Federal Circuit reads “literal falsity” way too narrowly

BPI Sports, LLC v. Thermolife Int’l LLC, Nos. 2023-1068,
2023-1625, 2023-1112, 2025 WL 1683234 (Fed. Cir. Jun. 16, 2025)

This is a false advertising case involving allegedly false
patent marking. Creatine nitrate is an amino-acid nitrate used in dietary
supplements. At the time of the trial, ThermoLife owned several patents
covering creatine nitrate, which it licensed to manufacturers. BPI sells supplements
that compete with licensees of ThermoLife; it sued for false advertising under
the Lanham Act and unfair competition under state law in connection with ThermoLife’s
CRTN-3, as well as false patent marking under the Patent Act. A jury found that
BPI showed false advertising and unfair competition but awarded zero damage,
and found in favor of the defendants as to the false patent marking claim. In
the cross-appeals, the court found that ThermoLife should have gotten judgment
as a matter of law.

“JMOL should be granted only when the [moving party]
presents no legally sufficient evidentiary basis for a reasonable jury to find
for him on a material element of his cause of action.” Adopting a perjury-like
standard, the court of appeals found that no reasonable jury could have found
in favor of BPI under the falsity element of a false advertising claim: that
CRTN-3 label’s statement of “increase vasodilation” was literally false. (BPI
didn’t preserve misleadingness as an alternative ground, and there was no
survey or other evidence of consumer reaction in the record.)

The claim was literally true because BPI’s own evidence
shows that the dosage disclosed in CRTN-3’s label would “cause vasodilation”
for people weighing 113 pounds or less. However, the dosage amount of creatine
nitrate needed for “an average adult in the U.S. weighing 177 pounds” is more
than the amount disclosed in CRTN-3. But the label didn’t claim to increase
vasodilation for average people.

Once again, a court ignores ordinary rules of implicature.
Other cases have (in my view correctly) held that a product that self-evidently won’t work for
most people can’t claim to “work” in general. Under the Federal Circuit’s view,
apparently, an advertiser could claim that its product “treats hair loss” if it
could help the small percentage of people whose hair loss stems from a specific
vitamin deficiency. That’s a mistake, and it’s one that thinking about “what would the true message look like?” could help.

from Blogger http://tushnet.blogspot.com/2025/06/federal-circuit-reads-literal-falsity.html

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“abortion reversal” promoter engaged in inherently and potentially misleading commercial speech, court rules

Culture of Life Family Services, Inc. v. Bonta, 2025 WL
1677783, No. 3:24-cv-01338-GPC-KSC (S.D. Cal. Jun. 13, 2025)

In two opinions on the same day, the court didn’t give much
comfort to an “abortion reversal” provider.

COLFS sought to enjoin AG Bonta’s pending state court false
advertising proceeding against its “abortion reversal” claims. APR is touted
for pregnant women who have started the chemical abortion process by ingesting
mifepristone, the first pill out of two; it involves taking the hormone
progesterone in order to counteract mifepristone’s blocking of the body’s
natural supply of progesterone. The main proponent, COLFS’s medical director,
has done small human case studies, claiming an overall fetal survival rate was
48%, higher for the subgroup that received progesterone intramuscularly (64%)
and the subgroup that received a high dose of oral progesterone followed by
daily oral progesterone until the end of the first trimester (68%).  

The state enforcement action under California’s UCL and FAL
challenged as unsupported by credible scientific evidence: the use of the terms
“reverse” and “reversal”; claims that APR “has been shown to increase the
chances of allowing the pregnancy to continue”; claims that APR has a success
rate of 64-68%; claims that the rate of birth defects following APR is “less or
equal to the rate in the general population”; claims that “thousands of lives
have been saved” through APR; claims that APR may be effective at longer time
ranges and following administration of misoprostol and methotrexate; and
claims that APR can cause only non-life-threatening side effects, even though
it can cause severe bleeding.

The court found the UCL and FAL to be content-neutral,
because they were laws of general applicability that prohibit false and misleading
statements. (This is probably not consistent with Reed, but Reed
doesn’t make a ton of sense, especially applied to commercial speech—the underlying
conclusion that strict scrutiny doesn’t apply is correct.)

Bonta argued that COLFS’s APR statements were commercial
speech, used to advertise the treatment, and that fundraising provided an
economic motivation for the APR claims. The court noted that many of the
disputed statements appeared on COLFS’s website, and appeared more informational
and educational than client-soliciting. Statements about APR in fundraising
weren’t as clear as in a previous case, where a “majority” of fundraising
communications involved the advertising language at issue, nor did COLFS
anywhere claim to compete with abortion providers. However, in exchange for its
APR services, COLFS accepts insurance and/or payment from women who have
insurance or the means to pay; it also provides free treatment. On a motion to
dismiss, COLFS sufficiently pled that its statements weren’t commercial speech.

