Justia Consumer Law Opinion Summaries

Professional Bureau of Collections of Maryland, Inc. sent three collection letters to Elizabeth Shields over outstanding student loan debt. It used an outside mailer to send the letters. The letters did not indicate the debt balance could increase due to interest and fees from the date of the letters. Shields sued, alleging the disclosure of her debt and the misleading letters violated the Fair Debt Collection Practices Act (FDCPA). The district court dismissed because it found Shields lacked a concrete injury necessary for standing. To this the Tenth Circuit affirmed: Shields did not allege that Professional Bureau’s use of a mailer and the content of its letters sufficiently harmed her. View "Shields v. Professional Bureau of Collections of Maryland" on Justia Law

The North Dakota Retail Association and the North Dakota Petroleum Marketers Association sued the Board of Governors of the Federal Reserve System, alleging that fees for merchants in debit card transactions violated the Durbin Amendment. The district court dismissed the case, ruling that the claims were barred by the statute of limitations. The Merchants alleged that their facial challenge to Regulation II first accrued when Corner Post opened in 2018, rather than when Regulation II was published in 2011.   The Eighth Circuit affirmed. The court concluded that, when plaintiffs bring a facial challenge to a final agency action, the right of action accrues, and the limitations period begins to run, upon publication of the regulation. In this case, the Merchants challenge the collection of interchange fees by third parties authorized to collect interchange fees by Regulation II. Here, The Merchants’ equitable tolling argument failed on its merits. This court reviews “a denial of equitable tolling de novo” and “underlying fact findings for clear error.” Thus, the court wrote that the Merchants failed to show that they have been pursuing their rights diligently. Because the Board published Regulation II in 2011 and the Merchants are not eligible for equitable tolling, the Merchants’ facial challenge to Regulation II remains time-barred by the six-year statute of limitations under 28 U.S.C. Section 2401(a). View "North Dakota Retail Assoc. v. Board of Governors" on Justia Law

The Consumer Financial Protection Act (CFPA) prohibits providers of “financial advisory services” from engaging in deceptive conduct. 12 U.S.C. Sections 5481(15)(A)(viii), 5536(a)(1)(B). Defendant mailed millions of solicitations to current and prospective college students, advertising a targeted program for assisting those students in applying for scholarships. The Consumer Financial Protection Bureau (CFPB) filed an enforcement action in the district court alleging the solicitations were deceptive. The district court agreed and granted summary judgment to the CFPB.   The Ninth Circuit affirmed the district court’s summary judgment ruling. The panel rejected Defendant’s argument that he did not provide financial scholarships are not financial in nature merely because they do not have to be repaid. Second, the record establishes that Defendant’s advice extended beyond the topic of scholarships, covering the entire field of student financial aid. Third, Defendant did, in fact, hold himself out as an expert in finance. The panel held that Defendant provided “financial advisory services,” and the district court did not err in concluding that Defendant was a “covered person” under the CFPA.   The panel held that Defendant was incorrect that the district court failed to consider the net impression of the entirety of his solicitation materials. In addition, the district court did not err by concluding that no issue of material fact existed as to the deceptive nature of Defendant’s conduct based upon the net impression created by his entire solicitation packet. Finally, the panel held that Defendant forfeited his challenge to the district court’s calculation of the restitution and civil penalties. View "CONSUMER FINANCIAL PROTECTION V. ARMOND ARIA, ET AL" on Justia Law

