With the clean beauty movement on the rise, the Federal Trade Commission (FTC) has started to pay closer attention to how companies label and market personal care products. Although the FTC does not have its own definition of the term “organic,” it can bring enforcement actions based on allegedly false or deceptive advertisement of products labelled as “organic” under standards promulgated by other agencies.
Continue Reading Not So Organic: The FTC Takes Action Against Personal Care Products
With consumers attempting to navigate quarantine and “shelter-in-place” orders, businesses that sell basic necessities are facing overwhelming demand.
This new level of demand is placing stress on both businesses that sell basic necessities and their employees. Many businesses are experiencing increased overall customer service inquiries, call volume, and website orders. They are needing to meet increased consumer demand while making unprecedented provisions for their own employees’ health and well-being (which we have written about here and here).
Continue Reading Five Effective Ways Companies Can Communicate with Customers During COVID-19
Current thinking from public health experts is that COVID-19 will affect the American economy for several months. But during this period businesses still have responsibilities to their brands and obligations under law. And unlike during last year’s government shutdown, the pandemic has forced government agencies like the U.S. Consumer Product Safety Commission (CPSC) to operate differently, but it hasn’t closed its doors. For that reason, businesses will still have legal obligations and face the possibility of CPSC enforcement efforts.
Here are three steps companies can take to protect their brands and reduce the risk of CPSC enforcement.
Continue Reading COVID-19: Three Steps Companies Can Take to Reduce Risk of Regulatory Side Effects
Cannabidiol (CBD) is a naturally occurring compound derived from the hemp plant, a member of the cannabis family. Because CBD is also found in the marijuana plant (a cousin of hemp), its use fell into a legal gray area until recently.
In December 2018, however, Congress passed the Farm Bill and legalized hemp and hemp-derived products. CBD products since have skyrocketed in popularity, with analysts projecting that CBD will grow to a $16 billion industry in five years. CBD product manufacturers and retailers across America are working to meet the high demand for their goods.
Continue Reading CBD Manufacturers and Retailers Face Action from the FDA and Consumer Litigants
Frequently the U.S. Consumer Product Safety Commission (CPSC) shares big news at the annual meeting of the International Consumer Product Health & Safety Organization (ICPHSO), the body that brings together all stakeholders in the product safety space, from consumer advocates to industry to regulators. A few years ago, then-Chairman Elliot Kaye shared his desire to see penalties in the “double-digit millions.” That statement preceded – by mere weeks – the announcement of a $15.45 million penalty against Gree Electric Appliances, Inc., the maximum penalty allowed by CPSC’s statutes.
Continue Reading CPSC to Industry: Talk to Our Lawyers
“Hello. This is an automated call from Acme Manufacturing. Our records indicate that you purchased Product X between December 2019 and January 2020. We wanted to let you know that we are recalling Product X because of a potential fire risk. Please call us or visit our website for important information on how to participate in this recall.”
When companies recall products, they do so to protect consumers. In fact, various federal laws, including the Consumer Product Safety Act (CPSA), the Federal Food, Drug, and Cosmetic Act (FDCA), and National Highway and Motor Vehicle Safety Act (MVSA), encourage (and may require) recalls. And the agencies that enforce these statutes would likely approve of the hypothetical automated call above, because direct notification is the best way to motivate consumer responses to recalls.[1]
But automated calls to protect consumers can run into a problem: the Telephone Consumer Protection Act (TCPA).
Continue Reading Clash of Consumer Protection Goals: Does the Text of the TCPA Frustrate the Purposes of the CPSA?
As we wrote last year when the U.S. House of Representatives was debating a series of bills on narrow issues related to the U.S. Consumer Product Safety Commission (CPSC), a broader push to reform the agency was likely to come in late 2019 or early 2020. Now, at least one shoe of that overhaul has dropped.
Continue Reading Taking the Safety Off: Legislation Would Eliminate Failsafe Against Inaccurate CPSC Disclosures
In an uncommon move, the U.S. Consumer Product Safety Commission (CPSC) on Wednesday issued a unilateral press release warning consumers of the need to anchor a particular brand and model of dressers. In its release, the CPSC wrote that it “intends to continue pressing the case for a recall with” the manufacturer.
Continue Reading Going Old School: CPSC Issues Rare Safety Warning on Dressers
A U.S. Supreme Court ruling from last summer may have changed the trajectory of a high-profile pending commercial speech case. In National Institute of Family and Life Advocates v. Becerra, the Court modified the traditional commercial speech tests, perhaps placing a greater burden on the government when it seeks to regulate commercial speech. Becerra could influence the D.C. Circuit Court’s decision in Cigar Association of America v. U.S. Food and Drug Administration as to whether FDA-mandated cigar health warnings violate the First Amendment. If cigar regulations are found to violate the First Amendment, it could lead to a new wave of litigation.
Continue Reading You Can’t Make Me Say It: Does Becerra Make it Harder for the Government to Require Product Health Warnings?
Entities regulated by the U.S. Consumer Product Safety Commission (CPSC) should have greater confidence in sharing confidential business information with the agency following a U.S. Supreme Court decision earlier this year that addressed the U.S. Department of Agriculture’s duty to disclose information in response to a Freedom of Information Act (FOIA) request.
Continue Reading Private Eyes: When is Company Information Shared with the CPSC Confidential?