Author Archives: Adam Pulver

Are tips payments for services? Second Circuit says yes

A group of consumers brought a class action against the New York Black Car Operators’ Injury Compensation Fund–a statutorily created fund that provides workers’ compensation benefits to New York’s black car drivers. The consumers argued that the fund had unlawfully collected a surcharge on noncash tips they paid to drivers (generally, through the Uber App), […]

FTC Brings False Advertising Suit Against For-Profit Grand Canyon University

Last week, the FTC’s Bureau of Consumer Protection filed a lawsuit against Grand Canyon University,  one of the nation’s largest for-profit universities, alleging it deceived prospective doctoral students about the cost and course requirements of its doctoral programs and about being a nonprofit, while also engaging in deceptive and abusive telemarketing practices. The FTC’s press […]

Dismissal of Roblox Minor Refund Class Action Affirmed

In an unpublished decision, the Ninth Circuit last week affirmed the district court’s dismissal of a class action against Roblox, a video game platform, based on allegations that Roblox unlawfully denies minors refunds for their purchases of Robux, a virtual currency that users buy to obtain new characters, weapons, and other in-game benefits. The court […]

Eleventh Circuit Addresses Timeshare Defendants’ Arbitration Gamesmanship

The Eleventh Circuit today weighed in on a matter involving the increasingly frequent scenario of a corporate defendant refusing to comply with the terms of the arbitration agreement it foisted upon consumers. Three consumers who had bought timeshares through Wyndham Vacation Resorts filed claims for breach of contract and fraudulent inducement with the American Arbitration […]

Consumer lawyer sued for malicious prosecution by Ashley Furniture

Earlier this month, I shared a decision sanctioning consumer lawyer Spencer Sheehan for bringing what a New York federal court concluded was a frivolous lawsuit against Starbucks based on its labeling of coffee as “100% Arabica.” I noted that Ashley Furniture, a furniture company that had been sued by Sheehan in Florida, had filed an […]

Eleventh Circuit rejects nondelegation-doctrine challenge to Universal Service Fund with two concurrences

In 1996, Congress directed the FCC to create a fund by which it ensures that Americans throughout the country have access to telecommunications services, to be funded by contributions from carriers. The FCC relies on the Universal Service Administration Company (USAC) to help administer the fund, including by calculating necessary contributions that are submitted to […]

3rd Circuit Won’t Force Arbitration Where Defendant Won’t Follow AAA Rules

Rosario Hernandez sued MicroBilt after a verification report the company issued inaccurately stated she was on a government watch list, leading to her being denied a loan. Citing a mandatory arbitration agreement in her loan application, MicroBilt moved to compel, and Hernandez dismissed her court complaint and submitted her claims to the AAA for arbitration. […]

Consumer lawyer sanctioned for frivolous Starbucks labeling lawsuit

Attorney Spencer Sheehan brought a class action in the Northern District of New York, arguing that Starbucks’ representation that a specific blend of coffee was “100% Arabica Coffee” was misleading, since it suggested there were no additives, including  potassium.  The district court dismissed the complaint, noting that there was no allegation that there actually was […]

Court approves CFPB settlement re training provider’s abusive loan practices

In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged […]

8th Circuit rejects always-on-sale pricing lawsuit

If items are always on sale, are they really on sale at all? This is the question underlying the plaintiff’s claim in Hennessey v. The Gap, a case in which an Eighth Circuit decision issued yesterday, affirming the dismissal of a consumer class action. The named plaintiff sued the Gap and Old Navy, alleging that sale […]