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Consumer Protection
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April 30, 2025
Consumer Says Illegal Gambling Claims Can't Be Arbitrated
A consumer is fighting a bid by the Cypriot operator of online "social gaming platform" Stake.us to force him to arbitrate his attempt to shut down the website for purportedly offering illegal gambling, telling a California federal judge that criminal conduct can't be arbitrated.
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April 30, 2025
House GOP Bill To Cut CFPB Budget, Audit Board Clears Panel
The U.S. House Financial Services Committee on Wednesday approved Republican budget legislation that would strip most funding from the Consumer Financial Protection Bureau and wind down an independent audit regulator for public companies.
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April 30, 2025
VSL Probiotic Buyers Win Class Cert. In RICO Case
A Maryland federal judge has certified 10 classes of customers who bought a knockoff version of a proprietary probiotic formula developed by a professor to treat gastrointestinal ailments, saying in an order unsealed Wednesday the customers all suffered the same alleged injury from buying a product that wasn't the one they expected.
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April 30, 2025
CFPB Scraps More Cases, Curbs Small Biz Loan Rule Focus
The Consumer Financial Protection Bureau on Wednesday abandoned more lawsuits, including its Fifth Circuit appeal over a Biden-era policy that expanded the agency's anti-discrimination scrutiny of financial firms, and said it will not focus on enforcing a contested small business lending rule.
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April 30, 2025
Calif. Privacy Agency Inks Cooperation Pact With UK Authority
The California Privacy Protection Agency has taken its latest step toward boosting its collaboration with data protection authorities around the world, announcing Tuesday that it had reached an agreement with the U.K.'s privacy regulator to compare investigative methods, research into new technologies and other vital tools.
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April 30, 2025
CEO Asked How Rivals Can Possibly Match Google Money
Google CEO Sundar Pichai testified Wednesday that the Justice Department's proposed monopolization fixes amount to a "de facto divestiture" of the company's entire search intellectual property, only for the D.C. federal judge to wonder how rival search engines could hope to match its financial resources.
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April 30, 2025
FCC Could Ban Foreign Adversaries' Testing Labs
The Federal Communications Commission plans to vote in May on whether to ban U.S. operations of telecom equipment test labs owned by foreign adversaries.
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April 30, 2025
Joe Rogan-Backed 'Alpha Brain' False Ad Suit Dropped In NY
A consumer is asking a New York federal judge to dismiss his proposed class action accusing Onnit Labs Inc. of falsely advertising its "Alpha Brain" cognitive supplement, which were previously promoted by podcaster Joe Rogan, as clinically proven to boost memory.
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April 30, 2025
Senate Bill Would Make FCC List Foreign Foes' Telecom Stakes
The U.S. Senate will consider a bipartisan bill to direct the Federal Communications Commission to publish a list of foreign adversaries' ownership stakes in regulated companies.
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April 30, 2025
Anheuser-Busch Must Face Trial In $90M SpikedSeltzer Case
Anheuser-Busch must face a jury in a multimillion-dollar contract claim surrounding its 2016 buyout of a hard seltzer product line from its inventors and their investors, a Connecticut trial court judge ruled Wednesday, partially declining the beverage giant's bid for a quick win.
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April 30, 2025
Judge Rejects $5M Fee Bid In Prospect Medical's Ch. 11
Bankruptcy Code provisions that allow creditors who make substantial contributions to be reimbursed for costs don't cover Prospect Medical's pre-Chapter 11 investment banker, a Texas bankruptcy judge said Wednesday, rejecting a finance firm's bid for a $5 million sale fee.
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April 30, 2025
Agri Stats Gets Say In DOJ's Poultry Worker Wage-Fixing Case
A Maryland federal court allowed Agri Stats Inc. to intervene Wednesday in the U.S. Department of Justice's case accusing Wayne-Sanderson Farms and George's Inc. of suppressing wages, after the government said the poultry companies need to stop using the agricultural data firm.
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April 30, 2025
Underwriters Seek Exit From $37M FTC Dispute With Loan Co.
Underwriters asked a California federal court on Wednesday to find that they did not have to defend a company accused by the Federal Trade Commission of bilking consumers out of at least $37 million through a credit scheme designed to trick consumers into taking on debt.
