Stoel Rives attorney Tom Woods recently discussed in a Law360 article a rise in consumer protection lawsuits filed against companies engaged in advertising in California. False and deceptive advertising is prohibited under California's unfair competition and false advertising laws. Remedies for violations include injunctive relief and civil penalties in an amount of up to $2,500 per violation.
Woods describes how state regulatory action sometimes follows federal enforcement activity. He then provides an FAQ regarding the legal basis, scope of discovery and potential liabilities involved in such actions. He notes that nonresponsiveness to an administrative subpoena regarding a consumer protection investigation never results in the matter "just going away." He adds that experienced counsel can often assist by preserving valid objections to the subpoena, advising on confidentiality and privilege issues, or highlighting favorable law or facts that could defeat an accusation or undercut penalties where they apply.
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"Facing State Enforcement Actions" was published by Law360, January 9, 2012.