Consumer Protection Law Commons^™

Dilatory Tactics In Credit Card Cases: Why Plaintiff-Creditors File Objectionable Complaints & What Can Be Done To Encourage Procedural Compliance, Patrick M. Emery

Loyola Consumer Law Review

No abstract provided.

Cloned Meat, Voluntary Food Labeling, And Organic Oreos, Donna M. Byrne

Faculty Scholarship

In December 2006, the Food and Drug Administration (FDA) announced that it had reviewed all the available evidence and was poised to approve meat and milk from cloned animals and their progeny. Such products, said the FDA, are virtually identical to meat or milk from a non-clone. Further, the FDA announced it would almost certainly not require food from clones to be labeled as such. Part I of this article identifies three functions that labels perform, outlines the types of information usually required, and introduces the rule that voluntary label information cannot be misleading. Part II focuses on process information …

International Developments In Consumer Financial Services Law 2007-2008, Gregory M. Duhl

Faculty Scholarship

This Survey reviews international consumer financial services law developments in 2007 and 2008 (through August 15, 2008) in the areas of payment systems, the European Convention of Human Rights, insolvency laws, and consumer privacy. This review makes the contrast between the European and U.S. approaches to consumer regulation apparent, in particular the EU preference for direct regulation as compared to the tradition of private remedies in the United States.

Embedded Advertising: Your Rights In The Tivo Era, 9 J. Marshall Rev. Intell. Prop. L. 146 (2009), Ann K. Hagerty

UIC Review of Intellectual Property Law

As DVR usage rapidly increases, embedded advertising is evolving and blurring the line for the viewing public between advertising and content. The FCC responded by seeking public commentary and guidance on the regulations governing embedded advertising. The comments the FCC received revealed a heated debate between media industry advocates and those who seek to protect consumer interests. The recent increase in the practice of embedded advertising has only intensified this debate. A balance must be struck between the interests of the media industry and the viewing public. To do so, the FCC must adopt a regulatory scheme that commands viewers’ …

Social Networking And Blogging: The New Legal Frontier, 9 J. Marshall Rev. Intell. Prop. L. 500 (2009), Robert Newman, Liisa Thomas

UIC Review of Intellectual Property Law

Improvements in communication technology have effectively made the world a smaller place. As businesses attempt to exploit these new technological improvements to better communicate their messages to their clients, these same improvements continue to raise new and difficult legal issues related to fair trade practices, privacy, and freedom of speech. This article identifies current legal developments related to advertising in the online world and analyzes the actions taken to resolve these new and difficult legal issues within the framework of United States federal and state law and private industry-specific self-governance.

Essay: Current And Future Challenges To Local Government Posed By The Housing And Credit Crisis,, Alan Weinstein

Law Faculty Articles and Essays

The ongoing problems in the housing and credit markets, caused by a toxic combination of wholesale deregulation of financial markets by the federal government and imprudent lending and investment practices by financial institutions, pose significant challenges to local and state government officials. Some of these challenges are obvious. How will cities cope with an unprecedented number of foreclosures at the same time that state and local tax revenues are decreasing? When will access to credit ease in a municipal bond market that has constricted as a result of both general credit concerns and questions about the companies insuring those bonds? …

The Case For Behaviorally Informed Regulation, Michael S. Barr, Sendhil Mullainathan, Eldar Shafir

Book Chapters

Policymakers approach human behavior largely through the perspective of the “rational agent” model, which relies on normative, a priori analyses of the making of rational decisions. This perspective is promoted in the social sciences and in professional schools, and has come to dominate much of the formulation and conduct of policy. An alternative view, developed mostly through empirical behavioral research, provides a substantially different perspective on individual behavior and its policy implications. Behavior, according to the empirical perspective, is the outcome of perceptions, impulses, and other processes that characterize the impressive machinery that we carry behind the eyes and between …

Credit Cards, Attorney's Fees, And The Putative Debtor: A Pyrrhic Victory? Putative Debtors May Win The Battle But Nevertheless Lose The War, Jennifer M. Smith

Journal Publications

This Article addresses the current credit card industry and its detrimental impact on society, and it discusses the history and purpose of attorney's fees, as well as the pitfalls in attorney's fee legislation. It analyzes the case study under various state laws, with heavy emphasis on Florida and California law, then recommends a legislative change or judicial intervention to ensure that creditors incur financial responsibility when they erroneously sue consumers. With these changes, consumers are made whole when they must defend themselves against small claims lawsuits erroneously filed against them, so as not to become victims of needless debt.

