Consumer Law & Policy Blog

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Monday, March 07, 2016

Teen girls see big drop in chemical exposure with switch in cosmetics

A new study led by researchers at UC Berkeley and Clinica de Salud del Valle de Salinas demonstrates how even a short break from certain kinds of makeup, shampoos and lotions can lead to a significant drop in levels of hormone-disrupting chemicals in the body.

Analysis of urine samples before and after a three-day trial in which the participants used the lower- chemical products found significant drops in levels of these chemicals in the body. Metabolites of diethyl phthalate, commonly used in fragrances, decreased 27 percent by the end of the trial period. Methyl and propyl parabens, used as preservatives in cosmetics, dropped 44 and 45 percent respectively. Both triclosan, found in antibacterial soaps and some brands of toothpaste, and benzophenone-3 (BP-3), found in some sunscreens under the name oxybenzone, fell 36 percent.

Berkeley News has more details.

Posted by Allison Zieve on Monday, March 07, 2016 at 09:27 AM | Permalink | Comments (0)

Former student's consumer deception suit against her law school about to start

The downturn in the legal market brought a raft of suits against law schools by former students asserting that the schools took the students' money (or caused the the students to run up educational debts) while exaggerating their graduates' job prospects. Most of these suits were thrown out on pre-trial motions. But one trial -- against Thomas Jefferson School of Law -- begins tomorrow morning (March 7, 2016) in San Diego. Read about it here,

Posted by Brian Wolfman on Monday, March 07, 2016 at 12:38 AM | Permalink | Comments (0)

Saturday, March 05, 2016

Wilkinson-Ryan Paper: Contracts Without Terms

Tess Wilkinson‐Ryan of Penn has written Contracts Without Terms.  Here is the abstract:

In consumer contracting, the ritual of documentation and provision of terms is essentially vestigial, at least as a form of deal-making communication between the parties. This paper starts with a thought experiment: what would it look like to have contracts but no standard terms? Most scholarly and political approaches to the mismatch of contract law and consumer contracting have focused on the information problem in consumer contracting — the difficulty of the required cognitive processing — and thus the proposed solutions have focused on how to make terms more salient or easier to assimilate. I argue that the focus on salience is not only futile but misleading. Promulgating a policy by contract lends it social or moral legitimacy, as well as a presumption of legal legitimacy. I report the results of an experimental questionnaire study designed to assess how the form of a policy — i.e., provided in standard terms or available in a non-contractual document, affects consumer behavior when there is a plausible complaint against the drafter. Subjects reported that company policies embedded in contracts were more likely to be legally enforceable, judged those policies as more fair, and reported that they would be less likely to challenge such those policies in court. Furthermore, subjects appeared to grant all but the most clearly non-contractual documents the status of contract, with all of its legal, moral, and social baggage. In the final section of the paper I consider the doctrines of assent and unconscionability in light of these results.

Posted by Jeff Sovern on Saturday, March 05, 2016 at 06:38 PM in Consumer Law Scholarship | Permalink | Comments (0)

The New Yorker on the Impact of Scalia's Death on Class Actions and Arbitration

Here. Excerpt:

[M]any of the Roberts Court’s most important business cases were decided by a 5–4 margin, with the five conservative Justices voting as a bloc. And, as [Vanderbilt law professor Brian] Fitzpatrick points out, “Scalia has done more than any other justice in making it difficult for consumers and employees to bring class-action suits. So his absence alone may make a difference.”

(HT: Eric Sanders)

 

Posted by Jeff Sovern on Saturday, March 05, 2016 at 06:07 PM in Arbitration, Class Actions, U.S. Supreme Court | Permalink | Comments (0)

Friday, March 04, 2016

Federal magistrate rules for Apple in run-up to showdown over San Bernardino iPhone

Earlier this week, in a decision that is likely to be influential to the federal court in California now considering whether Apple can be compelled to help the FBI break into the San Bernardino shooter's iPhone, U.S. Magistrate Judge James Orenstein rejected the government's request for a similar order in an unrelated New York case. Judge Orenstein ruled that Congress has not authorized such an order and even if it had, the factors governing the court's decision to issue it (Apple's relationship to the investigation, the burden on Apple, and the necessity of imposing that burden) weighed against it.

Read the decision here.

