Consumer Protection

  • October 10, 2024

    Feds Slam Ex-FTX Exec's '11th Hour' Prison Delay Bid

    Federal prosecutors slammed an "eleventh hour request" from former FTX co-CEO Ryan Salame to further delay the start of his prison sentence, telling a New York federal judge that Salame has apparently recovered from the dog attack that postponed his first surrender date and any remaining medical care appears "largely cosmetic and nonurgent."

  • October 10, 2024

    Amazon Must Give FTC Doc On Prime 'Upsells'

    Amazon will have to turn over to the Federal Trade Commission the details of a presentation it made outlining how it upsells its Prime subscriptions as part of an enforcement lawsuit accusing the e-commerce behemoth of duping customers into signing up for the service.

  • October 10, 2024

    FTC's Final Merger Filings Overhaul Drops Labor Market Look

    The Federal Trade Commission on Thursday finalized its long-awaited overhaul to U.S. merger filing rules, dropping initial proposed requirements to submit preliminary deal drafts and labor market details, while also reinstating the "early termination" of reviews of benign tie-ups.

  • October 10, 2024

    Social Media Apps Don't Need User Warnings, MDL Judge Told

    A lawyer for TikTok urged a California state judge on Thursday to cut failure-to-warn claims from multidistrict litigation over social media's alleged effects on youth mental health, saying this theory is akin to suing newspapers for "not including a warning that reading the news could put you in a bad mood."

  • October 10, 2024

    Citadel Credit Union Reaches $6.5M Redlining Deal With DOJ

    The U.S. Attorney for the Eastern District of Pennsylvania announced Thursday it reached a deal with Citadel Federal Credit Union to settle allegations it engaged in lending discrimination in Black and Latino neighborhoods, with the credit union agreeing to invest $6.5 million in neighborhoods of color in Philadelphia.

  • October 10, 2024

    SEC Sues Crypto Arm Of Proprietary Trading Firm DRW

    The U.S. Securities and Exchange Commission accused the crypto-focused subsidiary of proprietary trading firm DRW Holdings of operating as an unregistered securities dealer by effecting more than $2 billion in crypto transactions, according to a complaint filed Thursday in Illinois federal court.

  • October 10, 2024

    Trade Group, Enviros Clash Over EPA Methylene Chloride Rule

    American Chemistry Council and the Sierra Club are taking aim at the U.S. Environmental Protection Agency's methylene chloride rule, with the industry group telling the Fifth Circuit the agency overstepped when it outright banned most applications of the chemical for no valid reason and the conservation organization arguing it didn't go far enough.

  • October 10, 2024

    FCC Says Disabled Need More Access To Emergency Services

    The Federal Communications Commission still has work to do to make sure telecom services are accessible to people with disabilities, particularly those who are visually and hearing impaired, the agency revealed in a new report.

  • October 10, 2024

    Ejudicate Ran 'Bogus' Student Loan Arbitrations, CFPB Says

    The Consumer Financial Protection Bureau announced Thursday that it has banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying the company misled student borrowers about its neutrality and initiated "bogus" arbitration proceedings.

  • October 10, 2024

    OpenAI Calls Musk's Fraud, RICO Suit A Harassing Biz Move

    OpenAI asked a California federal judge to toss Elon Musk's claims that the artificial intelligence venture and its top brass engaged in fraud by deciding to make OpenAI a for-profit company, claiming Musk "has been trying to leverage the judicial system for an edge" since launching a competing AI company.

  • October 10, 2024

    Oregon Gas Customers Sue Over 'Greenwashing' Program

    Northwest Natural Gas Co. has been accused by customers of engaging in "greenwashing" by advertising its Smart Energy program as a way for them to offset their natural gas emissions, while directing the program's funds to methane-generating industrial dairy farms.

  • October 10, 2024

    Yale Hospital Says Pension Liens Breach $435M Sale Deal

    A hospital operator's purported $4 million pension liability has saddled its properties with liens that breach a $435 million sale contract, Yale New Haven Health told a Connecticut state judge Wednesday in a letter suggesting it may add claims to litigation over its deal with Prospect Medical Holdings Inc.

