Consumer Protection Law Commons^™

The Revival Of Section 5: A Return To The Ftc’S Roots In A Time Of Democratic Crisis, Shaoul Sussman

Fordham Law Review

No abstract provided.

A Congressional Inappropriation?: Troubleshooting Cfpb V. Cfsa Ahead Of The Supreme Court’S Review, William Weingarten

Fordham Law Review Online

Consumer Financial Protection Bureau v. Community Financial Services Ass’n of America has emerged as one of the most consequential cases before the U.S. Supreme Court this term. The U.S. Court of Appeals for the Fifth Circuit’s judgment below—in Community Financial Services Ass’n of America v. Consumer Financial Protection Bureau—held the Consumer Financial Protection Bureau’s funding structure to be unconstitutional under the Appropriations Clause of the U.S. Constitution. With this holding, the Fifth Circuit created a circuit split with the U.S. Court of Appeals for the District of Columbia Circuit and became the first federal court of appeals to invalidate …

Against The Drafter: An Empirical And Theoretical Analysis Of The Doctrine Of Contra Proferentem, Farshad Ghodoosi, Tal Kastner

Fordham Law Review

Contra proferentem, the enduring maxim that directs courts to interpret an ambiguity in a contract against its drafter, appears simple on its face. Although it might be best known as a fundamental principle of insurance law, contra proferentem figures in courts’ interpretation of a range of contract types. As an interpretive rule of thumb that parties can easily override with a simple contract provision, the doctrine and its boilerplate antidote seem to offer a straightforward means to facilitate private ordering—a central goal of contract law.

However, neither courts’ application of the doctrine in case law nor contract drafters’ treatment …

Reevaluating Consumer Debt Enforcement: Why We Don’T Need Courts To Enforce Consumer Debt Contracts, Adam Toobin

Fordham Journal of Corporate & Financial Law

Enforcing consumer debt contracts against low- and middle-income borrowers, rather than making consumer debt markets work better, is inefficient and exacerbates consumer protection concerns. While consumer debt litigation—and enforcement of consumer debt contracts through wage and bank account garnishment—may have once strengthened nascent consumer debt markets, consumer credit scoring now effectively structures consumers’ incentives to repay their debt obligations. Debt enforcement is not necessary to encourage consumers to repay their debts and tends to drive borrowers into bankruptcy. Debt enforcement also undermines efforts to provide consumer protection in these markets by raising the stakes of any debt contract—where any default …

Insider Trading In Crypto Assets—Back To First Principles?, Katja Langenbucher

Fordham Journal of Corporate & Financial Law

This Essay examines whether the traditional rationales for prohibiting insider trading, which were developed for securities markets that facilitate capital formation, translate meaningfully to the emerging regulatory landscape for crypto assets. It contrasts the U.S. duty-based regime, grounded in fraud and fiduciary or confidential relationships under Rule 10b-5, with the EU’s information-based approach under the Market Abuse Regulation, which links trading prohibitions to mandatory disclosure of inside information. The former has proven underinclusive—prompting prosecutors to rely on wire fraud in recent crypto cases such as Wahi and Chastain while the latter tends toward overinclusivity. 

Turning to the newly emerging regimes …

Antitrust And Tech Giants: Learning From United States V. Google Llc, Marcus D’Agostino

Fordham Journal of Corporate & Financial Law

This Note addresses the evolution of antitrust regulation and enforcement in the United States, with a focus on the recent case of United States v. Google LLC. That case is used to frame the broader problem of insufficient remedies being implemented against large technology firms. The mild remedies granted to the government in Google reinforce the findings of the 2020 Congressional Report on Digital Competition. The Report recommended changes to the antitrust laws that would revive structural separation as a remedy. This Note argues that the body of evidence presented compels structural separation to be used more frequently as the …

A True Fact Should Not Be Controversial: Analyzing The Zauderer Standard And Defining “Uncontroversial”, Edina Hartstein

