Consumer Protection Law Commons^™

Greenwashing And Self-Declared Seafood Ecolabels, Jason J. Czarnezki

Elisabeth Haub School of Law Faculty Publications

The credibility and veracity of an environmental claim depends on a high degree of transparency, clarity, and trust. Businesses that utilize ecolabels to market the environmental performance of their seafood products often turn to third-party certifications to minimize the potential for greenwashing and provide a level of verification and independence. Others rely on a riskier approach by developing their own self-declared or first-party ecolabels. Seafood retailers and suppliers considering the creation and use of an ecolabel, certification, or seal to be used in the marketing of seafood products should ensure compliance with applicable Food and Drug Administration and United States …

Access To Health Care As An Incentive For Healthy Behavior, Lindsay Wiley

Scholarly Articles in Law Reviews & Journals

Hundreds of thousands of lives have been saved by vehicle safety standards. For many years, the auto industry fought the adoption of even the most basic standards tooth and nail, arguing that driver responsibility was the key to preventing auto accidents. In doing so, vehicle manufacturers "reinforceled] certain common sense ideas about traffic safety"-that drivers were responsible for car accidents and that vehicle design could not do much to make serious crashes survivable-"and suppressled] others." Auto insurers-who bear much of the economic cost of car crashes through a combination of first party and liability insurance-initially joined auto manufacturers in pushing …

Sugary Drinks, Happy Meals, Social Norms, And The Law, Lindsay Wiley

Scholarly Articles in Law Reviews & Journals

What role should government play in discouraging harmful overconsumption? What modes of government intervention best strike the balance between effectiveness and political acceptability? It is well established that government has a legitimate interest in protecting the health and safety of the people, even from their own choices and actions. Furthermore, there is no fundamental right to sell or purchase particular services or products in particular configurations. The appropriate question, then, is not what government may do to prevent non- communicable diseases that are associated with individual behavior choices, but rather what government should do. This comment on David Friedman's Public …

An Economic Investigation Of Rent-To-Own Agreements, Michael H. Anderson

Chicago-Kent Law Review

Rent-to-own (RTO) allows immediate access to goods without a credit check and provides an opportunity for eventual acquisition. Yet goods can be returned at any point without penalty or other adverse financial consequence. RTO is attractive to financially distressed consumers due to its ready availability as well as the options embedded in the contract. These options include the ability to cancel, early purchase, reinstate following a consumer return, and, possibly, choose the frequency of payments. In this article, a body of research on RTO is brought together and summarized. The bulk of this work is empirical, applying statistical techniques to …

Maryland's Social Networking Law: No "Friend" To Employers And Employees, Alexander Borman

Journal of Business & Technology Law

No abstract provided.

Dodd-Frank 2.0: Creating Interactive Home-Loan Disclosures To Enable Shrewd Consumer Decision-Making, 27 Loy. Consumer L. Rev. 95 (2014), Debra Pogrund Stark, Jessica M. Choplin, Mark A. Leboeuf, Andrew Pizor

UIC Law Open Access Faculty Scholarship

In Section I, we summarize and analyze the Dodd-Frank laws that were enacted to regulate home loan terms and the key changes made to the home loan disclosure rules and forms, critiquing in particular the changes made to the APR component of the new CFPB disclosure form. In Section II, we detail and report on the methods and results from two APR Experiments we conducted (one using eyetracking technology to see which areas of the disclosure form participants were looking at and for how long); we also report on the low level of financial literacy of the participants reflected in …

The Lawlessness Of Standing, John Paredes

Loyola Consumer Law Review

Abstract: In Clapper v. Amnesty International, the Supreme Court ruled that lawyers and journalists do not have standing to challenge government warrantless wiretapping of international correspondence under the 2008 amendments to FISA. The Court refused to recognize the increased costs of protecting confidential communications as injuries-in-fact unless surveillance is “certainly impending.” But more tellingly, the plaintiffs did not even allege the real injury at stake—the loss of a reasonable expectation of privacy for groups the government targets. The standing doctrine forces parties and courts to reason insincerely and blocks potentially meritorious lawsuits. Although there have been proposals to reform …

The Volcker Rule: A Regulatory Vice Under The Guise Of Consumer Protection, Shay Raoofi

Loyola Consumer Law Review

No abstract provided.

Ftc Trims Fat From Advertisements In The New Year, Joseph Axelrod

Loyola Consumer Law Review

No abstract provided.

The Telephone Consumer Protection Act Of 1991: Adapting Consumer Protection To Changing Technology, Spencer Weber Waller, Daniel B. Heidtke, Jessica Stewart

Loyola Consumer Law Review

No abstract provided.

Unveiling Fairness For The Consumer: The Law, Economics And Justice Of Expanded Arbitration, Bruce Wardhaugh

Loyola Consumer Law Review

No abstract provided.

Craft Beer Drinkers Reignite The Wine Wars, Shirley Chen

Loyola Consumer Law Review

No abstract provided.

The Future Of Class Actions In The Wake Of Comcast V. Behrend , Megan Toal

Loyola Consumer Law Review

No abstract provided.