  • October 10, 2024

    Homebuyers Tell 8th Circ. Broker Deal Gives Them Nothing

    Homebuyers are urging the Eighth Circuit to undo the approval of $208.5 million in settlements struck by real estate brokerages in the sprawling litigation over industry rules covering broker fees, saying the deals only provide money for sellers.

  • October 10, 2024

    Tobacco Cos. Push To Move Dozens Of Cases Out Of Boston

    Several tobacco companies asked a Massachusetts judge Thursday to send more than 30 pending liability cases to other venues in the state, arguing that the plaintiffs have no ties to Suffolk County and that the volume of cases is burdening judges in the Boston courthouse.

  • October 10, 2024

    GOP Rep. Pushes FCC To Act On 12 GHz Broadband Access

    An Oklahoma lawmaker has joined a chorus that has been calling for the Federal Communications Commission to open the lower 12 gigahertz spectrum band to two-way broadband fixed wireless access.

  • October 10, 2024

    Eli Lilly Tells Mich. Justices It's 'Wrong Time' For Insulin Case

    A lawyer for pharmaceutical company Eli Lilly has urged the Michigan Supreme Court to reject a call to shake up the state's consumer protection precedent, saying during oral arguments Thursday that the attorney general is asking the court to do "by fiat" what Michigan lawmakers could soon accomplish with a bill package that got a hearing earlier this week. 

  • October 10, 2024

    Animal Medication Co. Sued Over Dog Arthritis Treatment Risks

    New Jersey-based animal medication company Zoetis Inc. was hit with a proposed class action Wednesday alleging that a drug used to treat osteoarthritis in dogs has harmful effects such as seizures, inability to walk, organ damage and even death, which the company has failed to warn about.

  • October 10, 2024

    Faulty New Balance Shoes Killed Olympian's Career, Suit Says

    An athlete, who previously competed in two Summer Olympics, claims she missed this year's Paris Games after suffering a "career-ending injury" due to defective running shoes provided by her sponsor, New Balance, according to a lawsuit filed in Rhode Island federal court.

  • October 10, 2024

    Feds Ask 18 Months For 'Razzlekhan's' Role In Crypto Hack

    The wife of a hacker who admitted to stealing what is now billions of dollars worth of bitcoin from the crypto exchange Bitfinex deserves 18 months in prison for her role in the heist, federal prosecutors say in a recommendation that takes her cooperation into account.

  • October 10, 2024

    3M, Other Cos. Hit With PFAS Contamination Class Action

    Nantucket, Massachusetts, residents seek to hold the 3M Co., The Chemours Co. and other companies liable for perfluoroalkyl and polyfluoroalkyl substances that allegedly contaminated their properties, their drinking water and the residents themselves.

  • October 10, 2024

    Cigna Says NJ Plastic Surgeons Fraudulently Billed $8.5M

    Two Cigna units said a New Jersey-based plastic and reconstructive surgery group billed excessively high fees and then waived patient cost-shares, fraudulently obtaining just over $8.5 million from the insurer in a scheme that dates back nearly a decade.

  • October 10, 2024

    Shield Satellite Radio From Interference, FCC Told

    Sirius XM told the Federal Communications Commission that continued attempts to open the 6 gigahertz band for low-power wireless devices could pose a threat to the satellite radio service's signals if strong protections are not put in place.

  • October 10, 2024

    SEC Says Adviser's $4M Scheme Included 'AI-Washing'

    The U.S. Securities and Exchange Commission on Thursday fined a California-based investment adviser that it said raised nearly $4 million through a series of false promises, including deceptive statements about artificial intelligence capabilities.

  • October 10, 2024

    Ga. Container Co. Hit With Data Breach Lawsuit

    A Georgia-based manufacturer and global supplier of blow-molded plastic containers has been hit with a proposed class action in federal court over a December 2023 data breach that allegedly exposed the personal information of more than 30,000 people who were not notified about the hack until this month.

