Author Archives: Allison Zieve

CFPB bans mandatory arbitration clauses in mortgage contracts

Although I am not able to find the announcement or the rule on the Bureau's website, Mondaq is reporting that the Consumer Financial Protection Bureau has issued a rule to implement Dodd-Frank's ban on mandatory arbitration clauses in mortgage contracts. The rule is available here. The rule implements changes required by Section 1414 of the […]

Sid Wolfe Steps Down as Director of Public Citizen Health Research Group

After 42 years as head of Public Citizen Health Research Group, Dr. Sidney Wolfe is handing the reins over to his deputy director Dr. Michael Carome, effective today. Sid founded the Group in 1971, with Ralph Nader. Under Sid’s direction, Public Citizen helped to have 25 dangerous drugs removed from the market and pushed the […]

Judge Approves Class Settlement over Sketchers’ Unfounded Claims

A federal judge in Kentucky approved last week a $40 million class-action settlement between Skechers USA Inc. and consumers who bought Skechers' toning shoes from August 2008 – August 2012. The Skechers' ads made unfounded claims that the shoes would help people lose weight and strengthen muscles. Consumers with approved claims will be paid up […]

Does a consumer lack standing to sue for injunctive relief in misrepresentation case when he knows the truth about the product?

Rebecca Tushnet’s 43(b) blog reports today on the recent district court decision in Mason v. Nature's Innovation, Inc. (S.D. Cal.). The plaintiff sued the manufacturer of a skin care product for injunctive relief, alleging claims under California consumer statutes and warranty claims based on misrepresentations on the product’s label and website. The court found that […]

Supreme Court to consider whether lawsuit over termination of frequent flyer benefits is preempted

Yesterday, the U.S. Supreme Court granted a petition for certiorari in Northwest, Inc. v. Ginsberg, which will give the Court yet another opportunity to address the preemptive scope of a federal statute. In 2005, Rabbi S. Binyomin Ginsberg, a long-time customer of Northwest Airlines, earned the highest level of membership benefits in Northwest’s customer loyalty […]

In class settlement, Ninth Circuit holds that attorney fees must be tied to redemption value of coupons

In In Re HP Inkjet Printers, the Ninth Circuit yesterday reversed the district court’s orders granting final approval to a class-action settlement between Hewlett-Packard Company and a nationwide class of consumers who purchased certain HP inkjet printers, and awarding attorneys’ fees. Here is the summary issued by the court: The panel held that the attorneys’ […]

Sen. Franken urges SEC to prohibit mandatory arbitration clauses in customer service agreements

Senator Franken today sent a letter to the Securities and Exchange Commission urging it to "promptly exercise its authority under Section 921 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to prohibit the use of mandatory arbitration provisions in customer service agreements." His letter and press release are posted here.

States consider limits on loans to finance lawsuits

According to this article in today's Wall Street Journal, several states are considering whether to limit the business of lending money to plaintiffs to fund litigation and collecting if the plaintiffs' suits are successful. “At the heart of many of the bills are proposals to subject the lawsuit-funding industry to existing state laws that regulate […]

Groups urge retailers to phase out sale of 100s of chemicals

A group of organizations including the Union of Concerned Scientists, Breast Cancer Fund, and Safer Chemicals, Healthy Families yesterday sent a letter to major retailers asking them to phase out the use of more than 100 chemicals used in hundreds of products, including wrinkle-free clothes, shampoos, sofa cushions, and food packaging. The retailers include Walmart, […]