Consumer Protection Law Commons^™

Payday Lenders, Vehicle Title Loans, And Small-Value Financing: The Cfpb's Proposal To Regulate The Fringe Economy, Christopher K. Odinet

Faculty Scholarship

The market for payday lenders, businesses that provide vehicle title loans, and other small-value financing players is rife with controversy. Some see them as predatory lenders that weave a web of never-ending debt designed to capture the weakest and most economically vulnerable of society. However, advocates of these financial institutions argue that for many Americans who are otherwise shut out of the conventional lending market, these players provide the only viable source of credit in times of economic hardship. Whatever the view, these businesses, their borrowers, and the credit markets that they together comprise are often referred to in legal …

Sacrificing Privacy For Convenience: The Need For Stricter Ftc Regulations In An Age Of Smartphone Surveillance, Ashton Mckinnon

Journal of the National Association of Administrative Law Judiciary

This comment aims to focus on the most frequently used connector that consumers treasure not only for convenience but also as a lifelong necessity - the smartphone. The FTC needs to enforce federally mandated guidelines that will allow the consumer to use technology without the technology using the consumer. Part II of this comment focuses on the type of information that can be collected by various companies, service providers, and agencies from an individual's smartphone, and the intentions of these collectors behind use of this information. Part III evaluates how applications (apps) contribute to this scheme, and, specifically, apps' recordkeeping …

The Characteristics Of Markets That Facilitate Consumer Exploitation, Joel Stonedale

Mercer Law Review

Behavioral economists have offered plentiful evidence that consumers sometimes deviate from rational economic decision-making in predictable ways due to cognitive biases. The effect of the biases, however, varies greatly across markets. Scholars have identified several markets as particularly exploitative, including the markets for subprime mortgages, credit cards, cell phone services, video rentals, and retail rebates What separates these markets from the markets for thousands of other complex products, such as computers and cars, in which consumers appear able to understand their preferences and the product well enough to drive the market toward efficiency? This Article addresses the problem with consumer …

Putting A Gag On Farm Whistleblowers: The Right To Lie And The Right To Remain Silent Confront State Agricultural Protectionism, Rita-Marie Cain Reid, Amber L. Kingery

Journal of Food Law & Policy

Whistleblowers play an important role in filling gaps in government food safety systems. Unfortunately, several dominant food-producing states have pursued legislative initiatives that punish farm whistleblowers and silence investigative tactics. First, this research describes various state legislative initiatives that curb criticism of agriculture. The work analyzes the federal food safety system and how these protections limiting agricultural criticism contravene that food safety net. Further, the research analyzes the free speech concerns in the newest protectionist laws. The analysis recommends strategies and future research to improve agriculture safety and protect free speech in an evolving food safety landscape.

Commerce, Commonality, And Contract Law: Legal Reform In A Mixed Jurisdiction, Christopher K. Odinet

Faculty Scholarship

This Article explores the tradition/reform dichotomy as it exists in certain jurisdictions that, because of their unique history and nature, are particularly susceptible to the struggle between legal tradition and legal reform — mixed jurisdictions. In order to more closely examine the tradition/reform dichotomy and its theoretical and practical effects, this Article analyzes the role that traditional legal institutions play in the legal reform process through the lens of America’s lone mixed jurisdiction — Louisiana.

By exploring Louisiana’s subtle, yet prevalent, anchor-like legal conundrum caused by the struggle between progress and tradition — the process of mooring oneself to existing …

Dissecting The Contents Of Law Of Indonesia On Halal Product Assurance, Aal Lukmanul Hakim

Indonesia Law Review

Indonesia with its majority Moslem population and even the biggest Moslem nation in the world has obligations to its citizens to assurance the halal products (halal) for consumption and/or used as a constitutional obligation to be enforceable and applicable. The constitutional obligation is granted in the form of legal certainty covering the halalness of all products either to those useable, consumed and/or utilized by the society. Upon the legalization and enactment of Law of the Republic of Indonesia Number 33 year 2014 regarding Halal Product Assurance is the evidence of constitutionally protection commitment. Having this Halal Product Assurance Law, the …

