Category Archives: Consumer Litigation

Seventh Circuit cleans up standard of review for arbitration waiver appeals, holds class certification does not reset waiver analysis

After more than five years of litigation, and more than a year after the district court certified a class in a TCPA consumer class action, Club Exploria, a timeshare company, moved to compel arbitration. The district court denied the motion, finding a waiver of the right to arbitrate. It then granted summary judgment to the […]

Ninth Circuit upholds ITT student borrowers’ RICO win about predatory loan products

In 2016, ITT Technical Institute — a for-profit college that had engaged in aggressive and predatory marketing and lending tactics — collapsed.  In 2020, three former ITT students brought a class action against a company that ITT had assigned its loan servicing responsibilities to, and related entities, alleging a conspiracy with respect to ITT’s loan […]

Ninth Circuit finds food consumer has “listener” standing

One diet promoted by influencers and others over the last few years is a “low-FODMAP” diet, which entails “strict reduction of all slowly absorbed or indigestible short-chain carbohydrates (ie, FODMAPs) followed by reintroduction of specific FODMAPs according to tolerance.”  The diet is controversial. FDA regulations prevent food producers from labeling products based on their FODMAP […]

Second Circuit holds ineffective decongestant claims largely preempted by FDCA

A third appellate decision today about FDCA preemption….it’s definitely clerk turnover season! After studies started casting doubt on the notion that oral phenylephrine (oral PE) was an effective nasal decongestant, consumers  across the country and a retail pharmacy sued drug manufacturers under the theory that the manufacturers had produced, marketed, and sold “nasal decongestants containing […]

Tenth Circuit Rejects Administrative Feasibility Requirement Under Rule 23

Today, the Tenth Circuit issued a divided opinion in Dunn v. Santa Fe Natural Tobacco Company, a consumer class action brought against the manufacturers of Natural American Spirit (NAS) cigarettes. The consumers allege that they were misled into believing that the company’s cigarettes were less harmful than those produced by other companies. On interlocutory review of […]

Third Circuit Reinstates Algorithmic Hotel Pricing Antitrust Case

Three consumers who stay at casino-hotels in Atlantic City brought a class action against some of those hotels and their algorithmic software provider, alleging a conspiracy to fix prices in violation of the Sherman Antitrust Act. The district court dismissed the case, but today the Third Circuit reversed and reinstated the complaint. In reaching its […]

Seventh Circuit Rejects FDCA Preemption Argument re “Sugar Free” Claims

Yogurt company Chobani sold a product it labeled as “sugar free,” even though the yogurt includes four grams per serving of allulose– a naturally occurring sweetener. Consumers sued Chobani for doing so under state consumer protection laws, but an Illinois district court held those claims were preempted by the Federal Food, Drug, and Cosmetic Act–relying […]

Seventh Circuit rejects takings clause challenge to renter-relocation-assistance requirement

In 2021, Chicago enacted the Keep Chicago Renting ordinance, which  requires those who purchase rental properties through foreclosure to (1) negotiate in good faith with existing tenants for a new rental agreement for at least one year, and (2) if the tenant does not sign a new lease, pay the moving tenant a $10,600 relocation […]

Tenth Circuit Finds “Objectively Verifiable” Requirement for FCRA Claims

Without his consent or knowledge, Robbin Ward’s daughter took out a lease in his name. She was later evicted for nonpayment, and the back-rent owed was transferred to a debt collector. The debt collector reported the debt to credit agencies, who noted it on Mr. Ward’s credit report.  Mr. Ward disputed the debt claiming identity […]

Seventh Circuit holds TCPA cause of action does not extend to text messages

Section 227(c)(5) of the Telephone Consumer Protection Act (TCPA) provides a private right of action for any “person who has received more than one telephone call within any 12-month period by or on behalf of the same entity in violation” of FTC regulations related to “residential telephone subscribers’ privacy rights to avoid receiving telephone solicitations […]