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April 30, 2025
Website Operators Challenge $102M FTC Judgment
Two former executives of On Point Global LLC urged the Eleventh Circuit to reverse a civil contempt sanction of $102 million for violating a prior injunction, arguing that the lower court should have held a hearing to allow them to present evidence in their favor.
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April 30, 2025
Fla. Lender Urges 11th Circ. To OK Arbitration In Fee Suit
A Florida credit union urged an Eleventh Circuit panel Wednesday to overturn a lower court order denying arbitration in a proposed class action over wrongly assessed overdraft fees, saying failure to preregister with the American Arbitration Association isn't grounds for a default.
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April 30, 2025
Senate Bill Moves Ahead To Beef Up FCC Disaster Reports
A bipartisan bill to require the Federal Communications Commission release more data on disaster-related network outage reports cleared a U.S. Senate committee Wednesday.
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April 30, 2025
TikTok Exec Calls Facebook, Instagram 'Complements'
A TikTok executive said Wednesday that his company views Facebook and Instagram as "complements" to the Chinese-owned short-form video platform rather than direct competitors playing in the same market, in testimony that largely supported the Federal Trade Commission's claim that Meta dominates personal social networking services.
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April 30, 2025
Schools Say Norfolk Southern Ducked Postderailment Pledge
The school district for East Palestine, Ohio, filed a federal lawsuit Wednesday against Norfolk Southern, claiming the railroad hasn't made good on its promises to help the district recover after a fiery derailment shook the town in 2023.
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April 30, 2025
Coinbase Urges Justices To Take User's IRS Data Seizure Suit
Crypto exchange Coinbase on Wednesday urged the U.S. Supreme Court to firm up privacy rights around digital information stored with third parties, backing a petition by a Coinbase user who's challenging the Internal Revenue Service's seizure of his account records.
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April 30, 2025
9th Circ. Won't Revive Phone Number Privacy Suit Against X
The Ninth Circuit on Wednesday declined to revive a Washington resident's putative class action that accused Twitter Inc., now called X, of deceptively obtaining his phone number, saying in an unpublished opinion that a state law he leaned on prohibited the fraudulent collection of telephone records, "not numbers."
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April 30, 2025
Akin Atty Returns To FCC To Lead Wireline Bureau
After three years in private practice, the Federal Communications Commission has welcomed an Akin Gump Strauss Hauer & Feld LLP attorney back to the agency as the newest head of the commission's Wireline Competition Bureau.
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April 30, 2025
Lego Says Toy Co.'s Tiny Figurines Are Big IP Infringement
Lego sued Veux Toys LLC in Connecticut federal court Tuesday, seeking to block the California-based toy retailer from selling figurines that are "substantially similar" to its copyrighted products, such as Spider-Man toy men.
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April 30, 2025
Fox, Smartmatic Trade Barbs In $2.7B Suit As Both Seek Win
Both sides asked a New York state judge Wednesday to grant them victory in Smartmatic's $2.7 billion defamation lawsuit against Fox News, with the voting tech company accusing Fox of a malicious "betrayal of the truth" while the network argued there was no evidence its election fraud claims caused Smartmatic's "business failure."
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April 30, 2025
Feds Barred From Reviving 'Unlawful' Tornado Cash Sanctions
A Texas federal judge has permanently barred the U.S. Department of the Treasury from enforcing its now-dissolved sanctions on crypto mixer Tornado Cash after the advocates who challenged the designation argued the government's removal of the sanctions wasn't enough.
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April 30, 2025
Local Gov'ts Say FCC Must Tread Lightly On Deleting Regs
The FCC is flying by the seat of its pants a little too much as it seeks to slash unnecessary regulations, a coalition of local governments have come together to tell the agency, saying that the docket "does not meet the requirements of the Administrative Procedure Act."
Expert Analysis
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10 Arbitrations And A 5th Circ. Ruling Flag Arb. Clause Risks
The ongoing arbitral saga of Sullivan v. Feldman, which has engendered proceedings before 10 different arbitrators in Texas and Louisiana along with last month's Fifth Circuit opinion, showcases both the risks and limitations of arbitration clauses in retainer agreements for resolving attorney-client disputes, says Christopher Blazejewski at Sherin and Lodgen.