  • October 10, 2024

    FCC Chair Slams Trump's Demands To Pull CBS' License

    The head of the Federal Communications Commission on Thursday once again blasted Donald Trump for demanding the agency yank broadcast stations' licenses for political reasons, saying the former president's "familiar" attacks on free speech "should not be ignored."

Expert Analysis

  • Assessing Algorithmic Versus Generative AI Pricing Tools

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    A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.

  • How States Are Approaching AI Workplace Discrimination

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    As legislators across the U.S. have begun addressing algorithmic discrimination in the workplace, attorneys at Reed Smith provide an overview of the status, applicability and provisions of 13 state and local bills.

  • A Preview Of AI Priorities Under The Next President

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    For the first time in a presidential election, both of the leading candidates and their parties have been vocal about artificial intelligence policy, offering clues on the future of regulation as AI continues to advance and congressional action continues to stall, say attorneys at Mintz.

  • Opinion

    Big Oil Climate Ruling Sets Dangerous Liability Precedent

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    The recent Maryland court dismissal of Baltimore's case seeking to hold BP responsible for climate damage mischaracterized the city's injuries as divorced from the conduct that caused them, and could allow companies that conceal the dangers of their products to escape liability, says Randall Abate at George Washington University Law School.

  • DOJ Must Overcome Hurdles In RealPage Antitrust Case

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    The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.

  • What To Know About CFPB Stance On Confidentiality Terms

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    A recent circular from the Consumer Financial Protection Bureau represents a growing effort across government agencies to address overbroad confidentiality agreements, and gives employers insight into the bureau's perspective on the issue as it relates to the Consumer Financial Protection Act, say Holly Williamson and Elizabeth King at Hunton.

  • Opinion

    3rd. Circ. Got It Right On Cancer Warning Claims Preemption

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    The Third Circuit's recent, eminently sensible ruling in a failure-to-warn case against Roundup manufacturer Monsanto, holding that the Federal Insecticide, Fungicide and Rodenticide Act preempts state law claims, provides a road map that other courts should adopt, says Lawrence Ebner at the Atlantic Legal Foundation.

  • How Methods Are Evolving In Textualist Interpretations

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    Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.

  • Finding Coverage For Online Retail Privacy Class Actions

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    Following recent court rulings interpreting state invasion of privacy and electronic surveillance statutes triggering a surge in the filing of privacy class actions against online retailers, companies should examine their various insurance policies, including E&O and D&O, for defense coverage of these claims, says Alison Gaske at Gilbert LLP.

  • 5 Ways To Confront Courtroom Technology Challenges

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    Recent cybersecurity incidents highlight the vulnerabilities of our reliance on digital infrastructure, meaning attorneys must be prepared to navigate technological obstacles inside the courtroom, including those related to data security, presentation hardware, video playback and more, says Adam Bloomberg at IMS Legal Strategies.

  • The State Law Landscape After Justices' Social Media Ruling

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    Following the U.S. Supreme Court’s recent NetChoice ruling on social media platforms’ First Amendment rights, it’s still unclear if state content moderation laws are constitutional, leaving online operators to face a patchwork of regulation, and the potential for the issue to return to the high court, say attorneys at Crowell & Moring.

  • Navigating New Enforcement Scrutiny Of 'AI Washing'

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    The U.S. Securities and Exchange Commission's recent lawsuit against Joonko Diversity, its first public AI-focused enforcement action against a private company, underscores the importance of applying the same internal legal and compliance rigor to AI-related claims as other market-facing statements, say attorneys at Fried Frank.

  • What's Next For Federal Preemption In Financial Services

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    The Office of the Comptroller of the Currency's review of its preemption interpretations and growing pressure from state regulators signal potential changes ahead for preemption in U.S. financial services, and the path forward will likely involve a reevaluation of the entire framework, say attorneys at Clark Hill.

  • Employer Arbitration Lessons From Calif. Consumer Ruling

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    Although a California state appeals court’s recent arbitration ruling in Mahram v. Kroger involved a consumer transaction, the finding that the arbitration agreement at issue did not apply to a third-party beneficiary could influence how employment arbitration agreements are interpreted, says Sander van der Heide at CDF Labor Law.

  • Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling

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    The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.

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