California's Supreme Court has held that corporations may be liable under the state's consumer-protection laws for misleading advertising or public statements about their products or operations - including statements about working conditions and safety and health compliance.
The court ordered a trial court to proceed with a case brought by an activist who charged that Nike, Inc., made false statements about conditions in Asian factories used to produce its shoes and apparel in order to counter criticism that the company was using "sweatshop" labor.