FTC

In recent years, the market for eco-friendly products has surged, driven by increasing consumer demand for sustainable and environmentally responsible options. However, this trend has also led to a rise in greenwashing claims, where companies are accused of making misleading or unsubstantiated environmental claims about their products. As American businesses strive to capitalize on the green movement, they must navigate the complexities of complying with the Federal Trade Commission’s (FTC) Green Guides to avoid potential liability risks.

If you have shopped online lately, odds are you saw products proudly advertising themselves as “Made in the USA.” Maybe it was a flag, a pair of boots, or a kitchen gadget. But how often is that label actually true? According to the Federal Trade Commission (FTC), not often enough. And this summer, the FTC delivered a not-so-subtle message to major players in American e-commerce, raising questions about the appropriate roles and responsibilities of platforms versus individual sellers.

In Walter Coleman, et al. v. Burger King Corp., No. 22-20925 (S.D. Fla.), a putative class of consumers from thirteen states alleges that Burger King’s advertising for items such as the Whopper materially exaggerates portion sizes, making the burgers appear up to 35% larger than they actually are. Plaintiffs claim that since 2017, Burger King’s marketing has depicted patties protruding beyond the buns—imagery they say misleads consumers into believing the product has increased in size when it has not. The second amended complaint asserts fourteen counts: violations of consumer-protection laws in eleven states (including Florida, California, and
New York) plus Florida common-law claims for breach of contract, negligent misrepresentation, and unjust enrichment. The plaintiffs seek damages, restitution, injunctive relief, and attorneys’ fees for a nationwide class and state subclasses.

Fresh off the heels enacting the California Consumer Privacy Act, California Governor, Jerry Brown, signed the country’s first law governing the security of Internet of Things or connected devices. The bill, SB 327, is entitled “Security of Connected Devices.”

Beginning on January 1, 2020, all manufacturers of connected devices will be required to equip the device with reasonable security features to protect against the unauthorized access, destruction, use, modification or disclosure of information that is collected or transmitted by the device.