Local Law Blogs

FTC Strikes Again! Sues California firm over Deceptive Claims relating to LED Bulbs

By Vincent J. Mangini

On September 7, 2010, the FTC filed suit against Lights of America, Inc. ('LOA'), a California firm, and its principals, to enjoin the use of exaggerated claims relating to its Light Emitting Diode (LED) bulbs.  According to the FTC's complaint, the LED lamps marketed by LOA 'produced significantly less light output than a typical light bulb at the wattage represented in . . . promotional materials[,]' which was contrary to LOA's express advertising message.  'For example, although [LOA] represented that one of their LED lantern lamps replaces a 40-watt incandescent light bulb, this particular LED lamp produced only 74 lumens of light, while a typical 40-watt incandescent bulb produces 405 lumens.'
 

LOA also allegedly overstated the number of lumens that its light bulbs could produce and the number of hours that its light bulbs would last.
 

In addition to a permanent injunction, the FTC seeks rescission or reformation of contracts, restitution, refunds of monies paid and disgorgement of ill-gotten monies on behalf of consumers injured by LOA's misrepresentations, as the court may award in its discretion, and costs of suit.

Full post as published by New Jersey Law Blog on October 11, 2010 (boomark / email).