ARTICLE
9 November 2016

Advertising Litigation Report: Lanham Act False Advertising Cases; Consumer Fraud Class Action Developments; National Advertising Division (NAD) and National Advertising Review Board (NARB) Updates

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Herbert Smith Freehills Kramer LLP

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Lanham Act Liability for Native Advertising
United States Media, Telecoms, IT, Entertainment

In this issue:

Lanham Act False Advertising Cases

  • Lanham Act Liability for Native Advertising
    Casper Sleep, Inc. v. Mitcham, No. 16 Civ. 3224 (JSR), 2016 WL 4574388 (S.D.N.Y. Sept. 1, 2016); and Vitamins Online, Inc. v. HeartWise, Inc., d/b/a NatureWise, No. 2:13-CV-982-DAK, 2016 WL 5106990 (D. Utah Sept. 19, 2016)
  • Court Dismisses Lanham Act Challenge to "Safety" Claim as Puffery
    XYZ Two Way Radio Serv., Inc. v. Uber Techs., Inc., --- F. Supp. 3d ---, No. 15-cv-3015 (FB) (CLP), 2016 WL 5854224 (E.D.N.Y. Oct. 6, 2016)
  • Failure to Keep Advertising Claims Current Creates Literal Falsity
    SharkNinja Operating LLC v. Dyson Inc., --- F. Supp. 3d ---, No. 14-cv-13720-ADB, 2016 WL 4148199 (D. Mass. Aug. 3, 2016)
  • Ninth Circuit: Extraterritorial Application of the Lanham Act Is Merits Question, Does Not Implicate Subject Matter Jurisdiction of Federal Courts
    Trader Joe's Co. v. Hallatt, --- F.3d ---, No. 14-35035, 2016 WL 4488009 (9th Cir. Aug. 26, 2016)

Consumer Fraud Class Action Developments

  • Second Circuit Holds Plaintiff With No Future Harm From Defendant's Advertising Lacks Standing to Seek Injunctive Relief
    Nicosia v. Amazon.com, Inc., 834 F.3d 220 (2d Cir. 2016)
  • Third Circuit Affirms Denial of Class Certification Based on Price Inflation Theory of Harm
    Harnish v. Widener Univ. Sch. of Law, 833 F.3d 298 (3d Cir. 2016)
  • Class Certification Denied Where Damages Model Failed to Isolate Value of 'Amorphous' Claim
    Hughes v. Ester C. Co., No. 12-CV-0041 (PKC), 2016 WL 6092487 (E.D.N.Y. Sept. 30, 2016)
  • Slack-Fill in Accurately Labeled Package Was Not Misleading
    Bush v. Mondelez Int'l., Inc., No. 16-cv-02460-RS, 2016 WL 5886886 (N.D. Cal. Oct. 7, 2016)
  • Fifth Circuit: Highly Individualized Damages Issues Preclude Class Certification
    Ibe v. Jones, --- F.3d ---, No. 15-10242, 2016 WL 4729446 (5th Cir. Sept. 9, 2016)
  • State Law Claims Challenging 'Organic' Labels Are Preempted by Federal Law
    Marentette v. Abbott Labs., Inc., --- F. Supp. 3d ---, No. 15-CV-2837 (PKC) (RLM), 2016 WL 4444787 (E.D.N.Y. Aug. 23, 2016)
  • Fraudulent Omission Claims Unsuccessful Where Plaintiff Failed to Adequately Plead Defendant's Knowledge of Alleged Defect
    Coleman-Anacleto v. Samsung Elecs. Am., Inc., No. 16-CV-02941-LHK, 2016 WL 4729302 (N.D. Cal. Sept. 12, 2016); and Andren v. Alere, Inc., --- F. Supp. 3d ---, No. 16-CV-1255-GPC (NLS), 2016 WL 4761806 (S.D. Cal. Sept. 13, 2016)
  • Claims Permitted by Regulations Were Preempted
    Savalli v. Gerber Prods. Co., No. 15-61554-CIV-ZLOCH, 2016 WL 5390223 (S.D. Fla. Sept. 20, 2016)
  • Third Circuit Announces Numerosity Standard
    In re Modafinil Antitrust Litig., --- F.3d ---, No. 15-3475, 2016 WL 4757793 (3d Cir. Sept. 13, 2016)
  • "Natural" Food Claims Stayed on Primary Jurisdiction Grounds
    In re Kind LLC "Healthy & All Natural" Litig., No. 15-MD-2645 (WHP), 2016 WL 4991471 (S.D.N.Y. Sept. 15, 2016)

