Insights

A recently filed class action lawsuit against Gymshark, a prominent athletic apparel company, highlights the escalating legal risks associated with influencer marketing. The complaint, brought in the U.S. District Court for the Southern District of New York on June 16, 2026, alleges that Gymshark systematically paid social media influencers to promote its products without ensuring that the influencers were providing clear and conspicuous disclosures about such payment, in violation of Federal Trade Commission (FTC) guidance and New York state law.

A Kansas federal court held that inconsistent enforcement of trade secret rights can defeat a claim under the Defend Trade Secrets Act (DTSA). In Edelman Financial Engines, LLC v. Mariner Wealth Advisors LLC, No. 2:23-cv-02515-HLT (D. Kan. June 5, 2026), the court applied a selective enforcement theory, holding that when a company does not consistently pursue legal remedies against similarly situated former employees, that inconsistency can be affirmative evidence that it failed to protect its trade secrets. While the selective enforcement theory has appeared in academic hypothetical discussions, the decision appears to be one of the clearest judicial applications of a “selective enforcement” theory in a trade secret case.

On December 11, 2025, New York Governor Kathy Hochul signed S.8420-A/A.8887-B into law. This first-in-the-nation legislation, called the New York AI Synthetic Performers Disclosure Law, is intended to protect consumers and promote transparency in the age of AI advertising. This law represents a meaningful shift in the legal landscape for AI advertising. For the first time in any U.S. jurisdiction, the mere use of an AI-generated human likeness in a commercial advertisement triggers an affirmative disclosure obligation. The practical implications are significant, particularly for e-commerce retailers, digital advertisers, and agencies that have integrated AI-generated human imagery into high-volume creative workflows.

The Federal Trade Commission (FTC) recently released its Strategic Plan for Fiscal Years 2026–2030, setting out the agency’s enforcement priorities and operational objectives for the next five years under Chairman Andrew N. Ferguson. The plan reaffirms the FTC’s commitment to vigorously enforcing the nation’s antitrust and consumer protection laws “without fear or favor.” Critically for businesses, the plan returns the phrase “without unduly burdening legitimate business activity” to the agency’s mission statement, signaling a commitment to ending what the agency characterizes as overregulation of businesses that compete fairly and deal honestly with consumers. Despite this business-friendly framing, the plan signals robust enforcement across consumer protection, antitrust, and emerging technology — areas that will directly affect in-house counsel’s compliance planning over the coming years.

The Modernization of Cosmetics Regulation Act of 2022 (MoCRA) marked the most significant expansion of FDA’s authority over cosmetics in 80 years — and the agency is putting that authority to work. From the launch of a new adverse event reporting tool to forthcoming rules on fragrance allergens and good manufacturing practices (GMP), FDA is reshaping the regulatory landscape for manufacturers, packers, and distributors of cosmetic and personal care products.

On February 12, 2026, a bipartisan group of legislators in Maryland proposed the Maryland Artificial Intelligence Toy Safety Act. This proposed legislation would amend the Maryland Consumer Protection Act to establish a sweeping regulatory framework for AI-enabled toys sold in the state, covering any device that uses machine learning, conversational AI, behavioral modeling, or similar computational processes and is marketed to or primarily used by children. This proposed legislation adds to a growing trend of increasing efforts, at both the federal and state levels, to regulate the use of AI in products and services used by children.  

While state attorneys general have traditionally led consumer protection enforcement, local governments are increasingly deploying their own powers to prosecute high-stakes affirmative litigation. The results speak for themselves: Los Angeles and Chicago have secured multi-million-dollar judgments and settlements in consumer deception cases over the past decade.

The Supreme Court has concluded that the International Emergency Economic Powers Act (IEEPA) does not authorize President Trump to impose tariffs.  For a detailed analysis of the decision, please see our Trade Group’s full alert.

California Attorney General Rob Bonta announced an unprecedented investigative sweep into “surveillance pricing” practices by grocers, hotels, and retailers, marking the first state-level inquiry targeting personalized pricing under data privacy laws.

