Companies responding to the pandemic are faced with the challenges of not only complying with federal, state, and local emergency orders and guidelines for each location in which they operate, but also ensuring that any measures taken to address the foregoing do not affect compliance with other laws. In the wake of business closures and
Consumer Class Action
Price Gouging in California (and Elsewhere) During COVID-19 … And the Claims That Are Likely to Follow
On March 4, 2020, California Governor Gavin Newsom declared a state of emergency in response to the COVID-19 public health emergency. Price gouging is illegal in all California communities during the declared state of emergency.
Executive Order N-44-20 makes it unlawful to increase the price of food items, consumer goods, or medical and emergency supplies
…
Avoiding California’s Consumer Law Pitfalls Amidst the COVID-19 Pandemic
The COVID-19 pandemic has created unprecedented disruption and challenges for businesses navigating California’s consumer protection laws. California was already an attractive forum for expensive consumer class action lawsuits, where it can be easier to obtain class certification, conduct onerous discovery, obtain lucrative class action settlement approval, and recover higher attorneys’ fee awards compared to other
…
From Brick & Mortar to the Web: An Overview of Federal Laws and Regulations to Consider When Operating an E-Commerce Business
Long before COVID-19 affected retail companies had already started shifting to e-commerce platforms, marked by retail giants exclusively in the e-commerce space. Even banks acknowledged this trend, by no longer offering cash-back credit rewards for just gas and grocery purchases, but for online purchases too. Now, as COVID-19 affects a growing number of retail stores,…
FTC Consumer Protection Director Provides Guidance on Use of Artificial Intelligence in Automated Decision-Making
Seyfarth Synopsis: In an April 8, 2020 post on the Federal Trade Commission (“FTC”)’s Business Blog, the Director of the FTC Bureau of Consumer Protection, Andrew Smith, provided helpful guidance on the use of artificial intelligence technology in businesses’ decision-making. In particular, Smith emphasized (i) transparency, both in informing consumers about how automated tools…
COVID-19 Refund Policies for Season Tickets, Season Passes, and Annual Festivals
With all sports and live entertainment “postponed” or canceled since Rudy Gobert’s March 13th trip to that Oklahoma City hospital, and every concert and festival suffering the same fate by government order, refunds have become top of mind for consumers who have paid for tickets and passes in advance. Not surprisingly, consumer plaintiff attorneys have
…
Never Let a Crisis Go to Waste: Plaintiffs’ Lawyers Target Colleges and Universities for COVID-19 Responses
As the number of COVID-19 cases began to rise in the United States, colleges and universities around the country took proactive steps to limit the spread of the disease on campuses. Students were asked to return home; faculty and students transitioned to online classes; and staff who were able to work remotely were asked to…
Mooting Monster Class Actions: Illinois Supreme Court Decision Provides Framework For Employers
The Illinois Supreme Court recently affirmed a state appellate court’s holding that in class action lawsuits, an effective tender made before a named plaintiff files a class certification motion satisfies the named plaintiff’s individual claim and moots the plaintiff’s interest in the litigation.
For employers facing workplace class actions in Illinois and other states with…
Ninth Circuit Rules That Users, Not Consumers, Must Prove an Authorized Purpose for Obtaining a Consumer Report
Synopsis: Last month, the Ninth Circuit issued an opinion, affirming broad Article III standing and holding that, for permissible-purpose claims, a consumer-plaintiff need allege only that his/her credit report was obtained for a purpose not authorized by the statute to survive a motion to dismiss, regardless of whether the report is published or otherwise…
US House Representatives from New York Introduce Bill to Define “Natural” Cosmetics
Synopsis: Unhappy with the FDA’s position on branding, Congressional representatives seek to define “natural” narrowly to limit its use in consumer advertising.
As the cosmetic industry moves on to new marketing lingo connoting healthier and safer cosmetics, including “clean beauty,” “sustainable,” “vegan,” and “pure,” New York Representative Sean Patrick Maloney introduced the Natural Cosmetics Act…