by Sarah Donley
Consumers Care!
Today, many consumers, especially young ones, care about the environment and sustainability. Consumers strongly consider ingredients when deciding whether to purchase products. NielsenIQ, a global information services company, recognized consumers’ concerns about the ingredients in their food and personal care products and whether the products comply with sustainability practices. Specifically, the company found 60 percent of consumers have been making more “environmentally friendly, sustainable, or ethical purchases” since the beginning of the pandemic. Customers engaged in this “mindful consumption” are demanding transparency from companies. NielsenIQ reported 81 percent of shoppers surveyed said transparency is “important or extremely important” when shopping in-store and online. NielsenIQ also explained that products focusing on health and wellness will be assets for the growth of companies. Thus, these consumer preferences are essential when preparing to open or continue operating your small business.
The Yuka App
With the power of social media, as well as apps, consumers are able to expand their knowledge of the ingredients that are in the products they purchase. Yuka, a French app developed in 2017, has become increasingly popular thanks to social media. The app simplifies the long and confusing list of ingredients on product labels. Consumers simply scan the barcode of the food or personal care product, and the app will then develop a score out of 100 to reflect whether the product is healthful for consumers or harmful to the environment. Once a score is developed, Yuka provides explanations and risks of the ingredients found in the product. The app further provides alternative, “healthier” recommendations. Even if Yuka does not recognize the barcode of a product, the app allows users to take a picture of the ingredients, then Yuka will develop a score in approximately two hours and email the users the results. Currently, the app has approximately 36 million users in 12 countries, including the United States.
Should Businesses Care About Yuka?
Yuka has received mixed responses from entrepreneurs. The app has sparked some entrepreneurs selling beauty products, including Mathilde Thomas, the founder of Caudalie, to remove harmful ingredients in their products, such as silicones and polyethylene glycols. However, some business owners disagree with Yuka’s explanations of the risks that certain ingredients pose. In 2021, the French Meat Industry, specifically Les Entreprises Françaises de Charcuterie Traiteur (FICT), sued Yuka for defamation and unfair commercial practices, arguing that Yuka disparaged its members by giving their products low scores because of nitrites and nitrates. The administrative court of Paris found in favor of the FICT; however, the appellate court reversed the lower court’s decision because Yuka is a “tool” designed “to help consumers make better choices for their health.”
The question then remains, how can businesses respond to consumer preferences and the Yuka app? As mentioned in the first section of this blog post, Yuka and its 36 million users prove consumers are concerned about the ingredients in their products. Specifically, consumers are concerned about whether the ingredients are harmful to their health or the environment. One user stated, “I was alarmed to find the handwash I regularly purchase got a 0/100 score from Yuka because of the presence of benzophenone-1, an endocrine disruptor ‘that easily crosses the skin barrier and then behaves like female hormones.’ As I began to read about this and the many other potentially hazardous chemicals that Yuka flagged in almost all of our family cosmetics, I felt increasingly anxious.”
If entrepreneurs do not wish to change the ingredients in their products as Thomas did, increasing transparency may pose significant benefits. For example, Heineken has been advertising the sustainability of the apples that go into its cider. If global companies like Heineken can increase transparency, so can small businesses. In fact, small businesses have the advantage of shorter supply chains and local sourcing, which makes transparency regarding product ingredients easier.
Potential Legal Claims Against Small Businesses
Yuka may result in consumers taking businesses to court. As Yuka provides transparency and knowledge to consumers, businesses should be cognizant of how they advertise their products. Specifically, entrepreneurs should be cautious when labeling their products as “all-natural” or “organic” when the ingredients say otherwise. Companies in the cosmetic industry have faced settlements because they marketed their products as “all-natural” or “100% natural” when their products really contained synthetic ingredients. It is also important that businesses understand state law on false advertising. For example, California prohibits spreading information about products or services that is “untrue and misleading,” with civil and criminal enforcement.
Businesses also need to be aware of the Federal, Food, Drug, and Cosmetic Act’s (FFDCA) labeling rules. One may think, “I own a small business, and I am, therefore, exempt from the FFDCA, right?” Wrong! The U.S. Food and Drug Administration provided guidance to small businesses stating, “If any nutrient content claim (e.g., “sugar free”), health claim, or other nutrition information is provided on the label, or in labeling or advertising, the small business exemption is not applicable for a product.” Regarding cosmetics, the FFDCA requires that cosmetics not be adulterated or misbranded, meaning they must be safe for consumers and properly labeled. Further, if small businesses market cosmetics on a retail basis, such as in stores, online, or by personal sales representatives, they must also comply with the ingredient labeling requirements under the Fair Packaging and Labeling Act.
So, what should entrepreneurs take from all this? It is better to be safe than sorry. Consumers care about what goes into products, and so should you!
This post has been reproduced and updated with the author’s permission. It was originally authored on February 2, 2023 and can be found here.
