a lot of balls: golf ball manufacturer states claim for allegedly false UV light comparison

TaylorMade Golf Co. v. TopGolf Callaway Brands Corp., 2026
WL 2244259, No. 3:26-cv-250-GPC-BJW (S.D. Cal. Aug. 4, 2026)

TaylorMade sued Callaway, a competitor in the golf ball
market, for federal and state false advertising/unfair competition. TaylorMade
alleged substantial investment in innovating and advertising its golf balls,
including a golf ball for tour-level performance known as “TP5 Brand.” Callaway
has a TP5 brand golf ball equivalent called “Chrome Tour” golf balls.

TaylorMade alleged a misinformation campaign, including
through sales reps and influencers and promotion to third-party golf
publications.

TaylorMade’s TP5 Brand golf balls allegedly have two layers
of coating: the first inner layer is white paint, and the second outermost
layer is “clearcoat” that has a low concentration of “optical brightener” for cosmetic
and stain-resistance purposes. TaylorMade alleged that the optical brightener
had no impact on ball flight, distance, spin trajectory, or any other
performance attribute. However, the “clearcoat has the highest potential impact
on ball performance in flight” and therefore, its intentional thin coating
approach is allegedly a deliberate design decision to improve ball performance.
“As such, the splotchiness on its balls under UV light is Plaintiff’s design
choice to have a single, thin, clearcoat layer to prioritize performance and
not inferior quality or performance.”

TaylorMade alleged that Callaway similarly applies two
layers of coating to their Chrome Tour golf balls, but both layers contain
clearcoat with optical brightener, resulting in a brighter appearance that
allegedly does not increase quality or performance.

TaylorMade was not alleging that uneven paint application
cannot impact golf ball performance or quality; rather, it claimed that
Callaway’s UV light demonstration was an unreliable way to evaluate paint
coverage, paint uniformity or golf ball quality and performance. “In fact, the
UV light demonstration only reveals the distribution of optical brightener
additives, a cosmetic ingredient that has no bearing on ball flight.” Thus,
using a UV light demonstration to make comparative quality claims was
false/misleading—but that is what Callaway allegedly did.

For example, one sales agent stated that the demonstration would
show whether there is “too much paint” on the ball, and if so, would result in
a “mudball.” “Mudball is a derogatory term used to describe a golf ball that
has a bad flight, trajectory, shape and distance due to the presence of mud on
the ball and is the ‘bane of any pro golfer’s existence.’” The sales rep
claimed that dark spots on the ball could “potentially act like a piece of mud
is on the ball and who knows where the ball is going to go… all about quality
control.”

Thus, TaylorMade challenged the following claims: (1) the
use of UV light can measure golf ball quality or performance; (2) the
difference in appearance of golf balls under UV light are indicative of overall
golf ball quality and performance, (3) the uniform appearance of Calloway’s
golf ball dimples and brightness under UV light is indicative of superior
quality or performance; (4) TaylorMade’s golf balls are “mudballs”; and (5) TaylorMade’s
quality control is inferior to Callaway’s.  

TaylorMade further alleged that the UV light test is
unreliable, misleading, and lacks standardization “because it is highly
sensitive to other variables including wavelength and intensity of UV light,
distance and angle of which the light is held, the duration of the UV light
exposure, prior UV exposure, and ambient lighting conditions, none of which can
be standardized.”

This campaign was allegedly extensive. For example, MyGolfSpy,
“a popular digital platform with over 22 million consumers,” published
“Callaway Doubles Down on Speed and Precision With New Chrome Tour, Chrome Tour
X, and Chrome Soft Golf Ball” which contained several statements from the alleged
misinformation campaign and had a “DIY side note” encouraging consumers to
conduct their own UV light demonstration as a way to measure a golf ball’s
quality and performance based on its “paint coverage.”

Callaway argued that its claims were puffery.  A claim that golf balls act “like a piece of
mud” due to the uneven paint coating on the ball which negatively impacts the
ball’s ability to fly straight was a specific and measurable claim and not
puffery, as were the other claims about UV light as a method of proof.  The complaint explained why the UV light
demonstration wasn’t reliable.

Did TaylorMade have standing under California’s UCL and FAL?
Yes, it sufficiently pled lost sales: “because Defendant is a direct
competitor, any alleged false misrepresentations about the quality and
performance of TaylorMade’s golf ball will increase sales of Callaway’s golf
balls and cause sales of TaylorMade golf balls to decrease.” Also, it was
independently sufficient that TaylorMade allegedly lost money when it incurred
financial expenses to combat the misinformation campaign by responding to
inquiries from customers who saw or heard about the UV light demonstration.

What about reliance? In federal district courts, the
majority view is that a plaintiff must allege its own reliance and not the
reliance of third parties. But the court here adopted the minority view that a
“competitor may allege false advertising claims under the UCL and FAL without
alleging its own reliance and need only allege it suffered an injury, loss of
money or property, as a result of the alleged misrepresentations.” [seems
correct]

Given the alleged Lanham Act violation, “unlawfulness” UCL claims
survived, as did unfairness claims, which would allegedly “encourage a race to
the bottom” where competitors will resort to misleading demonstrations and
pseudo-scientific claims rather than competing on the actual merits of their
products.

from Blogger https://tushnet.blogspot.com/2026/08/a-lot-of-balls-golf-ball-manufacturer.html

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“battery tender” isn’t generic for guess what, but keyword advertising is fine

Deltona Transformer Corporation v. NOCO Company, — F.4th
—-, 2026 WL 2236806, No. 24-13590 (11th Cir. Aug. 4, 2026)

Competitors aren’t generally allowed the same freedom as consumers
to “genericize” a term. Here, the 11th Circuit finds no error in a district
court’s holding that “battery tender” wasn’t generic, despite calling the
product category at issue by that name throughout the opinion (“specialized
vehicle-battery chargers called ‘battery tenders’”—they recognize when a battery
is fully charged so they don’t overcharge and degrade it, an innovation when
introduced). [What is the name of this specialized subcategory, if not “battery
tender”? This is an exercise for the reader because the court sure won’t tell
you, but moments in the opinion offer “battery-maintaining chargers” or “trickle
chargers.”]

