As the New York Times reports, The Federal Trade Commission said on Thursday that it had settled its first consumer-protection lawsuit against a company for using “deceptive sales claims and phony legal threats” to try to get unsuspecting companies to license patents. At issue is the practice of a company called MPHJ Technology Investments, described […]
The U.S. Department of Education, drawing applause from the Treasury Department, has moved to increase funding for student loan servicers. The goal is to improve customer service for students, according to the administration. The catch? Servicers get the money anyway, whether or not service improves. The Huffington Post explains the concern, and Senator's Warren's position: […]
by Jeff Sovern As to the eight questions that had right or wrong answers: Only two respondents answered all eight questions correctly out of 663 who answered all eight questions. 117 did not answer any of the questions correctly. That’s more than answered at least half the questions right. If this had been a test […]
The Consumer Financial Protection Bureau today issued a report entitled A snapshot of debt collection complaints submitted by older consumers. Among the report's findings are . . . · Collectors hounding older Americans about medical debt: Older Americans describe being confused and frustrated because collectors attempt to collect medical expenses while the consumer is […]
by Jeff Sovern Last week I posted the abstract for our study, 'Whimsy Little Contracts' with Unexpected Consequences: An Empirical Analysis of Consumer Understanding of Arbitration Agreements. I want to discuss today some of what we learned about respondent awareness of arbitration clauses in the contracts they have entered into. As the abstract noted, we asked […]
The Supreme Court held oral argument yesterday in Jesinoski v. Countrywide Home Loan, a case potentially important to consumers and their advocates. The question presented is Does a borrower exercise his right to rescind a transaction in satisfaction of the requirements of Section 1635 [of the Truth in Lending Act] by “notifying the creditor” in […]
Last week, the Federal Trade Commission sued Gerber Products Co. in federal district court in New Jersey, alleging that the company deceptively advertised that feeding infants Good Start Gentle formula would prevent or reduce the risk that the babies would develop allergies. The complaint also alleges that Gerber falsely advertised Good Start Gentle’s health claims […]
by Jeff Sovern Last week I posted the abstract for our study, 'Whimsy Little Contracts' with Unexpected Consequences: An Empirical Analysis of Consumer Understanding of Arbitration Agreements. The abstract observed that many respondents think that form contracts can't strip consumers of certain rights. That conclusion is obvious from the statistical data, but the written comments make the […]
by Jeff Sovern Last week I posted the abstract for our study, 'Whimsy Little Contracts' with Unexpected Consequences: An Empirical Analysis of Consumer Understanding of Arbitration Agreements. But the abstract doesn't come close to capturing all the interesting findings. I hope to write more about some of them in the days to come. Here's something […]
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