Consumer Protection Law Commons^™

A Noncompete By Any Other Name: Assessing The Validity Of Training Repayment Agreements Under Washington Law, Hannah Lukomski

Washington Law Review

Training Repayment Agreements (TRAs) are restrictive employment covenants that require an employee to pay their employer a fixed or prorated sum for training costs if the employee quits their job within some period defined by the agreement. The prevalence of TRAs has drastically increased in low-wage employment. TRAs harm employees by imposing an artificial financial constraint that disincentivizes employees from leaving their employer within the contract duration. The Washington State Legislature has not directly addressed TRAs despite having articulated limits on other restrictive employment covenants, like noncompetition agreements. This Comment reviews federal agency actions and other states’ approaches in response …

Tenant Rights Deserve Consumer Protections: The Case For Overturning State V. Schwab, Robert S. Colton

Washington Law Review

Tenancy is a precarious housing arrangement—tenants do not own their homes yet depend on housing stability as a foundation for engaging in almost all aspects of life. For more than fifty years, Washington law has decreed it a landlord’s responsibility to maintain safe and secure housing for their tenants. As the Washington State Legislature has declared, “[d]ecent housing for the people of Washington state is a most important public concern.” This strong rhetoric remains at odds with State v. Schwab, the sweeping decision issued by the 1985 Washington State Supreme Court removing tenants from the reach of the Consumer …

Discrimination In Contractual Performance: Theory, Evidence, And Preliminary Policy Prescriptions, Meirav Furth-Matzkin

Washington Law Review

This Article examines the often-overlooked practice of “selective performance” of standard form consumer contracts—where sellers permit employees to exercise discretion by waiving or modifying contractual terms to maintain customer satisfaction. While such flexibility can benefit consumers, it raises serious concerns about discrimination. Through both theoretical analysis and empirical evidence, this Article demonstrates that discretionary performance can disproportionately favor certain consumer groups, particularly along racial and gender lines, leading to biased and inequitable outcomes. Drawing on examples from diverse sectors, including retail, insurance, and mortgage services, the Article highlights how marginalized communities, especially Black consumers, frequently face harsher treatment and greater …

From Lightbulbs To #Sheinhauls: Considerations For Planned Obsolescence Regulation In The Modern Era, Nicole Cullen

Washington Law Review

“Planned obsolescence,” broadly defined as conduct by manufacturers to shorten product lifespans and spur consumption, is characteristic of the American economy. Such conduct largely manifests in widely accepted competitive strategies that require consumer participation: The periodic release of products or emergence of a trend, for example. In some instances, planned obsolescence conduct reaches beyond the accepted competitive practices, desired by consumers, to conduct that clearly harms consumers with no countervailing rationale. Such practices effectively cease product function prematurely, either through product failure or poor performance and inefficient repair costs. While this conduct largely evades legal capture, it intersects with many …

The Consumer Bundle, Shelly Kreiczer-Levy

Washington Law Review

Can property law have a consumer protection purpose? One of the most important consumer law concerns today is the limited control consumers have over the digital assets and software-embedded products they purchase. Current proposals for reform focus on classifying the transaction as either license or sale and rely mostly on contract law and consumer protection regulation with a few calls for restoring ownership rights. This Article argues that property law can protect consumers by establishing a minimum bundle of rights for consumers: the “consumer’s bundle.” Working with property theory and an analysis of property values, this Article explains the importance …

America's Next "Stop Model!": Model Deletion, Jevan Hutson, Ben Winters

Articles

This Essay explores the emergence of model deletion- the compelled destruction or dispossession of certain data, algorithms, models, and associated work products created or shaped by illegal means- as a remedy, right, and requirement for harmful applications of Al and ML systems. Part I examines model deletion's emergence as a consumer protection remedy and its conception as a positive right and regulatory requirement. Part II considers the constellation of federal and state actors, such as federal and state enforcement agencies and legislative bodies, who might seek model deletion to address particular Al and ML harms. Part III underscores the need …

