Category Archives: Consumer Litigation

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), […]

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In an unpublished decision, the Ninth Circuit last week affirmed the district court’s dismissal of a class action against Roblox, a video game platform, based on allegations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 […]

New study on forced arbitration

The Center for Justice & Democracy has published a report titled “Kicked Out of Court in 2023 – 50 Cases Showing the Real-World Impact of Forced Arbitration.” The introduction explains: Mistreatment by tech giants like TikTok. Automobiles and appliances sold with dangerous defects. Nude photos posted online by medical offices. Farms and crops ruined due […]

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 […]

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 […]

Third Circuit finds confusing collection letters provide standing, but not informational standing

Jamie Huber brought a putative class action under the FDCPA, alleging that confusing collection letters she received from Simon’s Agency, Inc. were misleading and deceptive. A district court certified a class, and granted summary judgment in its favor. In so doing, it found that Ms. Huber had standing based on an informational injury, and that […]

3rd Circuit Holds FCRA Requires Credit Furnishers to Investigate All Indirect Disputes

When a consumer finds an error on his or her credit report, the FCRA provides two mechanisms for raising a dispute. The consumer can raise a “direct” dispute with the person or entity that furnished the incorrect or incomplete information (the “furnisher”), or an “indirect” dispute with the credit reporting agency, which then must provide […]

Fourth Circuit Allows Long-Running PDR TCPA Case About “Free” Book to Continue

Some cases are destined to continue forever, and the case of Carlton & Harris Chiropractic v. PDR Network may be one of them, given the Fourth Circuit’s decision yesterday- its third encounter with the case since it was filed back in 2015. As Judge Harris explains, the basic facts are that the plaintiff, “a chiropractic […]