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| subject: | Re: This Lawsuit Stinks! |
Somehow this does not surprise me. I am having my own little tiff with Sharper Image at the moment. I think false advertising is a way of life with them. Debbie Toucanldy wrote: > Periodically, on this group, someone asks about the "Ionic Breeze," air > purifier. Thought this might be of interest. > > True Stella Awards #56: 1 December 2004 www.StellaAwards.com > ------------------------------------------------------------------------- > > A Sharp SLAPP in the Face > by Randy Cassingham > > San Francisco-based Sharper Image was founded in 1977 and is a > successful catalog merchant and mall retailer. Consumers Union was > founded in 1936 and is a non-profit product testing organization > dedicated to getting objective product information out to consumers via > its magazine, Consumer Reports. > > To perform its product tests, CU buys example products in retail > stores (rather than accepting carefully selected samples from > manufacturers) and puts them through exhaustive tests to answer the > questions: do the products do what they're advertised to do? Do they do > it well? And how well do they work compared to competing products? > > For an early 2002 review of home air filters, CU bought 16 air > filtering units from a number of sources, including an "Ionic Breeze" air > purifier system from Sharper Image. The Ionic Breeze is the company's > best-selling product; analysts say it may account for half of Sharper > Image's sales, accounting for hundreds of millions of dollars of their > income. Five different models sell in the range of $200-500. > > To test the 16 different air filters, CU put each unit in a sealed > room and measured how much smoke and dust they could remove from the air > over a 30-minute test period. Of the 16 units CU tested, the Ionic Breeze > "Quadra" model came in dead last since it managed "no measurable > reduction in airborne particles." > > Sharper Image was upset at the test results. "They said the Ionic > Breeze needed to run longer," a CU spokesman said. "So Consumer Reports > went back and tested again, this time seeing how much cigarette smoke > could be removed over 19 hours. It couldn't even clean the smoke from > one-eighth of a cigarette" in that time. > > In late 2003 Consumer Reports again testing air filters, and the > Quadra again ranked last in the rankings. > > Not surprisingly, Sharper Image was once again upset. "They told > Consumers Union again that the test was unfair," the spokesman says. "So > Consumers Union asked what test they'd like [us] to run. They have never, > to this day, recommended a test for Consumers Union to do." > > Sharper Image did, however, have a plan of action: it sued CU in U.S. > District Court, alleging the articles in CU's magazine were based on "bad > test procedures" and constituted "negligent product disparagement." > > But wait a minute: aren't reviews part of what's covered by the First > Amendment of the U.S. Constitution? Shouldn't a testing organization be > allowed to publish its opinion as to what it thinks about a product, even > if the manufacturer doesn't like what they say, based on that explicit > right? > > Of course, the First Amendment does apply. So might the lawsuit by > Sharper Image be considered a way to shut up a critic on an issue that > affects the public? > > "Sharper Image could have just let it go without drawing more > attention to Consumer Report's articles, but they didn't," says attorney > Steven Williams, who represented CU. "I think they wanted to have a > chilling effect on the media." And surely if Sharper Image prevailed, > other reviewer would be "chilled" -- they'd have to think long and hard > about publishing a negative review, no matter how objective it was, when > they might have to pay out millions of dollars in damages. "When you > strike at the core of the First Amendment and sue someone to protect > marketing," Williams says, "that's not really a proper use of the > courts." > > Indeed, there's a name for such a speech-chilling case: Strategic > Lawsuit Against Public Participation, or SLAPP, and it's a powerful tool > large corporations can use against smaller foes to shut them up, even > when their speech is protected by the Constitution -- and even when it's > in the public interest for their opinion to be heard. The SLAPP is so > powerful and so unfair, in fact, that many states have specifically made > SLAPP suits illegal -- including California, where Sharper Image filed > its suit. > > Williams filed a motion to dismiss Sharper Image's lawsuit on the > basis that it was prohibited under California's anti-SLAPP law. U.S. > District Corut Judge Maxine Chesney agreed that the suit was an attempt > at squelching CU's First Amendment rights of free speech -- the very > definition of a SLAPP. She not only dismissed the suit, she awarded CU > $400,000 in legal fees that it spent to fight off Sharper Image's action. > > "The court finds Sharper Image has not provided sufficient evidence to > support a finding that, under any of [their argued] theories, whether > alone or in combination, it has a reasonable probability of establishing > that any of the challenged statements are false," Chesney wrote in her > decision. > > Sharper Image's lawyer said the retailer was "very disappointed in > this result" and threatened to appeal the ruling. > > "Hopefully, going forward, companies will think twice about filing > these types of suits," CU attorney Williams said afterward. "It's not in > their interest to be attacking free speech." Nor, indeed, is it in the > public's interest. > > Still, even though CU won, other publications might still be chilled, > Williams says. "Consumers Union may not have backed down, but how willing > will magazines like Good Housekeeping be in the future to criticize > products? How willing will newspapers be to do independent reviews? What > this case was really about was the First Amendment and the right to free > speech." > > Consumers Union has been sued 15 times over the reviews it has > published in Consumer Reports, but it has never had to issue a retraction > or pay any legal judgments. > > Obviously, anti-SLAPP laws don't give publications free reign to say > anything they want; they don't entitle them lie about a product, for > instance. But when they've been objective in testing, or only stated > opinion, and are still sued, such laws give them the lever they need to > defend themselves and recover their usually significant legal costs. > > So the case is a victory for the First Amendment, but don't cheer yet: > while "many" states have adopted anti-SLAPP laws, many haven't. SLAPPs > are thus still a powerful tool that can still be used to stifle free > expression in many parts of the country, and that affects us all. > > > SOURCES: > 1) "Sharper Image Loses Suit Over Panned Product", The Recorder, > 11-11-2004 > http://StellaAwards.com/cgi-bin/redirect4.pl?56a > > 2) "Sharper Image Fogs Up", San Francisco Chronicle, 14 November 2004 > http://StellaAwards.com/cgi-bin/redirect4.pl?56b --- þ RIMEGate(tm)/RGXPost V1.14 at BBSWORLD * Info{at}bbsworld.com --- * RIMEGate(tm)V10.2áÿ* RelayNet(tm) NNTP Gateway * MoonDog BBS * RgateImp.MoonDog.BBS at 12/3/04 12:07:28 PM* Origin: MoonDog BBS þ Brooklyn,NY 718 692-2498 (1:278/230) SEEN-BY: 633/267 270 5030/786 @PATH: 278/230 10/345 106/1 2000 633/267 |
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