Justia Consumer Law Opinion Summaries

Kirtz obtained loans from the Pennsylvania Higher Education Assistance Agency (AES), a “public corporation” that makes, guarantees, and services student loans, and the USDA through the Rural Housing Service, which issues loans to promote the development of affordable housing in rural communities. Kirtz alleges that, as of June 2018, both of his loan accounts were closed with a balance of zero. AES and the USDA continued to report the status of Kirtz’s accounts as “120 Days Past Due Date” on his Trans Union credit file, resulting in damage to his credit score. Kirtz sent Trans Union a letter disputing the inaccurate statements. Trans Union gave AES and USDA notice of the dispute, as required by the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681. According to Kirtz, neither AES nor the USDA took any action to investigate or correct the disputed information.The district court dismissed Kirtz’s lawsuit, concluding that FCRA did not clearly waive the United States’ sovereign immunity. Courts of Appeals that have considered this issue are split. The Third Circuit reversed. FCRA’s plain text clearly and unambiguously authorizes suits for civil damages against the federal government. In reaching a contrary conclusion, the district court relied on its determination that applying the FCRA’s literal text would produce results that seem implausible. Implausibility is not ambiguity, and where Congress has clearly expressed its intent, courts may neither second-guess its choices nor decline to apply the law as written. View "Kirtz v. Trans Union LLC" on Justia Law

Petitioners petitioned for review concerning whether it was arbitrary and capricious for the Food and Drug Administration (FDA or Administration) to issue marketing denial orders to six tobacco companies for their electronic nicotine-delivery systems without considering the companies’ marketing and sales-access-restriction plans designed to minimize youth exposure and access. The Administration refused to consider the marketing and sales-access-restriction plans.   The Eleventh Circuit granted the petitions for review, set aside the orders of the Administration, and remanded to the Administration. The court concluded that it was arbitrary and capricious for the Administration to ignore the relevant marketing and sales-access restriction plans do not mandate a different result on remand. The court acknowledged the evidence in the record cataloged by the dissent of the serious risk to youth, and it may be that the Administration will conclude on remand that the marketing and sales-access restriction plans submitted in the tobacco companies’ applications do not outweigh those risks. The court wrote that it decides only that the Administration must at least consider the relevant evidence before it, which includes the companies’ marketing and sales-access-restriction plans. View "Bidi Vapor LLC v. U.S. Food and Drug Administration, et al" on Justia Law

Paredes obtained dental services from Mai Dental in 2015-2016, with the understanding that payments made by Delta Dental would satisfy in full any debt that Paredes owed. In 2018, Paredes received a check from Delta for $2,195. Mai's employee refused to accept the check as full payment. Paredes retained the uncashed check but did not make any payment to Mai. Mai assigned Paredes’s debt to Credit Consulting, which filed suit, seeking $9,613 in allegedly unpaid dental bills, plus interest and attorney fees. More than one year later, Paredes filed a cross-complaint asserting violations of the Fair Debt Collection Practices Act (15 U.S.C. 1692) (FDCPA) and California’s Rosenthal Fair Debt Collection Practices Act. Credit Consulting responded with an anti-SLAPP (strategic lawsuit against public participation) motion to strike the cross-complaint, Code of Civil Procedure section 425.16.The trial court denied the anti-SLAPP motion. The court of appeal affirmed, rejecting arguments that the trial court erred in finding Paredes had demonstrated a probability of success on the merits because her claims are time-barred; that the trial court erred in determining this matter arose out of a “consumer credit transaction,” as defined by the Rosenthal Act, and that Paredes failed to demonstrate that its collection action violated the FDCPA because Credit Consulting filed suit in reasonable reliance upon the information provided by Mai. View "Paredes v. Credit Consulting Services, Inc." on Justia Law

The district court ruled that Sections 553 and 605 do not apply when a pirated program is transmitted via Internet streaming. The Ninth Circuit, however, concluded that Plaintiff, a middleman distributor of entertainment display rights, failed to meet its burden on summary judgment to provide evidence sufficient to demonstrate a genuine issue of material fact regarding the method of transmission of the program at issue. Accordingly, the panel declined to reach the merits and affirmed on that alternative ground. View "G AND G CLOSED CIRCUIT EVENTS V. ZIHAO LIU" on Justia Law

In this dispute over whether Plaintiff's claims premised on the packaging and video of Michael, an album of music billed as Michael Jackson's first posthumous release, were subject to the album marketers' motion to strike under California's anti-SLAPP statute the Supreme Court held that Plaintiff sufficiently demonstrated that some of her claims had sufficient merit.In her complaint against Sony Music Entertainment, Plaintiff asserted that Michael's marketers misled her and violated two California consumer protection laws, the unfair competition law, and the Consumers Legal Remedies Act, by misrepresenting a vocalist on certain tracks through the album's packaging and in a promotional video. The court of appeal granted Defendants' motion to strike under the anti-SLAPP statute, concluding that the First Amendment required classifying the disputed statements as noncommercial speech. The Supreme Court reversed, holding that Plaintiff's claims related to Michael's packaging and promotional video had sufficient merit. View "Serova v. Sony Music Entertainment" on Justia Law

