I recently discussed the Ninth Circuit appeal in Cabral v. Supple, a fascinating case about consumer fraud class actions, infomercials, snake oil, the placebo effect, and behavioral economics. Our opening brief was filed last week. Yesterday, three organizations filed amicus briefs supporting us: AARP focused on the effect of marketing techniques aimed at making false health-benefit claims to […]
We've covered extensively the law and policy fight against obesity and noted that there's been some (barely) measurable progress recently. That's the theme of this article from The Economist. Here's an excerpt: The overweight American, slurping a bucket of soda in his car, is an international stereotype. Thankfully, fewer Americans fit the mould. Obesity rates among […]
Do you think that some food marketers (mis)label junky foods to try to make them seem healthy? Jennifer Pomeranz does, and she's written A Comprehensive Strategy to Overhaul FDA Authority for Misleading Food Labels to explain how, in her view, the Food and Drug Administration can make food labels less misleading, consistent with the First […]
We've posted here and here about how consumers can try to avoid harm from the Target (and similar) data breaches. Perhaps the best medicine is putting a security freeze on your credit report. Here, Michelle Singletary describes that process in some detail.
Here. An excerpt: In late March, the Consumer Financial Protection Bureau—the consumer watchdog agency dreamt up by Sen. Elizabeth Warren (D-Mass.)—issued new, voluntary guidelines aimed at ensuring car dealerships are not illegally ripping off minorities. Since then, 13 Senate Democrats, including Sens. Heidi Heitkamp (D-N.D.) and Mary Landrieu (D-La.); and 22 House Dems, including Reps. […]
Those are the subjects of Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications, by law professor John Coates. Here is the abstract: Some members of Congress, the D.C. Circuit, and legal academia are promoting a particular, abstract form of cost-benefit analysis for financial regulation: judicially enforced quantification. How would CBA work in practice, if […]
Perhaps sign-ups on the Affordable Care Act's exchanges are lagging, but, as explained in this article by Sabrina Tavernise, in states that have accepted the Act's medicaid expansion, the Act is providing health insurance to many people who previously lacked it. "In West Virginia," for example, "where the Democratic governor agreed to expand Medicaid eligibility, the […]
by Jeff Sovern I'm finally getting around to reading the CFPB's December 12 report, Arbitration Study: Preliminary Results, about which Brian blogged here. Though the Bureau does not make much of it, perhaps because the natural experiment has some flaws (as natural experiments often do), the CFPB Study sheds some light on the impact of arbitration […]
by Deepak Gupta Should a defendant in a consumer fraud class action be able to defeat certification through evidence that its customers say they are "satisfied," even when the the allegation is that the product is snake oil? Or would that transform the placebo effect into a defense to fraud? That's the question the Ninth […]
Oz Shy of the Federal Reserve Bank of Boston and Rune Stenbacka of the Swedish School of Economics and Business Administration have written Customer Privacy and Competition. Here is the abstract: We analyze how different degrees of privacy protection affect industry profits, consumer welfare and total welfare. Firms earn higher profits under weak privacy protection […]