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False Advertising: Eleventh Circuit Makes It Harder for Franchisees to Bring Cases Against Franchisors
In a battle of fast food restaurants, a local Florida Burger King franchisee sued McDonald's for false advertising, only to have the Eleventh Circuit Court of Appeals rule that the franchisee could not show that it had standing to bring its claim, despite the fact that the franchisee directly competed against McDonald's restaurants. The ruling, Phoenix of Broward Inc. v. McDonald's Corp., 489 F.3d 1156 (11th Cir. 2007), states that even direct competitors who allege they have been damaged by false advertisements must also show their damages are not speculative and their claims are unique, before they will be allowed to proceed with their lawsuit. The ruling highlights a split in the circuit courts that may have to be resolved by the Supreme Court, as the ruling differs from the law of other circuits that generally have allowed 'direct competitors' of the advertiser to sue for false advertising as long as they allege they have been injured by the ad.
The Eleventh Circuit ruling illustrates the difficulties franchisees or franchisors may experience in the future when asserting false advertising claims; they will be held to a high standard in order to demonstrate that they have been injured competitively by the ad in question. Further, the decision indicates strong reluctance by courts to have local franchisees sue franchisors for national advertising campaigns. As a practical matter, if franchisees and franchisors suspect that their competitor's ads are false and damaging, they must be proactive in documenting loss of sales and customers, or else they may be denied the right to be made whole, maintain their ability to compete, and protect their reputation.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.