Justia Consumer Law Opinion Summaries

The Supreme Court affirmed the order of the circuit court denying Petitioner's motion to compel arbitration, holding that the circuit court did not err.Respondents Louise McGraw and Charlotte Rodgers, by and through their daughters, Nancy Reuschel and Loretta Holcomb, filed a complaint against Petitioner, Chancellor Senior Management, Ltd., arguing that Petitioner defrauded their mothers by making misrepresentations and misleading statements and concealing material facts, in violation of the West Virginia Consumer Credit and Protection Act (WVCCPA). See W. Va. Code 46A-1-101 to -8-102. Petitioner filed a motion to compel arbitration based on an arbitration provision set forth in the residency agreement Reuschel and Holcomb signed on behalf of their motions. The circuit court denied the motion, concluding that the agreement could not be enforced as written. The Supreme Court affirmed, holding that the circuit court did not err in determining that the arbitration agreement could not be enforced as written because it did not "comply with its own stated standards." View "Chancellor Senior Management, Ltd. v. McGraw" on Justia Law

Plaintiffs, a putative class of fantasy sports players, filed suit alleging claims for fraudulent misrepresentations and omissions, negligent misrepresentations, violations of various state consumer protection laws, and unjust enrichment. Plaintiffs alleged that defendants fraudulently concealed that player statistics were purportedly unreliable because of rule violations in the form of electronic sign-stealing by certain MLB teams during the 2017–2019 baseball seasons. Plaintiffs further alleged that MLB intentionally took no action to address these rule violations in order to protect its financial interest and investment in DraftKings.The Second Circuit affirmed the district court's dismissal of the First Amended Complaint and its denial of plaintiffs' motion for reconsideration, holding that alleged misrepresentations or omissions by organizers and participants in major league sports about the competition itself—such as statements about performance, team strategy, or rules violations—do not give rise to plausible claims sounding in fraud or related legal theories brought by consumers of a fantasy sports competition who are utilizing a league's player statistics.The court also affirmed the district court's order, which concluded that a September 14, 2017 letter from the MLB Commissioner to the New York Yankees General Manager should be unsealed. The court concluded that the district court did not abuse its discretion in unsealing the letter in light of plaintiffs' attempted use of the letter in their proposed Second Amended Complaint and the district court's discussion of the letter in explaining its decision to deny plaintiffs' request for leave to amend in their reconsideration motion, and because MLB disclosed a substantial portion of the substance of the letter in its press release about the investigation. View "Olson v. Major League Baseball" on Justia Law

CalChamber filed suit, 42 U.S.C. 1983, to “vindicate its members’ First Amendment rights to not be compelled to place false and misleading acrylamide warnings on their food products.” The district court entered a preliminary injunction, prohibiting the Attorney General and related entities, including private enforcers from pursuing new lawsuits to enforce Proposition 65's requirement that “[n]o person in the course of doing business shall knowingly and intentionally expose any individual to a chemical known to the state to cause cancer . . . without first giving clear and reasonable warning.”The Ninth Circuit affirmed. CalChamber was likely to succeed on the merits of its compelled speech claim. Given the robust disagreement by reputable scientific sources over whether acrylamide in food causes cancer in humans, the warning was controversial and misleading. Proposition 65’s enforcement regime created a heavy litigation burden on manufacturers who use alternative warnings rather than the regulatory safe harbor warning. The serious constitutional issue provided sufficient reason to enjoin Proposition 65 acrylamide litigation until the case was finally decided; the injunction was not an impermissible prior restraint. CalChambers established irreparable harm, and the scope of the injunction was not impermissible; and the balance of hardships weighed in CalChamber’s favor. The injunction was in the public interest. View "California Chamber of Commerce v. Council for Education and Research on Toxics" on Justia Law

Food manufacturer B&G sued, 42 U.S.C. 1983, alleging that Embry and her attorney violated B&G’s constitutional rights by suing B&G to enforce California’s Safe Drinking Water and Toxic Enforcement Act of 1986, Proposition 65. Proposition 65 requires businesses to notify customers if their products contain chemicals known to the state to cause cancer. Acrylamide, the chemical allegedly found in B&G’s Cookie Cakes, is on a state list of such chemicals based solely on laboratory studies in which pure acrylamide was given to rats or mice.The district court dismissed B&G’s complaint based on the Noerr-Pennington doctrine, which provides that those who petition any department of the government for redress are generally immune from statutory liability for their petitioning conduct. The Ninth Circuit affirmed. B&G’s section 1983 suit burdened Embry's petition activities; Embry's prelitigation communications and suit to enforce Proposition 65 were protected by the Petition Clause. B&G failed to show that any of the Noerr-Pennington sham exceptions applied. Even if Embry and her attorney were state actors, the suit was barred. The court remanded to allow B&G to amend its complaint. B&G proposed additional allegations concerning a sham exception that examines the objective reasonableness of a defendant’s suit and the defendant’s subjective motivation. View "B&G Foods North America, Inc. v. Embry" on Justia Law

In 2014, DeNike purchased a 2014 hardtop Jeep Wrangler from SCJ. DeNike subsequently discovered that, contrary to a salesman’s representation, the vehicle was originally manufactured as a soft top. The hardtop was improperly installed after it left the factory. DeNike filed suit. A jury found in favor of DeNike on his claims under the Consumers Legal Remedies Act (CLRA) (Civ. Code 1750 ), the Song-Beverly Consumer Warranty Act (section 1790), and for intentional misrepresentation. The trial court issued a permanent injunction against SCJ and, in a post-judgment order, awarded DeNike attorney fees.The court of appeal reversed with respect to restitution under the CLRA. Having found that SCJ’s response to DeNike’s CLRA demand letter was “reasonable and appropriate,” the trial court erred in allowing DeNike’s claim for restitution under the CLRA to proceed to the jury. The court rejected arguments that there was insufficient evidence of reasonable reliance to support the verdict on the intentional misrepresentation cause of action and that the trial court misinstructed the jury on the Song-Beverly Act cause of action and erred in granting DeNike’s request for injunctive relief under the CLRA. View "DeNike v. Mathew Enterprise, Inc." on Justia Law

