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FTC Continues Vigorous Section 5 Enforcement

July 23, 2014 | Skadden, Arps, Slate, Meagher & Flom LLP | Ian G. John, John H. Lyons, Kenneth B. Schwartz

On July 21, 2014, the FTC announced plans to settle charges with two Internet resellers of Universal Product Code barcodes accused of violating Section 5 of the FTC Act by inviting competitors to collude. The case reflects a continuing trend of government enforcement in this area and underscores the FTC’s view that simply proposing terms of coordinating competitive actions violates Section 5.

FDA Guidance Limits Flexibility in Social Media Promotional Communications

July 21, 2014 | Skadden, Arps, Slate, Meagher & Flom LLP | John T. Bentivoglio, Jennifer L. Bragg, Michael K. Loucks, Gregory M. Luce, Maya P. Florence, Breanna Peterson

The FDA recently issued several draft guidance documents to assist manufacturers with their product communications via social media. While the documents acknowledge the unique characteristics of certain social media platforms and the need for some flexibility in promotional communications, the FDA will continue to apply traditional regulatory requirements as much as possible — an approach that manufacturers may find too restrictive when trying to utilize the Internet to market their products.

Court Finds CFIUS Violated Ralls Corporation’s Due Process Rights

July 17, 2014 | Skadden, Arps, Slate, Meagher & Flom LLP | Ivan A. Schlager, John M. Beahn, Malcolm Tuesley, Joshua F. Gruenspecht, John P. Kabealo

On July 15, 2014, the U.S. Court of Appeals for the District of Columbia ruled that President Obama and CFIUS unconstitutionally deprived Ralls Corporation of its property rights by forcing it to divest that property for national security reasons without first providing adequate due process. The court’s precedent-setting decision may add a new layer of uncertainty to CFIUS processes, impact both applicants’ rights and committee procedures, and increase the number of tactical decisions involved in preparing for a CFIUS review.

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