The Practical Impacts Of Requirements Imposed On Condominium Developers After The Mortgage Crisis: A Case Sutdy Of Double Aa International Investment Group, Inc. V. Swire Pacific Holdings And How Escrow Requirements Shaped Future Financing Of New Condominium Construction, Joshua A. Berman, Jordan P. Sarason

Loyola Consumer Law Review

No abstract provided.

Crimes And Medical Care On Board Cruise Ships: Do The Statistics Fit The Crimes?, Leticia M. Diaz, Barry Hart Dubner, Nicole Mckee

Loyola Consumer Law Review

In 2009, your authors published an article entitled An Examination of the Evolution of Crimes at Sea and the Emergence of the Many Legal Regimes in Their Wake.1 The article discussed various international problems that can occur on cruise ships at sea.2 The cruise ship industry was, and still is, largely self-regulated—which in turn leads to serious problems arising from the neglect of passenger concerns.3 At that time, we disclosed that there were many international regulations addressing some areas, but not all.4 The present day poses different problems than in the past. The intention of this article is to …

Private Parties And The Ffdca: How Creative Litigants Have Circumvented Section 310 And Undermined The Nlea’S Express Preemption Amendments, Joe Dages

Catholic University Law Review

No abstract provided.

Selective Contracting In Prescription Drugs: The Benefits Of Pharmacy Networks, Joanna Shepherd

Faculty Articles

Selective contracting in health care involves contractual arrangements among insurers and health care providers that give covered individuals a financial incentive to obtain health care from a limited panel of providers. Although selective contracting has been an important strategy of health insurance plans for decades, it has only recently expanded to prescription drug coverage. Drug plans now create pharmacy networks that channel customers to in-network pharmacies. Pharmacies compete to be part of the networks by offering discounts on the drugs they sell to covered customers and drug plans. Although networks can lower prescription drug costs for drug plans and consumers, …

Tesla And The Car Dealers’ Lobby, Daniel A. Crane

Law & Economics Working Papers

Tesla Motors, the offspring of the South African-American entrepreneur Elon Musk who also brought us Pay-Pal and SpaceX, is the most exciting automotive development in many decades and a marquee story of American technological dynamism and innovation. The company’s luxury electric cars have caused a sensation in the auto industry, including a review by Consumer Reports calling Tesla’s Model S the best car it ever tested.

Tesla faces enormous challenges in penetrating an automotive market that has been dominated for a century by internal combustion engines. Not only must it build cars that customers want to drive (and, ultimately, produce …

The Telephone Consumer Protection Act Of 1991: Adapting Consumer Protection To Changing Technology, Spencer Weber Waller

Faculty Publications & Other Works

No abstract provided.

Seeking Solutions To Financial History Discrimination, Lea Krivinskas Shepard

Faculty Publications & Other Works

Employers’ use of credit reports to evaluate prospective job applicants has generated considerable scrutiny in the popular press and academic literature, but few proposals for reform. This Article explores three possible ways of reducing the risk of financial history discrimination in the employment setting.

First, imposing inquiry limits on employers’ use of credit reports, a policy recently adopted or under consideration in the majority of states, is unlikely to be effective, since states’ inquiry limits are currently narrowly drafted and therefore advance few anti-discriminatory objectives. In addition, inquiry limits cannot prevent self-interested individuals from voluntarily revealing their credit histories and …

Hiding In Plain Sight: "Conspicuous Type" Standards In Mandated Communication Statutes, Mary Beth Beazley

Scholarly Works

Professor Beazley defines the concept of mandated communication statutes in this examination of typeface, language, and the mind's ability to comprehend certain syntax. This article has a simple premise: when a government mandates written communication, it should present the mandated communication in a way that speeds comprehension. When communication is so important that the government is mandating the words and the presentation method, the writer and not the reader should not bear the burden of making sure that the information is comprehensible. In other words, the reader should not have to work to decipher the information; the writer should work …

"We Buy Houses": Market Heroes Or Criminals?, Cori Harvey

Journal Publications

The residential sale/leaseback/buyback transaction is a socially beneficial foreclosure rescue transaction that is being regulated increasingly by the criminal courts to the detriment of the homeowners, investors, and society at large. Because the transaction is being regulated more aggressively with the criminal law, peculiar outcomes arise, which include investors being sentenced, in some cases, to draconian sentences --a trend that will eviscerate the transactions rather than improving them.

In calling for a retreat from that position, this Article makes both descriptive and prescriptive claims. The first descriptive claim is that the transaction is a beneficial one and that it has …

"We Buy Houses": A Foreclosure Rescue As The Solution To The Trapped Homeowner Equity Problem, Cori Harvey

Journal Publications

Foreclosure rescue transactions are viewed widely as scams designed, among other things, to dupe poor, minority, and elderly homeowners out of the equity in their homes. However, foreclosure rescue transactions come in many forms and, as an alternative to foreclosure, often maintain valuable options for homeowners that the homeowners otherwise would lose in the traditional foreclosure process. For this reason, many of these transactions, though imperfect, should be preserved and supported.