Fordham Law Review

In Zauderer v. Office of Disciplinary Counsel, the U.S. Supreme Court recognized an exception to the compelled speech doctrine that allowed the government to regulate commercial speech if it was “purely factual and uncontroversial.” However, the Court failed to define what it meant for a disclosure to be “purely factual” or what it meant to be “uncontroversial.” This lack of clarity led to lower courts inconsistently applying the Zauderer standard. In 2018, the Supreme Court decided National Institute for Family Life & Advocates v. Becerra (NIFLA), which held that the Zauderer standard cannot apply when the disclosure …

How Ftc Data Security Cases Inform The Development Of Legally Accountable Software, Jeff Kosseff, Ellis Fenske, Christopher Brown, Daniel S. Roche

Fordham Intellectual Property, Media and Entertainment Law Journal

Over the past two decades, the Federal Trade Commission has brought dozens of enforcement actions against companies for failing to adequately secure customers’ personal information. The actions typically result in a consent decree, in which the company agrees to improve its data security practices and provide the FTC with oversight of those improvements. When the FTC first brought data security cases, its orders generally required the companies to adopt “reasonable” data security programs. But a 2018 Eleventh Circuit opinion, LabMD v. FTC, requires the orders to contain far more specific data security requirements. In this Article, we conduct an in-depth …

Competition, Comity, And Confusion: Reconciling The Ftaia’S Import Exclusion With Its Direct Effects Provision, Elliot Lam

Fordham Law Review

The debate surrounding the Sherman Act’s extraterritorial scope represents a tension between two competing objectives: protecting the U.S. economy from foreign anticompetitive conduct on one hand and respecting the sovereign authority of other nation-states on the other. Applying U.S. law abroad risks undermining sovereign authority by regulating foreign economies, though such regulation appears necessary in some cases to protect U.S. consumers.

Congress’s attempt to square these objectives through enacting the Foreign Trade Antitrust Improvements Act of 1982 (FTAIA) failed to settle the matter. The statute left courts with two new questions: how to distinguish “import” from “nonimport” commerce, and how …

Is Your Data Good, Bad, Or Neutral?: Redefining Concreteness For Data Breach Harms, Jeeyoon Lim

Fordham Law Review

In recent years, the Supreme Court has tightened federal court standing requirements for intangible harms, including statutory harms. In TransUnion LLC v. Ramirez, the Court held that a mere statutory violation, absent a common-law analogue, is not sufficiently concrete to grant standing. The Court did not provide clear guidance as to how stringent the common-law analogue analysis must be, other than that it does not require an “exact duplicate.” Because of the ever-evolving nature of digital data, data breach victims attempting to enforce their statutory right to privacy in federal court have struggled to rely on tradition and history …

Efta Coverage Of Modern Consumer Wire Transfers: Consumer Financial Regulation In The Wake Of Loper Bright, Benjamin Gygi

Fordham Law Review

The rise of online banking has led to a proliferation of consumer fraud. Schemes aimed at stealing consumer funds using wire transfers executed through online banking portals have proven particularly devastating to consumers because of a perceived loophole in the Electronic Fund Transfer Act (EFTA) that leaves consumers with full liability for funds stolen through wire transfers. Consumer advocacy groups, and most notably the New York Attorney General, have recently argued that this loophole does not really exist; they claim that the EFTA’s text conclusively covers certain parts of modern wire transfer processes initiated through online banking portals. Considering the …

Consumer Financial Data And Non-Horizontal Mergers, Linda Jeng, Jon Frost, Elisabeth Noble, Chris Brummer

Fordham Journal of Corporate & Financial Law

This Article explores the potential competitive implications of non-horizontal mergers where they involve extensive consumer data, including consumer financial data. As data become increasingly central to firm strategy, mergers between data-rich firms, while potentially leading to positive outcomes, can also create market power in ways not entirely accounted for by traditional antitrust theory. The Article considers some of these implications. It introduces new metrics for valuing data sets held by merging firms that could help competition authorities evaluate market impacts more effectively. The Article then suggests potential tools to mitigate anti-competitive effects of data-rich mergers. It advocates for further research …