In this appeal concerning the statutory ownership of a vehicle involved in a crash, the Supreme Court affirmed the court of appeals' decision affirming the order of the trial court granting summary judgment in favor of Central Motors, Inc., holding that the circuit court correctly held that Juan Garcia was the statutory owner of the vehicle at the time of the accident.Dolores Zepeda was the passenger in a 2002 BMW being driven by Darley Morales, the son of Juan Garcia, when Morales caused the car to crash in a single vehicle accident. As a result of the accident, Morales died and Zepeda was left paralyzed. Zepeda sued, among other defendants, Garcia for negligent entrustment and Central Motors as the purported statutory owner of the BMW. The trial court granted summary judgment for Central Motors, determining that Garcia, and not Central Motors, was the statutory owner of the vehicle at the time of the accident. The Supreme Court affirmed, holding that Central Motors substantially complied with Ky. Rev. Stat. 186A.220 and delivered possession of the vehicle pursuant to a bona fide sale, thus making Garcia the BMW's statutory owner. View "Zepeda v. Central Motors, Inc." on Justia Law

Popa browsed the website of Harriet Carter Gifts, added an item to her cart, but left the website without making a purchase. She later discovered that, unbeknownst to her, Harriet Carter’s third-party marketing service, NaviStone, tracked her activities across the site. Popa sued both entities under Pennsylvania’s Wiretapping and Electronic Surveillance Control Act (WESCA), 18 Pa. C.S. 5701, which prohibits the interception of wire, electronic, or oral communications. The district court granted the defendants summary judgment, reasoning that NaviStone could not have “intercepted” Popa’s communications because it was a “party” to the electronic conversation. Alternatively, it ruled that if any interception occurred, it happened outside Pennsylvania, so the Act did not apply.The Third Circuit vacated. Under Pennsylvania law, there is no direct-party exception to WESCA liability, except for law enforcement under specific conditions. The defendants cannot avoid liability merely by showing that Popa directly communicated with NaviStone’s servers. NaviStone intercepted Popa’s communications at the point where it routed those communications to its own servers; that was at Popa’s browser, not where the signals were received at NaviStone’s servers. The court noted that the district court never addressed whether Harriet Carter posted a privacy policy and, if so, whether that policy sufficiently alerted Popa that her communications were being sent to a third-party company to support a consent defense. View "Popa v. Harriet Carter Gifts Inc." on Justia Law

Plaintiff initiated action against Experian Information Solutions (“Experian”), alleging a violation of the Fair Credit Reporting Act, 15 U.S.C. Section 1681 (“FCRA”). The district court found that Plaintiff failed to produce sufficient evidence to create a jury question on damages.   Plaintiff contends that a genuine dispute of material fact exists on damages because she provided evidence of financial and emotional harm. The court explained that to maintain a claim for negligent violation of the FCRA, a plaintiff must offer proof of “actual damages sustained by the consumer as a result of the failure. Further, Plaintiff argues that she sustained financial injury based on the denial of her application for a Chase Bank credit card after a hard inquiry on her Experian report. However, her deposition testimony refutes this claim. The record bolsters the conclusion that the bankruptcy drove Chase’s decision to deny Plaintiff’s credit card application. Thus, Plaintiff’s assertion of financial harm is insufficient to create a jury question on damages. Finally, the court wrote that like in other decisions where the court has denied damages for emotional distress, the record reveals that Plaintiff “suffered no physical injury, she was not medically treated for any psychological or emotional injury, and no other witness corroborated any outward manifestation of emotional distress. View "Christa Peterson v. Experian Information Solutions" on Justia Law

Plaintiff commenced an action n against two credit reporting agencies (“CRAs”), Experian Information Solutions, Inc. (“Experian”) and Trans Union, LLC (“Trans Union”), for alleged violations of the Fair Credit Reporting Act. The district court dismissed the complaint for failure to state plausible claims.   The Eighth Circuit affirmed. The court explained that Plaintiff’s complaint is too thin to raise a plausible entitlement to relief. The FCRA is not a strict liability statute. Here, Plaintiff’s complaint presents a bare legal conclusion that Experian and Trans Union employed unreasonable reporting procedures. There are no allegations that the CRAs knew or should have known about systemic problems. The court explained that the FCRA requires reasonable—not perfect—procedures. That Plaintiff’s credit reports may have contained inaccurate information is not in itself sufficient for the imposition of liability. View "Anders Rydholm v. Experian Information Solutions" on Justia Law

Plaintiff recieved a debt-collection letter from Defendant, a law firm that specializes in collecting debt on behalf of the Texas government. However, the limitations period for the debt mentioned in the letter had run. Plaintiff filed a claim against the law firm under the Fair Debt Collection Practices Act. Plaintiff also sought, and obtained, class certification. The law firm appealed the district court's certification.On appeal, the Fifth Circuit sua sponte found that Plaintiff lacked standing to bring a claim against a debt-collection law firm under the Fair Debt Collection Practices Act. The court held that Plaintiff failed to establish that the law firm's debt-collection letter inflicted an injury with a “close relationship to a harm traditionally recognized as providing a basis for a lawsuit in American courts." Without this showing, Plaintiff could not establish the first element of standing: that she suffered a concrete harm. View "Perez v. McCreary, Veselka, Bragg" on Justia Law