This Article introduces one such foreclosure rescue transaction, the residential sale/leaseback/buyback ("RSLB") transaction, into the legal literature from the perspective of the rescue investors. A basic RSLB transaction allows …

The Rise And Fall Of Unconscionability As The 'Law Of The Poor', Anne Fleming

Georgetown Law Faculty Publications and Other Works

What happened to unconscionability? Here’s one version of the story: The doctrine of unconscionability experienced a brief resurgence in the mid-1960s at the hands of naive, left-liberal, activist judges, who used it to rewrite private consumer contracts according to their own sense of justice. These folks meant well, no doubt, much like present-day consumer protection crusaders who seek to ensure the “fairness” of financial products and services. But courts’ refusal to enforce terms they deemed "unconscionable” served only to increase the cost of doing business with low-income households. Judges ended up hurting the very people they were trying to help. …

Clearinghouses As Liquidity Partitioning, Richard Squire

Faculty Scholarship

To reduce the risk of another financial crisis, the Dodd-Frank Act requires that trading in certain derivatives be backed by clearinghouses. Critics mount two main objections: a clearinghouse shifts risk instead of reducing it; and a clearinghouse could fail, requiring a bailout. This Article’s observation that clearinghouses engage in liquidity partitioning answers both. Liquidity partitioning means that when one of its member firms becomes bankrupt, a clearinghouse keeps a portion of the firm’s most liquid assets, and a matching portion of its short-term debt, out of the bankruptcy estate. The clearinghouse then applies the first toward immediate repayment of the …

Written Notice Of Cooling-Off Periods: A Forty-Year Natural Experiment In Illusory Consumer Protection And The Relative Effectiveness Of Oral And Written Disclosures, Jeff Sovern

Faculty Publications

For more than forty years, a standard tool in the consumer protection toolbox has been the cooling-off period. Federal statutes, state statutes, and federal regulations all oblige merchants to give consumers three days to rescind certain contracts. This paper reports on a survey of businesses subject to such cooling-off periods. The study has two principal findings. First, the respondents indicated that few consumers rescind their purchases. Thus, the study raises doubts about whether cooling-off periods benefit consumers or whether they provide only illusory consumer protection. The article also offers speculations about why cooling-off periods have been of such little value …

Can Cost-Benefit Analysis Help Consumer Protection Laws? Or At Least Benefit Analysis?, Jeff Sovern

Faculty Publications

Cost-benefit analysis is often troubling to consumer advocates. But this Article argues that in some circumstances it may help consumers. The Article gives several examples of supposed consumer protections that have protected consumers poorly, if at all. It also argues that before adopting consumer protections, lawmakers should first attempt to determine whether the protections will work. The Article suggests that because lawmakers are unlikely to adopt multiple solutions to the same problem, one cost of ineffective consumer protections is a kind of opportunity cost, in that ineffective consumer protections might appear to make adoption of effective ones unnecessary. Ironically, such …

Bitcoin Financial Regulation: Securities, Derivatives, Prediction Markets, And Gambling, Jerry Brito, Houman B. Shadab, Andrea Castillo

Articles & Chapters

The next major wave of Bitcoin regulation will likely be aimed at financial instruments, including securities and derivatives, as well as prediction markets and even gambling. While there are many easily regulated intermediaries when it comes to traditional securities and derivatives, emerging bitcoin denominated instruments rely much less on traditional intermediaries such as banks and securities exchanges. Additionally, the block chain technology that Bitcoin introduced for the first time makes completely decentralized markets and exchanges possible, thus eliminating the need for intermediaries in complex financial transactions. In this Article we survey the type of financial instruments and transactions that will …

Performance-Sensitive Debt: From Asset-Based Loans To Startup Financing, Houman B. Shadab

Articles & Chapters

This Article develops a unique theory of performance-sensitive debt and argues that certain revenue-stage startups may be missing out on an important source of capital from asset-based loans. Debt contracts are performance sensitive to the extent any of the borrower’s obligations adjust in response to the performance of the borrower. The three main types of performance sensitivity I identify are (1) a loan’s interest rate adjusting based on the performance of the borrower; (2) the amount of available credit adjusting based on the value of collateral; and (3) renegotiation following breach of a loan covenant. Conceptualizing performance sensitivity as a …

Breaking Up Payday: Anti-Agglomeration Zoning & Consumer Welfare, Sheila R. Foster

Faculty Scholarship

In the last decade, dozens of local governments have enacted zoning ordinances designed to limit the concentration of payday lenders and other alternative financial services providers (AFSPs), such as check-cashing businesses and auto title loan shops, in their communities. The main impetus for these ordinances is to shield economically vulnerable residents from the industry’s lending practices in the absence of sufficiently aggressive federal and state consumer protection regulation. This Essay casts considerable doubt on whether zoning is the appropriate regulatory tool to achieve the consumer protection and welfare goals animating these ordinances. The author’s analysis of the aftermath of payday …