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Consumer Protection
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November 25, 2024
TMX Moves For Emergency Block On $52M Pa. Fine Hearing
An affiliate of TMX Finance asked a Texas federal court to pause Pennsylvania regulators' efforts to enforce the state's anti-usury laws against it, claiming it faced a "Hobson's choice" of responding to an enforcement proceeding whose legality was being questioned, or waiving its arguments and facing a $52.7 million fine.
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November 25, 2024
Calif. Board Seeks Comment On AI Rules Amid Pushback
The California Privacy Protection Agency on Friday opened the public comment period for its latest rulemaking package proposing expansive draft rules regulating technologies fueled by artificial intelligence — including in the employment, education, healthcare, consumer protection, banking and insurance contexts — which business groups have already criticized as being overly broad and burdensome.
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November 25, 2024
Medical Info. Co. Beats Junk Fax Suit Over Free E-Book Offer
A medical information company has once again defeated a long-running Telephone Consumer Protection suit over unsolicited faxes it sent in 2013, with a West Virginia federal judge ruling the plaintiffs produced no evidence that the company got paid when recipients responded to their faxes.
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November 25, 2024
4th Circ. Stands By HELOC 'Offset' Ruling Against PNC
The full Fourth Circuit has declined to reconsider a panel decision that extended protections under the Truth In Lending Act by barring banks from dipping into a cardholder's deposit account to cover outstanding payments on a home equity line of credit without the borrower's consent.
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November 25, 2024
DOJ Says Realtor Commissions Deal Is No Antitrust Shield
The U.S. Department of Justice warned the National Association of Realtors that changes to broker commission rules agreed to in a settlement with home sellers do not shield the industry from government antitrust scrutiny.
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November 25, 2024
Jury Finds Natera Owes Guardant $292.5M In False Ad Suit
A California federal jury on Monday awarded $292.5 million in actual and punitive damages to medical test maker Guardant Health after finding that its rival Natera falsely advertised its colorectal cancer test Signatera as superior to Guardant's competing product Reveal.
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November 25, 2024
Housing Project Will Pollute Public Water, Conn. City Says
The construction of 16 houses in Ledyard, Connecticut, will contaminate the groundwater and endanger the drinking water supply for people living on the site, the city of Groton's water department said in an appeal of the project's approval to the state court.
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November 25, 2024
Trump 2.0 Expected To Maintain Tech Antitrust Cases
President-elect Donald Trump has promised dramatic changes with his pending second term, but antitrust practitioners are anticipating a return to normal after four years of an aggressive Biden administration that's seemed skeptical of big business on the whole, though they also don't expect enforcement to be lax.
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November 25, 2024
Solar Co. Ex-CEO Attys Say DQ Request 'Untethered To Facts'
Lawyers representing the former CEO of a now-defunct solar energy company against fraud and racketeering claims have told a Michigan federal judge that their previous in-house work for the company is not grounds to disqualify them from the suit, calling the plaintiffs' attempt to have them removed "untethered to facts" and improperly delayed.
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November 25, 2024
High Court Refuses To Review FDA Cigarette Warning Rule
The U.S. Supreme Court on Monday said that it won't take up a challenge to a U.S. Food and Drug Administration rule requiring larger warnings on cigarette boxes, in a suit brought by tobacco companies.
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November 22, 2024
Del Monte's 'Fruit Naturals' Label Not Deceptive, 9th Circ. Says
The Ninth Circuit on Friday refused to revive a California woman's proposed class action accusing Del Monte Foods of falsely advertising fruit cups as being "natural" despite containing synthetic preservatives, saying a reasonable consumer would know to read the products' back label to confirm the ingredients.
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November 22, 2024
Trump Makes Picks For FDA, CDC And Surgeon General
President-elect Donald Trump on Friday revealed his nominations for several health agencies, picking Johns Hopkins surgeon and professor Dr. Marty Makary for Food and Drug Administration commissioner, former Rep. Dave Weldon, R-Fla., as the Centers for Disease Control and Prevention director, and Fox News contributor Dr. Janette Nesheiwat for surgeon general.
