Hunton Retail Law Resource

Overview

Governor Gavin Newsom signed California Senate Bill 6 (“SB 6”) and California Assembly Bill 2011 (“AB 2011”) on September 28, 2022, with the goal of making it easier to develop new multifamily housing in areas currently zoned for office, retail, or parking uses. SB 6 and AB 2011 (collectively, the “Laws”) will allow developers whose projects meet certain criteria (related to affordability, workforce compensation, etc.) to bypass certain local restrictions (and in some cases, bypass CEQA). Given the ongoing housing shortage that has plagued California for decades, we would expect developers to give the Laws serious consideration.

While both Laws allow developers to develop residential projects in areas not zoned for residential uses (and both are generally focused on decreasing the transaction costs involved in developing new housing), the two Laws take decidedly different approaches.

Branding is central to the sale of products and services for many retailers. In a case involving a whiskey bottle dog toy with important findings for retailers and brand protection, the Supreme Court vacated the Ninth Circuit’s rulings on trademark infringement and trademark dilution in Jack Daniel’s Properties, Inc. v. VIP Products LLC.

As published on Hunton's Nickel Report, in May 2023, Minnesota’s Governor Walz signed into law HF 2310, which bans the sale of certain products containing “intentionally added” per- and- polyfluoroalkyl substances (PFAS) in 2025 and then all products in 2032, and also establishes reporting requirements for products containing PFAS starting in 2026. Following Maine’s lead, Minnesota has now become the second state in the country to pass a broad ban on PFAS-containing products sold in the state. While reporting requirements apply to product manufacturers, the bans on sale, offer for sale, or distribution in the state apply to “persons,” including retailers. Companies who manufacture products for sale (and who sell) products in the state of Minnesota will need to prepare to assess the presence of PFAS in their supply chains in order to comply with these new requirements.

In an anticipated decision, on May 30, 2023, the Second Circuit Court of Appeals issued its decision approving a Chapter 11 plan’s inclusion of a nonconsensual release of direct claims against non-debtor third parties. Purdue Pharma LP v. City of Grand Prairie (In re Purdue Pharma LP), No. 22-110 (2d Cir. May 30, 2023).

As reported on Hunton's Privacy and Information Security Law Blog, on May 31, 2023, the Federal Trade Commission announced a proposed order against home security camera company Ring LLC (“Ring”) for unfair and deceptive acts or practices in violation of Section 5 of the FTC Act.

Counterfeit goods continue to become increasingly ubiquitous, presenting a host of issues for both retailers and consumers. In addition to a variety of legal consequences and the sometimes massive effect on companies’ bottom lines, counterfeit and pirated goods are often accompanied by risks to public health and safety and even national security.

On May 22, 2023, the Federal Trade Commission (FTC) announced its first monetary settlement with celebrity endorsers for a combined $1.7 million.

The complaint filed by the FTC and the Utah Division of Consumer Protection (DCP) against Response Marketing Group, LLC and its principals, also named two real estate celebrities as defendants—Scott Yancey, star of the home-flipping show Flipping Vegas on A&E, and Dean R. Graziosi, author of Millionaire Success Habits. The complaint alleged that defendants used false promises to sell consumers expensive real estate investment training programs, which Yancey and Graziosi promoted. Yancey and Graziosi were also allegedly involved in efforts to bury online customer complaints that said Response Marketing was a scam and cost consumers more than $400 million.

In 2008, Illinois enacted the Biometric Information Privacy Act (BIPA) to protect individuals’ privacy rights in their biometric information, including retina or iris scans, fingerprint, voiceprint, hand scans, facial geometry, DNA and other unique, identifying biological information. Companies are now paying hundreds of millions of dollars to settle employee and consumer suits for BIPA violations. In a recent Reuters Legal News article, Hunton Andrews Kurth LLP attorneys Syed Ahmad, Rachel Hudgins and Torsten Kracht, discuss what BIPA is, how it applies to ...

The Ninth Circuit Court of Appeals recently affirmed the dismissal of a putative class action lawsuit brought by a consumer who claimed that The Kroger Company supermarkets falsely advertised its spreadable fruit product containing fruit-based sweeteners as “Just Fruit.” 

The FTC announced a settlement with Cycra, Inc., a manufacturer of motocross and ATV parts, and the company’s owner for falsely claiming their products were made in the USA while importing parts from Asia and Europe. The proposed consent order imposes an $872,577 judgment and requires the respondents to comply with the FTC’s requirements for marketing products as made or assembled in the United States.