On January 25, 2022, the Fourth Circuit joined the growing number of circuits to hold that under the False Claims Act, “a defendant cannot act ‘knowingly’ if it bases its actions on an objectively reasonable interpretation of the relevant statute when it has not be warned away from the interpretation by authoritative guidance” and that
January 2022
In Food Labeling Dispute, California Federal Court Refuses to Ignore Back Panel Disclosures Absent Explicit Alleged Misrepresentation on Front Panel
Last week, a California district court dismissed a putative class action brought by serial filer Spencer Sheehan against Icelandic Provisions, Inc., the maker of an eponymous Skyr (Icelandic-style yogurt) product. The plaintiff, bringing a case captioned Steinberg v. Icelandic Provisions, Inc., No. 21-cv-5568 (N.D. Cal.), alleged that Icelandic Provisions misleads consumers into believing that its…
U.S. Senate Judiciary Committee To Consider Legislation On Unfair Competition in App Market
While much of the Senate Judiciary Committee’s meeting next Thursday, February 3, will focus on the pending Supreme Court nomination, the Committee is still scheduled to mark up and vote on the Open App Markets Act (S. 2710)—which purports to address unfair competition in the app market. This vote follows a particularly contentious markup of…
Advocate General Rantos Provides Sound Guidance for Non-Pricing Abuse of Dominance Analysis (Case C-377/20)
On 9 December 2021, Advocate General (“AG”) Rantos delivered his Opinion in Servizio Elettrico Nazionale (Case C‑377/20), a request for a preliminary ruling from the Italian Consiglio di Stato. The case concerns the conduct of the ENEL Group (“ENEL”) in the context of the liberalisation of the electricity market in Italy. ENEL, the incumbent, allegedly…
FTC Releases New Health Breach Notification Rule Guidance, Targets Health Apps and Connected Devices
On January 21, the Federal Trade Commission (“FTC”) announced new resources to help companies determine their obligations under the Health Breach Notification Rule (the “Rule”): the Health Breach Notification Rule: Basics for Business, which provides a quick introduction to the Rule, and Complying with FTC’s Health Breach Notification Rule (“Compliance Guidance”), a more in-depth…
National Security Update—The House of Representatives Proposes an Outbound Investment Review Regime as Part of the America COMPETES Act
Overview
On January 25, 2022, the House of Representatives unveiled the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (H.R. 4521) (“America COMPETES”), which is companion legislation to the United States Innovation and Competition Act (S. 1260) (“USICA”) passed by the Senate last summer. At…
Congressional Democrats Introduce New Bill Banning Targeted Advertising
Early last week, Senator Cory Booker (D-NJ) and Congresswomen Anna Eshoo (D-CA) and Jan Schakowsky (D-IL) introduced a new bill, the Banning Surveillance Advertising Act, which would prohibit ad tech companies and other advertisers from engaging in targeted or “surveillance” advertising. Targeted advertising is defined under the bill as the dissemination of ads based…
European Parliament Agrees Draft Digital Services Act
On January 20, 2022, the European Parliament agreed amendments to the draft version of the Digital Services Act (“DSA”) that the Council agreed on November 25, 2021(see the European Parliament’s announcement here and agreed text here; see our blog post about the Council’s draft here). As a next step, the Parliament will discuss these…
Business and Human Rights: Developments and What to Watch For
Since Covington’s last global update in June 2021, there have been several legal and policy developments affecting the business and human rights landscape that will impact companies in 2022. This update provides an overview of key legal and policy developments.
I. Forced Labor Import Bans
A. United States
1. Uyghur Forced Labor Prevention Act
The…
FTC Announces New Higher HSR Filing and Interlocking Directorate Thresholds, Higher Civil Penalties
Yesterday, the Federal Trade Commission (“FTC”) published revised thresholds for the Hart-Scott-Rodino (“HSR”) Act, which will take effect on February 23, 2022. Earlier, the FTC also announced new thresholds for Section 8 of the Clayton Act, which governs interlocking directorates. Each of these thresholds is higher for 2022, than for 2021. The HSR Act…