Trademarks In An Algorithmic World, Christine Haight Farley

Washington Law Review

According to the sole normative foundation for trademark protection—“search costs” theory—trademarks transmit useful information to consumers, enabling an efficient marketplace. The marketplace, however, is in the midst of a fundamental change. Increasingly, retail is virtual, marketing is data-driven, and purchasing decisions are automated by AI. Predictive analytics are changing how consumers shop. Search costs theory no longer accurately describes the function of trademarks in this marketplace. Consumers now have numerous digital alternatives to trademarks that more efficiently provide them with increasingly accurate product information. Just as store shelves are disappearing from consumers’ retail experience, so are trademarks disappearing from their …

Examining Comity And The Exhaustion Doctrine In Tribal Court Civil Jurisdiction: The Cherokee Nation’S Opioid Litigation, Joëlle Klein

Washington Law Review

The opioid epidemic has devastated communities throughout the United States over the last two decades. Native American and Alaska Native tribes faced disproportionate impacts and suffered the long-lasting consequences that opioid addiction causes families and communities. In response, states and municipalities across the United States sued the distributors and pharmacies responsible for illegally diverting opioids. In April of 2017, the Attorney General for the Cherokee Nation, Todd Hembree, initiated a civil suit against opioid pharmaceutical distributors and retailers: CVS, Walgreens, Wal-Mart (pharmacies), and McKesson, Cardinal Health, and AmerisourceBergen (distributors). Although other tribes in the United States also brought claims against …

The Helicopter State: Misuse Of Parens Patriae Unconstitutionally Precludes Individual And Class Claims, Gabrielle J. Hanna

Washington Law Review

The doctrine of parens patriae allows state attorneys general to represent state citizens in aggregate litigation suits that are, in many ways, similar to class actions and mass-tort actions. Its origins, however, reflect a more modest scope. Parens patriae began as a doctrine allowing the British king to protect those without the ability to protect themselves, including wards and mentally disabled individuals. The rapid expansion of parens patriae standing in the United States may be partly to blame for the relative absence of limiting requirements or even well-developed case law governing parens patriae suits. On the one hand, class actions …

Physiognomic Artificial Intelligence, Luke Stark, Jevan Hutson

Articles

The reanimation of the pseudosciences of physiognomy and phrenology at scale through computer vision and machine learning is a matter of urgent concern. This Article—which contributes to critical data studies, consumer protection law, biometric privacy law, and antidiscrimination law—endeavors to conceptualize and problematize physiognomic artificial intelligence (“AI”) and offer policy recommendations for state and federal lawmakers to forestall its proliferation.

Physiognomic AI, as this Article contends, is the practice of using computer software and related systems to infer or create hierarchies of an individual’s body composition, protected class status, perceived character, capabilities, and future social outcomes based on their physical …

Advising 101 For The Growing Field Of Social Media Influencers, Stasia Skalbania

Washington Law Review

The Federal Trade Commission (FTC) protects consumers from unfair and deceptive business practices. In 2019, the FTC released the “Disclosures 101 for Social Media Influencers Guide” (herein referred to as the “2019 Influencer Guide”). The 2019 Influencer Guide outlines advertisers’ and endorsers’ specific responsibilities relating to the advertising and marketing of products on social media platforms. Despite the extensive information provided within the 2019 Influencer Guide, there is still great confusion regarding endorsement disclosure requirements, and many brands and influencers are not in compliance with FTC recommendations. This Comment provides guidance to brands and social media influencers on how to …

The New Bailments, Danielle D’Onfro

Washington Law Review

The rise of cloud computing has dramatically changed how consumers and firms store their belongings. Property that owners once managed directly now exists primarily on infrastructure maintained by intermediaries. Consumers entrust their photos to Apple instead of scrapbooks; businesses put their documents on Amazon’s servers instead of in file cabinets; seemingly everything runs in the cloud. Were these belongings tangible, the relationship between owner and intermediary would be governed by the common-law doctrine of bailment. Bailments are mandatory relationships formed when one party entrusts their property to another. Within this relationship, the bailees owe the bailors a duty of care …