Chronically Online: Apportioning Liability In Social Media Litigation Based On User Engagement, Rebecca Vangelos

Fordham Law Review

The average American teenager spends nearly five hours on social media every day. This result is by design: social media platforms like Instagram, Snapchat, and TikTok deploy persuasive technologies—including infinite scroll, personalized content recommendation feeds, and dark patterns—to capture and retain teen attention. These intentional design features exploit adolescent vulnerabilities to foster social media dependency. Accordingly, a growing body of scientific evidence links the extensive use of social media to the teen mental health crisis in the United States.

Despite these negative effects, social media companies have largely evaded accountability for the harm they have caused to teens. Recent lawsuits …

The Contemporary Case For Consumer Expectations: Reevaluating The Evolution Of The Original Defect Standard And Its Place In Modern Products Litigation, Alyssa Clune

Fordham Law Review

The consumer expectations standard for design defect has been the subject of fierce debate since its inception. Though many see it as the test that best reflects the plaintiff-friendly goals of products liability, others critique it as vague, outdated, and ripe for jury misuse. Once the primary test for design defect under the Restatement (Second) of Torts, the consumer expectations test has since been rejected by the Restatement (Third) of Torts, and its use has been eliminated or restricted in approximately half of all states in favor of the risk-utility test. Much of the reasoning behind this growing rejection revolves …

Hired By A Machine: Can A New York City Law Enforce Algorithmic Fairness In Hiring Practices?, Lindsey Fuchs

Fordham Journal of Corporate & Financial Law

Workplace antidiscrimination laws must adapt to address today’s technological realities. If left underregulated, the rapidly expanding role of Artificial Intelligence (“AI”) in hiring practices has the danger of creating new, more obscure modes of discrimination. Companies use these tools to reduce the duration and costs of hiring and potentially attract a larger pool of qualified applicants for their open positions. But how can we guarantee that these hiring tools yield fair outcomes when deployed? These issues are just starting to be addressed at the federal, state, and city levels. This Note tackles whether a new city law can be improved …

Exploring Financial Data Protection And Civil Liberties In An Evolved Digital Age, Amanda Lindner

Fordham Journal of Corporate & Financial Law

There is no comprehensive financial privacy law that can protect consumers from a company’s collection sharing and selling of consumer data. The most recent federal financial privacy law, the Gramm-Leach-Bliley Act (“GLBA”), was enacted by Congress over 20 years ago. Vast technological and financial changes have occurred since 1999, and financial privacy law is due for an upgrade.

As a result, loopholes exist where companies can share financial data without being subject to laws or regulations. Additionally, federal financial privacy related laws provide little to no recourse for consumers to self-remediate with litigation, also known as a private right of …

Harsh Creditor Remedies And The Role Of The Redeemer, Christopher D. Hampson

Fordham Law Review

The concept of the judgment-proof or collection-proof debtor is fundamental to our understanding of civil law and of what distinguishes it from criminal law. But when civil creditors can threaten unduly harsh or cruel debt collection measures (whether legally or not), they extend their reach into the pockets of those whom this Article calls “redeemers,” third parties with a familial or quasi-familial relationship to civil debtors who have reason to pay on their behalf. This Article examines four such measures—imprisonment, homelessness, destitution, and deportation—remedies that sound like they come from another time and place, but which are threatened by some …

Returning To The Statutory Text: Why The Language Of Section 13(B) Requires Courts To Narrowly Construe The Ftc’S Ability To Obtain Injunctive Relief, Christopher Halm