The Family Smoking Prevention and Tobacco Control Act requires manufacturers of new tobacco products to obtain authorization from the United States Food & Drug Administration (FDA) prior to marketing their products. In reviewing a manufacturer’s Premarket Tobacco Product Application, FDA must determine that the marketing of the product is “appropriate for the protection of the public health.” Section  910(c)(4), 123 Stat. at 1810. The agency denied Avail Vapor LLC’s application for its flavored electronic cigarettes, chiefly on the grounds that its products posed a serious risk to youth without enough offsetting benefits to adults.   The Fourth Circuit upheld the FDA’s decision denying Avail’s application. The court explained that under the Tobacco Control Act (TCA) the FDA has the daunting task of ensuring that another generation of Americans does not become addicted to nicotine and tobacco products. The TCA gives FDA the flexibility to determine whether marketing of a new tobacco product is appropriate for the protection of public health, taking into account evolving science and an everchanging market. FDA made the determination that Avail’s flavored ENDS products, seeking in all respects to mimic those sweet treats to which youth are particularly attracted, pose a substantial risk of youth addiction without enough offsetting benefits to adult smokers. FDA could not allow young adults to perceive e-cigarettes as another Baby Ruth or Milky Way, only to find themselves in the grip of a surreptitious nicotine addiction. Substantial evidence supports the assertion that “[t]here is an epidemic of youth use of e-cigarette products, and flavored products like petitioners’ are at the center of that problem.” View "Avail Vapor, LLC v. FDA" on Justia Law

Beasley alleged that, during the proposed class period— January 1, 2010, through December 31, 2016—Tootsie Roll manufactured, distributed, and sold products that contained artificial trans fats in the form of partially hydrogenated oils (PHOs) and that trans fats are harmful and cause cardiovascular disease, type 2 diabetes, cancer, Alzheimer’s disease, and organ damage. Beasley alleged she purchased Tootsie Roll products containing PHOs during the class period. She sought to represent a class defined as: “All citizens of California who purchased Tootsie Products containing partially hydrogenated oil in California” during the class period. Beasley asserted the use of PHOs was unlawful and unfair under the Unfair Competition Law (UCL) (Bus. & Prof. Code, 17200 ) and breached the implied warranty of merchantability.The court of appeal affirmed the dismissal of the complaint. Beasley failed to allege cognizable injury and some of her claims were preempted by federal law (specifically a congressional enactment providing the use of PHOs is not to be deemed violative of food additive standards until June 18, 2018). The claim for breach of warranty is also preempted. Permitting the use of broad state statutory provisions governing “adulterated” foods to impose liability for PHO use before the federally established compliance date would create an obstacle to the achievement of Congress’s evident purpose of confirming the 2018 compliance date. View "Beasley v. Tootsie Roll Industries, Inc." on Justia Law

The Supreme Court affirmed Defendant's conviction for aggravated murder and his sentence of death, holding that, while error occurred in this case in the form of repetitive crime scene photos, the prosecutor's misstatements, and sentencing opinion errors, none of the errors resulted in prejudicial error.After a jury trial, Defendant was found guilty of the aggravated murders of his four-year-old daughter, C.D., and her mother, Nicole Duckson, with accompanying death-penalty specifications. The court sentenced Defendant according to the jury's recommendation of a sentence of death for the aggravated murder of C.D. The court then sentenced Defendant to life without parole for the aggravated murder of Nicole. The Supreme Court affirmed but remanded the case, holding (1) Defendant received a fair trial, and none of the errors in this case, when considered either individually or cumulatively, resulted in prejudicial error; (2) the overwhelming evidence established Defendant's guilt; and (3) the case must be remanded for the trial court to issue a nunc pro tunc entering confirming the September 14, 2019 judgment entry and the September 16, 2019 entry to the sentence that was imposed at the sentencing hearing. View "State v. Garrett" on Justia Law

Dr. Frank Coufal and his solely owned professional corporation, La Jolla Neurological Associates (LJNA), hired an unaffiliated, third-party billing service to collect payments from patients and their insurers. Raquel Olson, the widow of a former patient, sued the doctor and his corporation (but not the third-party billing service) for unlawful debt collection under the Rosenthal Fair Debt Collection Practices Act. According to the complaint, Dr. Coufal and LJNA violated the Rosenthal Act by sending multiple bills and making incessant phone calls seeking payment for neurological services Dr. Coufal had provided to Olson’s husband before he died, even though Olson directed them to stop contacting her and to seek payment through Medicare and the VA Medical Center. Olson’s complaint did not mention any third-party debt billing service or debt collector and did not allege that Dr. Coufal or LJNA were vicariously liable for the actions of any such third party. The trial court granted a defense motion for summary judgment on the ground that the doctor and his medical corporation were not “debt collectors” within the meaning of the Rosenthal Act. Finding no reversible error in the trial court's judgment, the Court of Appeal affirmed. View "Olson v. La Jolla Neurological Associates" on Justia Law

