Judge Keeps Salon-Only False Ad Action Alive

Law360, New York (January 11, 2011, 6:07 PM EST) -- A federal judge has refused to toss a false advertising putative class action against L'Oreal USA Inc. and other cosmetic companies brought by a group dedicated to keeping products labeled for sale only in professional salons out of regular retail channels.

Salon FAD, formed in 2008 to fight against such product diversion, and several salons have sufficient facts showing that the Lanham Act false advertising claims were material to consumers’ purchasing decisions, Judge Denise Cote ruled Monday in the U.S. District Court for the Southern District...
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