Supply Chain Surcharges? Plaintiffs Say You Better Not Conceal Them
Supply chain disruptions and accompanying inflation for raw materials have challenged many businesses. A recent case involving paint retailer Sherwin-Williams shows how not to deal with these challenges. In a putative class action, plaintiffs accused Sherwin-Williams of surreptitiously adding a hidden "Supply Chain Charge" to every sales transaction. On October 24, the U.S. District Court for the Northern District of New York said the claims may proceed.
FTC Issues New Rulemaking Proceedings on Customer Reviews and "Junk Fees"
At its most recent monthly open meeting, the Federal Trade Commission unveiled two new rulemaking proceedings: the first deals with deceptive customer reviews and endorsements and the second with so-called junk fees.
Ninth Circuit Rules That TCPA Aggregated Statutory Damages Might Be Unconstitutionally Punitive
For those embroiled in Telephone Consumer Protection Act (TCPA) class action litigation, the sum of the damages may not necessarily equal the whole.
In Wakefield v. ViSalus, Inc., the plaintiff and certified nationwide class obtained a jury verdict that defendant made 1,850,440 prerecorded message calls without the then-heightened prior express consent to make such calls. Because the TCPA's minimum statutory damages are $500 per unlawful prerecorded message call, the damages award was a whopping $925,220,000.
FTC to Digital Media Advertisers: It's Time to Protect Kids
At a recent Federal Trade Commission event, Chair Lina Khan said children are more susceptible than adults to deceptive or harmful practices, especially those that blur the line between advertising and entertainment.
Federal Appeals Court Finds CFPB Unconstitutionally Funded, Structured
A unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit held that the CFPB's funding mechanism, funded by fees generated by Federal Reserve Board not through Congressional appropriations, is unconstitutional. According to the court, the CFPB's funding is double insulated from Congress and, thus, is unaccountable to both Congress and the public. As such, the CFPB's funding mechanism violates the Constitution's separation of powers design and, specifically, the Appropriations Clause.