Would You Like a Class Action Ban With That Arbitration Clause?

Next Tuesday, the U.S. Supreme Court will hear argument in a very dangerous case for consumers: AT&T Mobility v. Concepcion. If a majority of the Supremes accept AT&T's argument, consumer class actions may be effectively wiped out as a way to combat corporate deception against individuals.

A decision in favor of AT&T would be as damaging to the rights of individual Americans as if the Court upheld a ban on individual ownership of guns. For all the folks who believe that individual gun ownership is an essential protection against an out of control government, know that the class action mechanism is an equally essential protection against the tyranny of an out of control corporate oligarchy. Without it, consumers and employees simply have no weapons with which to fight back.

Pom Not So Wonderful?

It's an ironic twist that Pom Wonderful, which once sued a competitor for misrepresenting its product, is now the target of an FTC administrative complaint for...you guessed it -- making false claims about its products. Sad, but true.

The Federal Trade Commission has issued an administrative complaint charging the makers of POM Wonderful 100% Pomegranate Juice and POMx supplements with making false and unsubstantiated claims that their products will prevent or treat heart disease, prostate cancer, and erectile dysfunction.

It's Not Easy Being Green

With apologies to Kermit, it might be getting a little easier to be "green".

The FTC has proposed new Green Guides on marketers' use of environmental claims, intended to clarify the existing Guides and make them easier for companies to follow. In particular, the FTC is concerned about the gap between what companies think "being green" means and what consumers think it means. As always, the key is whether the claim is deceptive, and leaving out important clarification details or qualifying information (as many marketing pros like to do to move product) can increase the likelihood of deception.

Gerber Graduates Juice Treats - You Oughta Be Ashamed!

Gerber Graduates Juice Treats, a product "for preschoolers", according to its label, contains bright pictures of fresh fruit on its label: oranges, grapes, raspberries, peaches, pineapple, cherries. To further the impression that this product is a healthy and natural fruit smorgasbord, the label also says "FRUIT MEDLEY" in bold blue letters, followed by this list:

natural cherry, grape, orange, pineapple, peach and raspberry flavors with other natural flavors

Sounds yummy and healthy, to boot, right?

Well, not so much. These "Treats" - despite plain language on the label to the contrary - apparently contain NO ORANGE, NO CHERRY, AND NO PINEAPPLE AT ALL. NONE. NADA. ZIP. Instead, the treats contain less than two percent raspberry and apple juice concentrate. The main ingredients? Corn syrup and sugar.

Arson Investigators Might Get Overtime Pay

The 11th Circuit Court of Appeals has ruled that employees who spend time on both firefighting and law enforcement duties - such as arson investigators - are entitled to overtime pay based on how they divide their time on each duty.

Vita Breath - Get the Lead Out!

I'm not sure what lead will do for your breath, but it is certainly not good for your health. Today, the FDA issued a warning to consumers and healthcare professionals not to consume Vita Breath, a dietary supplement manufactured by American Herbal Lab because the product may contain hazardous levels of lead. Tests conducted by the New York City Department of Health and Mental Hygiene found 1,100 parts per million of lead, which is more than 10,000 times higher than FDA's maximum recommended level for lead in candy. This also violates California's more stringent labeling guidelines.

How Do I Deceive Thee?...Let Us Count The Ways.

The Center for Science in the Public Interest has recently released a report detailing the many ways in which food labels are misleading. It is no surprise to us, but it is interesting to note some of the problems they describe.

Dave & Buster's Busted for Loose Practices

Dave & Buster's, an entertainment and restaurant chain, was caught not minding its customers private information, and now it has to pay the piper.

The FTC, in an action announced today, has settled charges that Dave & Buster's did not take reasonable steps to protect its customers' credit card information. As a result of the lax security, some customers' credit cards were compromised by a hacker who got into the company computer system, and several hundred thousand dollars in fraudulent charges were made. No doubt the banks that issued the cards are not happy about the bogus charges, but the customers are the real victims here.

Walgreens Not Immune From False Advertising Claims

No one is immune from paying a price for deceptive advertising. Someone always pays: either the consumer who is fooled, or the company that made the product, or even the seller, if they get caught.

The FTC announced this week that it had settled a complaint against Walgreens:

National pharmacy chain Walgreens has agreed to pay nearly $6 million to settle FTC charges that the company deceptively advertised “Wal-Born” – a line of dietary supplements similar to the Airborne cold-and-flu treatment – using the same kind of baseless claims that the supplements could prevent colds, fight germs, and boost the immune system.

FDA Says: "What's Good for the Goose..."

Well, I am filled with chagrin. Just a little.

You may recall that a couple of summers ago, I praised Pom Wonderful for going after a competitor who advertised its fruit juice deceptively by claiming it contained more or different fruit than it really did. They won that case, standing on the important principle that the claims a company makes in its advertising ought to be truthful. Well, that was then, and this is now.

On February 23, 2010, the FDA issued a warning letter to Pom Wonderful for what the FDA says are "serious violations" of federal drug and food labeling laws. The FDA says, basically, that all the health claims Pom Wonderful makes on its websites mean the product is being used and marketed as a drug to treat, cure, or prevent diseases, and since it has not been approved for those purposes by the FDA, the advertising claims are unlawful.