However, the Free Exercise claim failed. A Free Exercise
claim requires that a government entity has “burdened [a plaintiff’s] sincere
religious practice pursuant to a policy that is not ‘neutral’ or ‘generally
applicable.’ ” But the UCL and FAL “protect consumers by prohibiting false and
misleading advertisements – because of the stated interest in consumer
protection, not because of any sort of motivations underlying those
advertisements – and as such these laws are neutral.” There were no exceptions
to the UCL and FAL that could discriminate against religious conduct, nor did
they treat “any comparable secular activity more favorably than religious
exercise.” The AG “regularly enforces” these laws against secular entities. Although
the UCL and FAL don’t apply to public entities or political speech, that wasn’t
required to make them “generally applicable” laws. Instead, laws of general
application treat religious and secular speech comparably. “Whether secular and
religious activity are ‘comparable’ is evaluated ‘against the asserted
government interest that justifies the regulation at issue’ and requires
looking at the risks posed, not the reasons for the conduct.” The risks posed
by public entity and political speech were different. Public entities are
exempted because the state is a “sovereign entity representing the people,” and
can have sovereign immunity. Political speech is exempted because “false and
misleading political speech is protected while inherently false and misleading
commercial speech is not.”

Although COLFS claimed that allowing progesterone to be
prescribed for everything except APR treatment was not neutral and generally
applicable, “laws do not need to cure every problem or aspect of a problem.” Seems
like the correct result for the wrong reason—it might not be false or
misleading to proscribe progesterone for something else! Plus, the claim here
isn’t against the prescription, it’s against the advertising. The court gets
there: “AG Bonta is not banning APR treatment, but is enforcing consumer
protection laws against specific advertisements of APR treatment.”

COLFS argued selective enforcement against COLFS, but not
Planned Parenthood. But “COLFS’s statements refer to a medical treatment that
has only undergone studies for efficacy and safety since 2012, while Planned
Parenthood’s statements speak to an FDA-approved medical procedure…. COLFS’s
statements about APR treatment and Planned Parenthood’s statements about the
abortion pill are not comparable.” There was no indication that Planned
Parenthood had violated the UCL or FAL.

COLFS also didn’t have a valid “right to receive information”
claim, which is cognizable “only where the listener has a concrete, specific
connection to the speaker.” That wasn’t pled here, for statements outside a
doctor-patient relationship.

The substantive due process claims for “COLFS’s patients’
rights to procreation, reproductive privacy, and to reject unwanted medical
treatment” also failed.

 

Culture of Life Family Services, Inc. v. Bonta, 2025 WL
1687929, No. 3:24-cv-01338-GPC-KSC (S.D. Cal. Jun. 13, 2025)

The court denied a preliminary injunction against AG Bonta.

Continuing the First Amendment analysis: Content-neutral
regulations like the FAL and UCL “are generally subject to heightened scrutiny:
the government may impose reasonable restrictions on the time, place, or manner
of protected speech, provided the restrictions ‘are justified without reference
to the content of the regulated speech, that they are narrowly tailored to
serve a significant governmental interest, and that they leave open ample
alternative channels for communication of the information.’” This is weird
framing because false advertising does assess content; the court thus turns to
the commercial speech inquiry, which is the dispositive issue.

The court credited the AG’s evidence that COLFS uses the APR
statements in advertisements that are directed towards, and solicit, women to
become potential clients. The statements were “placed in a commercial context
and are directed at the providing of services rather than toward an exchange of
ideas.” COLFS’s use of the APR statements in its yearly fundraising gala and use
of patient stories about APR to solicit donations also provided a “powerful
economic motivation.” Plus, even though COLFS argued that it provided “numerous
free services,” including “free APR treatment,” it still accepts insurance and
payment for APR treatments from women who do have the ability to pay. That was
an obvious economic motivation, which COLFS didn’t address.

What about falsity/misleadingness? “Three district courts
have struck down state laws that required abortion providers, under threat of
criminal sanction, to inform patients about supplemental progesterone therapy
in language providers objected to for being untruthful or misleading.” Plus,
district courts have split on this situation: “a pro-life organization asking
for a preliminary injunction that would disallow an attorney general from
pursuing a hypothetical enforcement action against them based on APR-related
speech.”

Use of the terms “reverse” and “reversal”: These statements
are based on a theory that supplemental progesterone can “outcompete”
mifepristone to counteract or “reverse” the effects of mifepristone. Typically,
mifepristone acts as a “competitive binder of the progesterone receptor – it
binds to progesterone receptors at twice the avidity of progesterone itself,
thus blocking endogenous progesterone from acting to support a pregnancy.” But,
given high amounts of progesterone in pregnancy, mifepristone is still able to
work; adding more progesterone would be like “rain on a swimmer in a pool – the
swimmer cannot get more wet.” Rat studies were unhelpful because “there are
significant differences between rat and human pregnancies and progesterone’s
actions in each” and “[p]rogesterone receptors also vary widely between species
in their responsiveness to different molecules…”

A recent placebo-controlled study on nine people was
designed to examine the effects of progesterone supplementation, after
mifepristone administration, on the endometrium (the inner lining of the uterus
where implantation occurs) on nonpregnant persons, but the endometrial lining,
uterus, and hormonal milieu of a pregnant person are all “vastly different”
from those of a nonpregnant person.