It Takes Time: The Need To Extend The Seal Period For Qui Tam Complaints Filed Under The False Claims Act, Joel D. Hesch

Seattle University Law Review

Each year, 10% of all federal government spending is lost due to fraud, which adds up to over $350 billion a year. Unfortunately, many well-meaning federal judges are inadvertently making it easier for wrongdoers to retain these ill-gotten gains by unnecessarily cutting short the investigative time for the government to evaluate fraud allegations brought by whistleblowers under the False Claims Act (FCA). The FCA is the federal government’s primary tool to recover funds obtained through the submission of false claims. Because the government is unable to detect most fraud cases absent the help of whistleblowers, Congress included qui tam provisions …

Helping Buyers Beware: The Need For Supervision Of Big Retail, Rory Van Loo

Faculty Scholarship

Since the financial crisis, consumer regulators have closely supervised sellers of credit cards and home mortgages to stamp out anticompetitive practices. Supervision programs give financial regulators ongoing access to sophisticated firms' internal data outside the litigation process. This often enables examiners to identify and correct harmful conduct more rapidly and effectively than would be possible using publicly available information and cumbersome legal tools.

Consumers spend four times more on retail goods than on financial products. The retail sector’s dominant firms — such as Amazon, Walmart, Unilever, and Kraft — employ large teams of quantitative experts armed with advanced information technologies, …

Making Paypal Pay: Regulation E And Its Application To Alternative Payment Services, Eric Pacifici

Duke Law & Technology Review

In light of the growth of data breaches in both occurrence and scale, it is more important than ever for consumers to be aware of the protections afforded to them under the law regarding electronic fund transfers and alternative payment services. Additionally, it is important that agencies like the Consumer Financial Protection Bureau (“CFPB”), charged with the protection of unsuspecting and often defenseless consumers, are carefully monitoring these protections to ensure they keep pace with the technological evolution of the payment services they regulate. Alternative payment services, such as PayPal, are conducting an enormous number of payments and providing an …

Internet Payment Blockades: Sopa And Pipa In Disguise? Or Worse?, Stacey Dogan

Shorter Faculty Works

The law of intermediary liability in intellectual property reflects a constant struggle for balance. On the one hand, rights owners frustrated by the game of whack-a-mole have good reason to look for more efficient ways to stanch the flow of infringement. While this concern is not a new one, the global reach and decentralization of the Internet have exacerbated it. On the flipside, consumers, technology developers, and others fret about the impact of broad liability: it can impede speech, limit competition, and impose a drag on economic sectors with only a peripheral relationship to infringement. As the Supreme Court put …

Jackson V. Payday Financial, Llc., Hannah S. Cail

Public Land & Resources Law Review

In Jackson v. Payday Financial, the Seventh Circuit Court of Appeals held loan a provision requiring arbitration in tribal court was unreasonable and substantially and procedurally unconscionable. The Court rejected Payday’s argument that the dispute belonged in tribal court, because there was no subject matter jurisdiction over Plaintiffs’ claims, and the defendants did not raise a colorable claim for tribal jurisdiction or tribal exhaustion.

Payday Loan Choices And Consequences, Paige Marta Skiba, Neil Bhutta, Jeremy Tobacman

Vanderbilt Law School Faculty Publications

High-cost consumer credit has proliferated in the past two decades, raising regulatory scrutiny. We match administrative data from a payday lender with nationally representative credit bureau files to examine the choices of payday loan applicants and assess whether payday loans help or harm borrowers. We find consumers apply for payday loans when they have limited access to mainstream credit. In addition, the weakness of payday applicants’ credit histories is severe and longstanding. Based on regression discontinuity estimates, we show that the effects of payday borrowing on credit scores and other measures of financial well-being are close to zero. We test …

Buying Time In Spain: The Spanish Law Of Installment Sales, John M. Steadman

Georgia Journal of International & Comparative Law

No abstract provided.