Deltona federal registrations for “Battery Tender” and
“Deltran Battery Tender.” NOCO made similar charges and advertised its own products
as “battery tenders.” A jury found for Deltona on its federal and state
infringement claims, and further concluded that NOCO had engaged in false
advertising in violation of federal law. The court of appeals kicked out some
of the theories—specifically, based on keyword purchases and Lanham Act false
advertising—and remanded to recalculate damages.

The allegedly infringing conduct: (1) bidding on Deltona’s
marks as “keywords” and using them to trigger NOCO’s ads in Amazon search
results; (2) using the term “battery tender” in the text of its own Amazon ads;
(3) incorporating the term “battery tender” in its product descriptions on
Amazon; and (4) holding out its chargers as “battery tenders” in communications
with marketing firms and customers.

Category (1) couldn’t infringe, but the rest could. NOCO’s
position was summarized by a sales manager: An email drafted by Nook and sent
by a NOCO sales manager to a potential customer said, “We understand Battery
Tender is a well known brand, but most customers usually refer to the function
(battery tender meaning a trickle charger), than the actual brand.” Internal
documents showed that NOCO was willing to use “tender” and “battery” in ways
that were “passive aggressive.”

The director of advertising at a company that handles
Deltona’s marketing testified that one of its customer-service agents spoke to
a consumer who had initially reached out to NOCO and was “very confused” when
one of its employees “referr[ed] to [NOCO’s] products as a battery tender
charger.” And an email exchange in the record shows that a retailer considering
whether to stock a new line of battery tenders reached out to NOCO with an
inquiry about Deltona’s product.

The jury held that Deltona was entitled to actual damages of
$1.3 million and that NOCO had committed intentional misconduct or gross
negligence, entitling Deltona to punitive damages of $5.75 million. The
district court ordered NOCO to disgorge profits of over $12 million and issued
a permanent injunction. The injunction prohibited NOCO from “selling,
marketing, advertising, [or] promoting” its products using the terms “Battery
Tender,” “Deltran Battery Tender,” “Deltran,” or “Tender,” the latter of which
was included because “[t]here was abundant evidence that [the company’s] use of
‘tender’ on its own was done in a way that caused customer confusion and
infringed [Deltona’s] Marks.” The injunction exempted keyword purchases and
comparative advertising.

Deltona had a genericity survey, but the jury could have
rejected it. The marks weren’t inherently generic because they were registered;
they were descriptive with acquired secondary meaning. “The fact of registration
puts a heavy thumb on the scale against genericness.” [Does that mean that the
burden is clear and convincing evidence? Or something else?]

“Battery tender”

entails some level of abstraction—“tend[
]” is more a metaphorical than literal description of what a battery tender
does, which is to preserve the battery by maintaining its charge. That makes
“battery tender” more like “vision center”—which might sell glasses and contact
lenses but doesn’t literally sell “vision”—than, say, “liquor store”—which is
nothing more than a store that sells liquor. Indeed, the term “battery tender”
might even be suggestive; it “suggest[s] characteristics of the good[ ]” and
seems to require at least some “effort of the imagination” to understand how
the product works.

Sigh. Nothing has “inherent” meaning with the partial exception
of onomatopoeia.

Deltona’s co-founder made up the term based on an analogy to
a ship’s tender. [But if he made it up to identify this new category and
distinguish it from prior types of chargers, that shouldn’t matter—“dry ice” didn’t
have to be the term for solid carbon dioxide.] The court says that, “as a matter
of historical fact, it’s not accurate to say that ‘battery tender’ referred
from the very beginning simply to ‘a kind of battery-charging device,’” but
doesn’t explain what the generic word was at the very beginning.

NOCO’s consumer survey found that 78% of 558 respondents
reported that they believed that “Battery Tender [was] a type of product”
rather than a reference to a particular brand. The jury was free to reject
that, though; Deltona had challenged the survey’s methodology on the ground
that it included people who might simply have been “exposed” to battery tenders
[generic use again!] “from shopping near [them]” when walking through an
automotive store or department.

The court then held that keyword bidding alone can’t be
trademark infringement because the use of the plaintiff’s mark for
keyword-bidding purposes occurs “behind the scenes.” [Twenty years later, they
figure this out. Sincerely: thanks, Abitron!] Likelihood of confusion
“turn[s] on what the consumer s[ees] on the screen and reasonably believe[s],
given the context.” (Citing Eric Goldman and the Second, Ninth, and Fifth
Circuit cases to similar effect.)

Use in product titles and product descriptions on Amazon,
however, was potentially infringing, as was use in communications with
marketing firms and consumers, so that part of the award was upheld. Unlike
keyword advertising, “[t]he inclusion of ‘battery tender’ in the description
automatically not only affected Amazon search results but also drove shoppers
searching for Deltona’s battery tenders to NOCO chargers without alerting them
in any way—through a ‘sponsored’ tag or otherwise—that they weren’t really
looking at battery tenders.”

