SB 478—amends California’s Consumer Legal Remedies Act (“CLRA”) to restrict the prices and fees businesses can offer to California consumers. The basic prohibition is stated in simple terms: businesses can no longer “advertis[e], display[], or offer[] a price for a good or service that does not include all mandatory fees or charges” to consumers, with limited exceptions such as for sales tax and certain shipping charges. SB 478 § 3 (to be codified at Cal Civ. Code § 1770(a)(29)(A)). But this simple language generates numerous complexities. For example: Are clearly disclosed fees prohibited if not folded into the main price, or just fees not presented to consumers in close proximity (in both location and time) to the primary price? When is a fee “mandatory”? Can fees that are included in a price still be itemized?
Continue Reading Outlawing Hide-and-Seek: California’s Prohibition on “Hidden Fees” in Consumer Pricing Set to Take EffectA Closer Look: Developing Trends in ESG Litigation
Environmental, social, and corporate governance (ESG) initiatives have become increasingly important in today’s business setting. Increased awareness and heightened scrutiny of ESG-related issues, combined with third-party litigation funding, has led to a surge in ESG-related litigation and enforcement actions as consumers, regulators, and investors seek to hold companies accountable for claims about their environmental and social impact.
This post explores the emerging trends shaping the landscape of ESG litigation, which are increasingly centralized in courts in the District of Columbia. Such claims are often brought by nonprofit organizations seeking to take advantage of local consumer protection laws which they claim allow them standing to sue.
Continue Reading A Closer Look: Developing Trends in ESG LitigationSDNY Court Denies Class Certification in Suit Challenging Robitussin “Max Strength” Labels
A court in the Southern District of New York recently denied plaintiffs’ motion for class certification on adequacy grounds in a suit challenging the labeling of “Maximum Strength” Robitussin cough syrup. See Woodhams v. GlaxoSmithKline Consumer Healthcare Holdings (US) LLC (S.D.N.Y. Mar. 21, 2024).
Continue Reading SDNY Court Denies Class Certification in Suit Challenging Robitussin “Max Strength” LabelsNew York Federal Court Denies Motion to Dismiss False Advertising Suit Based on “Carbon Neutral” Claims
The Southern District Court of New York recently denied a motion to dismiss a false advertising lawsuit against a water bottle company, holding that a reasonable consumer could be misled by the company’s “carbon neutral” labeling.
Continue Reading New York Federal Court Denies Motion to Dismiss False Advertising Suit Based on “Carbon Neutral” Claims“Greenwashing” Claims Certified For Class Treatment
This blog recently covered a decision from the Northern District of California denying a defendant’s motion for summary judgment on a plaintiff’s “greenwashing” claims, which asserted that defendant’s “non-toxic” and “Earth-friendly” labels were false and misleading. See Bush v. Rust-Oleum Corp., 2024 WL 308263 (N.D. Cal. Jan. 26, 2024). Now, the same court has granted class certification on those claims, demonstrating that not only can these claims be difficult to defeat before trial, but it can also be difficult to prevent certification on those claims as well.
Continue Reading “Greenwashing” Claims Certified For Class TreatmentJudge Highlights Trend of Narrow Reading of VPPA In Class Action Dismissal
A federal judge in the Western District of Texas recently sided with a growing trend of rulings adopting a narrow reading of the Video Privacy Protection Act (VPPA) in dismissing a putative class action against the operators of a Texas Longhorns email newsletter. The case involved tracking pixels embedded in videos that were linked in the newsletter but posted to public websites. The court held that because the plaintiffs had not made a durable commitment through signing up for the newsletter, and because videos were not embedded in the newsletter, plaintiffs failed to meet the definition of “consumer” as defined in the VPPA.
Continue Reading Judge Highlights Trend of Narrow Reading of VPPA In Class Action DismissalN.D. Cal. Judge Allows “Greenwashing” Claims to Proceed to Trial
As companies have increased efforts to represent their products as environmentally friendly, “greenwashing” lawsuits—which target companies (often under consumer protection statutes) based on allegations of false or misleading statements regarding the environmental impact of their products or practices—have also increased. A recent order from the district court in the Northern District of California illustrates the difficulty in attempting to defeat these claims before trial if a strong evidentiary record has not been developed.
Continue Reading N.D. Cal. Judge Allows “Greenwashing” Claims to Proceed to TrialCourt Dismisses Lawsuits Alleging Presence of PFAS in Tampon Products
A California district court recently dismissed two lawsuits that asserted that the marketing of certain tampons was misleading due to the alleged presence of per and polyfluoroalkyl substances (“PFAS”), holding that plaintiffs could not rely on conclusory assertions regarding testing that allegedly detected PFAS in the products.
Continue Reading Court Dismisses Lawsuits Alleging Presence of PFAS in Tampon Products