Legal & Privacy Brief

Today: A thin collection day for legal and privacy news. Three consumer class actions were filed targeting false advertising by Gruns/Unilever, Meta's cryptocurrency ad practices, and Baby Brezza's formula dispensing claims. Lawfare sued the State Department over failure to release international agreement documentation. No enforcement actions, regulatory guidance, or privacy-specific developments today.

Litigation Updates

Gruns, Unilever Hit With Class Action Over "Sugar-Free" Gummies Labeling

Consumers filed a class action against Unilever and Gruns Nutrition alleging the companies falsely marketed allulose-sweetened dietary supplement gummies as "sugar-free." The case raises FTC Act and state consumer protection law questions about the boundaries of "sugar-free" labeling when products contain sugar substitutes that may not qualify for the claim under FDA labeling rules.

• Compliance Action: Companies marketing food products or supplements with "sugar-free" claims should verify labeling compliance with 21 CFR 101.60(c) and ensure ingredient disclosures match marketing claims.
• Source: Top Class Actions

Meta Sued Over Alleged Profits From Cryptocurrency Scam Advertisements

A class action alleges Meta Platforms profited from cryptocurrency scam advertisements running on Facebook and Instagram. The suit targets Meta's ad approval processes and the company's alleged failure to screen fraudulent crypto ads, despite knowledge that scam ads were reaching users and causing financial losses.

• Compliance Action: Organizations running digital advertising should audit ad content moderation policies, particularly for financial products. Platforms face growing litigation risk from inadequate ad screening.
• Source: Top Class Actions

Baby Brezza Faces Class Action Over Formula Dispenser Accuracy Claims

Parents filed a class action against Baby Brezza and The Betesh Group alleging the Baby Brezza Formula Maker was marketed as accurately dispensing baby formula when it does not. The case centers on product safety and consumer protection claims regarding misrepresented device functionality.

• Source: Top Class Actions

Policy Changes

Lawfare Sues State Department Over International Agreement Disclosures; DHS Reorganization Proposals Surface on 9/11 Anniversary

Lawfare filed suit against the State Department for failing to release documentation of international agreements as required by law. Separately, former DHS Secretary Jeh Johnson proposed consolidating the post-9/11 homeland security apparatus into a single Cabinet-level agency combining law enforcement, counterterrorism, cybersecurity, and aviation security. Chinmayi Sharma's analysis highlighted how data-sharing systems built after 9/11 for counterterrorism have expanded into a large-scale ecosystem collecting data on millions of Americans, raising ongoing surveillance and privacy concerns.

• Sources: Lawfare

Compliance Takeaways

• Product labeling: Companies using sugar substitutes like allulose should audit "sugar-free" claims against FDA 21 CFR 101.60(c) requirements before the FTC or state AGs take interest in the Gruns/Unilever precedent.
• Ad platform liability: The Meta crypto scam lawsuit signals continued expansion of platform liability theories for fraudulent advertising. Review ad acceptance policies and document content moderation efforts.
• Immigration data systems: Organizations sharing data with federal agencies should understand how post-9/11 data-sharing frameworks have expanded. Review data-sharing agreements and ensure they match current regulatory expectations.
• International agreements transparency: The Lawfare v. State Department suit may force disclosure of international agreements affecting data sharing and counterterrorism cooperation; monitor for released documents that could change compliance obligations.