“A reasonable jury certainly could have concluded that these
explicit statements to customers—that ‘battery tender’ was a generic term—were
likely to confuse them.” (Confuse them about what? Not about source or sponsorship,
given the statement that it was generic.)

The Florida Deceptive and Unfair Trade Practices Act damages
award was also problematic, even though the Lanham Act violation could also violate
FDUTPA. Monetary relief in the form of actual damages is available only to a
“person who has suffered a loss as a result of a violation of this part,” and Florida
law generally defines actual damages as “the difference in the market value of
the product or service in the condition in which it was delivered and its
market value in the condition in which it should have been delivered.” Thus,
Deltona couldn’t base its damages on “harm to its reputation or goodwill,” because
consequential damages like that aren’t compensable under FDUTPA.

Finally, the district court erred by instructing the jury on
false advertising under the Lanham Act based on the same conduct. Deltona’s
complaint alleged unfair competition and false designation of origin under the
Lanham Act; it never separately articulated a false advertising theory. It was
not enough to use the phrase “misleading description and representation of
fact,” when read in conjunction with the complaint’s “numerous allegations
involving advertisements” and its generic citation to § 43(a), to warrant a
separate jury instruction on false advertising under § 43(a)(1)(B).  In context, the complaint clearly referred to §
43(a)(1)(A). NOCO neither expressly nor impliedly consented to trying a
false-advertising claim.

The court of appeals had “substantial and ineradicable
doubt” whether the jury was properly guided, so that part of the judgment was
reversed.

Disgorgement was appropriate, given the willful conduct. [Recalculation
doesn’t seem to be required because of how disgorgement is assessed—even kicking
out the keyword advertising doesn’t seem to matter (though you’d think that
sales made through keyword ads alone wouldn’t have the right causal
relationship).]

Also ok: an injunction extending a ban on standalone use of “tender.”
“[E]ven though NOCO seems to have ceased its misconduct, the record shows that
it has, after brief interludes, repeatedly returned to infringing Deltona’s
marks.” “In fashioning relief against a party who has transgressed the
governing legal standards, a court of equity is free to proscribe activities
that, standing alone, would have been unassailable.”

But the damage award needed to be reassessed, so remand for
a new trial it was.

from Blogger https://tushnet.blogspot.com/2026/08/battery-tender-isnt-generic-for-guess.html

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is an avocado a vegetable or a fruit? Court says it’s ambiguous

Parashos v. Once Upon A Farm, No. 26-cv-00314-EMC,  2026 WL 2283647 (N.D. Cal. Aug. 7, 2026)

Once Upon A Farm allegedly violated California consumer
protection laws by misleadingly labeling its baby product as the “Wild Rumpus
Avocado ‘Fruit & Veggie Blend’ ” when in fact it contains no vegetables
(but does contain avocados). The court found the claim implausible.

The front of the pouch displays multiple images of avocados,
along with images of apples, banana, and pineapples. The back lists its
ingredients as pineapple, banana, apple, avocado and mint.

The FDA classifies avocados as fruit and mint as an herb. So
does the pouch contain “veggies”? The target audience is allegedly “health-conscious
parents” who are “willing to pay a premium to ensure that the food that they
provide to their children is nutritious and includes vegetables.” Plaintiff
brought the
usual California claims
.

Dismissal is appropriate if the claim that a label is
misleading “runs counter to ordinary common sense or the obvious nature of the
product.” And “a survey of dictionary definitions, of which the Court takes
judicial notice, suggests that the question of whether an avocado is a
vegetable is not so clear-cut in common parlance, notwithstanding the technical
botanical definition of avocados as a fruit.” Avocados, which contain a pit
like peaches or cherries, fit the scientific definition of the “product of
fertilization in a plant with its modified envelopes or appendages,
specifically : the ripened ovary of a seed plant and its contents.” But another
meaning of “fruit” is “the usually edible reproductive body of a seed plant
especially: one having a sweet pulp associated with the seed.” “Avocados, like
peppers, zucchini, and other botanical fruits, lack the ‘sweet pulp’ that would
place them firmly within the ‘fruit’ category of popular usage.” Avocados also
fit within broad definitions of “vegetable” such as “a usually herbaceous plant
(such as the cabbage, bean, or potato) grown for an edible part that is usually
eaten as part of a meal.” Different dictionaries variously call an avocado a
fruit or a vegetable.

Famously, in construing a tariff statute, the Supreme Court
held that while “botanically speaking,” tomatoes are fruits, in “the common
language of the people,” they are vegetables. Nix v. Hedden, 149 U.S. 304, 307
(1893), as are the technical seeds beans and lentils. Avocados are like
tomatoes: “commonly served at meals as ingredients in e.g. burritos and
sandwiches, and not, like fruits, as a sweet snack or a part of a dessert. And
people eating chips and guacamole are not likely to think they are eating a
fruit dip.” At the very least, the claim wasn’t unambiguously false. See, e.g, Henderson
v. Gruma Corp., 2011 WL 1362188 (C.D. Cal. Apr. 11, 2011) (granting a motion to
dismiss on the grounds that a label promising “Garden Vegetables” was confirmed
by the inclusion of avocado powder, dehydrated onion, garlic powder, and bell
pepper); Gates v. Upfield US Inc., 2024 WL 3362857 (C.D. Cal. July 9, 2024)
(“Avocado oil is a type of vegetable oil known for its healthy qualities”; granting
a motion to dismiss because a product labeled “made with avocado oil” and “79%
vegetable oil spread” would not imply to a reasonable consumer that the product
was made without other forms of vegetable oil).

