Executive Briefings

Make Your Company Less Appealing to the Opportunistic Litigant

Over the last two years, manufacturers and sellers of consumer products across the industrial spectrum have faced growing wave of class-action lawsuits brought by consumers. Perhaps your company can become less appealing as a target.

These lawsuits typically allege that the product label or packaging, or the product website, contain false, misleading or unproven claims, or omit information material to consumers' purchase decisions.

State laws permitting such claims are very broad, typically declaring unlawful any deceptive, unlawful or unfair practice. Targets have ranged from packaged foods to cosmetics, tools and hardware to automobiles.

Hardly any consumer product is immune to such a charge, not because advertising is literally false or consumers are actually deceived, but because the charge is often very easy to make.

So how can you minimize the chance of finding yourself the target of a complaint about phantom deception, where no one has really been tricked and nothing really material has been concealed or falsified? The short answer: Make yourself an unappealing target. Some tactics and strategies are more likely to discourage the opportunistic litigant.

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Keywords:  supply chain management, supply chain risk management, defending against opportunistic litigants

These lawsuits typically allege that the product label or packaging, or the product website, contain false, misleading or unproven claims, or omit information material to consumers' purchase decisions.

State laws permitting such claims are very broad, typically declaring unlawful any deceptive, unlawful or unfair practice. Targets have ranged from packaged foods to cosmetics, tools and hardware to automobiles.

Hardly any consumer product is immune to such a charge, not because advertising is literally false or consumers are actually deceived, but because the charge is often very easy to make.

So how can you minimize the chance of finding yourself the target of a complaint about phantom deception, where no one has really been tricked and nothing really material has been concealed or falsified? The short answer: Make yourself an unappealing target. Some tactics and strategies are more likely to discourage the opportunistic litigant.

Read Full Article


Keywords:  supply chain management, supply chain risk management, defending against opportunistic litigants