Given that the science was “unclear on how exactly
supplemental progesterone reacts with mifepristone,” the court turned to the common
understanding of the word “reverse” to determine whether it accurately captures
what we do know about the effects of supplemental progesterone. According to
dictionary definitions, “reverse” means “to change the direction, order,
position, result, etc. of something to its opposite.” Or, “to turn completely
about in position or direction” or “to undo or negate the effect of (something,
such as a condition or surgical operation).” “Reversal” was the wrong way to
describe the evidence here. It was also plausible that “failing to continue
taking the second drug in the medication abortion regimen, misoprostol, may
result in continued pregnancy in some percentage of women who take
mifepristone[.]” (The court notes that there is no agreement on the baseline
here. In studies, continuing pregnancy rates ranged from 8% to 46%, depending
on the mifepristone regimen used, making it hard to conclude that supplemental
progesterone did any better than simply not taking the second medication.) Without
better evidence, “it would be at the very least potentially misleading to state
that supplemental progesterone can ‘reverse’ an abortion.”

Effectiveness statements: COLFS’s principal’s study purportedly
showed that progesterone increases the chances of a pregnancy continuing after
taking mifepristone. But some patients were screened by ultrasound for viable
pregnancies before joining the study, which biased the data towards pregnancies
already likely to continue. It also did not record how far along in her
pregnancy each patient was or how much progesterone each patient took – even
though mifepristone is less effective at terminating pregnancies as they
progress. And there were no controls in the study, despite treatment by 325
different medical providers. Thus, the study didn’t support the statement that APR
is “effective” in continuing pregnancies. [Reminder: the AG can go after
advertising for lack of substantiation.] “The Court finds that given the lack
of robust scientific study on this issue, statements on the effectiveness of
APR are potentially misleading.”

Likewise, there wasn’t enough evidence to conclude that the
side effects were limited/that APR was safe. “No study offered or used by COLFS
appears to track health or safety outcomes for the pregnant individual.” The
first and only randomized clinical study to attempt to test the safety and
efficacy of APR had to stop because of the serious “safety concerns” after 3 of
the 12 participants experienced “severe bleeding” after taking mifepristone
without misoprostol. Two of those three received a placebo; the third person
had been given progesterone. The “dearth” of evidence made it potentially
misleading to say that APR can only cause non-life-threatening side effects.

Birth defects: Again, the evidence was limited and tiny. “Given
the lack of scientific evidence on this specific question, the Court finds the
statements on birth defects following APR to be potentially false and
misleading.”

That APR has a 64-68% success rate was also inherently false
and misleading, given the defects in the supporting studies and the lack of
clarity about what percentage of COLFS patients would use which methods of
administration.

“Thousands of lives saved” statement: This claim was based
on the number of pregnant people who used APR and were confirmed by Heartbeat
International to remain pregnant at 13 weeks, plus the number of those who
started APR (but Heartbeat cannot confirm remained pregnant) multiplied by a
64% success rate. But there was no reason to generalize this statistic to all
women who started APR. These were potentially false and misleading.

Statements on non-standard situations (after 72 hours have
passed from the ingestion of mifepristone and t after taking the second pill of
medication abortion): “From the Court’s review, nothing from the expert
declarations submitted by COLFS even purports to support either of these
statements.” These statements were inherently misleading.  

Where the statements were inherently misleading, the court’s
analysis was done. Where they were only potentially misleading, the court
proceeded to apply Central Hudson. (In my view, this is the wrong
approach. The potentially misleading standard goes to the scope of a prohibition—if
a statement is potentially misleading, the question is whether it can be
communicated in a nonmisleading way, in which case the properly presented claim
can’t be prohibited entirely. But the particular way in which a defendant is
communicating a claim may be actionable/enjoinable even if the state would be
required to allow a properly qualified claim. Given the posture of the case, I
would expect this to be an issue for the state court.)

Under Central Hudson, the regulation of misleading advertising
by medical professionals directly advances a substantial government interest
(protecting medical consumers). And it directly advances the asserted
government interest and was not more extensive than necessary to serve that
interest. “AG Bonta is not aiming to limit the actual practice of APR. And
reproductive choices are not apart from consumer choices: women, in exercising
their reproductive rights, are also consumers who must be given the correct
information to make knowledgeable decisions for themselves.”