Sarah Donley, at the time of this post, is a recent graduate of Penn State Dickinson Law. She has a BBA in Economics & Finance with minors in Entrepreneurship and Psychology from Shenandoah University. Sarah served as an Articles Editor for the Dickinson Law Review. Sarah has also earned her LL.M. in European Business Law from Radboud University.
Sources:
https://www.ft.com/content/850d9f5c-b4ab-42d5-a53d-d25b3ae99c77
https://www.wired.com/story/yuka-app/
https://nielseniq.com/global/en/insights/report/2022/transparency-in-an-evolving-omnichannel-world/
https://www.ftc.gov/business-guidance/blog/2016/04/are-your-all-natural-claims-all-accurate
https://newsinfrance.com/the-yuka-application-cleared-on-appeal-in-aix-en-provence/
Investing in affordable housing is a necessary step in community development and advancement. The Federal Housing Administration’s (“FHA”) Multifamily Mortgage Insurance program is one of many programs facilitated by the Department of Housing and Urban Development (“HUD”) to secure the advancement of affordable rental housing in the United States. Under the FHA loan program, HUD provides mortgage insurance for loans issued by FHA-approved lenders for the construction, rehabilitation, acquisition, and refinancing of affordable and market-rate multifamily housing. A property must contain five or more rental units to be eligible for the FHA Multifamily Mortgage Insurance Program. FHA Insured properties are not subject to income limits unless the property is operating under an additional state or federal affordable housing program, such as receiving Section 8 subsidies or Low -Income Housing Tax Credits (“LIHTC”).
Under the FHA Multifamily guidelines, the mortgagor (also referred to as the borrower) of any FHA-insured project must be a single asset entity (also referred to as a single purpose entity or “SPE”), meaning that the subject property must be the sole asset of the mortgagor entity. HUD has established entity types that are acceptable forms of SPEs for participation in the FHA Multifamily Mortgage Insurance program, some of which are more popular than others. An investor must weigh the benefits and drawbacks of each entity type to determine which will be best for their real estate investment.
Another popular option for investors is the Limited Liability Company. The LLC is composed of managers and members. Managers have management rights in the LLC, and members are like investors. In a typical HUD transaction, an LLC will have either a manager who is not a member and owns 0% interest in the entity or a “managing member” who is both an interest-holding member and a manager of the LLC. Additionally, LLCs provide liability protections for managers and members. LLCs are popular options for new real estate investors because they can be owned and managed by a single “managing member” individual and provide that individual with liability protection. LLCs are easy to form, with most states requiring only a few documents for formation and registration. Like general partnerships and limited partnerships, the LLC is subject to pass-through taxation. Some states do require annual reporting and fees to maintain active status.
Choosing (and forming) a mortgagor entity for your multifamily investment property is one of the many steps required to participate in the FHA Multifamily program. Consulting with an attorney to make an informed decision as to which entity type is suitable for your investment is imperative, as the mortgagor’s entity structure and organizational documents will be subject to lengthy due diligence review in the approval process.
There are very few pop culture interests shared among people all over the world and of all ages. Whether you live in Hong Kong or America, are two years-old or ninety-two years old, you would be hard-pressed to find someone who hasn’t heard of Disney. If you ask five different people the first thing they think of when they hear the word “Disney,” you’d likely hear five different answers: movies, amusement parks, streaming services, Mickey Mouse, or maybe even the Happiest Place on Earth. However, none of these experiences would have been possible without the person behind the magic—Walter Elias Disney.
Having just lost his team of animators and first successful character, Disney continued to persist and created the iconic Mickey Mouse. After Mickey’s debut in a couple of silent cartoons, Disney decided to do something that hadn’t been done before. He created one of the first cartoons with synchronized sound, a short film titled Steamboat Willie. It was then that Mickey Mouse rose to stardom. Not only did Disney create Mickey Mouse, but he was the voice of the character until 1947.
Walt Disney didn’t limit himself to creating movies about flying elephants and singing birds. During World War II, the federal government retained Disney to create films that would educate the public about the war. One of those short films, The New Spirit, starred Donald Duck and encouraged people to pay their income taxes as a way to fund the war.
What started out as a man with a dream turned into a company worth $200.10 billion. The Walt Disney Company has become one of the most well-known and respected entertainment moguls in the 21st century. The Disney phenomenon is so prevalent in today’s culture that adult members of the fandom are widely referred to as “Disney Adults.” Next time you visit the Happiest Place on Earth, don’t forget to snap a photo by the statue of the men who started it all—Walt Disney and Mickey Mouse.
Let’s talk about naming your business. As you would expect, branding can make or break a project. 82% of investors say name recognition is an important factor guiding them in their investment decisions, and brands with poor company branding pay 10% higher salaries. A name is a long-term commitment, and can be a daunting task – it took Warby Parker six months and over 2,000 options to find their brand’s perfect name.