Nor was this plausibly misleading. The front label was ambiguous
enough that a reasonable consumer would have consulted the back label. “Ambiguous”
in this context does not simply mean “susceptible to more than one reasonable
meaning,” but rather that a reasonable consumer “would necessarily have
required more information before concluding that the products’ front labels
were making a specific promise.” Such “inherent ambiguity” was present here.
The context reinforced that, with explicit reference to “Avocado” in the name
of the product and a label showing multiple images of avocados, as well as
bananas, apples, and pineapples. There was no other conceded vegetable shown. “There
is thus an ambiguity as to whether the product contains vegetables other than
avocados. Faced with this ambiguity, the reasonable consumer is expected to
check the back label for complete information.”

The likelihood that a reasonable consumer would look to the
back label was underscored by the fact that the product’s “target audience” was
allegedly “health-conscious parents” who “would have particular reason to check
the back label.”

from Blogger https://tushnet.blogspot.com/2026/08/is-avocado-vegetable-or-fruit-court.html

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trademark claim proceeds with essentially no detail, despite trade dress failure

Honest Company, Inc., v. Butterblu, LLC, 2026 WL 2211834,
No. 2:26-cv-00019-WLH-MBK (C.D. Cal. Jul. 28, 2026)

Honest sued former partner Butterblu for trademark
infringement and related claims. Honest sells products in the diaper and wipes,
skin and personal care, and household and wellness categories. It registered two
trademarks for HONEST registered for swaddling and crib blankets and various
children and infant related products, and also owned HONEST BABY CLOTHING (and
logo) for baby and toddler-related products.

The parties previously entered into an agreement (where
Honest took over ownership of all products in inventory, and Butterblu sourced,
marketed and sold these products in exchange for a service fee. Honest alleged
breach for, among other things “secretly developing and selling a baby apparel
product line in direct competition with Honest Baby Clothing brand products.”
Honest claimed rights in two print designs with stylized holiday trees and a
striped, pastel rainbow used on various products that Butterblu allegedly copied.

claimed Honest design

Claimed Honest design

Consumers allegedly commented on online forums, such as
Reddit, that Butterblu’s products “look like” Honest products but “rebranded”
or similar language, that Butterblu is the “creator” of Honest’s products, and
otherwise expressed confusion as to the source of and/or affiliation between
the parties’ respective products. Honest alleged that “at least one” consumer
has contacted Honest with questions about a recent purchase in which the
consumer intended to buy Honest products from Amazon but instead received
products bearing a Butterblu label.

Honest pine PJs
Butterblu pine PJs

Honest rainbow PJs

Butterblu rainbow PJs

Butterblu’s website allegedly includes a misleading statement that “Honest’s new leadership team ultimately decided to exit the apparel space.”

Showing a common tolerance for trademark claims, despite Butterblu’s argument that Honest didn’t plead use of its marks, it was enough to allege that Butterblu “has used Honest’s intellectual property without authorization” and “mislead consumers and prospective consumers into believing the Infringing Products are affiliated or associated with, or sponsored by, Honest” and to submits screenshots showing that Butterblu “sold products that bear striking resemblance to its own products.” Products, not marks. Ugh.

And pleading that Reddit users have commented on forums about Honest and Butterblu products looking similar and have expressed confusion “as to the source of and/or the affiliation between the Parties’ respective products” also sufficed.

Plus, “many courts have held that an ex-licensee’s continued use of a trademark is enough to establish likelihood of confusion,” and the court agreed. Ugh again! Which trademark? Especially because the court also says that the trade dress infringement claim failed for want of pleading secondary meaning.

Explain to me how this screenshot shows use of the Honest marks?

Honest alleged that intentional copying showed secondary meaning. But “proof of deliberate copying is not determinative … competitors may intentionally copy product features for a variety of reasons.” Thus, pleading intentional copying alone is insufficient. The online comments about “looking like” or “rebranding” weren’t enough because they didn’t specifically discuss the two claimed prints, and “looking like” does not equal confusion. Why doesn’t this also doom the claim about trademark infringement, since the commenters doesn’t seem to depend on the word marks or logo?

False advertising: Butterblu argued that Honest’s own public statements confirm the truth of the alleged false statement that Honest was exiting apparel, and, that the continued availability of remaining products during a sell-through or transition period does not render the “apparel-exit” statement false. But “[w]hether the alleged misrepresentations are false or misleading is a factual question generally inappropriate for resolution on a motion to dismiss.” The complaint alleged that “HONEST-branded apparel continues to be advertised, offered for sale, and sold to consumers, contrary to the representations made on Butterblu’s website” and that “Honest has a one-year sell off period for existing inventory.” Honest also argues that Butterblu knew that the statement was misleading because Honest explicitly stated in its earnings release that it was “ ‘exiting our relationship with our current apparel provider’ —i.e., Butterblu” and did not state that it was exiting the apparel space as a whole. This was enough on a motion to dismiss.

from Blogger https://tushnet.blogspot.com/2026/08/trademark-claim-proceeds-with.html

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consumers face more skepticism than competitor in online gaming case

Mitchell v. Skillz Platform Inc., 2026 WL 2212876, No.
26-cv-00674-AMO (N.D. Cal. Jul. 31, 2026)

Although competitors can aggregate harm to sue under the Lanham
Act, consumers—the direct victims of false advertising—tend to have more
trouble. Skillz
just lost a big claim
to its main competitor over falsely advertising that
it didn’t use bots in mobile cash games. Here, with similar allegations under
various state laws, the consumers struck out. Plaintiffs didn’t sufficiently
allege reliance, causation, or lack of an adequate remedy at law (for the
restitution claim).