Bully No More: Why Trademark Owners Engage In Trademark Overreach And How To Prevent It, Quynh La

Washington Law Review

At its core, trademark law exists as a tool for consumer protection. Thus, trademark owners use policing and enforcement to maintain a trademark’s goodwill, which in turn protects consumers from confusion. But policing and enforcement can lead to trademark overreach and bullying—which undermine the goal of trademark law. This Comment explains that trademark owners are incentivized to engage in aggressive enforcement tactics because courts weigh enforcement efforts in favor of trademark strength. And strong trademarks receive strong protection because such marks are more likely to succeed in trademark infringement litigation. To curb trademark bullying and realign trademark law with its …

Open World Regulation: The Urgent Need For Federal Legislation On Video Game Loot Boxes, Alex Reyes

Washington Journal of Law, Technology & Arts

Loot boxes are items in video games that contain randomized prizes that players can purchase with real-world money. In recent years, loot boxes have come under scrutiny because the relationship between behavior and the underlying mechanics of loot boxes are similar to that of addictive behaviors associated with real-world gambling. Many papers suggest solutions focused on industry changes without direct regulation. However, these papers neglect the enormous profit incentive to maintain a business practice which can have detrimental behavioral effects on children. The United States federal government must take example from a growing number of European countries and ban the …

The Taking Economy: Uber, Information, And Power, Ryan Calo, Alex Rosenblat

Articles

Sharing economy firms such as Uber and Airbnb facilitate trusted transactions between strangers on digital platforms. This creates economic and other value but raises concerns around racial bias, safety, and fairness to competitors and workers that legal scholarship has begun to address. Missing from the literature, however, is a fundamental critique of the sharing economy grounded in asymmetries of information and power.

This Essay, coauthored by a law professor and a technology ethnographer who studies work, labor, and technology, furnishes such a critique and proposes a meaningful response through updates to consumer protection law. Commercial firms have long used what …

The Secession Of The Successful: The Rise Of Amazon As Private Global Consumer Protection Regulator, Jane K. Winn

Articles

In 2005, the Americans for Fair Electronic Commerce Transactions (“AFFECT”) coalition issued a list of 12 principles it hoped would contribute to a new consensus about what constitutes fairness in online consumer transactions. A decade later, a cursory review of different jurisdictions indicates that, while there has been little discernable progress in the direction of the principles in the United States, other jurisdictions such as the European Union have made more progress.

However, the one jurisdiction in the world that comes closest to implementing all 12 principles across the full spectrum of consumer transactions is not a government at all, …

Who Knew? Refining The "Knowability" Standard For The Future Of Potentially Hazardous Technologies, Scott P. Kennedy

Washington Journal of Law, Technology & Arts

As consumer technology becomes increasingly complex, so too does the manufacturer’s task in assessing the scope of its duty to warn of potential dangers. A recent decision by the United States Court of Appeals for the Ninth Circuit, Rosa v. Taser International, Inc., offers a prime illustration of this challenge through its analysis of a hazard posed by Taser weaponry. The Rosa court highlights a point of uncertainty in this area of law: courts typically determine which hazards were knowable at the time of manufacture as a matter of law, but they sometimes do so in the absence of …

Consumer Subject Review Boards: A Thought Experiment, Ryan Calo

Articles

The adequacy of consumer privacy law in America is a constant topic of debate. The majority position is that United States privacy law is a “patchwork,” that the dominant model of notice and choice has broken down, and that decades of self-regulation have left the fox in charge of the henhouse. A minority position chronicles the sometimes surprising efficacy of our current legal infrastructure.