 

from Blogger http://tushnet.blogspot.com/2025/06/abortion-reversal-promoter-engaged-in.html

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it’s plausibly deceptive to sell “Kids” gummies identical to adult gummies

Barrales v. New Chapter, Inc., 2025 WL 1584424, No.
2:25-cv-01171-HDV-KES (C.D. Cal. Jun. 4, 2025)

Plaintiff alleged that defendant’s Fiber Gummies were deceptively
labeled (1) because the claim “with 4g of probiotic fiber” was false because it
implies that each gummy contains that amount of fiber, when the serving size is
2 gummies; and (2) because the KIDS Organic Fiber Gummies falsely implies that
the product is specifically formulated or uniquely suitable for kids. She
brought the usual
California claims
(including common-law claims).

regular gummies

Kids gummies

Compared to the regular gummies, the front label of the Kids
Gummies has the word “kids” with each letter a different color, but they have
the exact same chemical composition and consumption method as the Fiber
Gummies.

Defendant argued that the FDCA preempted the claim because
it expressly allows claims made by serving size. FDCA regulations allow “direct
statements about the level (or range) of a nutrient in the food” so long as
they “do not in any way implicitly characterize the level of the nutrient in
the food and are not false or misleading in any respect.” Here, the allegations
were that the nutrient content claims were false or misleading; thus, plaintiff
was seeking only to enforce a requirement identical to federal law and her
claims weren’t preempted.

Defendant argued that “with 4g[rams] prebiotic fiber” was
specifically allowed because it was based on the “reference amount customarily
consumed,” i.e., serving size, FDA-defined as the “maximum amount recommended,
as appropriate, on the label for consumption per eating occasion.” “But the
Ninth Circuit differentiates between claims that challenge and seek to alter
accurate statements about serving size and the nutrient content thereof, and
claims that a defendant’s ‘omission of supplemental or clarifying language’
misleads consumers.” The plaintiff wasn’t seeking to alter how the serving size
is calculated, nor how the fiber content of each serving is calculated.

Misleadingness was also plausible; a reasonable consumer
might not consult the back label. Believing that each gummy contains four grams
of fiber was “plausibly an unambiguous interpretation of the label based solely
on the language used.”

Likewise, it was plausible for a reasonable consumer to be
deceived by the “KIDS” label into thinking it was especially suitable for kids.
Contrary cases involved factual differences, e.g. a medicine whose “infant”
version came with a dropper for administration and its otherwise identical “children’s”
version had a cup. “Here, there is nothing, pharmacologically or otherwise,
that differentiates the Fiber Gummies from the Kids Gummies.”

 

from Blogger http://tushnet.blogspot.com/2025/06/its-plausibly-deceptive-to-sell-kids.html

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“wholesome” not puffery in context, court finds

Levit v. Nature’s Bakery, LLC, 767 F.Supp.3d 955 (N.D. Cal.
2025)

Nature’s Bakery Products fig bars claim “Wholesome Baked
In,” “equal parts wholesome and delicious,” “what we bake in is as important as
what we leave out,” “simple snacks made with real ingredients,” and “the best
fuel for active … lives.” The packaging also includes a “ ‘heart’ vignette
next to depictions of real, whole fruit, and also displays a ‘Whole Grains
Council’ stamp.”

Nature’s Bakery front panel

Levit alleged that the products are actually high in sugar,
excessive consumption of which is “toxic to the human body.” Of 19 total grams
of sugar, 14 grams are added sugars, representing 28% of the total calories.
Levit brought the usual
California statutory claims,
as well as common law claims for breach of
express warranty, breach of the implied warranty of merchantability, negligent
and intentional misrepresentation, and unjust enrichment.

The court found most, but not all, of the challenged
statements to be puffery: “what we bake in is as important as what we leave
out” is an unmeasurable opinion, and, in full context, “Started by father and
son bakers, we believe simple snacks made with real ingredients are the best
fuel for active, joyful lives,” was a subjective statement of belief, as was
the heart vignette in conjunction with the phrase “We ‘Heart’ Figs.” Likewise,
though the “Whole Grains Council” stamp was falsifiable, Levit didn’t allege that
it was false.

However, the statements using “wholesome” were potentially
actionable.

“Wholesome Baked In” and “equal parts wholesome and
delicious” were not phrases like “unbelievably wholesome” or “positively
wholesome,” which converted the term to “exaggerated advertising, blustering,
[or] boasting.”

And deception was plausibly alleged where a food label
proclaims a product to be healthy but in fact allegedly contains unhealthful
levels of sugar, despite the disclosures on the Nutrition Facts panel. There
was no argument that “wholesome” was ambiguous such that a reasonable consumer
would consult the label to determine its meaning. However, fraudulent
omission-based claims failed because there needs to be a duty to disclose;
although the complaint plausibly alleged that high levels of sugar mean the
products are not wholesome, it didn’t plausibly allege that eating Nature’s
Bakery’s fig bars in “customary” amounts would cause death or serious injury,
or any other basis for a duty to disclose.

from Blogger http://tushnet.blogspot.com/2025/06/wholesome-not-puffery-in-context-court.html

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competitor’s challenge to use of expired certification marks must go to trial

FireBlok IP Holdings v. Hilti, Inc., No. 19-cv-50122, 2025
WL 1557924 (N.D. Ill. Jun. 4, 2025)

FireBlok sued defendants, relevantly for false advertising
and false association. The court denied FireBlok’s motion for summary judgment.

