Consumer Law

CFPB seeks to ban mandatory arbitration of consumer disputes over banking, credit cards and loans

Updated: In a proposed rule (PDF) that could potentially affect hundreds of millions of accounts, the Consumer Financial Protection Bureau is seeking to ban mandatory arbitration clauses in a wide range of consumer contracts. Under the rule, which is to take effect next year after a public comment period, mandatory…

May 5, 2016 9:45 AM CDT

Jury awards $55M to woman who claimed Johnson & Johnson talcum powder caused her cancer

A Missouri jury verdict of $72 million earlier this year in a landmark tort case blaming talcum powder for an Alabama woman’s ovarian cancer death wasn’t just a fluke. A second St. Louis jury on Monday awarded $55 million on Monday against Johnson & Johnson in another talcum powder case,…

May 3, 2016 2:15 PM CDT

Sued after posting video of brawl with neighbor, law partner loses bid for SLAPP protection

The chief of Sedgwick’s cybersecurity practice has lost a round in personal litigation over a brawl with a neighbor. In an opinion last week that contained a “Reader Discretion Advised” disclaimer because of “an abundance of obscene language,” the California Court of Appeal, Second District, said partner John Stephens can’t…

May 3, 2016 6:15 AM CDT

Suit says Starbucks puts too much ice in cups; rep calls it ‘essential component’ of iced drink

Earlier this year, a California customer sued Starbucks, contending that the company routinely underfills its cups when dispensing hot coffee drinks. Now a new lawsuit in Chicago alleges that Starbucks is overfilling its cups, but with ice instead of the more expensive drink for which the customer is paying, when…

May 2, 2016 1:15 PM CDT

Predatory land contracts take advantage of low-income homebuyers, NY Times says

Following the mortgage meltdown that began nearly a decade ago, it became harder for many buyers to get a loan to purchase a home. That has provided an opportunity for a number of private investors, however, who purchase needs-work homes for cash and then resell them to individuals outside the…

May 2, 2016 11:00 AM CDT

Judge says Amazon must refund parents for in-app purchases made by children

A federal judge on Tuesday agreed with the Federal Trade Commission that Amazon.com Inc. didn’t do enough to disclose to parents that children could potentially make in-app purchases while playing “free” games such as Pet Shop Story on electronic devices. So, granting a summary judgment sought by the FTC, U.S.…

Apr 27, 2016 4:55 PM CDT

Lawsuits claim parmesan cheese labels didn’t disclose fillers like wood pulp

Nearly 45 would-be class action suits have been filed over labeling for parmesan cheese alleged to contain undisclosed additives. Four brands with labels for 100% parmesan cheese are targeted in the suits, including Kraft and Wal-Mart’s private brand, the National Law Journal (sub. req.) reports. The suits were filed after…

Apr 27, 2016 11:05 AM CDT

Lawyer now says he won’t pursue $252.25 demand for missing soup at lunch

A Texas lawyer has backed down after demanding $252.25 from a Mansfield diner because his lunch special came without a cup of soup. If he had it to do over again, attorney Dwain Downing told WFAA on Monday, he wouldn’t have written the letter he sent to Our Place Restaurant…

Apr 26, 2016 3:55 PM CDT

Law firm to pay $1M to settle CFPB action over debt-collection practices

Without admitting liability, a long-established New Jersey debt collection law firm has agreed to pay a $1 million fine to settle a U.S. Consumer Financial Protection Bureau action alleging abusive debt-collection practices. The CFPB contended that Pressler & Pressler and a client debt-collection agency pursued half a million cases, frequently…

Apr 25, 2016 5:40 PM CDT

Lawyer sends demand letter seeking $252.25 because his lunch lacked soup—but later backs off

Updated: A Texas lawyer sent a letter to a Mansfield diner last week demanding $252.25 in compensation because it ran out of the homemade soup that was supposed to come with his meal. Attorney Dwain Downing of Arlington said in the letter that he went to Our Place Restaurant on…

Apr 25, 2016 11:30 AM CDT

Suit claims ‘Love It or List It’ overcharged homeowners and did shoddy rehab work

A North Carolina couple who appeared on HGTV’s Love It Or List It has filed a suit alleging they overpaid for a home makeover that left their property “irreparably damaged.” Homeowners Deena Murphy and Timothy Sullivan, referred to as “Deena and Sully” in the April 2015 program, say they paid…

Apr 21, 2016 8:05 AM CDT

9th Circuit discharges $6K that bankrupt attorney owed ex-client

A suspended California lawyer fighting to get her law practice privileges reinstated has at least one less obstacle to contend with. In a Thursday ruling, a federal appeals court agreed with Marilyn Scheer—who handled the appeal pro se—that a debt of nearly $6,000 she owed a former client for unearned…

Apr 18, 2016 1:30 PM CDT

Lawyer ordered to disgorge $11.4M to former clients loses challenge to consumer bureau’s power

A federal appeals court has upheld the authority of the Consumer Financial Protection Bureau in an appeal by a California lawyer ordered to disgorge $11.4 million he collected from underwater homeowners. The San Francisco-based 9th U.S. Circuit Court of Appeals ruled in a 2-1 decision (PDF) on April 14, the…

Apr 18, 2016 6:15 AM CDT

Can hacked data support fraud suit against Ashley Madison? Plaintiffs want to cite lawyer emails

Plaintiffs are seeking to cite hacked documents—including lawyer emails—to allege that the Ashley Madison dating website defrauded the public by creating fake female profiles to interest potential male clients. Plaintiffs in the multidistrict security-breach litigation contend they are entitled to refer to lawyer communications as a result of the crime-fraud…

Apr 18, 2016 5:45 AM CDT

FTC targets ‘all natural’ claims for first time with charges against five companies

Four companies that tout their “all natural” personal-care products have agreed to settlements with the Federal Trade Commission that require them to change their labels or advertising. A fifth company, California Naturel Inc., is facing an FTC lawsuit over its all natural claims, according to an FTC press release. All…

Apr 14, 2016 6:15 AM CDT