Category Archives: Consumer Litigation

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 […]

NJ Supreme Court Holds No Private Right of Action to Void Loan Contract

The New Jersey Consumer Finance Licensing Act (CFLA) requires consumer lenders to obtain a license, and provides that if a lender  violates that provision “in the making or collection” of a loan, the loan contract “shall be void” and the lender “shall be guilty of a crime of the fourth degree.”  In a unanimous opinion […]

Report that switching from opt-in to opt-out negative option increases enrollment fivefold

According to the complaint in Fish v. Entrata Inc., when Property Management Companies (PMCs)–landlords–switched from offering a product on an opt-in basis to offering tenants the product for free for a month, followed by a negative option opt-out, it had a dramatic effect on sales: 9. The RentDynamics website explains to PMCs that the “opt-out” […]

Ninth Circuit recognizes that an impossible claim can still be deceptive

Alexander Panelli, a consumer who bought sheets that Target markets as “100% cotton” and “800 thread count” sued Target for violating California consumer law, alleging that the thread counts were actually much lower. In his amended complaint, he noted that it is “physically impossible for cotton threads to be fine enough to allow for 600 […]