Regulating Electricity-Market Manipulation: A Proposal For A New Regulatory Regime To Proscribe All Forms Of Manipulation, Matthew Evans

Michigan Law Review

Congress broadly authorized the Federal Energy Regulatory Commission (“FERC”) to protect consumers of electricity from all forms of manipulation in the electricity markets, but the regulations that FERC passed are not nearly so expansive. As written, FERC’s Anti-Manipulation Rule covers only instances of manipulation involving fraud. This narrow scope is problematic, however, because electricity markets can also be manipulated by nonfraudulent activity. Thus, in order to reach all forms of manipulation, FERC is forced to interpret and apply its Anti-Manipulation Rule in ways that strain the plain language and accepted understanding of the rule and therefore constitute an improper extension …

An Fda For Financial Innovation: Applying The Insurable Interest Doctrine To Twenty-First-Century Financial Markets, Eric A. Posner, E. Glen Weyl

Northwestern University Law Review

The financial crisis of 2008 was caused in part by speculative investment in complex derivatives. In enacting the Dodd–Frank Act, Congress sought to address the problem of speculative investment, but it merely transferred that authority to various agencies, which have not yet found a solution. We propose that when firms invent new financial products, they be forbidden to sell them until they receive approval from a government agency designed along the lines of the FDA, which screens pharmaceutical innovations. The agency would approve financial products if they satisfy a test for social utility that focuses on whether the product will …

On Duopoly And Compensation Games In The Credit Rating Industry, Robert J. Rhee

Northwestern University Law Review

No abstract provided.

Price Gouging: A Gray Area, Mathis Mateus

Common Reading Essay Contest Winners

Second Place

Essay Prompt: In Justice, Sandel discusses a number of contemporary political issues (e.g. price gouging during the 2004 Hurricane, the 2008-9 financial meltdown, the volunteer army, pregnancy surrogates, executive pay, slavery reparations, immigration, and gay marriage). Take a position on one of the issues discussed in the book and make the best case that you can for why this position is the most just. You may include evidence from the book, your prior studies, your own experience, and/or outside research. (Outside research is not required.)

(Still) "Unsafe At Any Speed": Why Not Jail For Auto Executives?, Rena I. Steinzor

Faculty Scholarship

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 …

Reforming The Law Of Reputation, Frank A. Pasquale

Faculty Scholarship

Unfair and deceptive practices of controllers and processors of data have adversely affected many citizens. New threats to individuals’ reputations have seriously undermined the efficacy of extant regulation concerning health privacy, credit reporting, and expungement. The common thread is automated, algorithmic arrangements of information, which could render data properly removed or obscured in one records system, nevertheless highly visible or dominant in other, more important ones.

As policymakers reform the law of reputation, they should closely consult European approaches to what is now called the “right to be forgotten.” Health privacy law, credit reporting, and criminal conviction expungement need to …

Selected State Laws Governing The Safeguarding And Disposing Of Personal Information, 31 J. Marshall J. Info. Tech. & Privacy L. 487 (2015), Bruce Radke, Michael Waters

UIC John Marshall Journal of Information Technology & Privacy Law

Numerous states have adopted laws mandating the protection and disposal of personal information. Under those laws, businesses are required to implement and maintain reasonable security procedures and practices appropriate to the nature of the information in order to protect the personal information from unauthorized access, destruction, use, modification, or disclosure. Although the definition of “personal information” varies from state to state, “personal information” is generally defined as an individual’s first name or initial and last name in combination with any one or more of the following data elements, when either the name or the data elements are not encrypted or …

Legal Problems In Data Management: Ethics Of Big Data Analytics And The Importance Of Disclosure, 31 J. Marshall J. Info. Tech. & Privacy L. 641 (2015)

UIC John Marshall Journal of Information Technology & Privacy Law

No abstract provided.

