Justia Consumer Law Opinion Summaries

The case involves the Cigar Association of America and other plaintiffs challenging a regulation by the FDA that applied to premium cigars. The FDA had issued a rule under the Family Smoking Prevention and Tobacco Control Act, which brought all tobacco products, including premium cigars, under its regulatory authority. The plaintiffs argued that the regulation was arbitrary and capricious as applied to premium cigars, citing studies that suggested premium cigars posed fewer health risks due to less frequent use.The United States District Court for the District of Columbia, presided over by Judge Mehta, found in favor of the plaintiffs. The court determined that the FDA had failed to consider relevant evidence, specifically the Corey study and Monograph No. 9, which indicated that premium cigars were used less frequently and posed fewer health risks. The district court vacated the FDA's rule as it applied to premium cigars, finding the agency's action arbitrary and capricious.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court agreed with the district court's finding that the FDA's rule was arbitrary and capricious because the agency ignored relevant data and falsely claimed that no such evidence existed. The appellate court upheld the vacatur of the rule as applied to premium cigars but remanded the case to the district court to invite further briefing on the appropriate definition of "premium cigars." The court emphasized that the vacatur should not allow for revisiting past user fee payments. The decision affirmed the district court's ruling in full, except for the need to refine the definition of premium cigars. View "Cigar Association of America v. FDA" on Justia Law

Plaintiff filed suit against defendant after it attempted to collect debt from plaintiff, alleging that the company violated the Fair Debt Collection Practices Act (FDCPA), the District of Columbia Consumer Protections Procedures Act (CPPA), and the District of Columbia Debt Collection Law (DCDCL). Plaintiff eventually accepted defendant's offer of judgment regarding the FDCPA claim and the district court determined the attorney's fees to which she was entitled for this success. The DC Circuit held that Federal Rules of Civil Procedure 54(d)(2)(D) and 72(b)(3) foreclose the district court from using a "clearly erroneous or contrary to law" standard when evaluating a magistrate judge's proposed disposition of an attorney's fee request. The correct standard of review is de novo. Therefore, the court reversed and remanded to allow the trial judge to reconsider this matter in the first instance applying de novo review. The court affirmed as to the remaining orders challenged on appeal. View "Baylor v. Mitchell Rubenstein & Assoc." on Justia Law

In the Dodd-Frank Act of 2010, 12 U.S.C. 5491, Congress established a new independent agency, the Consumer Financial Protection Bureau (CFPB), an independent agency headed not by a multi-member commission but rather by a single Director. PHH is a mortgage lender that was the subject of a CFPB enforcement action that resulted in a $109 million order against it. PHH seeks to vacate the order, arguing that the CFPB’s status as an independent agency headed by a single Director violates Article II of the Constitution. The court concluded that CFPB’s concentration of enormous executive power in a single, unaccountable, unchecked Director not only departs from settled historical practice, but also poses a far greater risk of arbitrary decisionmaking and abuse of power, and a far greater threat to individual liberty, than does a multi-member independent agency. The court noted that this new agency lacks that critical check and structural constitutional protection, yet wields vast power over the U.S. economy. The court concluded that, in light of the consistent historical practice under which independent agencies have been headed by multiple commissioners or board members, and in light of the threat to individual liberty posed by a single-Director independent agency, Humphrey’s Executor v. United States cannot be stretched to cover this novel agency structure. Therefore, the court held that the CFPB is unconstitutionally structured. To remedy the constitutional flaw, the court followed the Supreme Court’s precedents and simply severed the statute’s unconstitutional for-cause provision from the remainder of the statute. With the for-cause provision severed, the court explained that the President now will have the power to remove the Director at will, and to supervise and direct the Director. Because the CFPB as remedied will continue operating, the court addressed the statutory issues raised by PHH and agreed with PHH that Section 8 of the Act allows captive reinsurance arrangements so long as the amount paid by the mortgage insurer for the reinsurance does not exceed the reasonable market value of the reinsurance; CFPB’s order against PHH violated bedrock principles of due process; and the CFPB on remand still will have an opportunity to demonstrate that the relevant mortgage insurers in fact paid more than reasonable market value to the PHH-affiliated reinsurer for reinsurance, thereby making disguised payments for referrals in contravention of Section 8. Accordingly, the court granted the petition for review, vacated the order, and remanded for further proceedings. View "PHH Corp. v. CFPB" on Justia Law

Plaintiff filed suit against defendant, alleging violation of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq.; the District of Columbia Consumer Protection Procedures Act, D.C. CODE 28-3901 et seq.; and the District of Columbia Debt Collection Law, D.C.CODE 28-3814 et seq. Plaintiff alleged that the debt collection letter sent to her from defendant violated these statutes because the letter falsely implies both that defendant is meaningfully involved with the case as an attorney and that the creditor is threatening to bring a lawsuit to collect the debt. The court concluded, however, that the letter does not threaten any legal action, and the prominent disclaimer made clear that defendant was acting only in his capacity as a debt collector. Accordingly, the court affirmed the district court's judgment on the pleadings. View "Jones v. Dufek" on Justia Law

Plaintiffs filed a putative class action alleging that Urban Outfitters’ and Anthropologie’s zip code requests at the cashier stand violated two District of Columbia consumer protection laws. The district court dismissed the complaint with prejudice for failure to state a claim. The court concluded that the district court lacked jurisdiction to decide the merits of the case because neither plaintiff has alleged a concrete Article III injury tied to disclosure of her zip code that could support standing. Accordingly, the court vacated the district court's judgment and remanded for dismissal of the case. View "Hancock v. Urban Outfitters, Inc." on Justia Law