Fordham Journal of Corporate & Financial Law

The Federal Trade Commission (FTC) enforces over 70 laws in the areas of antitrust and consumer protection, and one valuable tool to support their enforcement is Section 13(b) of the Federal Trade Commission Act (“Section 13(b)”). Section 13(b), among other features, grants the FTC authority to seek an injunction in district court against any defendant that is “about to violate” one or more of those laws. For the past three decades, courts have adopted a permissive judicial interpretation of that language, authorizing injunctions against defendants when the allegedly impending violations were only “likely to recur” based on past misconduct. This …

Peeking Into The House Of Cards: Money Laundering, Luxury Real Estate, And The Necessity Of Data Verification For The Corporate Transparency Act’S Beneficial Ownership Registry, S. Alexandra Bieler

Fordham Journal of Corporate & Financial Law

It is estimated that $800 billion to $2 trillion are laundered globally every year, funding the schemes of bad actors and terrorists alike. These astronomical sums are moved around the world without detection; this is in large part due to the ease with which anonymous shell companies, typically limited liability companies (LLCs), can be created, particularly in the United States. America is one of the most egregious enablers of this practice because most states require little to no information about the person ultimately controlling the entity, known as the “beneficial owner.” Working through an LLC, bad actors often turn to …

A Comment On Foohey Et Al., Steering Loan Modifications Post-Pandemic, Susan Block-Lieb

Faculty Scholarship

No abstract provided.

The Seventh Circuit Missed The Bullseye In Walleye, Peter Rosenberg

Fordham Journal of Corporate & Financial Law

The structure of agency relationships in a transaction should have no bearing on the outcome when the only difference between two hypothetical transactions is solely the facial structure. In the same vein, investor protection is at the forefront of the securities laws; commonly used limiting language for market announcements should not be enough to absolve a company from fraudulent disclosures, e.g., “preliminary results.”

In Walleye Trading LLC v. AbbVie, Inc., a Seventh Circuit decision, the Court did the opposite and found that, based on pleadings at the motion to dismiss stage, an issuer is not liable for the misstatements …

The Virus, Risk, And Commercial Mortgage-Backed Securities: Examining Dodd-Frank’S Impact In The Midst Of A Pandemic, Owen Haney

Fordham Journal of Corporate & Financial Law

When lawmakers sought to reshape the financial industry through the passage of the Dodd-Frank Act in 2010, they specifically attacked the “moral hazard” in the asset-backed securities market that they believed was partly responsible for the collapse of global financial markets. Congress identified several practices in asset-backed securitizations that posed a risk to the world economy. In particular, regulators believed that the “originate-to-distribute” model, whereby loan originators—those parties armed with the best knowledge regarding the quality of the loans in the transaction and who consequently set underwriting standards—could sell off the loans without bearing any risk should those borrowers (homeowners …

Amazon And Platform Antitrust, Ben Bloodstein

Fordham Law Review

With its decision in Ohio v. American Express, the U.S. Supreme Court for the first time embraced the recently developed, yet increasingly prolific, concept of the two-sided platform. Through advances in technology, platforms, which serve as intermediaries allowing two groups to transact, are increasingly ubiquitous, and many of the biggest tech companies operate in this fashion. Amazon Marketplace, for example, provides a platform for third-party vendors to sell directly to consumers through Amazon’s web and mobile interfaces. At the same time that platforms and their scholarship have evolved, a burgeoning antitrust movement has also developed which focuses on the …

Makeup Or Fakeup?: The Need To Regulate Counterfeit Cosmetics Through Improved Chinese Intellectual Property Enforcement, Jennifer Lei

Fordham Law Review

This Note examines whether new developments in intellectual property enforcement are able to fix the notorious counterfeiting issue in China, particularly with counterfeit cosmetics. Counterfeit cosmetics are a threat to public safety in the United States and globally, especially as the cosmetics industry continues to expand. There are two opposing views on whether China’s intellectual property regime—in light of the 2017 to 2019 developments—is able to address the issue. This Note proposes that even with recent developments, current laws and enforcement methods do not reduce counterfeit production. Instead, this Note argues that the Chinese government should use educational campaigns to …

