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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.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.