Consumer Law & Policy Blog

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Friday, June 19, 2015

Steinzor Asks Why Auto Executives Have Not Been Jailed

Rena I. Steinzor of Maryland and the Center for Progressive Reform has written (Still) 'Unsafe at Any Speed': Why Not Jail for Auto Executives? Harvard Law & Policy Review (Forthcoming).  Here's the abstract:

Americans can be forgiven for wondering what has gone so drastically wrong with the companies that sell automobiles.  In 2014, 64 million, a number equivalent to one in five of the cars on the road, was recalled.  Safety defects such as the lack of torque in ignition switches installed in GM compact cars like the Cobalt put motorists in the terrifying position of coping with a stalled engine and loss of power brakes while traveling at high speeds.  GM had the audacity to classify this condition was not a safety defect, but instead was merely “inconvenient” for its customers.  It persisted in this position for many years until a private lawsuit forced the company to acknowledge that stalled engines also meant disabled airbags.  This Article uses the ignition switch debacle to consider two crucial questions.  First, is the regulatory system capable of stepping into the marketplace and stopping corporate malfeasance that creates too many incentives for executives to deny the existence of safety defects well past the time when they should be acknowledged?  Concluding that the answer to this question is no, the piece then considers whether criminal prosecution of mid- and senior-level managers, including in-house counsel for the companies, is a feasible and effective alternative to traditional regulation?  I argue that publicly available facts justify criminal prosecution of GM as well as individual managers for reckless homicide under state law, as well as such federal crimes as failure to disclose a safety defect and obstruction of justice.

Posted by Jeff Sovern on Friday, June 19, 2015 at 03:22 PM in Auto Issues, Consumer Law Scholarship | Permalink | Comments (1)

FCC ruling addresses robo-calls to cellphones

Interpreting the Telephone Consumer Protection Act, the Federal Communications Commission on Thursday issued a ruling addressing robocalls made to cell phones. The FCC's ruling provide:

• Service providers can offer robocall-blocking technologies to consumers and implement market-based solutions that consumers can use to stop unwanted robocalls.

• Consumers have the right to revoke their consent to receive robocalls and robotexts in any reasonable way at any time.

• If a phone number has been reassigned, companies must stop calling the number after one call.

• A consumer whose name is in the contacts list of an acquaintance’s phone does not consent to receive robocalls from third-party applications downloaded by the acquaintance.

The FCC's press statement is here.

The National Consumer Law Center and other consumer groups issued this statement applauding the FCC ruling.

Posted by Allison Zieve on Friday, June 19, 2015 at 10:49 AM | Permalink | Comments (0)

FCC to help low-income families pay for Internet access

The Washington Post reports today:

Major upgrades are coming to a federal aid program that helps low-income Americans connect to basic communications services.

The Federal Communications Commission voted Thursday to consider how to allow eligible Americans to purchase Internet access using government funds, in a move that recognizes high-speed Internet as a key to pulling the poor out of poverty.

The decision highlights the FCC's fast-growing role in regulating broadband. In a 3-2 vote, the agency opened a process to expand its Lifeline program — a Reagan-era plan that gives $9.25 per month to Americans who meet income requirements or who already receive some form of federal assistance.

The full article is here.

Posted by Allison Zieve on Friday, June 19, 2015 at 10:08 AM | Permalink | Comments (0)

Thursday, June 18, 2015

Chiming in to Support ISP That Is Defending Reviewers' Right to Remain Anonymous

In an amicus brief filed this afternoon, Public Citizen and Twitter have urged the California Court of Appeal for the First District to join with the Court of Appeal for the Sixth District in ruling that plaintiffs seeking to identify anonymous online critics whose statements they claim are defamatory or otherwise wrongful must produce evidence and not merely allegations in support of their claims.

The case arises from an appeal by ZL Technologies, a company that has sued seven anonymous former employees who posted reviews on web site Glassdoor.com, where employees and former employees review their experiences working for and being interviewed by companies.  The reviews about ZL Technologies, like the reviews about most companies (including Public Citizen!) were decidedly mixed; ZL complained only about the negative ones which are claimed in the suit to be either false, or misleading, or at very least disparaging.  The trial court denied plaintiff’s motion to quash with a fairly opaque order that said that the company had not shown enough justify overcoming the right to speak anonymously; a year and a half, the court dismissed the complaint when the company had done nothing to cure its inadequate showing in support of compelled disclosure.

