Hunton Retail Law Resource

On Monday, January 30, 2023, the Third Circuit in In re LTL Management, LLC¹ ordered debtor LTL Management, LLC’s (“LTL”) chapter 11 petition dismissed for failure to demonstrate that the petition was filed in good faith pursuant to the Bankruptcy Code.² The dismissal of LTL’s bankruptcy will also result in the termination of an injunction staying numerous lawsuits against third-parties—including lawsuits against certain third-party retailers being sued for allegedly having sold certain allegedly contaminated products.

Per- and polyfluoroalkyl substances (PFAS) have taken center stage. The Biden administration’s regulatory agenda plans numerous revisions to environmental regulations to address this broad class of pervasive substances. While the US Environmental Protection Agency grapples with implementing these initiatives, states are aggressively forging ahead with their own plans. Laws targeting PFAS in various products have taken effect and will continue to take effect in many states, representing a striking expansion from typical state regulations addressing environmental PFAS contamination from firefighting foam and other sources.

Last year was another remarkable year for the retail industry. We continue to partner with our retail clients through these extraordinary times, striving to provide top-notch, innovative legal solutions and insight. Published yesterday, our 2022 Retail Industry Year in Review provides a comprehensive overview of recent developments, issues, and trends impacting retailers, as well as a look ahead at what to expect in 2023. This year’s publication highlights key topics including cyber insurance, M&A activity, regulation and litigation related to PFAS, labor organizing, developments in ESG disclosure, and more.

On January 3, 2023, an Illinois state court entered a preliminary approval order for a settlement of nearly $300,000 in a class action lawsuit against Whole Foods for claims that the company violated the Illinois Biometric Information Privacy Act (“BIPA”). The plaintiffs alleged that Whole Foods unlawfully collected voiceprints from employees who worked at the company’s distribution centers.

The FTC announced an enforcement action against Instant Brands LLC, manufacturer of Pyrex-brand products, for allegedly marketing certain glass measuring cups as “Made in USA” and “American as Apple Pie” while importing those products from China. A proposed consent order would require Instant Brands to pay a monetary judgment of $129,416 and comply with the agency’s requirements for marketing a product as made or assembled in the United States.

As we kick off a new year, the Hunton Andrews Kurth Retail team would like to provide you with a rundown of the top posts we shared throughout 2022. Please click the links below to review these highlights.

We look forward to continuing to provide you with real-time, relevant content regarding legal and regulatory developments in the retail space. If you would like to receive email alerts when new posts are published to this blog, please enter your email address in the ‘Subscribe’ field. Thank you for your readership!

In a significant win for employers operating businesses utilizing delivery drivers, on November 29, 2022, the First Circuit Court of Appeals held in Immediato v. Postmates, Inc. that couriers completing local, intrastate deliveries were not exempt from the Federal Arbitration Act (“FAA”), and could be compelled to submit to arbitration, because they were not engaged in foreign or interstate commerce.

The FTC has just announced a release of updated “Health Products Compliance Guidance” to help advertisers ensure that claims about the benefits and safety of health-related products are truthful, not misleading, and supported by science.

As we recently reported, the FTC voted to issue a notice in the Federal Register seeking input on updating its Green Guides. The FTC’s notice seeks input on a number of areas addressed by the current Guides, which last were updated in 2012.

The FTC announced that it will hold an open meeting on December 14 during which the agency will vote to publish a Federal Register notice commencing a regulatory review of the Guides for the Use of Environmental Marketing Claims (“Green Guides”). The commonly followed Guides, which were last updated in 2012, set forth: (1) general principles that apply to all environmental marketing claims; (2) how consumers are likely to interpret particular claims and how marketers can substantiate these claims; and (3) how marketers can qualify their claims to avoid deceiving consumers.