Stay Informed: 2026, Edition 3 | Davis Wright Tremaine
In Washington, two legislative bills, SB 5976 and HB 2274, are currently under consideration and propose significant changes to the state’s Commercial Electronic Mail Act (CEMA). These bills aim to address a recent increase in CEMA class action lawsuits following a 2025 Washington Supreme Court decision that broadened the interpretation of CEMA’s “false or misleading” subject line provision. This decision led to the filing of over 30 class action lawsuits challenging common email marketing practices, particularly around urgent subject lines related to sale deadlines. These lawsuits have been fueled by CEMA’s private right of action and potential statutory damages of up to $500 per email.
The proposed bills seek to redefine the standard for subject line clarity under CEMA to determine whether a subject line could potentially mislead a reasonable recipient about a material fact related to a transaction. Additionally, the bills aim to modify CEMA’s remedies framework and remove the provision that automatically equates CEMA violations to violations of Washington’s Consumer Protection Act. These changes could have a significant impact on reducing the leverage of class-action lawsuits related to email marketing campaigns.
Moving on to the USDA’s updated food labeling rule, as of January 1, 2026, there are stricter regulations in place for products carrying a “Product of USA” or “Made in USA” label, particularly for meat, poultry, and egg products regulated by the USDA’s Food Safety and Inspection Service (FSIS). Under the new rule, animals from which these products are derived must be born, raised, slaughtered, and processed within the United States to qualify for the label. This requirement is a departure from the previous flexibility that allowed products to carry the label even if certain production steps occurred outside the U.S. as long as the final processing was domestic.
Furthermore, the updated rule imposes more rigorous standards for products containing multiple ingredients. Not only must FSIS-regulated components be sourced entirely within the U.S., but even non-FSIS ingredients must be of U.S. origin to qualify for an unqualified “Product of USA” or “Made in USA” label. Businesses may opt for alternative U.S. origin claims if their products do not meet these criteria, provided that these claims accurately describe the specific U.S.-based production or processing steps. While the inclusion of these labels is voluntary, compliance with the rule’s record-keeping requirements is mandatory.
Overall, these regulatory updates reflect a growing consumer interest in domestically sourced products and align with consumer expectations that a “Product of the USA” label indicates full domestic production. Advertisers should be proactive in adapting to these changes to ensure compliance and transparency in their labeling practices.