Following a previous Eight Circuit decision to vacate the Federal Trade Commission’s (FTC) “Click-to-Cancel” rule, the FTC has revived its efforts in this area and submitted a draft Advance Notice of Proposed Rulemaking (ANPRM) on the Negative Option Rule. Click here to continue reading the full version of this alert.
New York Governor Kathy Hochul has signed legislation that updates New York’s consumer protection law for the first time in 45 years to ban unfair and abusive business practices, not just deceptive ones. Click here to continue reading the full version of this alert.
Key takeaway #1: To reduce risk of litigation and regulatory exposure, companies should review, verify, and substantiate any green claims, especially claims regarding generalized corporate environmental stewardship and net zero commitments.
Last week, New York Attorney General Letitia James filed a lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA), which together make up the American subsidiary of the world’s largest beef product producer, JBS S.A. The suit alleges that JBS USA engaged in “greenwashing,” misleading consumers about its environmental impact goals. The suit is one amongst many state attorney general lawsuits related to greenwashing or ESG claims, which have spanned across the aisle and been initiated by both Democratic and Republican attorneys general.Continue Reading Attorneys General of Both Political Parties Remain Focused On Greenwashing
Companies who make ambitious marketing claims about purported clean energy efforts may find that they are exposed to litigation under the District of Columbia Consumer Protection Procedures Act (DCCPPA). The DCCPPA is an expansive consumer protection law that confers standing on any person, or nonprofit organization, to sue either on behalf of herself or “in the public interest” for false advertising. A recent DCCPPA lawsuit against energy giant, Exxon Mobil Corporation, serves as the latest example of a swelling risk to corporate defendants who may be subject to suit in the Superior Court of the District of Columbia. Companies should thus carefully advertise their clean energy efforts, or other forward-leaning activities, in a manner that closely and accurately reflects the steps it is taking to achieve those goals.
Continue Reading DC’s Consumer Protection Law Presents Risks for Companies Advertising Clean Energy Efforts: Just Ask Exxon