FireBlok alleged that defendants’ use of the UL certified
mark and FM approved mark on their product, the Firestop Box Insert, was false
advertising and false association. “According to UL’s website, a product with
the UL certification mark is one that UL found to meet UL’s requirements by a
representative sample. According to FM’s website, an FM approved mark denotes
that a product has completed FM’s testing process.” FireBlok was never FM
approved, and its UL certification was withdrawn in 2025. Defendants’ product
has used the UL and FM marks since 2008 and 2009, respectively, but requested
withdrawal of UL certification/sent an email to FM leading FM to withdraw its
listing in 2008.

FireBlok was asserting false association claims on behalf of
a third party as false advertising, which led to an “undifferentiated amalgam
of a claim.”

 “A ‘literal’
falsehood is bald-faced, egregious, undeniable, over the top.” (This is a bad
standard, risking a conflation of falsity with willfulness.)

The court found that it was not enough to get summary
judgment on literal falsity that defendants withdrew their certifications with
both certifying bodies. Defendants argued that the Firestop Box Insert was, in
fact, UL certified as shown by UL’s continued listing of Hilti’s product as a
UL certified product and UL’s lack of adverse actions against Defendants for
their use of the UL certified mark, and that their use of the FM approved mark
was not literally false because FM continued to conduct routine inspections of
the manufacturing process, issued Certificates of Compliance, and continued
listing the Firestop Box Insert as an FM Approved product. This was a genuine
factual dispute over what the use of certification marks meant. A jury could
find the use to mean that the Firestop Box Insert met the safety requirements
set by UL and FM, “in which case the statement would be true.” But a jury could
also reasonably interpret these statements to mean that defendants were
authorized to use these marks on their product [though one has to wonder about
materiality in that event].

The parties argued over the likely confusion factors, but false
attribution isn’t enough: “a false advertising claim requires a showing of
deception about the product itself.”

FireBlok also failed to show that there was no dispute about
materiality. Nor was injury to FireBlok shown sufficiently to grant summary
judgment; it wasn’t enough that the parties competed.

What about false association? (I would probably have held
that there wasn’t standing under 43(a)(1)(A), only (B).) Doing conflating of
its own, the court said that, without literal falsity, FireBlok had to show misleadingness
with actual consumer confusion, and there was no evidence of that. The court
would not presume likely confusion from literal falsity in a false association
case.

 

from Blogger http://tushnet.blogspot.com/2025/06/competitors-challenge-to-use-of-expired.html

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P&G’s primary jurisdiction argument over tampon labels goes down like a lead balloon

Barton v. Procter & Gamble Co., 766 F.Supp.3d 1045 (S.D.
Cal. 2025)

Plaintiffs alleged that P&G’s Tampax Pearl and Radiant
tampons had dangerous levels of lead; the court allowed some of the usual
California claims
to proceed, including for injunctive relief.

There’s no safe level of lead exposure, and it’s “particularly
harmful to young children and women of child-bearing age.” California’s
Proposition 65 establishes a Maximum Allowable Dose Level of 0.5 micrograms of
lead per day for reproductive toxicity. Based on “independent scientific
testing and analysis,” the ordinary and expected use of the tampons would
allegedly expose consumers to more than this MADL per day. Plaintiffs alleged
that their independent laboratory testing of the super versions shows that
Tampax Pearl Products contain .181 micrograms of lead per gram, and that Tampax
Radiant Products contain .123 micrograms of lead per gram; extrapolating to
light and regular, consumers would allegedly be exposed to lead in excess of
the MADL regardless of which type they used.  Plaintiffs alleged that vaginal insertion
allowed lead to be directly absorbed into the bloodstream, making this exposure
particularly bad.

The package statements “#1 U.S. GYNECOLOGIST RECOMMENDED
TAMPON BRAND”; “FREE OF PERFUME”; “FREE OF ELEMENTAL CHLORINE BLEACHING”; “TAMPON
FREE OF DYES”; and “CLINICALLY TESTED GENTLE TO SKIN” allegedly mislead
reasonable consumers to believe that the tampons are safe to use, including
that “they are free from potentially harmful elements and ingredients.”

The court rejected the application of the primary
jurisdiction doctrine. A 2024 study finding “measurable concentrations” of lead
“in 30 tampons produced by 14 tampon brand manufacturers,” which concluded that
“[f]uture research is necessary to replicate our findings and determine whether
metals can leach out of tampons and cross the vaginal epithelium into systemic
circulation.” “In response, on September 10, 2024, the FDA announced that it
commissioned an independent literature review and initiated an internal bench
laboratory study to determine if metals from tampons are released and if they
are absorbed by the body.” The completed literature review “did not identify
safety concerns associated with tampon use and contaminant exposure.” Despite
the “limitations related to the methods used in the [reviewed] studies” and the
fact that none of the studies actually addressed “how much, if any, of the
contaminants identified are released from the tampon or absorbed through the
vagina,” the FDA stated that it “continues to recommend FDA-cleared tampons as
a safe option for use as a menstrual product.”

