class action lawsuits

FTC Rule Proposal on Automatic Renewals

The Federal Trade Commission (FTC) may soon pass new rules that strengthen federal protections for consumers who purchase products or services that are automatically renewed. The FTC rule proposal on automatic renewals would impose strict requirements on companies that offer automatic renewal subscriptions, or negative options, to consumers. Federal statutes and rules typically refer to automatic renewals as “negative options” because the absence of any affirmative action by the customer is enough to justify the auto-renewal.

Federal Law on Automatic Renewals

Federal law on automatic renewals has gotten stronger and more far-reaching in recent years. This has come in response to states like California that have started to take the lead when it comes to protecting consumers against deceptive advertising and business fraud. There are several prominent laws at both the California state level and the federal level that govern retail subscription programs and automatic renewal programs, including the FTC Rule on Automatic Renewals.

CIPA Lawsuit Against Nationwide Mutual Insurance

A CIPA lawsuit was recently filed against Nationwide Mutual Insurance for illegal wiretapping and invasion of privacy, and now a federal judge in California has ruled that the case can proceed to trial. The U.S. District Court judge issued the ruling in response to a motion to dismiss the wiretapping claims under Section 631 of CIPA, or the California Invasion of Privacy Act.

NBC Bay Area News Report on California Automatic Renewal Law

Companies that do business in California are legally required to disclose an automatic renewal policy to customers before auto-renewing their subscription. A recent NBC Bay Area News report on the California Automatic Renewal Law (ARL) details how Chegg, an education technology company, has been accused of deceptively renewing subscriptions to a textbook rental service and then making it difficult for customers to cancel the subscriptions.

Tauler Smith Files ARL Claim Against Textbook Company Chegg

Tauler Smith LLP filed an ARL claim against textbook company Chegg for allegedly renewing customer subscriptions without notice or authorization. KNTV, which serves as the NBC outlet for the San Francisco Bay Area, reported that the civil lawsuit was filed in federal court on behalf of a student who rented a book for her law school class. It is not uncommon for consumers who make what they thought was a one-time purchase online to later realize that they have been charged again – and again! – for an auto-renewing subscription.

Arlo Home Security System Sued for Invasion of Privacy

Arlo Home Security System is being sued for invasion of privacy. The consumer protection attorneys at Tauler Smith LLP recently filed the lawsuit on behalf of a California resident who used the company’s website: www.arlo.com/. Specifically, Arlo is accused of engaging in the unauthorized collection, storage, and sharing of the personal information of its customers. Arlo has also been accused of allowing a third-party company to secretly intercept and monitor the online chat conversations of website visitors without their knowledge or consent.

Tom Girardi Indicted for Embezzlement

Disgraced California lawyer Tom Girardi was indicted for embezzlement by a federal grand jury. The charges stem from allegations that Girardi engaged in highly unethical and illegal behavior, which included using private judges affiliated with the national arbitration company JAMS to steal millions of dollars from his clients. The U.S. Department of Justice (DOJ) announced the felony charges against Girardi after the grand jury formally indicted him. U.S.

Goodyear Tires Wiretapping Lawsuit to Proceed

In a highly anticipated ruling, a federal judge in California recently denied Goodyear’s motion to dismiss wiretapping claims based on their use of third-party chat applications hosted on their website. This ruling allows the Goodyear Tires wiretapping lawsuit to proceed. The complaint alleges that when users visit www.goodyear.com/ and use the website chat feature, they share personal data in communications that are unlawfully recorded and transcribed.

Shipping Insurance Claims and the UCL

Many companies that offer shipping insurance on e-commerce sites are violating California insurance laws, which have strict requirements about who is allowed to offer insurance and how that insurance can be offered. Moreover, California’s insurance laws can serve as a predicate for civil lawsuits brought under other statutes, including the California Unfair Competition Law (UCL). When it comes to shipping insurance claims and the UCL, there is strong legal precedent in favor of consumers who are charged for insurance by an unlicensed agent.

California’s Unfair Competition Law (UCL)

California’s Unfair Competition Law (UCL) is one of the most important consumer protection laws in the country. California courts tend to interpret the UCL broadly so that it applies to a wide range of unethical business practices. The statute explicitly prohibits companies from engaging in unlawful, unfair, or fraudulent business actions. It also prohibits companies from using false advertising.