Takeaways: The intended uses of products are relevant to their classification as a cosmetic and/or a drug. Products can be regulated concurrently as both a drug and a cosmetic depending on intended uses. Companies should be aware of claims of intended uses of products to ensure these products are properly classified under federal law.…

Businesses that market and sell to consumers are heavily focused on navigating federal and state legal issues related to advertising, privacy, promotions, products liability, government investigations, unfair competition, class actions and general consumer protection. The California Consumer Privacy Act (CCPA) has introduced a series of robust obligations for brick and mortar businesses that collect personal information about those consumers, which creates numerous compliance challenges. These businesses – most commonly retailers and the hospitality industry –…

Takeaways: Recent detection of cosmetic products containing asbestos has led to voluntary recalls of five products so far this year. At present, the FDA does not have mandatory recall authority over cosmetic products. The FDA and Congress are contemplating proposals concerning the cosmetics industry that may lead to further enforcement activity in this sector.…

On the heels of three FTC consent decrees involving the Consumer Review Fairness Act (CRFA), the FTC has brought two more CRFA-related complaints against home-rental businesses. Broadly speaking, the CRFA, which became effective in 2017, makes it unlawful for a business to prohibit its customers from being able to post negative reviews online. As predicted, we are seeing an increase in FTC enforcement of the CRFA in 2019.…

Takeaway: The U.S. Supreme Court ever so slightly trimmed removal rules under the Class Action Fairness Act (CAFA) last week in Home Depot U.S.A., Inc. v. Jackson, No. 17-1471. In an opinion by Justice Thomas, the Court held that neither CAFA nor the general removal statute (28 U.S.C. § 1441(a)) permit removal by a third-party counterclaim defendant. That is, a party brought into the suit through a claim filed by the original defendant cannot remove…

California’s new Autobot Law, Cal. Bus. & Prof. Code § 17940, et seq. (SB 1001), which goes into effect July 1, 2019, may affect businesses that use chatbots to interact with customers online. As the nation’s first autobot regulation, SB 1001 makes it unlawful “to use a bot to communicate or interact with another person in California online, with the intent to mislead the other person about its artificial identity for the purpose of knowingly…