“Although the FDA has a history of regulating tampons, the
primary jurisdiction doctrine does not ‘require[ ] that all claims within an
agency’s purview … be decided by the agency.’” “ The FDA’s literature review
did not, and the FDA’s laboratory study will not, review affirmative
representations such as those on the Product packaging and determine whether
they were misleading when Defendant omitted the presence of lead in the tampons.”
And, as to the fraudulent omission of an unreasonable safety risk allegations,
the underlying questions of whether lead is released from tampons, enters the
circulatory system, and creates an unreasonable safety risk are within the
jurisdiction of the FDA, but there was no indication that the FDA was going to
provide an opinion on any particular tampon, and staying the case would cause a
delay. The FDA provided no timeline for releasing its findings after peer
review. (And, honestly, even a functioning FDA takes years; does anyone believe
that’s what we have?) “[P]rimary jurisdiction is not required when a referral
to the agency would significantly postpone a ruling that a court is otherwise
competent to make.”

However, the court found that the complaint lacked
sufficient detail as to the laboratory that performed the testing or the form
and date of testing. (I remain baffled by why this is important at the pleading
stage.) Also, plaintiffs needed either to test the light and regular products
or explain why extrapolation was appropriate, given that a different sub-brand
of Tampax, pure cotton, didn’t have detectable levels of lead. (Maybe because
it’s made differently?) Leave to amend was granted.

The court also denied P&G’s argument that the complaint
was an impermissible attempt to bring a “back-door Proposition 65 claim.” Under
Proposition 65, no person doing business shall “knowingly and intentionally
expose any individual to a chemical known to the state to cause cancer or
reproductive toxicity without first giving clear and reasonable warning to such
individual” where the amount exceeds the “no significant risk level”
established by the California Environmental Protection Agency’s Office of
Environmental Health Hazard Assessment. Private parties can enforce Proposition
65, but only 60 days after they give “notice of an alleged violation” to the
“alleged violator,” the California Attorney General, and local prosecutors. The
notice must also include a “certificate of merit” that states that the “person
executing the certificate has consulted with one or more persons with relevant
and appropriate experience or expertise … and that, based on that
information, the person executing the certificate believes there is a
reasonable and meritorious case for the private action.” Pre-filing notice is
mandatory, and defective notice cannot be cured retroactively. A plaintiff
cannot skirt these requirements by bringing claims – under consumer protection
statutes – that would otherwise “be barred under Proposition 65.”

But the complaint here wasn’t entirely derivative of the
unspoken Proposition 65 violation (failure-to-warn of lead). Plaintiffs alleged
that P&G “has gone beyond the offenses of omission that Proposition 65
seeks to prevent and has affirmatively deceived its customers.”

Here, representations like “GYNECOLOGIST RECOMMENDED,” “FREE
OF ELEMENTAL CHLORINE BLEACHING,” and “CLINICALLY TESTED GENTLE TO SKIN” were
sufficiently “conceptually related” to the idea that the tampons are free from
harmful substances, like lead. By contrast, statements on chocolate products
such as “always small farmer grown” would not lead reasonable consumers to
believe that the chocolate didn’t contain unsafe levels of toxins, because the
connection between being locally grown and being free from toxins is attenuated.
Here, safety- and additive- related representations more plausibly suggested
the absence of lead.

However, material omission claims failed. Plaintiffs didn’t sufficiently
allege that the presence of lead amounts to an unreasonable safety hazard. There
was no allegation that the tampons even release lead, and the court thought
that the allegations that they would “contradicted” the June 2024 study,
although it looked to me like the study just said that it didn’t investigate
that question itself, which is not a contradiction.  Even if the tampons released lead at the
levels alleged, plaintiffs still failed to allege that the lead was
“unreasonably hazardous at the particular levels in the specific Products.”

Equitable claims: Although plaintiffs could plead inadequate
legal remedies in the alternative to seek disgorgement/restitution, they hadn’t
done so (again, there was leave to amend). However, they had pled that legal
remedies were inadequate as to prospective injunctive relief.  An injunction wouldn’t necessarily require
P&G to change the product composition; it could require a disclosure. Plaintiffs
properly alleged their inability to rely on the product label in the absence of
an injunction.

from Blogger http://tushnet.blogspot.com/2025/05/p-primary-jurisdiction-argument-over.html

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Deadline extended to Friday: TM scholarship roundtable

 

TM scholarship roundtable

The Trademark and Unfair Competition Scholarship Roundtable
co-hosted by Harvard, NYU, and the University of Pennsylvania will take
place this year at the University of Pennsylvania in Philadelphia, PA.
The Roundtable is designed to be a forum for the discussion of current
trademark, false advertising, right of publicity, and related unfair
competition and IP scholarship, covering a range of methodologies,
topics, and perspectives. Five to six papers will be chosen for
discussion over the course of the Roundtable, with each paper allocated
an entire hour for discussion and assigned a commentator.   