But the challenges posed by big data to consumer protection feel different. They seem to gesture beyond privacy’s foundations or buzzwords, beyond “fair information practice principles” or “privacy by design.” The challenges of big data may …

Mobile Marketing Derailed: How Curbing Cell-Phone Spam In Satterfield V. Simon & Schuster May Have Banned Text-Message Advertising, Gareth S. Lacy

Washington Journal of Law, Technology & Arts

The risk of receiving cell-phone spam—in the form of unsolicited text messages—grows as advertisers increasingly target cell-phone users. The Telephone Consumer Protection Act of 1991 (TCPA) clearly prohibits unsolicited telephone calls made by an automated telephone dialing system (ATDS) without the recipient’s express prior consent. But until the Ninth Circuit’s decision in Satterfield v. Simon & Schuster, it was unclear how TCPA applied to text messages. Simon & Schuster argued their text messages were not “calls” under the TCPA and were not sent by an ATDS. The Ninth Circuit disagreed and held a text message is a “call.” The …

Arbitration Nation: Wireless Service Providers And Class Action Waivers, Alexander J. Casey

Washington Journal of Law, Technology & Arts

State consumer protection laws protect the public against unfair and deceptive trade practices. Plaintiffs seeking to invoke such consumer protection laws often bring class action suits to vindicate their rights. However, some jurisdictions have recently shown a willingness to enforce contract arbitration clauses that contain class action waivers. Such waivers prevent consumers from invoking class action status, and may also prevent them from enforcing relevant state consumer protection laws. Other courts, by contrast, have held that service contracts containing class action waivers violate relevant state consumer protection laws and are against public policy. Yet another group of courts facing the …

A "New Approach" To Standards And Consumer Protection, Jane Winn, Nicolas Jondet

Articles

As consumer use of information and communication technology (ICT) products grows, the importance of ICT standards in consumer markets also grows. While standards for manufactured products were once developed at the national level in formal standards bodies, standards for ICT products today are more likely to be developed by informal standards bodies that target global markets, creating new challenges for national consumer protection laws.

As part of the process of creating a single market, the EU developed an innovative and successful form of “coregulation” known as the “New Approach” that coordinated the work of legislators and standards developers to reduce …

The Applicability Of The Consumer Protection Law In Medical Malpractice Disputes In Taiwan, Ya-Ling Wu

Washington International Law Journal

The issue of whether or not no-fault liability under the Consumer Protection Law (“CPL”) applies in medical malpractice disputes has been a contentious battle in Taiwan. In Bo-Li Li v. Mackay Memorial Hospital, the Taipei District Court interpreted medical care as “services” under Article 7 of the CPL. Under this interpretation, patient services must meet “reasonably expected safety standards,” while health care providers are subject to no-fault liability. This interpretation was strenuously opposed by the medical profession and invoked much debate over its validity in the legal field. After the Bo-Li case, the lower courts expressed different views on …

The Impact Of Eu Unfair Contract Terms Law On U.S. Business-To-Consumer Internet Merchants, Jane K. Winn, Mark Webber

Articles

This article focuses on the application of European Union unfair contract terms law to retail Internet transactions that U.S. businesses might engage in with European consumers. It compares attitudes toward consumer protection regulation in the U.S. and the EU to provide some context within which the specific provisions of unfair contract terms law can be understood.

While many lawyers and legal academics in the U.S. who study the development of online markets are aware of the profound differences in U.S. and EU information privacy laws, the magnitude of the divergence in consumer electronic contracting law is not as widely recognized. …

Proving Cause In Fact Under Washington's Consumer Protection Act: The Case For A Rebuttable Presumption Of Reliance, Jennifer Rust Muray

Washington Law Review

Under Washington's Consumer Protection Act (CPA), parties must prove proximate cause to prevail in a private cause of action for damages. Proximate cause requires proof of cause in fact and legal causation. Traditionally, in a case in which a person has disseminated an affirmative representation in an attempt to induce a consumer to purchase a product, reliance provides evidence of cause in fact. Washington courts have not decided, however, which party has the burden of proving or disproving reliance. They also have not decided whether indirect proof of reliance is sufficient for proving cause in fact. This Comment argues that …

