Third Circuit Court of Appeals Releases Decision on FTC vs Innovative Designs Court Case

Rhea-AI Summary

Innovative Designs (OTCQB: IVDN) Inc. achieved a significant legal victory as Federal District Court Judge Nora Fischer ruled in favor of IDI against the FTC's allegations of false advertising regarding the insulation power of its Insultex products. The FTC claimed IDI overstated the 'R-values,' which measure a product's effectiveness in energy cost reduction. The court found the FTC lacked credible expert testimony, leading to a judgment for IDI. Following an appeal by the FTC, the United States Court of Appeals affirmed the district court's decision on July 22, 2021.

Positive

• Legal victory against the FTC enhances company credibility.
• Court ruling supports the accuracy of Insultex product claims.

Negative

• None.

Pittsburgh, Pa., July 29, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Innovative Designs (OTCQB: IVDN) Inc -- In a dispositive decision during a bench trial, Federal District Court Judge Nora Fischer of the Western District of Pennsylvania found that the Federal Trade Commission failed to present any credible expert testimony to support its suit for false advertising and entered judgment for Defendant Innovative Designs (“IDI”). The FTC sued IDI under Section 5(a) of the FTC Act, alleging that IDI overstated the insulation power (or “R-values”) of its Insultex house wrap products and falsely claimed that using Insultex saves energy. The “R-value” of an insulation product is the numeric measure of its ability to restrict heat flow and, as a result, reduce energy costs. IDI contended that test results from an accredited laboratory supported its claimed R-values.

The FTC appealed the court’s decision to the United States Court of Appeals, Third Circuit. The appeal was argued on July 8, 2021, before Honorable Judges Patty Shwartz, Cheryl Ann Krause and Marjorie Rendell. Court records were filed on July 22, 2021, affirming Judge Nora Fisher’s decision, and denying the Federal Trade Commission’s request for an appeal.    

Disclaimer

Certain statements in this press release constitute "forward-looking" statements as defined by federal law. Such statements are based on assumptions, but there is no assurance that actual outcomes will not be materially different as those implied. Any such statements are made in reliance on the "Safe Harbor" protections provided under the Private Securities Reform Act of 1995 and are subject to various factors, including the risks and matters discussed in the Company's SEC filings available at http://www.sec.gov.

Joseph Riccelli
412-799-0350
joer@idigear.com

FAQ

What was the outcome of the FTC lawsuit against Innovative Designs (IVDN)?

Innovative Designs won a legal victory when the court ruled in favor of the company, dismissing the FTC's false advertising claims.

What are R-values in insulation products like Insultex from Innovative Designs (IVDN)?

R-values measure the insulation power of products, indicating their ability to restrict heat flow and reduce energy costs.

When did the FTC appeal the court's decision favoring Innovative Designs (IVDN)?

The FTC appealed the decision on July 8, 2021, but the appeal was denied on July 22, 2021.

Who presided over the case involving Innovative Designs (IVDN) and the FTC?

The case was presided over by Federal District Court Judge Nora Fischer.