The
Roundtable will be held on Friday, October 10, 2025. If there is a
critical mass of papers, we may also extend the Roundtable through
Saturday morning, October 11th. Participation at the Roundtable will be
limited and invitation-only. We expect all participants to have read the
papers in advance. The Roundtable will cover the travel and lodging
expenses for invited authors.  We invite submissions from scholars
working on any aspect of trademark, false advertising, marketing, right
of publicity, unfair competition, or related areas of the law. Priority
will be given to those who can attend the entire event (including
Saturday) and a dinner the night of Friday, October 10th. Submissions
must be of full drafts in Microsoft word or PDF format. The deadline for
submission is May 30th.

To submit a draft paper, please fill out the form here: https://cvent.me/RXxbZ0 and upload an anonymized
version of your draft.  Please note that the maximum file size that may
be uploaded is 10MB. Appendices or other supporting material or larger
files can be emailed separately to ctic@law.upenn.edu; please do not submit a CV or cover letter. 

For further information about the Roundtable, please email: Jennifer Rothman (Penn): rothmj@law.upenn.edu; Barton Beebe (NYU): barton.beebe@nyu.edu; or Rebecca Tushnet (Harvard): rtushnet@law.harvard.edu.

from Blogger http://tushnet.blogspot.com/2025/05/deadline-extended-to-friday-tm.html

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court holds Elon Musk couldn’t be deceived by statements he coauthored

Musk v. OpenAI, Inc., 2025 WL 1482386, No. 4:24-CV-04722-YGR
(N.D. Cal. May 1, 2025)

I’m only discussing the false advertising claims; they are
funny.

Musk’s false advertising claim under California law fails
because “there is no evidence Musk relied on OpenAI’s public-facing statements
to his detriment,” given that, under the facts pled as the complaint and the
attached exhibits, “Musk himself helped author” the statements about OpenAI’s
commitment to humanity that allegedly misled him.

Musk’s Lanham Act claims also failed; the theory was that the
statements injured Musk and xAI as competitors, but “Musk is not xAI himself”
and thus could not have been injured.

from Blogger http://tushnet.blogspot.com/2025/05/court-holds-elon-musk-couldnt-be.html

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omission of FedEx’s role in embryo transport was potentially deceptive

S.W. v. Cryoport, Inc., 2025 WL 1421909, No.
8:24-cv-02212-AH-(DFMx) (C.D. Cal. Apr. 24, 2025)

Tragic facts in this consumer protection case. Plaintiffs
underwent IVF treatments in 2019 to preserve their options, resulting in six cryopreserved
healthy embryos. They contracted with Cryoport to have the embryos transferred
from a fertility clinic in San Francisco to Irvine, California. Cryoport provided
a travel tank to the clinic, clearly labeled as containing live specimens. What
plaintiffs allegedly didn’t know was that Cryoport hired FedEx to physically
take the package from San Francisco to Irvine; they learned that by receiving
tracking alerts to FedEx. FedEx misdelivered the package to Cryoport’s
logistics center, where a Cryoport employee opened the container and removed
the contents; the embryos were then put back into a container and delivered to
Irvine, no longer viable.

Plaintiffs sued for (1) bailment; (2) negligence and/or
gross negligence; (3) violation of the California CLRA and (4) violation of the
UCL. The contract’s limitations on liability to $200 applied (though not as to
gross negligence); the court found that the contract limitations weren’t
unconscionable or void as against public interest, though the claims otherwise
survived. (Not clear to me whether CLRA/UCL claims are also governed by the
contract; consumer protection laws were designed in part to avoid ordinary
contractual exculpation clauses and the claims here go to whether they would
have engaged in the transaction in the first place had they known the truth.)

The CLRA and UCL claims were based on omissions. “A failure
to disclose a fact can constitute actionable fraud or deceit in four
circumstances: (1) when the defendant is the plaintiff’s fiduciary; (2) when
the defendant has exclusive knowledge of material facts not known or reasonably
accessible to the plaintiff; (3) when the defendant actively conceals a
material fact from the plaintiff; and (4) when the defendant makes partial
representations that are misleading because some other material fact has not
been disclosed.”

Cryoport argued that no reasonable consumer who purchased
Defendant’s standard transport services would be deceived into believing that it
would physically transport the materials at issue. But plaintiffs alleged that
Cryoport repeatedly identified itself as offering “transportation,” “shipping,”
and “courier” services, and conveyed to consumers that it itself transports the
material entrusted to it. They sufficiently alleged that the identity and
participation of FedEx was material information that Cryoport was obligated to
disclose, and that the omission was likely to confuse reasonable consumers; the
complaint pointed to public reviews highlighting that FedEx is involved. “This
indicates that a reasonable consumer would likely not understand from
Defendant’s representations that it utilized FedEx for its services.”