In The Litigation Business: Insurance Company Liability For Acts Occurring In The Course Of Litigation Under The Washington Consumer Protection Act, Kasey D. Huebner

Washington Law Review

Insurance companies generally have much greater bargaining power and resources than individual insureds When a claim by an insured against an insurance company fails to settle amicably and is followed by a lawsuit, the insured has few options should the insurance company behave unfairly or deceptively in the course of the litigation. The Washington Consumer Protection Act protects consumers from deceptive and bad faith acts by businesses, including insurance companies Although Washington courts have created a general exception disallowing CPA suits for acts occurring in the course of litigation, Washington case law has not directly or clearly addressed whether this …

Open Systems, Free Markets, And Regulation Of Internet Commerce, Jane Kaufman Winn

Articles

Can commercial transactions conducted over the Internet be regulated by existing commercial law doctrines? Many promoters of Internet commerce argue that business done over open computer networks such as the Internet will require a new regulatory framework In fact, many issues raised by Internet commerce have already been considered at length in the context of electronic commerce conducted over closed computer networks, such as those used in financial markets.

One of the most hotly debated issues regarding the regulation of Internet commerce is the question of what would be the online equivalent of a signature. Some have argued that, because …

The De Minimus Exemption Of Stored Value Cards From Regulation E: An Invitation To Fraud?, Sean M. O'Connor

Articles

How valuable is $100? To a student? To a single unemployed parent? To a well-compensated professional? The Federal Reserve Board apparently believes that the potential loss of $100 is not a tremendous burden on anyone. In a recently proposed rule, the Board exempts stored value cards[that contain less than $100 from the same regulations that protect consumers from most types of fraud associated with ATM, debit, and credit cards. Regulation E (Reg E) currently regulates the electronic funds transfers (EFTs) that are at the heart of ATM/debit/credit card transactions by requiring printed receipts, error resolution procedures, periodic statements, initial disclosure …

The Taiwan Consumer Protection Law: Attempt To Protect Consumers Proves Ineffective, Carol T. Juang

Washington International Law Journal

Consumer protection is a relatively new social issue in Taiwan. With the passage of the Taiwan Consumer Protection Law ("CPL"), the government of Taiwan has taken a tremendous step towards the protection of its consumers' rights. However, industry leaders as well as consumers have voiced concerns over many of the provisions and terms in the CPL. Consumers have not taken advantage of the CPL as a means of legal recourse for product-related injuries, and industry groups have asked the government to reexamine particular aspects of the CPL. Such reaction has essentially rendered the CPL an unproductive piece of legislation.

New Consumer Protection Private Action Test: Clarification Or Further Confusion?—Hangman Ridge Training Stables V. Safeco Title Insurance Co., 105 Wn. 2d 778, 719 P.2d 531 (1986), Susan Clyatt Lybeck

Washington Law Review

In Hangman Ridge Training Stables v. Safeco Title Insurance Co., the Washington Supreme Court established a new test for plaintiffs to meet in pursuing a private right of action under Washington's Consumer Protection Act (CPA). The court set forth a substantially revised method for establishing public interest impact for private CPA actions. In addition, the court abolished its earlier distinction between per se and de facto CPA violations. All private plaintiffs must now meet the same test. This Note examines the legal background for private CPA actions prior to Hangman Ridge. The Note observes that the Hangman Ridge test is …

New Limits To The Application Of The Consumer Protection Act—State V. Schwab, 103 Wn. 542, 693 P.2d 108 (1985), Lora L. Pesto

Washington Law Review

In State v. Schwab, the Washington Supreme Court removed residential landlord-tenant transactions from the purview of the Washington Consumer Protection Act (CPA). Under Schwab, litigants may no longer invoke the generous remedial provisions of the CPA to enforce tenants' rights granted by the Residential Landlord-Tenant Act. Schwab also eliminated state prosecution of residential landlord-tenant actions. The reasoning used by the court could prevent the application of the CPA to new areas of commerce, and may also limit its application in areas where it previously has been considered fully applicable.