Reardon Anderson April 2021

This New Jersey Lawsuit Is Gaining Nationwide Attention

UP IN FLAMES

In October 2020, Smith & Wesson, a gun manufacturer, sued the state of New Jersey for its “anti-second amendment agenda,” and it has quickly gained attention among gun control experts nationwide. You may wonder: Why would a false advertising claim cause so much interest when it seems unrelated to either restricting or deregulating guns? First, let’s look at the lawsuit itself. It all started when New Jersey Attorney General Gurbir Brewal sent subpoenas to Smith & Wesson from the state’s division of consumer affairs as part of an investigation into advertising fraud. A Smith & Wesson commercial depicts a woman slipping a pistol into her red leather bag and takes it with her everywhere — from work, to lunch, to the gym, and then finally to a shooting range. However, the ad never addresses that those actions would be illegal in 35 states without a concealed carry permit. The subpoenas were all related to incidents like these in Smith & Wesson’s advertising.

THE FYRE FESTIVAL’S LEGAL FALLOUT FOR INFLUENCERS

Influencer marketing has long been a legal gray area, but recently settled celebrity lawsuits related to the Fyre Festival — a failed luxury musical festival — have definitely added some color to the debate. The idea for the Fyre Festival came from rapper Ja Rule and his business partner Billy McFarland, a 25-year-old CEO of a luxury concierge service. The duo created the event together and touted it as the world’s most expensive music festival. They also launched an attractive marketing campaign which included celebrity promotions by Kendall Jenner, Bella Hadid, and other influencers. All the while, the organizers knew the Fyre Festival was doomed from the start. In lieu of a multiday, luxury experience, thousands of people were scammed and left stranded in the Bahamas. "[The organizers] had six to eight weeks to pull off something that should have taken close to a year," says Chris Smith, who directed a Netflix documentary on the festival. "But what was most surprising to me was going to the Bahamas and seeing the aftermath of what was left behind and the effect on the people there." The local economy was devastated. "They had engaged with so much of the local community to try and pull this off. There were hundreds of day laborers working," says Smith. "Fyre had such a high profile that I don't think anyone could have assumed that it wouldn't work out." As the Fyre Festival fell apart, Gregory Messer — the trustee in charge of overseeing the bankruptcy for Fyre Media — looked into the finances. He began to suspect that there had been “fraudulent transfers” between the founders and many of the event’s promoters, and he began to sue the celebrities and influencers that drove the hype behind the festival. For example, McFarland and Ja Rule reportedly paid Kendall Jenner over $275,000 to publish an Instagram post promoting the festival. Although Jenner denied liability, she did not disclose on the post that it was paid and sponsored. Messer’s attorney further argued that Jenner had not told her Instagram followers that she’d pulled out of the festival after learning of its disastrous problems. Although more legal parameters will likely spring up in the future to further define the limits of influencer marketing, this will certainly make any celebrity think twice about accepting money to promote events and brands. And that’s definitely for the best!

The problem is that this investigation may open a door to access internal documents that have never been accessible to the public before.

For better or worse, you could say it’s a creative way to take a deeper look at a company’s inner workings. No industry has ever had immunity from cases about advertising claims. What does the pro-gun control movement hope for? To drastically shift public opinion. J. Adams Skaggs, the chief counsel for the Giffords Law Center to Prevent Gun Violence, says, “Public opinion turned so dramatically against the tobacco companies when it became clear that executives knew the truth about their products and were lying to the public,” Mr. Skaggs said. “The gun industry fears the same thing.” On the other hand, is it right to use government jurisdiction to push such a specific political agenda? That’s the question anti-gun control advocates are asking. In Smith & Wesson’s lawsuit against the state, it states, “Smith & Wesson is a good corporate citizen that is a leader on gun safety initiatives in the industry. What the Attorney General seeks to do through his actions is impermissible as long as the guarantees of free speech and the right to bear arms remain in the Constitution.”

In the landscape of gun politics, it’s definitely a lawsuit to keep an eye on.

2 REARDONANDERSON.COM

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