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Advertising Law Blog

The Advertising Law Blog provides commentary and news on developing legal issues in advertising, promotional marketing, Internet, and privacy law. This blog is sponsored by the Advertising, Marketing & Promotions group at Olshan. The practice is geared to servicing the needs of the advertising, promotional marketing, and digital industries with a commitment to providing personal, efficient and effective legal service.

Showing 174 posts by Scott Shaffer.

Olshan Advertising and Branding Law Groups' Hot Topics - 2023

Happy New Year! As we begin 2023, Olshan’s Advertising and Branding law groups share their list of hot topics that look to be on the horizon this year and should be of particular interest to you.   Read More ›

Many Celebrities Named in Class-Action Lawsuits for Touting Cryptocurrency on Social Media

Tom Brady and Gisele Bundchen join Kim Kardashian and Floyd Mayweather as defendants. Read More ›

Class Action Accuses Amazon Prime of “Dark Patterns”

* Taylor Lodise is a law clerk in the Litigation practice group.

On November 9, 2022, amidst ongoing investigations by the FTC regarding “dark patterns” that Amazon allegedly employed to discourage subscribers from canceling their Amazon Prime memberships, a class-action lawsuit named Amazon as a defendant. The lawsuit was filed in United States District Court for the Western District of Washington and is styled Dorobiala v. Amazon.com, Inc. Read More ›

Authority of Consumer Finance Protection Board Is Now Less Certain

Federal Court rules CFPB funding mechanism is unconstitutional Read More ›

TCPA Judgment of $925 Million Reversed over Fairness Considerations

This is the second ruling of this type in two months

A concept that we explored in a recent article – the reduction of massive class-action awards based on fairness concerns – appears to be picking up judicial steam. In August 2022, a Northern District of California court reduced statutory damages in a consumer class action from the $91.4 million to just $8.3 million plus pre-judgment interest. That case is Montera v. Premier Nutrition Corp. The basis for lowering damages in the face of the requirements of the New York statute at issue was a 1919 Supreme Court ruling which authorized courts to set aside judgments based on statutory penalties that are “wholly disproportionate to the offense and obviously unreasonable.” Read More ›

Ninth Circuit Issues Pro-Plaintiff Ruling in Do-Not-Call Suit

Dual-purpose phones can qualify as “residential” numbers to support a TCPA action

The Telephone Consumer Protection Act (“TCPA”) and its regulations prohibit calls and text messages to residential telephone subscribers who have registered their phone numbers on the national do-not-call list maintained by the federal government. While business lines are not eligible to be registered on the national do-not-call list, in practice there is nothing that bars such registration. As a result, TCPA litigation sometimes requires a determination as to whether a phone line is used for residential or business purposes. This issue arises more frequently in the current gig-economy era, because many cell phone owners use their devices for both personal and business purposes. Read More ›

103 Year-Old Supreme Court Precedent Cited to Reduce Damages in Class Action from $91.4 Million to $12.8 Million

* Taylor Lodise is a law clerk in the Litigation practice group.

In one of several related class-action lawsuits against the maker of a drink marketed under the brand name Joint Juice, Chief Judge Richard Seeborg of the United States District Court, Northern District of California, applied case law from 103 years ago to reduce statutory damages in a consumer class action from the $91.4 million seemingly required by a New York statute to just $8.3 million plus pre-judgment interest of $4.5 million. The August ruling was based on Fourteenth Amendment due process protections as interpreted by the Supreme Court in the 1919 case St. Louis, Iron Mountain & Southern Railway Co. v. Williams (“St. Louis”). Read More ›

Federal Court Dismisses Claims Against Coinbase of Illegal Lottery

Sweepstakes entrants’ lack of knowledge of free method of entry insufficient to constitute violation of California Penal Code.

A Northern District of California case styled Suski v. Marden-Kane, Inc. (decided August 31, 2022) has resulted in a significant ruling in the field of sweepstakes law. A sweepstakes sponsored by Coinbase, a popular cryptocurrency exchange, and administered by Marden-Kane offered the chance to win valuable prizes to Coinbase users who bought or sold Dogecoin, a well-known “meme” token, on Coinbase for a total of $100 or more. The sweepstakes offered an alternative method of entry that did not require the trading of Dogecoin or incurrence by the entrants of any other expense. However, this free alternative method of entry was not well-publicized. Read More ›

California Court Considering Awarding $141.5 Million Over Falsely Marketed Health Drink

Juice Joint facing catastrophic liability after jury decides against it on the merits

Faced with a series of class-action lawsuits over its Joint Juice drink, Premier Nutrition Corp. has lost the first jury trial and is now fighting back against what could be a devastating financial blow if it loses a post-trial motion scheduled to be heard next month in the Northern District of California. The company was found by a jury to have falsely touted the health benefits of the drink, so the issue is no longer whether the claims were defensible, but how much the marketer will have to pay to the class of purchasers. Read More ›

Telemarketing Sales Rule May Be Expanded to Cover B2B Conduct

FTC likely to eliminate the exemption

The Federal Trade Commission (“FTC”) is considering a proposed amendment to the Telemarketing Sales Rule (“TSR”) that would broaden the rule’s scope by prohibiting material misrepresentations and false or misleading statements in business-to-business (“B2B”) transactions. Read More ›

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