 

 

from Blogger http://tushnet.blogspot.com/2025/05/omission-of-fedexs-role-in-embryo.html

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omissions-based deceptiveness claims are easier to bring in Cal. than NY

Gamino v. Spin Master, Inc., No. ED CV 23-2242-DMG (SPx), 2025
WL 1421907 (C.D. Cal. Mar. 31, 2025)

California and New York residents sued the manufacturers of
certain children’s toys they purchased, “Orbeez water beads,” alleging the
water beads pose certain severe, undisclosed health hazards to children. “Water
beads” are “tiny, spherical, and gelatinous toys that look strikingly similar
to candy” and have gained immense popularity over the last decade. They’re made
from superabsorbent polymers that expand up to 1,500 times their original size
when exposed to water. “They are often marketed as sensory toys for children
who are young or who suffer from developmental conditions to squish and move
around to aid in their fine motor development.”

However, because they swell when exposed to fluid, “water
beads pose severe health risks to children who ingest or insert the beads into
their bodies, unless the beads are identified and surgically removed. This can
cause injuries such as intestinal blockage or obstruction of the nasal cavity,
ear canal, or respiratory system.” Worse, they’re “practically invisible” on
x-rays. Plaintiffs alleged “several thousand reported water beads-related
hospitalizations of children across the country, per year, since at least 2017,
including several reported deaths.”

Each product has a warning for a choking hazard and
instructions to keep the product away from children under 3 and pets. Also,
each product except one also includes a “CAUTION: DO NOT EAT” warning or an
illustration indicating not to eat the product. A few Orbeez products also
include “do not insert Orbeez into nose or ear” warnings. See, e.g., id. at 6.2

Spin Master argued that no reasonable consumer could have
been misled because the front packaging features prominent warnings about the
dangers of eating Orbeez. “But such warnings do not capture the essence of the
hazards alleged.” Plaintiffs alleged that “there is a severe risk of harm if
children insert a water bead into their body other than by eating it—for
instance inserting a water bead into their ear or nose,” citing an allegation
about a child who suffered profound hearing loss after inserting a water bead
into her ear, where it grew in size and was undetected for 10 weeks.

“A choking hazard warning could reasonably be interpreted by
a consumer to suggest that if a child swallows a water bead without immediately
choking, the child is no longer in danger.” But the complaint alleged that
choking wasn’t the only danger, citing incidents in which children suffered
severe harm or even death after ingesting or aspirating water beads, including
incidents in which there was a delayed onset of symptoms coupled with the
inability of x-rays to detect the ingested bead lodged in the child’s body. Even
“do not eat” warnings coupled with “choking hazard” warnings could plausibly
mean, to a reasonable consumer, that the choking hazard was the reason
not to eat the beats.

However, the NY consumer protection claims were dismissed
because plaintiffs could reasonably have obtained the information from other
sources. Under NY law, an omissions-based claim requires that “the business
alone possesses material information that is relevant to the consumer and fails
to provide this information.” The complaint itself showed that Spin Master wasn’t
alone in possessing information about the hidden dangers of the products,
including the Consumer Products Safety Commission’s publicly available
databases [ed. note: for now!]. “Consumers and parents have also allegedly
denounced water beads for over a decade, including a parent who runs a
non-profit organization to educate the public about the dangers of children
playing with water beads.”

By contrast, in DeCoursey v. Murad, LLC, 673 F. Supp. 3d
194, 218 (N.D.N.Y. 2023), plaintiffs alleged an eye product contained color
additives unsafe for the eye area, citing FDA regulations prohibiting color
additives. “A consumer could not reasonably have learned of the danger, as the
consumer would have had ‘to research the regulation for each specific additive
and cross-reference the general FDA regulation that color additives may not be
used unless the specific regulation for the color additive permits use in the
eye area.’” And Kyszenia v. Ricoh USA, Inc., 583 F. Supp. 3d 350 (E.D.N.Y.
2022), involved only complaints on a “handful” of websites.

However, the plaintiffs did plead a duty to disclose under
California law, which requires “(1) the existence of a design defect; (2) the
existence of an unreasonable safety hazard; (3) a causal connection between the
alleged defect and the alleged safety hazard; and that the manufacturer knew of
the defect at the time a sale was made.”

The court dismissed equitable relief claims, though not
claims for injunctive relief, and also kicked out claims for unjust enrichment,
negligent misrepresentation, NY fraudulent inducement but not California
fraudulent inducement, and express/implied warranty claims (because a failure
to disclose can’t be an affirmation of fact or promise by a seller that becomes
part of a bargain).

 

from Blogger http://tushnet.blogspot.com/2025/05/omissions-based-deceptiveness-claims.html

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