Hunton Retail Law Resource

On April 25, 2022, the United States Supreme Court agreed to hear the plaintiff’s appeal in Mallory v. Norfolk Southern Railway Company, 266 A.3d 542 (Pa. 2021), in which the Pennsylvania Supreme Court struck down the increasingly contentious “consent-by-registration” theory of personal jurisdiction. The theory deems corporate defendants to have consented to general personal jurisdiction (also known as “all-purpose” jurisdiction) in a forum based solely on its registration to conduct business there. As we reported in our February 2022 article—Mitigating ...

On April 14, 2022, the United States Environmental Protection Agency released an updated draft risk assessment for formaldehyde, in which it links long-term, low-dose inhalation of the common chemical to leukemia and various cancers involving the head and neck.  EPA has also identified potential links to non-cancer health outcomes, including sensory irritation, respiratory problems, reproductive and developmental toxicity, and nervous system effects.  The risk assessment associates these potentially adverse health effects with lifetime doses even lower than those identified by EPA in its 2010 draft, which EPA had agreed to revisit after the scientific community and industry stakeholders criticized its methodology.

The FTC entered into a consent order with Lithionics Battery LLC and its General Manager, settling allegations the company misrepresented its lithium ion cells are made in the United States. This is the first case the FTC has brought under its new civil penalty authority provided in the Made in USA Labeling Rule, which we wrote about last summer.

Several retailers recently settled cases with the FTC over allegations they deceptively marketed “bamboo” textiles. These cases come as some of the first, if not the first, instances of the FTC using its revived civil penalty authority to punish initial offenses by retailers.

Last week, the Securities and Exchange Commission (SEC) revealed its much-anticipated proposal to require that public companies disclose climate-related information. The proposed rule is significant because, for the first time, the SEC would mandate that companies (including foreign companies) publicly traded in the US disclose climate-related risk and greenhouse gas (GHG) emissions information beyond the information currently required by existing SEC rules applicable to registration statements and annual reports.

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.