Representations that users match with “real players” and
have “no bots guaranteed” were plausibly false and deceptive, as were representations
that users match with “players of equal skill.” But the representation that
users can make “easy withdrawals” was non-actionable puffery with no set
meaning.

The claims failed because plaintiffs didn’t allege that they
relied on or even read any particular representation. “Most of the
representations are allegedly located across Skillz’s website and social media
accounts, so it is not reasonable to infer that Plaintiffs must have seen them.”
Even an in-app badge displayed “in front of every single player, every time
they launch a Skillz-powered application” since at least the beginning of 2024
wasn’t enough to plead that they actually read the alleged misrepresentations. Seems
pretty fixable, but language quoted rejecting the RICO claim was bad news (and
maybe another reason to avoid RICO claims): “[A]s the Ninth Circuit noted in a
similar case, ‘there may be no single, logical explanation for gambling—it may
be an addiction, a form of escape, a casual endeavor, a hobby, a risk-taking
money venture, or scores of other things.’ As a result, it may well be that the
representations ‘did nothing to influence [users’] perceptions’ or that users ‘played
fully aware of how the [platform] operate[s].’” While the evidence in the
competitor case tends to negate that idea, “users had to launch a Skillz
application before seeing the in-app badge, so they might have already decided
to play before seeing the representations at issue here.”

from Blogger https://tushnet.blogspot.com/2026/08/consumers-face-more-skepticism-than.html

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Novo struggles once again to allege deception by sellers of compounded drugs

Novo Nordisk v. Zealthy Inc., 2026 WL 2212889, No. 25-cv-06391
(ALC) (S.D.N.Y. Jul. 31, 2026)

Novo Nordisk makes the FDA-approved Ozempic, Rybelsus, and
Wegovy, while Zealthy markets and facilitates access to drug products,
including compounded medications containing semaglutide. Novo alleged that Zealthy
made false representations to consumers that compounded semaglutide medications
are “equivalent” to Plaintiffs’ medications, “clinically studied,” “evaluated
by the FDA,” and “deemed safe and effective.” Specifically, Zealthy stated that
“GLP-1 medications, with active ingredient semaglutide, are FDA-approved for
type 2 diabetes and have proven effective for weight loss,” “[m]edications with
the active ingredient semaglutide have shown 15-20% average weight loss,” and
“semaglutide is the active ingredient in Wegovy and Ozempic,” among other
similar messages. This allegedly violated the Lanham Act and NY GBL § 349.

The court found that Novo failed to state a claim.

Lanham Act false advertising: As to FDA approval, Novo
argued that Zealthy’s statements about GLP-1 medications being FDA-approved were
false in that such statements represent compounded semaglutide products as
FDA-approved. But Zealthy also facilitates prescription of Novo’s FDA-approved
medications, and so its statements could reasonably describe Novo’s own
medications, making them not literally false. Novo failed to allege facts
indicating likely deception and thus didn’t properly allege implicit falsity.
It also failed to allege deliberate deception, which could lead the court to presume
deception.

Clinical efficacy: Novo argued that Zealthy misled consumers
by describing semaglutide medications as effective without having conducted any
clinical studies on the products. But Novo bore the burden of showing falsity,
not lack of substantiation.

Equivalence: Novo pointed to statements that “semaglutide is
the active ingredient in Wegovy and Ozempic,” “Zealthy also offers semaglutide,
the active ingredient in Ozempic® & Wegovy®,” and “[i]f you were thinking
about doing the medication or you were on the medication and insurance doesn’t
cover it anymore, this is a great replacement, it’s the same medication,
semaglutide, and it works just the same.” But there was no showing of falsity
there. Although Novo alleged that compounded medications were manufactured
through different processes, and that compounded medications do not have the
same “effectiveness assurances” as FDA-approved drugs, that wasn’t enough to allege
that the two types of medications do not “work [ ] the same.”

However, Novo would have had standing if it had pled falsity/misleadingness.
Indeed, the court would be inclined to presume injury given that the ads drew
direct comparisons between Novo’s products and compounded drugs. In addition,
claims about FDA approval were not FDCA-preempted because (1) it’s preclusion
when it comes to the federal Lanham Act, and (2) the court wouldn’t have to
interpret or apply the FDCA to conclude that compounded drugs aren’t FDA-approved.
On the other hand, “[e]valuating whether Defendant falsely asserted that
compounded medications have shown certain levels of weight loss, and whether
such statements could only be made with the backing of clinical trials, may
well be precluded by the FDCA.” So too with equivalence.

Given this result, the court declined to address the state
law claims.

from Blogger https://tushnet.blogspot.com/2026/08/novo-struggles-once-again-to-allege.html

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not with a bang, but with a whimper of whipped dogs? VIP prevails in Ninth Circuit

VIP Prods., LLC v. Jack Daniel’s Properties, Inc., No.
25-2027 (9th Cir. Aug. 4, 2026)

VIP prevailed on remand on the confusion claim but lost on dilution by tarnishment.
The court of appeals reversed, holding that JDI didn’t show that VIP’s parody
dog toy product would tarnish the marks it proved were famous—the Jack Daniel’s
name and overall trade dress (which seems to mean the bottle shape &
general colors, not the print components thereof).