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November 22, 2024
Ill. Judge Bucks Colleague In Limiting BIPA Change's Reach
An Illinois federal judge held Friday that a legislative amendment limiting damages under the state's Biometric Information Privacy Act doesn't apply to lawsuits filed before the change took effect, refusing to side with a recent ruling from another judge in the same court that reached the opposite conclusion.
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November 22, 2024
Natera's Conduct 'Despicable,' Guardant Says As Trial Wraps
Guardant urged a California federal jury at the close of its false advertising trial Friday to make rival Natera pay it hundreds of millions of dollars, saying the competitor's misrepresentation of the companies' competing cancer detection tests was "despicable," while Natera countered it was Guardant that used deceptive marketing.
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November 22, 2024
Pam Bondi's 'Greatest Hits' As Florida Attorney General
In her eight years as attorney general of Florida, Pam Bondi — who has been tapped by President-elect Donald Trump as attorney general — took on pill mills and telemarketing scams targeting the state's large elderly population, while also leading GOP state efforts to battle the Obama administration.
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November 22, 2024
Sirius XM Cancellation Policies Flout Federal Law, Judge Says
A New York state judge held that Sirius XM Radio Inc.'s account cancellation policies, while not fraudulent, violate federal law by forcing consumers to call customer service and listen to drawn-out discount pitches before they're able to unsubscribe.
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November 22, 2024
Target Can't Shake Shoppers' Biometric Privacy Suit
An Illinois federal judge has refused to toss a putative class action accusing Target Corp. of deploying surveillance systems that unlawfully gathered shoppers' biometric data, finding that news reports and other sources cited by the plaintiffs were enough to create a "plausible inference" that the retailer engaged in the alleged conduct.
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November 22, 2024
Texas Justices Say Court Bungled Ruling In Abortion Case
The Texas Supreme Court said Friday a lower appellate court tried to "prematurely drag the judiciary into highly contentious and politicized debates" around abortion without analyzing a key standing issue, jeopardizing Planned Parenthood's and other abortion rights groups' bid to invalidate the controversial Texas Heartbeat Act.
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November 22, 2024
Europe's Antitrust Enforcer Puts Apple E-Book Probe To Bed
The European Union's antitrust enforcer is dropping its probe into whether Apple's requirement that e-books and audiobooks be bought through in-app purchases in its App Store broke the bloc's competition rules.
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November 22, 2024
Cruz Decries 'Unlawful' Activities In $42.5B Broadband Fund
Sen. Ted Cruz, R-Texas, issued a scathing statement Friday warning the U.S. Commerce Department to discontinue what he contends are "unlawful" activities in administering the $42.5 billion Broadband Equity, Access and Deployment program.
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November 22, 2024
Judge Trims Suit Over Tesla Collision Alert Defect
Tesla Inc. has beaten some of a lawsuit brought by a driver who claims its vehicles' collision monitoring system erroneously detects objects in its path, causing the cars to suddenly brake, after an Illinois federal judge ruled Friday that the driver needed to do more to show significant financial injury.
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November 22, 2024
CFTC Advisers: Current Rules Work For Tokenized Collateral
A U.S. Commodity Futures Trading Commission advisory group on Friday brought the commodities regulator a step closer to clarifying the use of certain tokenized assets as collateral, voting to tell the commission that existing rules can apply to the use of blockchain-based, noncash collateral.
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November 22, 2024
Service Fees Not 'Incidental' To Debt Collection, 11th Circ. Told
Ocwen Loan Servicing LLC urged the Eleventh Circuit on Friday to reverse two Florida lower court judgments finding it violated debt collection practices with a fee to process phone or internet payments, saying it's not an illegal "incidental" charge because the borrower is paying for an optional service.
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November 22, 2024
Procter & Gamble Unit's Hair Oil Causes Hair Loss, Suit Says
The Procter & Gamble Co. and its unit Mielle Organics LLC are deceptively marketing their brand of hair oil as being safe to use, even though it has caused hair loss in some users, a putative class action filed Thursday in Illinois federal court alleged.