National Advertising Division (NAD) and National Advertising Review Board (NARB) Updates

  • The Colgate Palmolive Company (Tom's of Maine "Naturally Dry" Antiperspirant), NAD Case Report No. 6001 (Sept. 15, 2016)
  • Rust-Oleum Corporation (Painter's Touch Ultra Cover 2X Spray Paint), NAD Case No. 5934, NARB Case No. 213 (July 14, 2016)
  • Vestagen Tech. Textiles, Inc. (Vestex Fabric), NAD Case No. 5972 (July 14, 2016)
  • Comcast Commc'ns, Inc. (Xfinity Internet, Television & Telephone Services), NAD Case Report No. 5974 (July 19, 2016)
  • Nootrobox, Inc. (Advertising for Nootropics), NAD Case Report No. 5995 (Aug. 30, 2016)
  • Zeltiq Aesthetics, Inc. (CoolSculpting® Cryolipolysis® Body Contouring System), NAD Case Report No. 6005 (Sept. 23, 2016)

Regulatory Developments

  • Second Circuit Affirms Summary Judgment Against an "Affiliate Marketing" Network That Participated in Native Advertising Violations Committed by Its Customer
    FTC v. LeadClick Media, LLC, --- F.3d ---, No. 15-1009-cv, 2016 WL 5338081 (2d Cir. Sept. 23, 2016)
  • New FDA Guidance Articulates Alternative Criteria for "Healthy" Claims Based on Fat Content or Beneficial Nutrients
  • "Short Term" and "Long Term" FDA Guidance Issued on Salt Content

Consumer Privacy and Data Security

  • Eighth Circuit Affirms Dismissal of Putative Class Action Litigation Against Charter Communications Alleging Unlawful Retention of Personally Identifiable Information
    Braitberg v. Charter Commc'ns, Inc., No. 14-737, 2016 WL 4698283 (8th Cir. Sept. 8, 2016)
  • Third Circuit Affirms Dismissal of Putative Class Action Following Data Breach and Misuse of Customer and Employee PII
    Longenecker-Wells v. Benecard Services, Inc., No. 15-3538, 2016 WL 4474701 (3d Cir. Aug. 25, 2016)
  • Georgia District Court Approves $13 Million Settlement of Claims Arising From Home Depot Data Breach
    In re Home Depot, Inc., Customer Data Sec. Breach Litig., Case No.: 1:14-md-2583-TWT (N.D. Ga. Aug. 23, 2016)
  • Eighth Circuit Affirms Dismissal of Putative Class Action Litigation Against GameStop Alleging Unlawful Sharing of Customer Data With Facebook
    Carlsen v. GameStop, Inc., 833 F.3d 903 (8th Cir. 2016)
  • Illinois Federal Court Dismisses Putative Class Action Against Barnes & Noble Following 2012 Data Breach
    In re Barnes & Noble Pin Pad Litig., No. 12-cv-08617, 2016 WL 5720370 (N.D. Ill. Oct. 3, 2016)
  • DC Federal Court Dismisses Putative Class Action Against CareFirst BlueCross BlueShield Following 2014 Data Breach
    Attias v. CareFirst, Inc., No. 15-cv-00882 (CRC), 2016 WL 4250232 (D.D.C. Aug. 10, 2016)
  • Heightened Risk of Future Identify Theft Insufficient to Establish Concrete Injury Under Spokeo
    Kamal v. J. Crew Grp., Inc., No. 2:15-cv-0190, 2016 WL 6133827 (D.N.J. Oct. 20, 2016)
  • California District Court Approves $9 Million Settlement of Allegations That Mobile Manufacturers Illegally Collected User Data
    In re Carrier IQ, Inc. v. Consumer Privacy Litig., No. 12-MD-02330-EMC, 2016 WL 4474366 (N.D. Cal. Aug. 25, 2016)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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