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.
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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