March 2024

The National Advertising Division of BBB National Programs (NAD) recommended last month that Stihl Incorporated USA (Stihl), a manufacturer of equipment and tools, discontinue or modify its unqualified “Made in America” claims. Modified claims would need to make clear that “not all (or virtually all) of its products are made in the United States and that not all (or virtually all) of the parts of those products are from the United States,” according to the recommendations.

The Claims at Issue

NAD reviewed “Made in America” claims made on Stihl’s website, social media, commercials, and print ads. In addition to claiming “Made in America,” Stihl ran ads stating, “It’s just three words. But they tell you everything you need to know…Not everyone can say them. But we can. MADE IN AMERICA.”Continue Reading In “Made in America” Case NAD Finds That Advertisers Should Not Rely on Disclosures to Cure a False or Misleading Claim

Episode 7 of the Ad Law Tool Kit Show, “Payment Processing,” is now available. Listen here, or search for it in your favorite podcast player.

For retailers, a key, back-end function you can’t do without is a solid merchant processing relationship to acceptance of payments. Robust merchant processing includes credit/debit card, ACH networks, and auxiliary services like analytics, dispute resolution, and security tools.

In this episode, I talk to Venable partners Ellen Berge and Andrew Bigart, who discuss the importance for merchants to understand the intricacies of compliance, risk management, security, and fraud prevention.Continue Reading Listen to Episode 7 of Venable’s Ad Law Tool Kit Show – “Payment Processing”

If you’ve been focused on only the high-level statements from the CFPB, you might already expect Rohit Chopra to fashion himself and the agency as “pro-consumer.” Consistent with that approach, the agency just signaled its distaste for, and desire to severely restrict, the common and useful advertising practices of comparison-shopping platforms and lead generation.

Using its bully pulpit (and not notice and comment regulation or waiting for explicit legal authority), the CFPB released a Consumer Financial Protection Circular, stating that operators of digital comparison-shopping tools (“Operators”) and lead generators can violate the Consumer Financial Protection Act’s (CFPA) prohibition on abusive acts or practices if they steer consumers to certain products or services—or certain providers—based on compensation received by the lead generator or Operator. This might feel like standard consumer protection-speak, except that equating compensation models to abusive conduct means that the CFPB has performance advertising in its crosshairs.

In its press release announcing the circular, the CFPB explains, “[T]he guidance discusses how regulators and law enforcement agencies can evaluate operators of comparison-shopping tools that accept payments from financial firms to manipulate results or suppress options that may better fit the consumer’s stated preferences.” In the same release, the CFPB also announced that it would be “developing a consumer-facing tool that, once finished, will bring more transparency to credit card comparison-shopping.”Continue Reading Why the CFPB’s Preferencing and Steering Practices Circular Should Scare Lead Generators and Consumer Financial Services Providers

Join us as we spotlight select chapters of Venable’s popular Advertising Law Tool Kit, which helps marketing teams navigate their organization’s legal risk. Click here to download the entire Tool Kit, and tune in to the Ad Law Tool Kit Show podcast, to hear an author of this chapter dive deeper into mitigating class action exposure in this week’s episode.

When it comes to mitigating the risk of class action lawsuits, the best offense is a good defense. Companies can take many steps to reduce their exposure to class action litigation before it happens, including the tactics listed below.

Reducing exposure to class action litigation:

Continue Reading Mitigating Class Action Exposure: An Excerpt from the Advertising Law Tool Kit

Last week, New York Attorney General Letitia James filed a lawsuit against the world’s largest beef producer JBS USA Food Company and JBS USA Food Company Holdings (JBS Group). The lawsuit challenges the company’s claim that it will achieve net zero greenhouse emissions by 2040 despite its documented plans to increase production and lack of supporting evidence that the aspirational claim is attainable.

Generally, achieving “net zero” means negating the amount of greenhouse gases produced by activity by reducing emissions and implementing methods of absorbing carbon dioxide from the atmosphere (also known as “offsetting”). According to the complaint, there are no proven agricultural practices that would allow the JBS Group to reduce its greenhouse gas emissions to net zero at the company’s current scale, and offsetting the emissions would be a “costly undertaking of unprecedented degree.”Continue Reading New York Attorney General Says JBS Net Zero Claims Are Greenwashing

Episode 6 of the Ad Law Tool Kit Show, “Mitigating Class Action Exposure,” is now available. Listen here, or search for it in your favorite podcast player.

When it comes to mitigating class action lawsuits, the best offense is a good defense. There are plenty of steps companies can take to reduce their exposure to class action litigation.

In this episode, I talk to Venable partner Dan Silverman about ways for organizations to minimize class action lawsuit risks by proactively defending against potential litigation. These include conducting thorough advertising reviews, monitoring competitors’ practices, adhering to regulatory standards, and focusing on areas susceptible to litigation, such as consumer interactions, billing, data breaches, and marketing claims.Continue Reading Listen to Episode 6 of Venable’s Ad Law Tool Kit Show – “Mitigating Class Action Exposure”

On February 6, 2024, in Philpot v. Independent Journal Review, the U.S. Court of Appeals for the Fourth Circuit issued a copyright fair use decision in a photograph infringement case that is noteworthy for a number of reasons. Those who plan to use photos based on a fair use defense should take heed of this decision.

In this case, photographer Larry Philpot sued news website Independent Journal Review for using Philpot’s photo of singer Ted Nugent in an online article. One of the more interesting facts here was that Philpot uploaded his photo to Wikimedia Commons, which is governed by a Creative Commons license requiring attribution. In other words, he simply required that users of his photo give him attribution, not pay him. Users could use Philpot’s photo free of charge, provided they included the following attribution: “Photo Credit: Larry Philpot of www.soundstagephotography.com.” Instead, Independent Journal Review hyperlinked to Mr. Nugent’s Wikipedia page, where the photo was featured.Continue Reading Fourth Circuit Hands Photographer a Clean Sweep Victory in Copyright Fair Use Appeal Over News Website’s Use of Free of Charge Photo

Is a product recyclable if it is made of recyclable materials? Or is it recyclable when it can be recycled by waste management facilities? Last month, the United States District Court for the Northern District of California attempted to tackle these questions in response to a motion to dismiss in Della v. Colgate.

The plaintiff alleged that Colgate-Palmolive Company engaged in false and misleading advertising claims about the recyclability of its toothpaste tubes with claims like “First of Its Kind Recyclable Tube” and images of the universal recycling symbol. The plaintiffs claimed these statements were misleading because the products cannot be recycled at most waste management facilities. Colgate argued that since the tube is made from recyclable material—specifically a material that can be recycled at most facilities—the “recyclable” claim was not misleading.Continue Reading California Court Cites FTC Green Guides, Allowing Plaintiff’s Challenge of Colgate Toothpaste Tubes “Recyclable” Claims to Proceed