Posted by Scott Michelman on Friday, March 04, 2016 at 12:49 PM | Permalink | Comments (0)

USA Today warns about "like-farming" on Facebook

USA Today reports:

Facebook has changed the way people do a lot of things online. For example, you probably notice yourself reflexively clicking 'like' on anything your friends post on Facebook, even if it's just to acknowledge you saw it. Scammers are taking advantage of that reflex for a dangerous scam called "like-farming."

What is like-farming?

Like-farming is when scammers post an attention-grabbing story on Facebook for the express purpose of cultivating likes and shares. Based on the way Facebook works, the more likes and shares a post has, the more likely it is to show up in people's News Feeds.

This gives the scammer more eyeballs for posts that trick people out of information or send them to malicious downloads. The big question, of course, is why Facebook doesn't stop these posts before they get too big. And that's where the real scam comes in. ...

The full article, "Don't click 'like" on Facebook again until you read this," is here.

Posted by Allison Zieve on Friday, March 04, 2016 at 11:21 AM | Permalink | Comments (0)

CFPB acts against payment processor for misrepresenting data-security practices

The Consumer Financial Protection Bureau took action this week against online payment platform Dwolla for deceiving consumers about its data security practices and the safety of its online payment system. The CFPB ordered Dwolla to pay a $100,000 penalty and fix its security practices.

Details are in the CFPB's press release.

Posted by Allison Zieve on Friday, March 04, 2016 at 09:12 AM | Permalink | Comments (0)

What should the Supreme Court do when there's a tie vote?

Justice Scalia's death has made it likely that some cases accepted for review by the Supreme Court will result in a tie vote. For instance, some observers think that Spokeo Inc. v. Robins, an important consumer-protection case currently before the Court, might split 4 to 4.

So, you may be interested in a new article by law prof Justin Pidot called Ties Votes in the Supreme Court. Here is the abstract:

What should the Supreme Court do with a tie vote? A long-standing rule provides that when the justices are evenly divided, the lower court’s decision is affirmed and the Supreme Court’s order has no precedential effect. While tie votes arise with relative rarity, the recent death of Justice Antonin Scalia raises the specter that the Supreme Court October Term 2015 could be replete with such results, and the cases at risk of ending in ties include high-profile and contentious cases about unions, voting rights, immigration policy, and Obamacare. This Article constitutes the first detailed empirical analysis of whether the Supreme Court’s current approach to tie votes makes sense, presenting an original study of the 164 instances in which a tie vote occurred between 1925 and 2015. Those data reveal two important trends, both of which suggest the current approach is at best unnecessary. First, where a case ends in a tie, the issue involved is either presented to the Supreme Court again in relatively short order or turns out to be of little significance. Second, only 1 of the 164 cases would today fall within the Supreme Court’s limited mandatory jurisdiction. The remainder would arrive at the Court on a writ of certiorari, a docket that is entirely discretionary. Instead of affirming by equal division, the Supreme Court should utilize an alternate and equally well-established procedure to dismiss cases as improvidently granted. At a time when Americans disapprove of the Supreme Court at unprecedented levels, dismissing rather than formally announcing a tie to terminate deadlocked cases better protects the public perception of the Court’s legitimacy. Moreover, dismissal would reduce the potential for justices to write opinions that take public positions on issues that have not yet been resolved. Finally, as a matter of cognitive psychology, justices may feel internal pressure to remain consistent with a position once staked out in a vote that resolves a case. Dismissing, rather than affirming by an equally divided court, could alleviate that psychological pressures, allowing the justices to be more fair-minded when approaching cases in the future.

Posted by Brian Wolfman on Friday, March 04, 2016 at 01:39 AM | Permalink | Comments (0)

Thursday, March 03, 2016

The Supreme Court, class actions, and Rule 23 "ascertainability"

This article by Amanda Bronstad discusses the Supreme Court's recent denial of review of a class-action decision from the Seventh Circuit concerning whether Rule 23 contains a heightened "ascertainability" requirement. Bronstad's article asks whether the Court's refusal to hear the case is related to Justice Scalia's absence.

For one perspective on (and a description of) "ascertainability," go here.

Posted by Brian Wolfman on Thursday, March 03, 2016 at 11:47 AM | Permalink | Comments (0)

Peter Conti-Brown on the regulation of high-frequency trading on Wall Street

Here.

Posted by Brian Wolfman on Thursday, March 03, 2016 at 09:07 AM | Permalink | Comments (0)

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