Huston, a Good Housekeeping magazine subscriber, filed a putative class action alleging that media conglomerate, Hearst, offered to sell and sold mailing lists containing her, and 9.1 million other subscribers’, identifying information. Huston sought statutory damages under the Illinois Right of Publicity Act (IRPA) and an injunction requiring Hearst to obtain prior written consent before selling its subscribers’ information.The district court dismissed. The Seventh Circuit affirmed. To establish an IRPA violation, the plaintiff must allege an appropriation of the plaintiff’s identity, without the plaintiff’s written consent, and for the defendant’s commercial purpose. IRPA prohibits the use or holding out of a person’s identifying information to offer to sell or sell a product, piece of merchandise, good, or service; it contemplates a use or holding out of an individual’s identity with the aim of effectuating a sale. Any use or holding out must either accompany an offer to sell or precede the sale, but it cannot follow the sale. Huston failed to allege that Hearst used or held out her identity to effectuate the sale of the mailing lists or her Good Housekeeping subscription. View "Huston v. Hearst Communications, Inc." on Justia Law

The Horseracing Integrity and Safety Act (HISA) is a federal law that nationalizes governance of the thoroughbred horseracing industry. To formulate detailed rules on an array of topics, HISA empowers a private entity called the Horseracing Integrity and Safety Authority (the “Authority”), which operates under Federal Trade Commission oversight. Soon after its passage, HISA was challenged by various horsemen’s associations, which were later joined by Texas and the state’s racing commission. Plaintiffs argued HISA is facially unconstitutional because it delegates government power to a private entity without sufficient agency supervision. The district court acknowledged that the plaintiffs’ “concerns are legitimate,” that HISA has “unique features,” and that its structure “pushes the boundaries of public-private collaboration.” Nonetheless, the court rejected the private non-delegation challenge.   The Fifth Circuit declared that the HISA is unconstitutional because it violates the private non-delegation doctrine. Accordingly, the court reversed the district court’s decision and remanded. The court explained that while acknowledging the Authority’s “sweeping” power, the district court thought it was balanced by the FTC’s “equally” sweeping oversight. Not so. HISA restricts FTC review of the Authority’s proposed rules. If those rules are “consistent” with HISA’s broad principles, the FTC must approve them. And even if it finds an inconsistency, the FTC can only suggest changes. What’s more, the FTC concedes it cannot review the Authority’s policy choices. The Authority’s power outstrips any private delegation the Supreme Court or the Fifth Circuit has allowed. Thus the court declared HISA facially unconstitutional. View "National Horsemen's Benevolent v. Black" on Justia Law

Dog buyers claimed a puppy mill victimized them. They said the mill advertised online, negotiated by text, arranged parking lot meetups, insisted on cash, and sold underage puppies that sickened within one day and soon died. The buyers alleged the mill were Defendants. Nine buyers, joined by Caru Society for the Prevention of Cruelty to Animals, sued Defendants and moved for a preliminary injunction. The trial court found Plaintiffs were likely to succeed in proving the Defendants had violated several statutes, including the Consumers Legal Remedies Act. Defendants appealed the preliminary injunction. As a group, they filed a single opening brief and a single reply: they appeal as one group with a unified legal position.   The Second Appellate District affirmed and found that the trial court right to find likely harm to the public justified the preliminary injunction. The court explained that the trial court had a basis for finding that Defendants posed a continuing menace to the public at large. The preliminary proof was that Defendants persisted in their routine. View "Loy v. Kenney" on Justia Law