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 […]
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 […]
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, […]
In 1996, Congress directed the FCC to create a fund by which it ensures that Americans throughout the country have access to telecommunications services, to be funded by contributions from carriers. The FCC relies on the Universal Service Administration Company (USAC) to help administer the fund, including by calculating necessary contributions that are submitted to […]
More information here. Here’s an excerpt: Consumers must be given a meaningful opportunity to choose how to proceed when disputes arise. Take-it-or-leave-it terms and conditions imposed in a consumer contract, through use of a product, or by signing up for a service does not allow that opportunity. Restoring consumers’ ability to make the choice about […]
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 […]
I wrote The FAA Should Not Cover Consumer Claims, to appear in The Federal Arbitration Act: Successes, Failures, and a Roadmap for Reform (Richard A. Bales & Jill I. Gross eds., forthcoming 2024 Cambridge University Press). Here is the abstract: Consumer protection laws face a fundamental enforcement issue: because consumer claims are typically for small […]
As regular readers of the blog know, last month some 160 law academics filed with the CFPB a comment supporting the issuance of a new arbitration regulation (disclosure: I served on the drafting committee). Mark J. Levin & Alan S. Kaplinsky of Ballard Spahr recently posted a critique of the law professor comment on the Consumer Finance […]
Rosario Hernandez sued MicroBilt after a verification report the company issued inaccurately stated she was on a government watch list, leading to her being denied a loan. Citing a mandatory arbitration agreement in her loan application, MicroBilt moved to compel, and Hernandez dismissed her court complaint and submitted her claims to the AAA for 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 […]