Category Archives: Unfair & Deceptive Acts & Practices (UDAP), including Discrimination

Auto dealer industry petitions Fifth Circuit for review of new FTC rule

The Federal Trade Commission on January 4 published in the Federal Register its final rule to rein in widespread unfair and deceptive auto dealer practices. The next day, Reuters reported that the National Automobile Dealers Association (NADA) and the Texas Automobile Dealers Association filed a petition before the Fifth Circuit Court of Appeals seeking review […]

FTC continues moves against deep-rooted robocall system

In its battle to rein the coordinated system facilitating illegal robocalls, the Federal Trade Commission announced a proposed order against a lead generator, which the agency charged with deceptively collecting consumers’ information and then selling their data to telemarketers…leading to harassing calls. The announced proposed order would ban California-based Response Tree LLC and its president […]

NY’s Governor, AG Support NY’s UDAAP Statute Expansion

The bill would add unfairness and abusiveness to the NY UDAAP statute, increase statutory damages to $1,000, and allow businesses to recover under the statute, among other things. This follows NY’s blocking credit bureaus from reporting medical debt. More here.

FTC Brings False Advertising Suit Against For-Profit Grand Canyon University

Last week, the FTC’s Bureau of Consumer Protection filed a lawsuit against Grand Canyon University,  one of the nation’s largest for-profit universities, alleging it deceived prospective doctoral students about the cost and course requirements of its doctoral programs and about being a nonprofit, while also engaging in deceptive and abusive telemarketing practices. The FTC’s press […]

Are deferred interest plans abusive?

USA Today’s Daniel de Vise has an interesting article, 62% of Americans say this zero-interest payment plan should be against the law, about a form of consumer lending called deferred interest plans. Here’s an excerpt: A popular payment plan offered by America’s big-box retailers promises no interest on your purchase if you pay it off in, […]

FTC issues rule regarding scams in vehicle shopping

The Federal Trade Commission has finalized a new rule to fight two common types of illegal tactics consumers face when buying a car: bait-and-switch tactics and hidden junk fees. The FTC expects the rule to save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles. The FTC’s […]

FTC returns more than $3 million to businesses that paid for HomeAdvisor memberships

The Federal Trade Commission is sending more than $3 million in refunds to businesses that paid for memberships to HomeAdvisor, Inc., a company affiliated with Angi (formerly known as Angie’s List). The agency is also sending claim forms to businesses that are eligible for additional refunds. The refunds stem from FTC allegations that HomeAdvisor used […]

Court approves CFPB settlement re training provider’s abusive loan practices

In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged […]

CFPB orders Citi to pay $25.9 Million for discriminating against Armenian Americans

The Consumer Financial Protection Bureau announced today that it has ordered Citi to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. The CFPB explains: “From 2015 through 2021, Citi singled out for discrimination applicants for certain credit card products, based […]

CFPB appeals Chamber of Commerce district court ruling that discrimination is not unfair

More about the lower court opinion here. Given the Fifth Circuit’s politics, I’m not sure things will fare any better there, but hope is the thing with feathers. Even the Fifth Circuit must reach the correct decision sometimes.