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Aviation Watch: New FAA Chief Will Face Strong Headwinds
Once confirmed, Bryan Bedford, President Donald Trump's nominee to head the Federal Aviation Administration, will face steep challenges — including a shortage of air traffic controllers, a recent spate of high-profile crashes, and the difficulty of working within an administration intent on cutting staffing and funding, says Alan Hoffman, a retired attorney and aviation expert.
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Notable Q1 Updates In Insurance Class Actions
The first quarter of 2025 was filled with the refinement of old theories in the property and casualty space, including in vehicle valuation, time to seek appraisal and materials depreciation, says Mathew Drocton at BakerHostetler.
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The SEC's Administrative Law Courts Are At A Crossroads
The U.S. Department of Justice's recent departure from its prior defense of the U.S. Securities and Exchange Commission's administrative law judges' legitimacy moves the forum deeper into a constitutional limbo that likely requires congressional action, says Dean Conway at Carlton Fields.
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SEC's Noteworthy Stablecoin Guidance Comes With Caveats
The U.S. Securities and Exchange Commission recently issued a statement concluding that a narrow class of stablecoins doesn't involve the offer or sale of securities — a significant step forward in recognizing that not all crypto-assets are created equal, though there remains a pressing need for broader regulatory clarity, say attorneys at A&O Shearman.
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Electronic Shelf Labels Pose Myriad Risks For Retailers
While electronic shelf labels offer retailers a new way to convey pricing and other product information to consumers, the technology has attracted the attention of U.S. policymakers and consumer advocates, so businesses must assess antitrust, data privacy and discrimination risks before implementation, say attorneys at Baker McKenzie.
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Perspectives
The Benefits Of Aligning States On Legal Paraprofessionals
Texas' proposal to become the latest state to license paraprofessional providers of limited legal services could help firms expand their reach and improve access to justice, but consumers, attorneys and allied legal professionals would benefit even more if similar programs across the country become more uniform, says Michael Houlberg at the University of Denver.
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What Greenwashing Looks Like, And How To Navigate Claims
Recent cases show that consumers seeking to challenge sustainability claims as greenwashing face significant legal hurdles, and that companies can avoid liability by emphasizing context, says Felicia Boyd at Norton Rose.
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AI Use In Class Actions Comes With Risks And Rewards
The use of artificial intelligence in class actions holds promise for helping to analyze complex evidence, but attorneys and experts must understand how to use it correctly, and how to explain it clearly, say Simone Jones and Eric Mattson at Sidley and Anna Shakotko at Cornerstone Research.
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Pay Cos. That Adapt Can Benefit As Gov't Ends Paper Checks
Recent executive orders, instructing the government to cease issuing paper checks and to modernize and fraud-proof federal payments, will likely benefit financial services providers that facilitate government disbursements — provided they can manage the challenges and risks of transitioning to fully digital payments, say attorneys at Davis Wright.
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Staying The Course On Consumer Financial Law Compliance
Although there may be some regulatory uncertainty, with many rule changes on hold, and enforcement actions and investigations terminated, 11 fundamental laws and rules governing consumer financial services are unlikely to change, say attorneys at K&L Gates.
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10 Soft Skills Every GC Should Master
As businesses face shifting regulatory and technological uncertainty, general counsel will need to strengthen certain soft skills to succeed, from admitting when they make a mistake to maintaining a healthy dose of dispassion, says Douglas Brown at Manatt.
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An Unrestrained, Bright-Eyed View Of Legal AI's Future
Todd Itami at Covington offers a bright-eyed, laughing-all-the-way, skydive look at what the legal industry could look like after an artificial intelligence revolution, which he believes may happen much sooner and more dramatically than we expect.
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Ban On Reputation Risk May Help Bank Enforcement Defense
The Comptroller of the Currency and Federal Deposit Insurance Corp.’s recent commitment to stop examining banks for reputation risk could help defendants in enforcement actions challenge unfavorable assessments and support defendants' arguments for lower civil money penalties, says Brendan Clegg at Luse Gorman.
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Tracking The Evolution In Litigation Finance
Despite continued innovation, litigation finance remains an immature market with borrowers recieving significantly different terms as lenders learn to value cases, which firms need a strong handle on to ensure lending terms do not overwhelm collateral value, says Robert Wilkins at Lightfoot Franklin.