Category Archives: Class Actions

Industry Lawyer Concedes Arbitration Clauses Suppress Claims and Reduce Payments to Consumers

by Jeff Sovern Industry lawyer Thomas B. Hudson of Hudson Cook has authored Arbitration Agreements: Not Always Good All the Time for AutoDealer Today, in which he writes: An arbitration agreement is the dealer’s first and best line of defense against class-action lawsuits. If you think that isn’t reason enough, have a word with the many […]

Piché Paper on the Effectiveness of Class Action e-Notices

Catherine Piché of the University of Montreal has written The Coming Revolution in Class Action Notices: Reaching the Universe of Claimants Through Technologies. Here's the abstract: This paper will address whether a correlation may be drawn between the types and modalities of notices sent to class action members and the rate of compensation of these members, […]

Tinder’s Diabolical RETROACTIVE Arbitration Clause

by Jeff Sovern One of my students told me about Tinder's new retroactive arbitration clause which, of course, includes a class action waiver. As with many such contracts, consumers accept it by using the service, regardless of whether they have read it or not–and we know few consumers actually read such things.  The arbitration clause, […]

Horton Empirical Study of How Arbitrators and Judges Decide Differently on Whether to Allow Class Actions

David Horton of California, Davis has written Clause Construction: A Glimpse into Judicial and Arbitral Decision-Making, Duke Law Journal, Vol. 68, Forthcoming. Here is the abstract: For decades, the U.S. Supreme Court has insisted that forcing a plaintiff to arbitrate — rather than allowing her to litigate — does not affect the outcome of a dispute. […]

Arbitration Opt-Outs Hit a New Low: Now They Are Undeliverable

by Jeff Sovern Some arbitration clauses permit consumers to opt out of arbitration and class action waivers provided the consumer acts within a stated period. For example, Asana provides in § 13.8 of its Terms of Service for a 30-day opt-out. Those wishing to opt out are instructed to send "written notice of your decision to opt […]

Senate Could Vote on CRA Resolution to Block Arbitration Rule Tonight . . .

by Jeff Sovern . . .  or  it could come later in the week. Or not. My speculation is that the Senate leadership will call the vote if they think they have the votes to pass the resolution but otherwise they will let it go until closer to the deadline. So the real question is […]

Am Banker Reports on Economists Who Are Critical of the OCC Claims in the CFPB-OCC Data Dispute

by Jeff Sovern The article, by Kate Berry and Ian McKendry, is headlined Fight to kill CFPB arbitration rule could rest on whose data is right. Here's some of what the article says about the OCC claims, though the article has more than I can insert here. "The uncertainty of the OCC's estimate is very large, […]

Politico Got Two Statisticians to Look at the CFPB-OCC Arbitration Statistical Dispute

by Jeff Sovern The story is headlined 'Plague on both your houses': Cordray, Noreika get scolding from statisticians. Excerpt: " * * * There isn’t strong evidence either way,” said Bruce Meyer, a professor at the University of Chicago. “There is weak evidence that says more than likely there is a positive effect on the cost […]

WSJ Report on CFPB Response to Norieka’s Arbitration Op-Ed

by Jeff Sovern The Wall Street Journal, in a story headlined Regulator Fight Flares Anew Over Arbitration Rule As GOP Gears Up To Vote, reports on the CFPB response to the Norieka op-ed I wrote about earlier: The CFPB countered Mr. Noreika’s attack by publishing a new report on the rule’s effect on consumers, arguing there […]