Once you get a short list of names together, you will want to determine whether or not any of the names are taken. You don’t have to trademark your business name to run business activity under it, but you do need to register a business if you start any sort of commercial activity, like promoting goods or services. If that’s the case, your business needs to be registered and you’ll need to receive a Tax ID before you can legally operate business activity.
The U.S. Patent and Trademark Office (USPTO)’s Trademark Electronic Search System is the best way to search for all applied-for and registered trademarks. If the name is available, filing a trademark for a business name with the USPTO costs between $50 and $600, depending on if you’re registering the trademark in one state, multiple states, and the type of trademark being registered. Note that if you’re a foreign-domiciled applicant, you are required to hire a U.S.-licensed attorney to represent you at the USPTO.
Now that you know some of the basic rules around naming your brand, it’s time to get brainstorming! The links below are some great examples of online tools that can help you to come up with the perfect brand name, domain name, and URL. Just remember – your brand name should be memorable, accessible, and evolvable.
As a general rule for business owners, ALWAYS presume that 
Do you ever wonder how you will manage it all? It all might look different for each of us. Studying law. Teaching law. Practicing law. Having a family. Living a healthy life. Engaging in activities that fulfill you. Keeping your sanity. Just add being an entrepreneur to the mix.
Legal technology is his arena. Alongside business partner, Trent Wenzel, Professor Anderson co-founded an analytics technology for transactional drafting. They sold this technological tool—now known as Draft Analyzer—to Bloomberg Law. This tool is now a prominent analytics feature of Bloomberg Law. But they did not stop there.
Professor Anderson is not one to impose his entrepreneurial interests on his students. Even though his entrepreneurial work is an obvious source of interesting material for exam fact patterns, his worlds often remain separate.
Professor Anderson provided a piece of advice to budding entrepreneurs that I was not expecting. His advice stems from his personal experience with entrepreneurship. He encourages students to pursue traditional paths after law school, or at least not to fear a legal career. He spoke about how the practice of law is extremely inefficient. He believes there is an extreme gap in access to justice that technology has the potential to solve.
Lauren Stahl, at the time of this post, is a rising 2L at Penn State Dickinson Law. Formerly a medical researcher at the National Institutes of Health and Penn State College of Medicine, Lauren has interests in health care law and business transactional law. Lauren currently serves as Secretary of the Health Law Society, Philanthropy Chair of the Women’s Law Caucus, and a Research Assistant for Professor Prince.
Sally Ride was born on May 26, 1951, in Los Angeles, California. After graduating high school, she went to Stanford University where she would ultimately earn her doctorate in physics. On June 18th, 1983, Ride became the first U.S. woman in space. Apart from being an astronaut, Ride has inspired countless people, as she lived a life committed to science, education, and inclusion. Among those that she inspired is Penn State Dickinson Law’s very own Dean Dodge. Ride was Dean Dodge’s physics and astronomy professor at UC San Diego. 
On June 18, 1983, Ride became the first American woman to fly in space. She was an astronaut on the STS-7 space shuttle mission where her job was to use a robotic arm to help put satellites into space. Ride flew on the space shuttle again in 1984. While Ride had a remarkable career at NASA, she also encountered a number of obstacles in her career, including gender-biased questions from reporters. 
In 2003, Ride was added to the Astronaut Hall of Fame, which honors astronauts for their hard work. Until her death on July 23, 2012, Ride continued to help students study science and mathematics. Ride’s legacy lives on and she is still remembered for her work, contribution to science and commitment to inclusion. In 2013, Ride received the Presidential Medal of Freedom from President Barack Obama. Tam O’Shaughnessy accepted the medal on behalf of Ride. 
Shila Bayor, at the time of this post, is a rising second-year student at Penn State Dickinson Law. She is from New York City and is a graduate of Bard College. Shila is currently the president of the Business Law Society and secretary for the Black Law Student Union.
In observance of LGBTQ+ Pride Month and the anniversary of the Supreme Court’s landmark decision in Bostock v. Clayton County, the U.S. Equal Employment Opportunity Commission (EEOC) released new resources to help educate employees, applicants, and employers. One of the resources is a 
An employer may have separate, sex-segregated bathrooms, locker rooms, and showers for men and women. Of course, they can also choose to have unisex bathrooms, locker rooms, and showers. However, the EEOC takes the position that employers cannot deny an employee equal access to a bathroom, locker room, or shower that corresponds to the employee’s gender identity.
An applicant or employee in the private sector or state and local government can contact the EEOC for help in deciding what to do in these situations. If the individual decides that they want to file a charge of discrimination, the EEOC will investigate to decide if applicable Equal Employment Opportunity (EEO) laws have been violated. It is important to note that an individual must file within 180 days of the alleged violation, or 300 days if the employer is covered by a state or local employment discrimination law, in order to take further legal action. For more information on filing a charge, visit 
