Hunton Retail Law Resource

Hunton & Williams LLP is conducting a short survey seeking feedback on experience with contract life cycle management tools and practices.

Internal legal and procurement teams are under increasing pressure to perform their contracting functions “better, faster and cheaper.” But even among the Global 2000, many of these teams may lack the people, processes, tools and senior management support to make that happen. Our 5-Minute Survey investigates the state of play at major businesses in contracting processes and contract life cycle management.

This past week, several self-regulatory consumer actions made headlines that affect the retail industry.

VitaPulse Modifies Ad Practices after NAD Review

Princeton Nutrients LLC, the maker of the dietary supplement, VitaPulse, has agreed to modify its advertising practices following an investigation by the National Advertising Division (“NAD”). The NAD investigated claims that the product reduces cholesterol, lowers blood pressure and increases energy, as well as the company’s use of online reviews and testimonials. As a result, Princeton Nutrients elected to permanently discontinue its health claims rather than provide NAD with supportive substantiation.

As the retail industry continues to invest in and leverage new automation technologies to meet organizational efficiency and cost reduction goals, a growing number of retailers are looking to robots, or more specifically, service delivery automation or robotic process automation (“RPA”), as a solution. What is RPA? In the abstract, RPA is the substitution of human workers with automation. In the real world, according to the Institute for Robotic Process Automation, that translates to software robots that capture and interpret data from existing applications to process transactions, manipulate data, trigger responses and communicate with other digital systems. RPA doesn’t mean that robots will soon be sitting in a cubicle in accounting...at least not yet.

This past week, several consumer actions made headlines that affect the retail industry.

Eleventh Circuit Stays FTC Order in LabMD Case

The Eleventh Circuit Court of Appeals stayed an FTC Final Order requiring the now-defunct LabMD to implement numerous compliance measures stemming from a 2008 data leak. In July, the FTC ordered LabMD to establish an information security program and notify those affected by the data leak. LabMD closed in January 2014, citing prohibitive costs related to the FTC litigation. An Eleventh Circuit panel found that “[t]he costs of complying with the FTC’s Order would cause LabMD irreparable harm,” noting that the company has under $5,000 cash on hand, a pending $1 million judgment against it and is no longer operational. The court granted LabMD’s motion to stay the Order pending appeal.

On November 17, 2016, the Federal Trade Commission released a staff report assessing the issues confronting consumers and regulators stemming from the rise of peer-to-peer platforms such as Uber and Airbnb. The report, The ‘Sharing’ Economy: Issues Facing Platforms, Participants, and Regulators, describes how the Internet has allowed sellers and consumers to connect in order to provide services between individuals. For example, apps such as Uber and Lyft allow passengers to bypass traditional taxi services in favor of matching with an individual drivers. These services have had major disruptive effects on traditional industries.

On November 15, 2016, the Federal Trade Commission released a new policy statement announcing how the agency will examine over-the-counter (“OTC”) homeopathic drugs going forward. The policy statement explains that the FTC will hold OTC homeopathic products to the same standards as non-homeopathic drugs making similar wellness claims in terms of efficacy and safety.

This past week, several consumer actions made headlines that affect the retail industry.

On November 9, 2016, Hunton & Williams LLP lawyers on the Retail and Consumer Products, Insurance and Corporate Litigation teams, Syed Ahmad, Shawn Regan and Shannon Shaw, published an article in Corporate Counsel discussing a recent decision from New York's highest court that may impact the exchange of information between retailers and third parties, such as vendors, that are engaged in a variety of transactions where privileged information may need to be shared. The article addresses the impact of Ambac Assurance v. Countrywide Home Loans, in which the New York Court of Appeals ...

After a long and unconventional campaign, we finally know the election results: early next year, businessman Donald Trump will be sworn in as the 45th president of the United States, supported by a Republican Congress. What the election results mean for the nation’s retailers, however, remains an open question. Trump, as a candidate, staked out bold policy positions on issues with potentially significant effects on retailers. Both positive and negative developments on a wide range of issues are possible over the next four years. Once sworn in, Trump will have considerable latitude to implement his policies through executive branch agencies and their enforcement priorities. In other instances, however, he will require support from the 115th Congress, and in some instances his actions could be constrained by the effect of appointments and policy choices made by the Obama administration and the 114th Congress.

Last month, the U.S. Court of Appeals for the D.C. Circuit heard oral argument in ACA International v. FCC, the appeal of the Federal Communication Commission’s (“FCC's”) July 2015 declaratory order interpreting the Telephone Consumer Protection Act (“TCPA”). Although scheduled to last 40 minutes, oral argument before the three-judge panel lasted almost three hours. The nature of the judges’ questioning suggests that the D.C. Circuit may soon clarify the TCPA’s restrictions on automated telephone dialing, a result many affected businesses throughout the country would welcome.

DOJ Merger Investigation Opened a Whole Can of Worms

Retailers and consumers may have been paying out the gills for canned tuna. The Wal-Mart family of stores has alleged a price fixing scheme for canned tuna in Arkansas federal court. Wal-Mart’s complaint casts a wide net, alleging that Bumble Bee Foods, StarKist, Del Monte Foods (former owners of StarKist) and Tri-Union Seafoods (owners of Chicken of the Sea) engaged in large-scale price fixing in violation of Section 1 of the Sherman Act. The defendants allegedly hatched the scheme between 2008 and 2010 and canned it in July of 2015.

October was filled with frights as malfunctioning electronics took center stage. With personal panic devices failing to operate and diving computers posing drowning risks, manufacturers should keep in mind that life-threatening hazards dramatically increase their potential liability.

This past week, several consumer actions made headlines:

Hyundai and Kia Set State Attorneys General Investigations for $42.1 Million

Hyundai Motor Co. and Kia Motor Corp. have agreed to pay $42.1 million to settle claims by the Attorneys General of 33 states and the District of Columbia that the companies misrepresented mileage and fuel economy ratings for certain vehicles. Hyundai issued a statement regarding the settlement, noting that it contains no admission of any wrongdoing. The companies previously paid $100 million to settle claims that they had misrepresented emissions to the U.S. Environmental Protection Agency, and $225 million to a consumer class for overstating the fuel efficiency of their vehicles.