Although this was a fact question, the court of appeals can “correct
errors of law, including . . . a finding of fact that is predicated on a
misunderstanding of the governing rule of law.” Bose Corp. v. Consumers Union
of U.S., Inc., 466 U.S. 485, 501 (1984).

The key error of law was to fail to disaggregate what JDI
owned into famous and non-famous matter. Fame requires a “household name.” But
the district court declined to “delineate between ‘Jack Daniel’s’ and ‘Old No.
7’ when finding that Jack Daniel’s trademarks are famous,” accepting JDI’s
argument that “[a]ll of VIP’s Bad Spaniels marks associate all of Jack Daniel’s
famous marks with poop, regardless of whether the marks themselves reference
poop.” This erroneously lowered JDI’s burden. “The TDRA does not permit
borrowing fame from one senior mark to establish the fame of another.” The
district court didn’t conduct any separate analysis as to “Old No. 7,” and the
record didn’t show that it was famous, so no tarnishment claim could rely on it.

The “Bad Spaniels” mark “does not itself refer to
defecation” and therefore was not facially tarnishing. The court then concluded
that dilution requires a “mark-to-mark” comparison, not a general comparison. “[C]ourts
may not consider senior marks that are not famous or junior marks that are
dissimilar when determining the likelihood of reputational harm to the senior
mark.” Given that, JDI’s other senior marks, including “Old No. 7,” were irrelevant.
As for  “43% POO BY VOL.” on the dog toy,
“that phrase does not mimic or reproduce any famous, similar mark. The
equivalent language on JDPI’s product, ‘40% ALC. BY VOL. (80 PROOF),’ is not a
mark.”

The question was whether either famous mark was “portrayed
in an unwholesome or unsavory context” that is likely to tarnish the reputation
of the famous marks. The district court reasoned that “‘Bad Spaniels’ creates a
negative association with Jack Daniel’s whiskey by associating whiskey with dog
feces and is likely to tarnish Jack Daniel’s trademarks,” even though “ ‘Bad
Spaniels’ as a trademark [for a chew toy] does not tarnish Jack Daniel’s.”

While “using a famous mark or a closely related depiction on
a product that is of poor quality or pornographic or illegal may be tarnishing
if the other requisites are met,” the proof here failed. JDI’s expert Dr.
Simonson testified that there would be tarnishment based on the “Associative
Network Model” supported by “numerous empirical studies.” But he didn’t conduct
any studies on Bad Spaniels specifically. He first asked “whether the allegedly
dilut[ing] product will bring or call to mind the allegedly diluted mark”; then
“whether it has affected the brand equity and brand association of the
allegedly diluted mark.”

Since the point of VIP’s product was to bring Jack Daniel’s
whiskey to mind, the key was the second step; Simonson testified that it was
satisfied by “conclusions that apply to all products and services regarding the
impact of adding a negative association onto the association of the existing
brand.” Specifically, “when food or beverage is associated with defecation,
disgust is generated in the consumer’s mind with respect to that food or
beverage.” Simonson acknowledged that “[n]o [consumer] would think that there’s
poo in the Jack Daniel’s product” but that VIP nevertheless “created a mental
association between Jack Daniel’s and poo, or Old No. 2, and therefore, for
those people exposed to this product, [VIP] diluted or more specifically,
tarnished the Jack Daniel’s whiskey.”

First, it was error to rely on “Old No. 2,” which wasn’t famous.
Second, even including that reference, the testimony didn’t establish a harmful
association between any such reference and JDPI’s two famous marks—“Jack
Daniel’s” and its registered trade dress. Although Simonson opined that “it
really doesn’t matter whether” poop-themed references are made “on this thing
that looks very much like a Jack Daniel’s bottle, or any other product that
creates an association between Jack Daniel’s and defecation,” but Bad Spaniels was
“a parodic dog toy not intended for human consumption. There is no evidence in
the record from which a court could reasonably infer that scatological
references made on a dog toy have the same likelihood of generating disgust as
identical references on a consumable product meant for humans might.  Dr. Simonson’s opinion to the contrary is
pure conjecture.” There was no evidence that recognizing a negative message on
one parody product would harm the reputation of the referenced product. Simonson’s
reliance on the ANM “ignores that Bad Spaniels is an obvious parody. “ “[P]arody
is a relevant factor in evaluating likelihood of dilution,” even if not dispositive
(citing Haute Diggity Dog, Deere, and Hormel v. Jim Henson
Prods.
as well as the Timmy Holedigger case cited by the Supreme Court in JDI
and Jordache v. Hogg Wyld).

The parody’s dual message impacts the dilution analysis
because, “where a parody is successful and ‘not particularly subtle,’ it is a
common-sense conclusion that consumers are more ‘likely to see [it] as the joke
it was intended to be.’” It was error to disregard the parody in the context of
tarnishment. “Dr. Simonson’s analysis ignored the effect of a ‘humorous
difference’ on whether Bad Spaniels harms the reputation of JDPI’s famous marks”
(emphasis added).  Although survey or expert
testimony isn’t required, JDI here rested its case on expert testimony, which
was insufficient here.

from Blogger https://tushnet.blogspot.com/2026/08/not-with-bang-but-with-whimper-of.html

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FDCA mostly preempts claims against ineffective decongestant

Yousefzadeh v. Johnson & Johnson Consumer Inc., —
F.4th —-, 2026 WL 2192415, Nos. 24-3296 (L), 25-119 (CON) (2d Cir. Jul. 30,
2026)

Oral phenylephrine (oral PE), used in popular products as
Nyquil Severe Cold & Flu, Advil Sinus Congestion & Pain, and Mucinex
Sinus Max, was long considered an effective nasal decongestant. In 1994, the
FDA published a final monograph determining that oral PE was generally
recognized as safe and effective as a nasal decongestant.

