News:
Moms Won't be the Only Ones Checking New FDA Nutrition Labels
On May 20, the U.S. Food and Drug Administration (FDA) issued a final rule overhauling the design and content of nutrition labeling for foods and dietary supplements. These changes, write Venable attorneys Michelle C. Jackson, John G. Moore, Jonathan A. Havens, and Kristen R. Klesh in a recent post to the firm's advertising law blog, are sweeping and largely consistent with those proposed by the Agency in 2014.
Read the full blog post for a complete list of changes to the nutrition facts and supplement facts labels.
Read the full text of the FDA's final rule here.
Take a peek at the changes coming to the new versions of the labels.
CFPB Aims to Kill Mandatory Arbitration Clauses
Any company regulated and examined by the Consumer Financial Protection Bureau (CFPB) knows the expansiveness of the Bureau's reach and its willingness to exercise its authority. And despite challenges in Congress and the courts, the CFPB shows no signs of slowing down, write Venable attorneys Allyson B. Baker, Samuel D. Boro, and Peter S. Frechette in a recent client alert. Earlier this month, the CFPB released a notice of proposed rulemaking that would ban consumer financial companies from using mandatory pre-dispute arbitration clauses in consumer financial contracts.
As part of the rulemaking process, the CFPB is seeking comment on the scope of the proposed rule to determine whether certain products or services should not be covered.
Read the client alert to learn how the proposed rule would affect entities covered by the Consumer Financial Protection Act, including providers of consumer financial products and services offering credit cards, checking and deposit accounts, prepaid cards, money transfer services, certain auto loans, short-term small-dollar loans, and private student loans.
Read the full text of the notice of proposed rulemaking.
Venable's CFPB practice group will host a complimentary webinar on June 15, 2016 to discuss the current state of the rulemaking process and outline what companies must understand about what is coming. Click here to register for this important webinar.
FDA Says KIND Bars Can be Healthy, Chews on Standard
In a major reversal of a 2015 warning letter to KIND LLC, The FDA announced last week that the company may label its snack bars as "healthy." However, there is a catch, write Venable attorneys Randal M. Shaheen and Laura Arredondo-Santisteban in a recent post to the firms' advertising law blog.
In 2015, the FDA warned Kind that several of its products were misbranded as "healthy," and that such labeling falsely claimed that the snacks were low-fat or rich in anti-oxidants, among other things. The FDA's letter to Kind threatened regulatory action if this and other alleged violations were not corrected. In response, KIND filed a citizen petition asking the FDA to reconsider its standard for labeling products as "healthy." Because of the petition, as well as called-for change from Congress and others, the FDA plans to reevaluate its regulations concerning nutrient content claims and will permit Kind to label its snack bars "healthy," so long as it is clearly part of the company's philosophy and not part of a nutritional statement.
Read the full blog post to learn why the FDA's 22 year-old definition of "healthy" is getting a second look.
Read KIND's citizen petition here.
Avoid Dumb Claims When Touting "Cognitive Performance"
Making unsubstantiated claims that a product can make consumers smarter isn't a very smart play, writes Venable partner Leonard L. Gordon in a recent post to the firm's advertising law blog. By its own admission, cognitive claims remain a top priority for the Federal Trade Commission (FTC) as it continues to target claims that dietary supplements or learning programs can improve cognitive performance.
In its latest enforcement action in this area, the FTC just announced a proposed settlement with LearningRx Franchise Corp. The settlement, Gordon writes, demonstrates that the FTC has clearly and repeatedly expressed the position that educational or learning benefit claims require competent and reliable scientific evidence.
Read the full blog post to learn more about why the FTC is so skeptical of this type of claim, as well as what marketers making these claims must do to mitigate risk.
Read the FTC's proposed settlement order.
Upcoming Events:
COMPLY2016 Conference
June 7 | New York, NY
COMPLY brings together compliance professionals, marketing executives, leading advertising lawyers, and contact center operators from top brands who want to ensure their efforts to reach consumers are compliant. This conference is a jam-packed day focused on compliance with learnings from federal and state regulatory agencies, marketing visionaries, and industry experts. Po Yi, Venable partner, will moderate "Playing to Win in the Highly Compliant World of Credit Card Marketing," a session on how companies maximize marketing to achieve card member growth without drawing attention from the regulators.
Click here to learn more and to register.
Internet Retailer Conference and Exhibition
June 7-10 | Chicago, IL
E-Commerce is evolving faster than ever. Internet Retailer Conference & Exhibition (IRCE) provides you with a conference full of industry experts and unrivaled agenda content, an exhibit hall filled with the latest and greatest solution providers, and a community made for networking with thousands of like-minded industry peers. Be sure to visit Venable in booth 129 in the exhibit hall.
Click here to schedule a meeting with Venable during IRCE.
Click here to learn more about the conference and to register.
The CFPB's New Arbitration Clause Ban: How to Prepare Your Organization
June 15, 2016 | Webinar
Join Venable's CFPB team for a webinar packed with practical discussion about what the CFPB's proposed arbitration clause ban means for companies and consumers. Venable attorneys Allyson B. Baker, John F. Cooney, Thomas E. Gilbertsen, Jonathan L. Pompan, and Peter S. Frechette will review the current state of the rulemaking process, share their take on the Bureau's proposal from regulatory and litigation perspectives, and outline what you and your company need to know about what's ahead.
Participants are encouraged to engage in the conversation by submitting questions throughout the live event and will receive a copy of the presentation and other materials following the webinar.
Food Marketing Institute (FMI) 2016 Legal Conference
June 19-21 | Chicago, IL
Designed for the legal leadership of the retail and wholesale food industries, Food Marketing Institute's Legal Conference will bring together general counsel, corporate counsel, as well as other corporate executives involved with legal issues. Join Venable's Randal M. Shaheen as he discusses "Recent Trends in Food Litigation and Labeling" on June 20 at the Sofitel Chicago Water Tower.