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November 22, 2024
Delta-8 Product Actually Illicit Delta-9, Class Action Claims
The manufacturer of Cake Brand vapes has been hit with a proposed class action accusing it of "masquerading" its products as "lawful delta-8" when in reality they contain delta-9, a derivative marijuana which remains a Schedule I drug, according to the suit filed in California federal court.
Expert Analysis
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Video Privacy Law Claims After 2nd Circ. NBA Ruling
The Second Circuit's recent ruling in Salazar v. National Basketball Association expanded the definition of what constitutes a consumer under the Video Privacy Protection Act, breathing new life into the law by making any newsletter subscriber to a platform that hosts video content a potential plaintiff, say attorneys at Clark Hill.
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Next Steps In The $2.8B Blue Cross Payout To Providers
Healthcare providers deciding whether to participate in Blue Cross Blue Shield network's recent $2.8 billion antitrust class action settlement must weigh key recovery factors, including provider type and litigation cost, say attorneys at Hall Render.
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OCC Recovery Guidance Can Help Banks Bounce Back Better
The Office of the Comptroller of the Currency's recently finalized recovery guidelines add to the constellation of exercises that larger banks must undertake, while also aiding information-gathering and preparedness efforts that can help prevent — or better manage — bank failures, say attorneys at Davis Wright.
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EPA's New Lead Pipe Rule Leaves Key Questions Unanswered
The U.S. Environmental Protection Agency's recently released update to its Lead and Copper Rule is a major step forward in the elimination of lead from drinking water systems, but it lacks meaningful guidance on alternative materials, jurisdictional concerns, cost allocation and other topics, say attorneys at Foley Hoag.
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What To Expect From State AGs As Federal Control Changes
Under the next Trump administration, Democratic attorneys general are poised to strengthen enforcement in certain areas as Republican attorneys general continue their efforts with stronger federal support — resulting in a confusing patchwork of policies that create unintended liabilities for businesses operating in multiple jurisdictions, say attorneys at Morgan Lewis.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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3 Policyholder Lessons From NY Bad Faith Ruling
A New York appellate court's recent decision finding that Rockefeller University alleged viable bad faith claims against its insurers reinforces the principle that insurers may not elevate their own economic interests over those of their insureds, say attorneys at Lowenstein Sandler.
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Class Actions At The Circuit Courts: November Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses six federal court decisions that touch on Rule 23 of the Federal Rules of Civil Procedure, and when individual inquiries are needed to prove economic loss.
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Trump's 2nd Term May Be A Boost To Banking Industry
President-elect Donald Trump's personnel appointments could be instrumental in reshaping the financial regulatory landscape during his second administration, likely allowing for greater merger activity and halting or undoing some of the Biden administration's more restrictive financial services policies, say attorneys at Debevoise.
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Notable Q3 Updates In Insurance Class Actions
Total loss valuation cases and labor depreciation cases dominated the past quarter of insurance class actions, with courts continuing to reject challenges to condition adjustments in the former, and a pro-insured trend persisting in the latter, say attorneys at BakerHostetler.
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Unpacking CFPB's Unwieldy Buy Now, Pay Later Guidance
Both the Consumer Financial Protection Bureau's recent interpretive rule regarding buy now, pay later transactions, and its FAQ guidance, place providers in murky waters with the unenviable position of attempting to place a square, closed-end product in a round, regulatory framework meant for open-end products, say attorneys at Troutman Pepper.
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Legislation Most Likely To Pass In Lame Duck Session
As Congress begins its five-week post-election lame duck session, attorneys at Greenberg Traurig break down the legislative priorities and which proposals can be expected to pass.
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Justices Must Weigh Reach Of Civil RICO In Cannabis Case
Oral arguments in Medical Marijuana Inc. v. Horn suggest that a majority of the U.S. Supreme Court may agree that a truck driver's losing his job after unknowingly ingesting THC and failing a drug test does not merit a racketeering claim — but the court may not buy the other side's theory of the case either, say attorneys at Lewis Baach.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.