Don’t Game Your Players with False Advertising

Advertising for new games can present some troublesome legal issues, if due care is not taken. A recently concluded matter in the UK highlights an example of the potential issues. Hello Games was investigated by the Advertising Standards Authority (ASA), based on complaints from customers that advertised features of its game (No Man’s Sky) either did not actually appear in the game or did not appear in the way advertised. The ASA ruled, in this case, that the advertising was not in fact legally misleading. Notwithstanding this ruling, game publishers need to be careful when advertising new games.

Continue Reading

FTC Requires that iSpring’s “Built in USA” Claims Hold Water

On February 1, 2017, the Federal Trade Commission (“FTC”) and iSpring Water Systems, LLC (“iSpring”) reached a settlement regarding its false, misleading, and unsupported claims that its water filtration systems and parts are “Built in USA,” “Built in USA Legendary brand of water filter,” and “Proudly Built in the USA.”

Continue Reading

FTC / DAA Extend Data Privacy Focus to Cross-Device Tracking

Enforcement of the Digital Advertising Alliance “Application of the Principles of Transparency and Control to Data Used Across Devices” (DAA Cross-Device Principles) officially began on February 1, just a week after the FTC issued a staff report discussing the application of the FTC Online Behavioral Advertising Principles in the context of “Cross Device Tracking” and suggesting that the DAA Cross-Device Principles, while commendable, could be stronger. Continue Reading

Using Hashtag #Disclosures in Social Media Advertising

The Federal Trade Commission (“FTC”) has been cracking down on brands for paying Instagram users to endorse their products or to share brand content without disclosing the relationship.  Indeed, the recent settlements entered between the FTC and several media and entertainment companies as well as a specialty retailer make it clear that the FTC is paying close attention to endorsements of all kinds – whether by celebrities, sponsors, or paid “influencers.”

Continue Reading

FTC Grants Summary Judgment Against California Naturel, Inc. Falsely Advertising “All Natural” Sunscreen Products

In its opinion in In re California Naturel, Inc., the Federal Trade Commission held that the California Naturel, Inc. advertising promoting its “all natural” sunscreen on its website as containing “only the purest, most luxurious and effective ingredients found in nature” violated Section 5 and 12 of the FTC Act.  The opinion, written by Chairwoman Edith Ramirez, noted that California Naturel admitted that eight percent of its sunscreen formula is in fact dimethicone, a synthetic ingredient.

Continue Reading

St. Louis Rams’ Relocation to Los Angeles Sets Stage for Colossal Stadium Naming Rights Agreement

On Tuesday, January 12, the NFL owners voted 30–2 to formally approve the relocation of the St. Louis Rams to Los Angeles, which concluded a hostile, multiple-year-long review process that ultimately deprives the city of St. Louis of its beleaguered NFL franchise that has called that city home since 1995. Also in Tuesday’s vote, NFL owners approved the possible relocation of the San Diego Chargers to Los Angeles to share a new stadium with the Rams.  Chargers owner Dean Spanos has one year to decide whether to move the team or stay in San Diego and attempt to construct a new stadium there, where efforts have, thus far, been wholly unsuccessful. Continue Reading

Another Gambling Class Action Fails – Court Finds Social Casino Games Not Gambling

A Federal Court in Washington state dismissed a Plaintiff’s class action claims that social casino games using purchasable virtual casino chips  constitute gambling under Washington state law. The Court found that the virtual chips have no “value” and therefore the game did not constitute gambling because Plaintiff was not “staking or risking something of value.” Continue Reading

Court Rules Virtual Currency Casino Not Illegal Gambling Despite Secondary Market

A Maryland Court recently dismissed a case in which Plaintiff alleged that a virtual currency casino within a social game constituted illegal gambling, despite the existence of a secondary market for the player accounts. For purposes of assessing whether the game was skill or chance-based game, the Court found that the social game, as a whole, was a game of skill, and refused to adopt the Plaintiff’s approach of considering the “casino” itself a chance-based game. This ruling is significant for social game companies that use virtual currency to engage in gamblification (i.e., the use of gambling mechanics for non-gambling purposes). Continue Reading

‘I Got 5 On It’: UFC Fighter’s Suspension for a Positive Marijuana Test Reeks of Controversy

At the Nevada State Athletic Commission (NSAC) hearing on September 14, 2015, UFC star Nick Diaz sat in silence as he heard state commissioners Francisco V. Aguilar, Skip Avansino, Pat Lundvall, and Anthony A. Marnell III deliberate on the future of his career. Commissioner Lundvall suggested a lifetime ban from professional fighting. Commissioner Avansino balked; a lifetime ban seemed excessive. After all, although this was his third offense, Diaz had only tested positive for marijuana during his post-fight drug test, whereas his opponent, former middleweight champion Anderson Silva, had reportedly tested positive for steroids that same night, provoking a one-year ban and a $380,000 fine from NSAC.

This article was originally published in the Sports Litigation Alert. To read the entire article please click here, or visit the Sports Litigation Alert website.

 

US Safe Harbor Regime Invalidated by Europe’s Highest Court

The Court of Justice of the European Union ruled this morning that the Safe Harbor regime, which enables transatlantic data transfers from the European Union to the United States, is invalid, thereby giving each national supervisory authority the chance to revisit the question of whether the U. S. provides an adequate level of protection for EU citizens’ data.  A copy of the decision be found here. Continue Reading

LexBlog