Web Arbitration Clauses: Federal Court Upholds “Terms of Use”

On June 7, 2019, the United States District Court for the Northern District of Illinois ruled in favor of retailer Wayfair LLC, and its parent company, Wayfair Inc., in a decision that both (1) upholds a web arbitration agreement and (2) provides useful guidance in presenting “terms of use” to website shoppers. What can we...

Class Arbitration and Other Risks: Are You Protected?

More companies, large and small, are including arbitration clauses in their consumer agreements, including clauses that seek to bar class arbitration.  Such clauses may be easier said than done, and there remain traps for the unwary.

Autodialers: Ninth Circuit (Again) Opens Class Action Floodgates

Businesses who market by text or telemarketing beware.  On September 20, 2018, the Ninth Circuit adopted the most radical and expansive definition of what constitute autodialers for purposes of liability in the Telephone Consumer Protection Act (“TCPA”).  This startling interpretation of the TCPA, which could make even smartphones autodialers, is a potent reminder that, in...

Toxics In Packaging: Are You Protected?

As many direct marketers wrestle with the new Proposition 65 regulations (set to go into effect on August 30, 2018), there are other state laws relating to product safety as to which they should be aware.  We address here the nineteen (19) states that have enacted so-called “toxics in packaging” laws that regulate the presence...

Proposition 65: Big Changes for Direct Marketers

Starting next summer, you’ll be required put Proposition 65 product safety warnings in your catalogs and on your websites near every affected product.

Class Actions: What Might Be On Your Horizon as a Direct Marketer?

Companies who have faced class action lawsuits, even (and maybe especially) frivolous ones, won’t soon forget the experience.  Just getting a case dismissed, or fending off class certification in the first place, can be extraordinarily costly and stressful.   The amounts at stake are often huge–with potential downsides of “per violation” penalties in the four...

Spokeo Speaks — Again

In Robins v. Spokeo, Inc., the U.S. Court of Appeals for Ninth Circuit has again allowed a case to go forward on a gossamer thread of alleged “harm,” despite the U.S. Supreme Court’s admonition that concrete harm must alleged.

Reference Prices: Are You at Risk?

Reference prices advise consumers that they are getting a bargain. The California Court of Appeal, however, just upheld a $6.8 million penalty on the grounds that a company’s use of list prices and comparison prices constituted a deceptive trade practice.  Amazon is also apparently under investigation for its use of list prices.  If past is prologue, we...

Challenged Settlement Highlights Risk of Consumer Class Actions

The Seventh Circuit Court of Appeals recently heard oral argument on a challenge to a proposed class settlement in the case of Michael Rosman v. Radio Shack Corporation.  The lawsuit alleged that Radio Shack had violated the Fair and Accurate Credit Transactions Act (“FACT”), 15 U.S.C. §1681c(g), by printing the expiration date of the customer’s...