Intellectual Property Law And The Right To Repair, Leah Chan Grinvald, Ofer Tur-Sinai

Fordham Law Review

This Article posits that intellectual property law should accommodate consumers’ right to repair their products. In recent years, there has been a growing push towards state legislation that would provide consumers with a “right to repair” their products. Currently, twenty states have pending legislation that would require product manufacturers to make available replacement parts and repair manuals. Unfortunately, though, this legislation has stalled in many of the states. Manufacturers have been lobbying the legislatures to stop the enactment of these repair laws based on different concerns, including how these laws may impinge on their intellectual property rights. Indeed, a right …

Regulating Habit-Forming Technology, Kyle Langvardt

Fordham Law Review

Tech developers, like slot machine designers, strive to maximize the user’s “time on device.” They do so by designing habit-forming products— products that draw consciously on the same behavioral design strategies that the casino industry pioneered. The predictable result is that most tech users spend more time on device than they would like, about five hours of phone time a day, while a substantial minority develop life-changing behavioral problems similar to problem gambling. Other countries have begun to regulate habit-forming tech, and American jurisdictions may soon follow suit. Several state legislatures today are considering bills to regulate “loot boxes,” a …

The "Uncontroversial" Controversy In Compelled Commercial Disclosures, Lauren Fowler

Fordham Law Review

Federal and state administrative agencies increasingly advance public health goals through the use of mandatory disclosures, like warning labels on cigarettes, that are intended to both inform and influence consumer decisions. However, the standard for determining whether these requirements violate a commercial speaker’s First Amendment rights is unsettled. In Zauderer v. Office of Disciplinary Counsel, the U.S. Supreme Court adopted a test that defers to the government’s determination that the compelled disclosure of “factual and uncontroversial information” is justified. Since Zauderer was decided, lower courts have disagreed about the meaning of “uncontroversial.” A recent Supreme Court case, National Institute …

A Fair Use To Remember: Restoring Application Of The Fair Use Doctrine To Strengthen Copyright Law And Disarm Abusive Copyright Litigation, Lauren Gorab

Fordham Law Review

The primary goal of copyright law is to benefit the public. By rewarding authors with exclusive rights, such as the power to enforce copyright infringement, copyright protection is the means through which copyright law accomplishes this goal. Another way that copyright law pursues its goal is through the fair use doctrine—an invaluable utilitarian limit on copyright protection. However, fair use is, among other things, vague. The current application of fair use as an affirmative defense magnifies the doctrine’s problems and makes copyright law hospitable to abusive copyright litigation. Current proposals in this area of reform target either fair use or …

Cyber Babel: Finding The Lingua Franca In Cybersecurity Regulation, William Pierotti

Fordham Law Review

Cybersecurity regulations have proliferated over the past few years as the significance of the threat has drawn more attention. With breaches making headlines, the public and their representatives are imposing requirements on those that hold sensitive data with renewed vigor. As high-value targets that hold large amounts of sensitive data, financial institutions are among the most heavily regulated. Regulations are necessary. However, regulations also come with costs that impact both large and small companies, their customers, and local, national, and international economies. As the regulations have proliferated so have those costs. The regulations will inevitably and justifiably diverge where different …

License To Bill: The Validity Of Coupling Automatic Subscription Renewals With Free Trial Offers By Online Services, Koren Grinshpoon

Fordham Intellectual Property, Media and Entertainment Law Journal

A prominent and expanding list of online services rely on a business model which pairs free trial offers with subsequent automatic subscription renewals (e.g., Amazon Prime, Blue Apron, etc.). Offering free trials to lure new users, while employing automatic renewal clauses in its terms of use to perpetuate recurring revenue, poses a substantial legal risk to online services. Numerous claims citing unfair and deceptive business practices are filed each year against such online services, primarily raising issues of informed consent, adequate disclosure, and notice. This Article reviews applicable federal law and regulations, as well as the applicable laws of all …