Hunton Retail Law Resource

The Children’s Advertising Review Unit (CARU) has recommended that Moose Toys, an Australian toy company, modify ads and packaging of its “Little Live Pets Gotta Go Turdle” toy to disclose that kids should not eat the synthetic “Turdle food” that comes with the toy. CARU also recommended that future promotions of the toy depict adult supervision.

In a rare “some assembly required” and “parts not included” decision, the Children’s Advertising Review Unit (CARU), a division of BBB National Programs, scrutinized advertising for Micro Machine toys. CARU determined that Jazwares LLC’s advertising for the toys misled children about what was included in the purchase of the products, what must be purchased separately, and the ease of assembly. CARU also found the ads unrealistically depicted how the toys can perform.

Two leading international brands have filed lawsuits in 2022 to prevent the sale of digital NFTs depicting their physical products, and both cases will test existing trademark law and impact online retailers of NFTs.

The metaverse is a new way to engage with computers through artificial intelligence (AI), widespread connectivity, augmented reality (AR) and virtual reality (VR). Instead of interacting with a two-dimensional application or website via screen and keyboard, the metaverse adds a figurative “third dimension” for users to explore in an intuitive, realistic manner. The metaverse is also an opportunity for a new digital economy. Users can buy and sell goods, services, and property, and even attend events virtually. Like the Internet before it, the metaverse is expected to lay a foundation for the creation of business, art, and technology.

On March 9, 2022, the Securities and Exchange Commission (“SEC”) held an open meeting and proposed new cybersecurity disclosure rules for public companies by a 3-1 vote. If adopted, the new rules would impose substantial new reporting obligations with respect to material cybersecurity incidents and cybersecurity risk management, strategy, and governance for both domestic and foreign private issuers subject to the reporting requirements under the Securities Exchange Act of 1934.

The past decade has seen an explosion in consumer products and services going digital—especially during the last two years of the COVID-19 pandemic. You can order your groceries, have your clothes dry-cleaned and your car detailed without ever leaving your home. While companies like Teledoc have created a realm of virtual health care, many medical procedures and other healthcare services still demand physical space outside of a patient’s home. Consumers are increasingly seeking convenience in their daily tasks and errands, and medical appointments are no exception. Enter medtail.

On February 14, 2022, Noom Inc., a popular weight loss and fitness app, agreed to pay $56 million, and provide an additional $6 million in subscription credits to settle a putative class action in New York federal court. The class is seeking conditional certification and has urged the court to preliminarily approve the settlement.

The Recall Roundup is a monthly survey of regulatory activity affecting the manufacture, distribution, and sale of consumer products. In lieu of the usual monthly recap, this post summarizes key events from 2021. Subject matter may include the latest product recalls, federal agency major developments, and proposed or new federal rules. The blog’s goal is to provide an overview, rather than a comprehensive report, on every development that could potentially affect businesses or consumers. Nothing herein constitutes legal advice. If you have questions or comments about the blog, please reach out to the authors.

Across the country, it seems there is a renewed interest in organized labor and workers’ wages, both from the public generally and the federal government.  As it always has been, the retail space remains a likely proving ground for union activity and agency enforcement.

In the first FTC case to challenge a company’s failure to post negative reviews, the FTC has reached a proposed settlement agreement with the online fashion retailer, Fashion Nova, LLC, prohibiting the retailer from suppressing negative reviews and requiring the company to pay $4.2 million for harm suffered by consumers.