Starting in 2007, however,
scientific studies began casting doubt on that finding. Indeed, in 2016, some
studies concluded that oral PE “[was] no more effective than [a] placebo” as a
decongestant. Yet, the FDA has continued to require manufacturers to adhere to
its existing labeling requirements denoting oral PE as effective.

In September 2023, the FDA convened an expert panel that
concluded, by a unanimous vote of 16-0, that oral PE products were ineffective
as nasal decongestants, and in 2024 it proposed an administrative order to remove
oral PE from the nasal decongestant monograph. Until the administrative order
becomes final, however, the FDA stated that, “[f]or now, companies may continue
to market OTC monograph drug products containing [oral PE] as a nasal
decongestant.”

What does this mean for this consumer protection lawsuit
alleging that, in the past decade, drug manufacturers have sold some $12
billion’s worth of ineffective nasal decongestants? This consolidated complaint
alleged NY GBL and common-law claims as well as RICO claims (which will not be
further discussed because they are RICO claims).

The district court found FDCA preemption and also rejected a
Lanham Act claim in a related case. The court of appeals found that the FDCA
expressly preempted the majority of the consumer plaintiffs’ state law claims. “Defendant
Manufacturers followed the FDA’s prescribed labeling requirements by
designating their decongestants’ purpose as decongestion. Defendant
Manufacturers cannot now be sued for complying with those FDA specifications.” Loper
Bright
didn’t change things because it didn’t “subvert agencies’ authority
to promulgate preemptive regulations pursuant to the authority vested in them
by statute — authority the FDCA vests in the FDA here. Indeed, the Supreme
Court has given preemptive effect to federal regulations since before Chevron.”

The discussion is extensive, but a couple of points: There
was no duty to update the labeling merely because the ingredient didn’t work; “a
monograph drug could be considered misbranded if it has a dangerous effect on
the user, even when the drug’s label conforms to the monograph requirements,
thus allowing a manufacturer to add a safety disclaimer to the product’s label.”
But it’s not automatically misbranded if it is simply “ineffective when used as
recommended or suggested in the label.” Thus, the FDA had declined to impose additional
labeling requirements for ineffectiveness as opposed to safety risks. “Because
monograph drug manufacturers cannot utilize [a specifically provided-for]
process to unilaterally change their labels’ efficacy information, … their
obligation is to conform to the applicable monograph, not to update their
labels to reflect new scientific evidence.” To require additional disclosures
would be to impose a requirement other than that imposed by the FDCA, and “any
such compulsory language would not be permissible if it was inconsistent with
the statements required by the FDA.”

What about failure to disclose in marketing and advertising,
as distinct from labeling? The statute’s express preemption “voids state law
marketing and advertising claims, not only labeling claims,” by specifying that
its preemptive effect extends to “any requirement relating to public
information or any other form of public communication relating to a warning of
any kind for a drug.” Allowing failure-to-disclose claims would create an end run
around federal labeling rules.

Not preempted: Allegations that using “Maximum Strength” or
“Max Strength” on certain products constituted a false statement that the
products work better than other oral nasal decongestants, such as
pseudoephedrine. No FDCA provision or regulation addresses phrases such as
“Maximum Strength” or claims of comparative strength. “Defendant Manufacturers
therefore voluntarily and on their own accord placed these Maximum Strength
statements on their products; they were not obligated to do so. Consequently,
these additional statements are subject to the misbranding provision’s requirements
and cannot be rescued by the monograph or approved NDAs.”

In addition, manufacturers who obtained FDA approval through
the NDA (new drug application) process could have an independent duty to update
their drugs’ labels through the prescribed process to reflect newly acquired
information bearing on a drug’s efficacy. While that process is unavailable for
monograph drugs, it is available for brand-name NDA drugs, so the court remanded
for consideration of this theory as well.

What about the related Lanham Act claim, not brought by
consumer plaintiffs?  The district court
didn’t abuse its discretion in dismissing the claim because the
competitor-plaintiff neglected many opportunities to preserve or raise the
claim. Given the fact that there’s no preemption of federal claims, this seems
like a serious error on its part.

from Blogger https://tushnet.blogspot.com/2026/08/fdca-mostly-preempts-claims-against.html

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interactive website offering illegal-in-CT ghost guns wasn’t covered by CUTPA, but any sales were

Connecticut v. Indie Guns LLC, NO. (X06) UWY-CV23-6072307S, 2026
WL 2322641 (Ct. Super. Ct. Aug. 6, 2026)

The state sued Indie Guns for selling illegal ghost guns
into Connecticut. Indie Guns defaulted, but the court only granted partial default
judgment—merely having an interactive website doesn’t make the company subject
to the Connecticut Unfair Trade Practices Act (CUTPA), although selling illegal
products into the state is deceptive and unfair in violation of the law.