California’s 1986 Safe Drinking Water and Toxic Enforcement Act, Health & Saf. Code 25249.5, Proposition 65, provides that no business shall "knowingly and intentionally expose any individual to a chemical known to the state to cause cancer or reproductive toxicity without first giving clear and reasonable warning.” Mercury compounds are listed as Proposition 65 reproductive toxins. Cosmetics containing 0.0001 percent or more of mercury are prohibited under federal law, 21 U.S.C. 331(a)–(c). Lee alleged skin-lightening creams offered for sale on Amazon’s Web site sold by third parties, contain mercury.The trial court concluded that Amazon is immune from liability under the federal Communications Decency Act (CDA), 47 U.S.C. 230, and that Lee failed to establish elements required by Proposition 65. The court of appeal reversed. The stated reasons for concluding that a laboratory test finding a high level of mercury in one unit of a skin-lightening cream is an insufficient basis for inferring other units of the same product contain mercury do not withstand scrutiny. The trial court erred in ruling that Lee was required to prove Amazon had actual knowledge the products contained mercury and in excluding evidence of constructive knowledge. The negligent failure to warn claim did not seek to hold a website owner liable as the “publisher or speaker of any information provided by another information content provider,” so CDA did not bar the claim. View "Lee v. Amazon.com, Inc." on Justia Law

Plaintiffs Robin Thornton and Michael Lucero alleged defendants Tyson Foods, Inc., Cargill Meat Solutions, Corp., JBS USA Food Company, and National Beef Packing Company, LLC, used deceptive and misleading labels on their beef products. In particular, plaintiffs contended the “Product of the U.S.A.” label on defendants’ beef products was misleading and deceptive in violation of New Mexico law because the beef products did not originate from cattle born and raised in the United States. The Tenth Circuit Court of Appeals determined the federal agency tasked with ensuring the labels were not misleading or deceptive preapproved the labels at issue here. In seeking to establish that defendants’ federally approved labels were nevertheless misleading and deceptive under state law, plaintiffs sought to impose labeling requirements that were different than or in addition to the federal requirements. The Tenth Circuit concluded plaintiffs’ deceptive-labeling claims were expressly preempted by federal law. Further, the Court agreed with the district court that plaintiffs failed to state a claim for false advertising. View "Thornton, et al. v. Tyson Foods, et al." on Justia Law

The Eighth Circuit affirmed the district court's dismissal of plaintiffs' putative class action, alleging that they were misled by claims made on packages of dog food manufactured and distributed by Champion. Because plaintiffs have not challenged the district court's determinations that they lacked standing to claim that Champion misrepresented that the dog food is BPA-free, the court did not reach the merits of their related arguments.In this case, plaintiffs were required to plausibly allege that because of defendant's affirmative misrepresentations or material omissions, their dog food packaging could deceive a reasonable consumer. The court concluded that the district court properly dismissed plaintiffs' omission-based claims because none of Champion's packaging statements are deceptive or misleading, and thus none require corrective disclosures. The court rejected plaintiffs' argument that Champion was required to disclose further information because of its special knowledge of material facts to which plaintiffs did not have access. The court stated that this duty to disclose based on special knowledge arises only in limited circumstances, which are not present in this case. Finally, the court concluded that plaintiffs' breach of warranty and unjust enrichment claims are premised on the same allegations of deception that are insufficient to support the fraud claims, and thus they fail for the same reasons. View "Song v. Champion Petfoods USA, Inc." on Justia Law

The Supreme Court affirmed the judgment of the circuit court concluding that Plaintiff lacked standing to enforce the "midnight deadline" rule set forth in section 4-302 of the Uniform Commercial Code (UCC), as adopted by Va. Code 8.4-302 and W. Va. Code 46-4-302, holding that there was no error.In her second amended complaint, Plaintiff alleged that MCNB Bank and Trust Company (MCNB) violated the midnight deadline rule adopted from the UCC and, therefore, MCNB was strictly liable for the payment of a check in the amount of $245,271.25. The circuit court granted summary judgment for MCNB, concluding that Plaintiff lacked standing to pursue her claim because she did not have any right to rely on the prompt payment of the check at issue. The Supreme Court affirmed, holding that the circuit court did not err when it granted MCNB’s motion for summary judgment based on Plaintiff's alleged lack of standing to enforce the midnight deadline rule. View "Stahl v. Stitt" on Justia Law

The Ninth Circuit affirmed the district court's denial of plaintiffs' motion for a remand to state court and the district court's dismissal of plaintiffs' class action suit alleging violations of the Fair Credit Reporting Act (FCRA) by Experian. Plaintiffs alleged that the FCRA required Experian to disclose behavioral data from its "ConsumerView" marketing database, "soft inquiries" from third parties and affiliates, the identity of certain parties who procured consumer reports, and the date on which employment data was reported.The panel concluded that the allegations of injury to plaintiffs' informational and privacy interests as recited in the first amended complaint are sufficiently concrete to support Article III standing at this pleading stage. The panel also concluded that none of the information plaintiffs contend Experian failed to include in its section 1681g of the FCRA disclosures is subject to disclosure under section 1681g(a)(1), (3) or (5), considered individually or in combination. View "Tailford v. Experian Information Solutions, Inc." on Justia Law