Continue reading "Chiming in to Support ISP That Is Defending Reviewers' Right to Remain Anonymous" »

Posted by Paul Levy on Thursday, June 18, 2015 at 08:22 PM | Permalink | Comments (0)

House Appropriations Committee Votes to Block Arbitration Reform

by Jeff Sovern

CFPB Monitor is reporting:

[T]he House Appropriations Committee has approved an amendment to the FY 2016 Financial Services Appropriations bill that would impose new requirements on the CFPB before it can issue a rule governing arbitration agreements.  The amendment, which was introduced by Republican Representatives Steve Womack and Tom Graves, reportedly would require the CFPB to produce a peer-reviewed study on arbitration and determine that the benefits of a new rule outweigh the costs before issuing an arbitration regulation.

They attribute the information to a Politico report.  The House Appropriations Committee web site indicates that the amendment was approved on a voice vote and that the Committee has approved the bill, as amended.  

Posted by Jeff Sovern on Thursday, June 18, 2015 at 01:35 PM in Arbitration, Consumer Financial Protection Bureau, Consumer Legislative Policy | Permalink | Comments (0)

Public service announcement -- the Takata airbag recall

If you own a car, remember to check if it's is affected by this hard-fought and important safety recall, which involves airbags that could explode and project metal at the passenger. (My car was on the list, and the dealership was able to do the fix in a few hours.)

The website ClickOnDetroit reported yesterday that NHTSA has released a full list of affected vehicles -- about 34 million of them.

Here's the NHTSA webpage to check by Vehicle Identification Number (VIN).

Posted by Scott Michelman on Thursday, June 18, 2015 at 01:26 PM | Permalink | Comments (0)

CFPB sues auto loan company for illegal debt collection tactics against servicemembers

Alleging that auto loan company Security National Automotive Acceptance Company misled servicemembers about the consequences of nonpayment, the Consumer Financial Protection Bureau yesterday filed suit against the company in federal court in Ohio. The CFPB alleges that the company used a combination of illegal threats and deceptive claims to collect debts. The suit seeks compensation for harmed consumers, a civil penalty, and an order prohibiting the company from committing future violations.

The CFPB's press release is here.

The CFPB's complaint is here.

Posted by Allison Zieve on Thursday, June 18, 2015 at 10:53 AM | Permalink | Comments (0)

Wednesday, June 17, 2015

FCC to fine AT&T Mobility $100M for misleading consumers about data plans

The Federal Communications Commission plans to fine AT&T Mobility $100,000,000 for misleading its customers about unlimited mobile data plans. The FCC’s investigation alleges that AT&T severely slowed down the data speeds for customers with unlimited data plans and that the company failed to adequately notify its customers that they could receive speeds slower than the normal network speeds AT&T
advertised.

The FCC's press release is here.

Posted by Allison Zieve on Wednesday, June 17, 2015 at 01:38 PM | Permalink | Comments (0)

Approval for Obamacare backup plans in Delaware and Pennsylvania

States are preparing for the worst if the Supreme Court rules this month in King v. Burwell that some health care subsidiaries are unlawful under the Affordable Care Act. The Hill reports that two states' backup plans have been approved. The article notes, "Delaware and Pennsylvania are among the estimated 34 states that stand to lose healthcare subsidies if the Supreme Court rules against ObamaCare this month" but "[t]hey are the only two states to have submitted contingency plans for the ruling." Here's the story.

Posted by Scott Michelman on Wednesday, June 17, 2015 at 12:27 PM | Permalink | Comments (0)

"Science won out" - a long battle for consumer health

This fascinating Washington Post profile tells the story of Fred Kummerow, "The 100-year-old scientist who pushed the FDA to ban artificial trans fat."

Posted by Scott Michelman on Wednesday, June 17, 2015 at 12:22 PM | Permalink | Comments (0)

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