Posts Tagged: "false and misleading claims"

The FTC’s complaint against Sony charges the company with making false claims about the PS Vita’s “cross platform gaming” or “cross-save” feature. Sony claimed, for example, that PS Vita users could pause any PS3 game at any time and continue to play the game on their PS Vita from where they left off. This feature, however, was only available for a few PS3 games, and the pause-and-save capability described in the ads varied significantly from game to game.

The settlement with MPHJ is the first time the FTC has taken action using its consumer protection authority against a patent assertion entity (PAE). PAEs are companies that obtain patent rights and try to generate revenue by licensing to or litigating against those who are or may be using patented technology. “Patents can promote innovation, but a patent is not a license to engage in deception,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Small businesses and other consumers have the right to expect truthful communications from those who market patent rights.”

The Supreme Court reversed a decision from the Ninth Circuit that held that within the realm of labeling for food and beverages, a Lanham Act claim asserting that the label is deceptive and misleading is precluded by the Federal Food, Drug, and Cosmetic Act (FDCA). This case arose relating to the belief of POM that claims made by the Coca-Cola Company were misleading with respect to a juice blend sold by Coca-Cola’s Minute Maid division. The juice sold by Coca-Cola prominently displays the words “pomegranate blueberry,” but in truth the product contains only .3% pomegranate juice and only .2% blueberry juice.

In its complaint the FTC charges that the defendants violated the FTC Act by misleading consumers that the content on Jerk.com had been created by other Jerk.com users, when in fact most of it had been harvested from Facebook; and by falsely leading consumers to believe that by paying for a Jerk.com membership, they could access ”premium” features that could allow them to change their ”Jerk” profile. The FTC is seeking an order barring the defendants’ deceptive practices, prohibiting them from using the personal information they improperly obtained, and requiring them to delete the information.

Following a public comment period, the Federal Trade Commission has approved final consent orders in three cases involving allegedly deceptive environmental claims for mattresses. The FTC’s complaints, first announced in July, 2013, against Relief-Mart, Inc.; Esssentia Natural Memory Foam Company, Inc.; and Ecobaby Organics, Inc., charged the companies with making unsupported claims that the mattresses they sell are free of harmful volatile organic compounds (VOCs).

The Federal Trade Commission today announced six enforcement actions, including one that imposes a $450,000 civil penalty and five that for the first time address biodegradable plastic claims, as part of the agency’s ongoing crackdown on false and misleading environmental claims. All of these cases are part of the FTC’s program to ensure compliance with the agency’s recently revised Green Guides. The Commission publishes the Guides to help businesses market their products accurately, providing guidance as to what constitutes deceptive and non-deceptive environmental claims.

The Clickbooth affiliate network has agreed to pay $2 million to settle Federal Trade Commission charges that its affiliate marketers deceived consumers through bogus weight-loss claims on fake news sites about acai berry supplements and so-called “colon cleansers.” The FTC will seek to use the $2 million judgment announced today to provide refunds to consumers who were allegedly deceived by the defendants’…

Yesterday Leason Ellis announced that the case has been resolved with the signing of a consent decree and Settlement Agreement. Without a doubt this can be characterized as nothing short of a complete and total victory. The judgment was entered by the Hon. Edgardo Ramos of the United States District Court for the Southern District of New York.

Yet another ad that the FTC took issue with was one featuring celebrities including Kim Kardashian and Brooke Burke, which aired during the 2011 Super Bowl. In the ad Kardashian is showed dumping her personal trainer for a pair of Shape-ups. In the Burke ad consumers were told that the newest way to burn calories, tone and strengthen muscles was to tie their Shape-ups shoe laces. Clearly, the message is that you don’t need to work out if you wear Shape-ups, which turns out to be untrue. What a surprise! Frankly, I’m not sure that these ads deserved the ire of the FTC.

A conversation with Matthew Bryan, who is the Director of the PCT Legal Division at the World Intellectual Property Organization (WIPO) regarding what WIPO is doing to combat patent schemes that plague the industry. As you will see, these schemes are lucrative. In one case that Bryan tells us about, in which he was an expert witness, a court in Florida “found that in the 2 years of operating, FIPTR had received over 2.5 million dollars in payments from PCT users just in the State of Florida.” With that kind of money potential it is easy to see why the scams persist.

On February 3, 2012, I had the pleasure of interviewing Deborah Cohn, the Commissioner for Trademarks at the United States Patent and Trademark Office. Part 1 of the interview was published yesterday. What follows is the remainder of the interview. We discussed a range of topics in this segment, including average pendency of trademark applications, cease and desist practice and some of the misleading letters sent to trademark owners and applicants from various third-parties that provide dubious publication services.

The UK Intellectual Property Office (UK IPO) characterizes it as misleading, warning “don’t be misled.” The European Patent Office (EPO) calls it deceitful, characterizing it as “subterfuge,” and further pointing out that “their services have no legal effect whatsoever.” The World Intellectual Property Organization (WIPO) says that they are “unrelated to the processing of international applications.” Yet many continue to believe that the nefarious and seemingly ubiquitous solicitations sent to patent applicants and owners are official invoices that must be paid in order to continue to move forward with an international patent application or foreign patent application.

Leason Ellis LLP, an intellectual property law firm located in White Plains, New York, recently filed a complaint against USA Trademark Enterprises, Inc. of Sarasota, Florida. The multi-count Complaint alleges that USA Trademark Enterprises has engaged in false advertising and unfair competition by marketing a catalog of trademark registrations, which offers no value because the published information is freely available in the online records of the U.S. Patent and Trademark Office. David Leason, Managing Partner of Leason Ellis, said “by targeting our clients and us, USA Trademark Enterprises has interfered in our business and cast a shadow over the legitimacy of trademark-related communications. In filing suit, we are out to protect our clients, our business, and the integrity of the trademark process from predatory and deceptive marketing.”