‘The Greatest Wealth Is Health’: Patient Protected Health Information In The Hands Of Hackers, 31 J. Marshall J. Info. Tech. & Privacy L. 657 (2015), Samantha Singer

UIC John Marshall Journal of Information Technology & Privacy Law

This comment will analyze the specific requirements and stages that EPs/EHs must comply with in order to receive its Medicare and Medicaid incentives, how EHR technologies are being implemented, how EHR technologies are affecting patients' privacy with regard to hacking a patient‟s PHI, and what EHR technology vendors and EPs/EHs should be doing to improve patient privacy and security to prevent hacking and other breaches.

Part I of this comment will address hacking of PHI. Part II will analyze the security measures that EHR vendors must currently incorporate into EHR technology and how the lack of required security measures impacts …

Industry Self-Regulation Of Consumer Data Privacy And Security, 32 J. Marshall J. Info. Tech. & Privacy L. 15 (2015), Siona Listokin

UIC John Marshall Journal of Information Technology & Privacy Law

Industry self-regulation of consumer data privacy and security has been proposed as a flexible alternative and compliment to traditional government regulation. This study analyzes whether different types of existing industry-led standards improve online privacy and security. This paper examines which types of firms join voluntary standards and whether there is a difference in outcomes between trade association memberships (like the Digital Advertising Alliance) and certification programs (like TRUSTe). Results suggest that more trafficked websites are more likely to adopt standards, and that trade association member-ship does not have an effect on privacy and security performance. This article highlights the need …

The Truth Behind Data Collection And Analysis, 32 J. Marshall J. Info. Tech. & Privacy L. 33 (2015), Morgan Hochheiser

UIC John Marshall Journal of Information Technology & Privacy Law

No abstract provided.

Private Drones: Regulations And Insurance, Daniel North

Loyola Consumer Law Review

No abstract provided.

Prescription Drug Importation: An Expanded Fda Personal Use Exemption And Qualified Regulators For Foreign-Produced Pharmaceuticals, Elliott A. Foote

Loyola Consumer Law Review

High-priced prescription drugs have been a problem for U.S. consumers. The United States market economy coupled with patent protection for these products creates an incentive for pharmaceutical companies to charge as much as possible. Unable to afford these drugs, many people are reaching out to neighboring countries and abroad to seek lower-cost options. It has also created a market for online mail-order pharmaceuticals. Despite the need for these drugs, the Food and Drug Administration (“FDA”) continues to make importation illegal. In formulating its policy, the FDA cites to safety and innovation concerns. Claimed uncertainty about the source of foreign prescription …

The Student Borrower: Slave To The Servicer?, William J. Cox

Loyola Consumer Law Review

No abstract provided.

Taming The Wild West Of Wall Street: Regulating Credit Default Swaps After Dodd-Frank, 48 J. Marshall L. Rev. 565 (2015), Benjamin O’Connor

UIC Law Review

No abstract provided.

Troubleshooting Legal Malfunction: Lexmark And Consumer Standing Under The Lanham Act, 48 J. Marshall L. Rev. 453 (2015), Jeremy Rovinsky

UIC Law Review

This article suggests that the recent Lexmark decision, while resolving the confusion relating to Lanham Act standing requirements, does nothing to protect those most vulnerable—the consumers. Congress must explicitly declare that consumers have standing under the Lanham Act when they have been damaged by purchasing falsely represented goods or services. Section I provides a history of the Lanham Act and illustrates how different courts initially allowed and then precluded consumers from bringing claims under Section 43(a)’s “any person” language. Section II critiques the opinions that have found no consumer standing, including the Supreme Court’s recent Lexmark decision. Section III highlights …

Closed-End Fund Ipo Considerations, Benjamin P. Edwards

Faculty Scholarship

No abstract provided.