“[A]n out-of-state or foreign company that operates an
interactive internet website is not, on that basis alone, engaged in trade or
commerce in Connecticut.” And CUTPA requires such in-state trade or commerce,
so this isn’t about personal jurisdiction but the scope of the law.

The state argued that the website was deceptive and unfair
because it advertised its products to all consumers without warning of their illegality,
and offered to sell to Connecticut consumers.

A violation of a Connecticut criminal statute such as the
ban on ghost guns does constitute a CUTPA violation via unfairness. Unfairness
requires considering: “(1) [W]hether the practice, without necessarily having
been previously considered unlawful, offends public policy as it has been
established by statutes, the common law, or otherwise—in other words, it is
within at least the penumbra of some common law, statutory, or other
established concept of unfairness; (2) whether it is immoral, unethical,
oppressive, or unscrupulous; (3) whether it causes substantial injury to
consumers, [competitors or other businesspersons].” “Inarguably, selling and
delivering illegal gun parts in Connecticut readily satisfies all three
criteria.”

So too with deception, which requires (1) a representation,
omission, or other practice likely to mislead consumers; (2) interpreted
reasonably under the circumstances; that is (3) material. “When a defendant
sells a product to a buyer, the defendant represents, expressly or implicitly,
that the product is legal in the state in which the buyer purchases or receives
delivery of the product.” (Given that this was a test buy, there was no actual
deception, but the state as enforcer isn’t required to show that.)

But there liability ended. CUTPA  defines “trade” and “commerce” as “the
advertising, the sale or rent or lease, the offering for sale or rent or lease,
or the distribution of any services and any property, tangible or intangible,
real, personal or mixed, and any other article, commodity, or thing of value in
this state
.” (Emphasis added.). Actual sales/shipment to Connecticut
definitely constitute engaging in trade or commerce, but not “the mere
existence of an interactive website.” Although this does require the AG to wait
until illegal products are shipped to Connecticut, so it creates some risk,
that’s a policy decision for the General Assembly to make. (The court also
commented that reaching Connecticut via distributors or other independent
contractors would support application of CUTPA to a manufacturer.)

In part because of the default, we don’t actually know how
many times Indie Guns sold into Connecticut. “Those practical challenges are
likely why the state focuses on the Indie Guns’ website, rather than on gun
sales, as the basis for imposing civil penalties. Those practical challenges,
however, do not permit the court to speculate about the extent of Indie Guns’
sale of illegal gun parts to Connecticut consumers. Nor do those challenges
permit the court to ignore the geographic scope limits of CUTPA.”

The state was entitled to judgment that Indie Guns acted willfully
when it sold a ghost gun part to the investigator. But the state didn’t seek
the $5000 maximum penalty for that sale. It was entitled to a permanent
injunction against sales into Connecticut.

from Blogger https://tushnet.blogspot.com/2026/08/interactive-website-offering-illegal-in.html

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Foiled: Reynolds must face “Made in USA” class

Washington v. Reynolds Consumer Products LLC, No. 1:24-cv-02327-ALC-RFT,
2026 WL 2210008 (S.D.N.Y. Jul. 30, 2026)

The court certified a class of NY consumers under the NYGBL’s
false advertising provisions, based on alleged falsity of aluminum foil that’s
sold with a label claiming, “FOIL MADE IN U.S.A.”

Plaintiffs argued that reasonable consumers expect that the
raw materials used in the products are sourced from within the United States
and that a substantial amount of the transformation of raw materials into the foil
takes place within the United States. But the only commercial source of aluminum
is bauxite. “Since 1981, none of the bauxite mined in the U.S. was used for
aluminum, and in 2013, U.S.-mined bauxite comprised less than 0.1 percent of
world production.” Thus, plaintiffs alleged, Reynolds must be sourcing from
outside the US.

To make aluminum foil, bauxite is processed and refined into
alumina, which is then turned into aluminum through smelting. The resulting ingots
undergo further processing to make aluminum foil. Plaintiffs alleged that a
substantial portion of this processing occurs outside of the United States.

Reynolds’ (bad) argument was that the “Made in the U.S.A.”
label referred only to the final foil itself, not to the ingots (as if people
knew about the processing stages of aluminum foil).

Only discussing parts of the certification standard:
Reynolds argued that plaintiffs lacked proof of a classwide definition of “made
in USA,” common evidence of consumer exposure to the label, and common evidence
of a price premium. But they had enough for certification on commonality and
predominance.

The Third Circuit still stands alone in its extreme ascertainability
rulings. The proposed class was comprised of all persons who purchased Reynolds
Wrap aluminum foil labeled with the words “FOIL MADE IN U.S.A.” in New York
from March 27, 2021, to the present, which was ascertainable “because the
putative class has been concretely identified by subject matter, timing, and
location.”

Plaintiffs had a common theory of deception. “Defendants
focus much of their analysis on whether or not Plaintiffs can prove materiality
and injury, rather than show whether these questions are common because they
may be determined on a classwide basis.” All class members would have been
exposed to the “FOIL MADE IN U.S.A.” label on the front of all aluminum foil
products. Common evidence was required to determine materiality to a reasonable
consumer.

And price premium injury was common injury; they proposed a
damages model consistent with their theory of liability. Plus, given that statutory
damages would be less than $50 or $500 here, most class members would opt for
statutory damages over actual damages. “Statutory damages can be assessed on
the basis of common proof,” creating a perfectly viable common damages model
even without the proposed conjoint analysis.

from Blogger https://tushnet.blogspot.com/2026/08/foiled-reynolds-must-face-made-in-usa.html

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