2026 will be a significant year for retailers and e-commerce companies, with significant changes on the horizon that will affect the entire industry and ecosystem. Potential headwinds and developments in product safety, pricing, artificial intelligence, data privacy, website compliance, and environmental responsibility are expected. But amidst these changes, there are likely significant opportunities that retail and e-commerce businesses can capitalize on.

New York Governor Kathy Hochul has signed into law the most significant update to New York’s consumer protection law in 45 years — the Fostering Affordability and Integrity through Reasonable Business Practices Act, or FAIR Business Practices Act — expanding the scope of the state’s authority to now challenge unfair and abusive business practices. The measure, backed by New York Attorney General (“AG”) Letitia James and signed on December 19, 2025, amends New York’s General Business Law § 349, giving regulators new tools to protect consumers and promote fair marketplace practices.

The United States Trademark Trial and Appeal Board (TTAB or Board) recently issued a refreshed opinion in the trademark dispute Naterra International, Inc. v. Samah Bensalem, where Naterra International, Inc. petitioned the TTAB to cancel Samah Bensalem’s registration for the mark BABIES' MAGIC TEA based on its own BABY MAGIC mark. On remand from the U.S. Court of Appeals for the Federal Circuit, the TTAB reconsidered an expert’s opinion about relatedness of goods based on the concept of “umbrella branding” and found that the goods are unrelated and therefore again denied the petition for cancellation.

On December 22, 2025, the Federal Trade Commission (“FTC”) took its first step in enforcing its August 2024 Consumer Review Rule (“Rule”) that regulates online companies’ moderation and curation of user reviews, by issuing warning letters to 10 unidentified companies alerting them of their potential violations of the Rule, and cautioning that continued noncompliance could lead to enforcement action and substantial civil penalties. The FTC warning letters directed each recipient to immediately cease and desist from any non-compliant practices and required the company to confirm in writing the steps taken to ensure ongoing compliance with the Rule.

Microplastics pollution has emerged as a significant issue as the public learns more about the presence of microplastics in the environment and how they may enter the human body.

Imagine a typical morning at your retail store, hospital, or hotel—customers are arriving, staff are busy, and suddenly, federal agents from ICE appear at your front desk. The surprise is real, but panic does not have to be. Unannounced inspections conducted by Immigration and Customs Enforcement (ICE) inspectors have been occurring for years, but in recent months, ICE has ramped up inspection visits across the service sector, targeting I-9 compliance and employment records. These visits are not always dramatic raids; more often, they are routine checks that can escalate if your team is not prepared.

The Court of Justice of the European Union (CJEU) recently issued a landmark judgment in the LEGO Group case (C-211/24) concerning the scope of EU design protection for modular systems. This recent judgment addresses fundamental questions regarding the protection and enforcement of Community designs for modular products, specifically the LEGO Group’s iconic toy building blocks and parts:

After months of anticipation, the Senate has received a nomination for a Commissioner of the U.S. Consumer Product Safety Commission (CPSC). 

The Ninth Circuit ruled that NFTs are not just digital collectibles but legally recognized goods under the Lanham Act. Yuga Labs, Inc. v. Ryder Ripps and Jeremy Cahen, Case No. 24-879 (9th Cir. July 23, 2025). NFTs are intangible, fully virtual, authenticating software code that is associated with separate digital or physical content. Although the Ninth Circuit found that there were genuine issues of material fact that precluded summary judgment on the issue of likelihood of confusion, the court recognized that NFTs are commercial products with tangible value subject to trademark protection. This means that NFT creators and projects can now claim trademark rights in their collections’ names, logos, and associated marks.

A question often asked by consumer product companies these days is whether the eFiling requirements will go into effect as planned given the political upheaval at the U.S. Consumer Product Safety Commission (CPSC) and the dismissal of the three Democrat Commissioners. While that is an impossible question to answer with certainty, all signals suggest the requirements will be implemented on schedule for July 8, 2026.