Worldwide: Consumer Law

When does a disclosure on the back of a package save a misleading claim on the front? A federal court's ruling in a class action against Barilla over its "Italy's #1 Brand of Pasta" slogan clarifies when disclosures on other panels can resolve ambiguous claims versus when front-panel statements are unambiguously deceptive.

The Federal Trade Commission is intensifying its focus on fraud prevention, particularly targeting government and business impersonation schemes and online platforms that facilitate deceptive practices. Meanwhile, the National Advertising Division has revealed emerging trends in advertising disputes spanning household products, health claims, and new industries like AI and cannabis, while implementing significant procedural changes to strengthen enforcement and compliance mechanisms.

This comprehensive newsletter covers recent consumer protection enforcement actions by the FTC, CFPB, and state Attorneys General, alongside NAD advertising challenge decisions and regulatory developments. The update examines settlements involving deceptive business practices, data breaches, and unlawful operations, while highlighting new guidance on price transparency and impersonation rules that will shape compliance strategies across industries.

When an insurance administrator sends text messages to customers using data obtained through a dealership's point-of-sale system, can it claim an established business relationship exemption? A California federal court examines whether handling customer data for a partner creates direct liability and whether receiving information from a dealer constitutes a business relationship with the end customer.

A Colorado district court has joined the growing majority of jurisdictions holding that SMS text messages do not constitute "telephone calls" under the TCPA's Do Not Call provisions, following the 7th Circuit's reasoning in Steidinger. The decision marks the 17th district court to adopt this interpretation, significantly expanding the geographic reach of this legal position across the central United States.

The Minnesota Pollution Control Agency has released new testing results showing that manufacturers have successfully transitioned away from PFAS-containing products in key consumer categories. The data reveals a dramatic improvement in compliance rates since Minnesota's PFAS prohibitions took effect, with over 92 percent of tested products now meeting state requirements for dental floss, menstrual products, and food packaging.

New Jersey's Assembly Bill 5328 introduces sweeping changes to data privacy regulations, creating a public registry system and imposing civil penalties up to $50,000 per record for violations. With most provisions already in effect and registration opening April 1, 2027, businesses must urgently assess whether their data-sharing practices classify them as "data brokers" or "data collectors" under the new law's expansive definitions.

A federal court in Michigan dismissed most claims in a TCPA lawsuit after finding that the plaintiff's allegations failed to establish that the calls constituted "telephone solicitation" under the statute. The ruling hinged on whether asking about debt qualifies as marketing when no actual sale was attempted during the conversation.

A federal court in Washington recently dismissed a case against Tommy Bahama involving allegedly deceptive email subject lines, finding that the plaintiff failed to demonstrate concrete harm required for Article III standing. In an unusual twist, both the plaintiff and the defendant argued that misleading email headers could cause actual consumer harm, yet the court remained unconvinced and remanded the case to state court.