Can Bundled Discounting Increase Consumer Prices Without Excluding Rivals?, Daniel A. Crane, Joshua D. Wright

Articles

Since we abhor suspense, we will quickly answer the question our title poses: No. As a general matter, bundled discounting schemes lower prices to consumers unless they are predatory—that is to say, unless they exclude rivals and thereby permit the bundled discounter to price free of competitive restraint. The corollary of this observation is that bundled discounting is generally pro-competitive and pro-consumer and should only be condemned when it is capable of excluding rivals. We pose and answer this question because it is at the heart of Section VI of Professor Elhauge’s provocative draft article which is the subject of …

The Patient Life: Can Consumers Direct Health Care?, Carl E. Schneider, Mark A. Hall

Articles

The ultimate aim of health care policy is good care at good prices. Managed care failed to achieve this goal through influencing providers, so health policy has turned to the only market-based option left: treating patients like consumers. Health insurance and tax policy now pressure patients to spend their own money when they select health plans, providers, and treatments. Expecting patients to choose what they need at the price they want, consumerists believe that market competition will constrain costs while optimizing quality. This classic form of consumerism is today's health policy watchword. This article evaluates consumerism and the regulatory mechanism …

Over-Indebtedness, The Subprime Mortgage Crisis, And The Effect On U.S. Cities, A. Mechele Dickerson

Fordham Urban Law Journal

This article discusses the rise of consumer debt in the United States, and argues that relaxed lending standards resulting in more people buying unaffordable homes. The current financial crisis and its effects on homeowners are examined, as well as policy responses to the crisis. The author suggests that instead of waiting for federal bailouts, localities take proactive steps to prevent the crisis from destroying their cities. Finally, the article stresses that the crisis threatens to leave urban areas with a significant number of abandoned homes and that an increase in distressed neighborhoods may reverse years of urban renewal projects.

Reducing Home Mortgage Foreclosures In A Predatory Lending Environment: A Case Study Of Mid-Sized City In Central New York, Sandra Phillips

Fordham Urban Law Journal

This article discusses the growing problem of predatory lending, particularly in low-income, inner city neighborhoods, with a case study of communities in Syracuse, New York. The author documents mortgage lending activities and foreclosure patterns in central New York and argues for continued education throughout the home-buying process. A program that reduced foreclosures in low-income urban neighborhoods is discussed. The article also identifies red flags for those involved in the eradication of predatory lending to be altered to, and examines recent federal legislation to strengthen mortgage lending guidelines and reduce foreclosures. The author concludes that Congress should support foreclosure-prevention education initiatives.

Rewriting Contracts, Wholesale: Data On Voluntary Mortgage Modifications From 2007 And 2008 Remittance Reports, Alan M. White

Fordham Urban Law Journal

This article examines voluntary efforts by mortgage servicers to resolve the mortgage debt overhang by renegotiating mortgage terms with borrowers. Data from national reports on mortgage modifications, as well as from monthly remittance reports by mortgage servicers to their investors is analyzed. The author provides background of the voluntary plan to resolve the subprime mortgage crisis and previous reports on voluntary loan modifications, and presents data on loan modification outcomes. The author concludes that the voluntary mortgage renegotiation plan, while significantly reducing hardship for individual homeowners temporarily, does little to get at the underlying problem of debt overhang. Furthermore, that …

Warranties And Disclaimers In The Electronic Age, Robert A. Hillman, Ibrahim Barakat

Cornell Law Faculty Publications

This paper reports on software-licensor express warranty and disclaimer practices on the Internet. Our data show that virtually all of the websites and End User License Agreements (EULAs) we sampled include express warranties on the website and disclaimers of the warranties in the EULAs that may erase all or much of the quality protection. Next, the paper reviews the reasons why consumers generally do not read their e-standard forms despite the prevalence of disclaimers and other adverse terms. We then argue that e-commerce exacerbates the problem of warranties and disclaimers and that lawmakers should address this issue. We contend that …

Private Import Safety Regulation And Transnational New Governance, Errol E. Meidinger

Contributions to Books

Published as Chapter 12 in Import Safety: Regulatory Governance in the Global Economy, Cary Coglianese, Adam M. Finkel & David Zaring, eds.

This paper examines the role of ‘private’ (non-governmental) regulatory programs in assuring the safety of imported products. Focusing particularly on food safety it argues that private regulatory institutions have great capacity to control safety hazards and to implement dynamic systems for detecting and correcting nascent risks. However, to establish the accountability and legitimacy relationships necessary for long-term effectiveness, private safety regulatory programs must devise new ways of incorporating and responding to the interests of developing country producers, laborers, …

The Subprime Crisis And The Link Between Consumer Financial Protection And Systemic Risk, Erik F. Gerding

Publications

This Article argues that the current global financial crisis, which was first called the “subprime crisis,” demonstrates the need to revisit the division between financial regulations designed to protect consumers from excessively risky loans and safety-and-soundness regulations intended to protect financial markets from the collapse of financial institutions. Consumer financial protection can, and must, serve a role not only in protecting individuals from excessive risk, but also in protecting markets from systemic risk. Economic studies indicate it is not merely high rates of defaults on consumer loans, but also unpredictable and highly correlated defaults that create risks for both lenders …

Restoring The Balance: Bringing Back Consumer Rights In Umg Recordings V. Augusto By Reaffirming The First Sale Doctrine In Copyright Law, Maureen Steimer

Jeffrey S. Moorad Sports Law Journal (1994 - )

No abstract provided.

Will The Federal Circuit’S Eli Lilly V. Teva Decision Lead To Efforts To Abuse The Modification Provision Of The Hatch-Waxman Act?, Claire K. Comfort

Richmond Journal of Law & Technology

The Hatch-Waxman Act provides a mandatory thirty-month stay on the Food and Drug Administration’s (FDA) approval of an Abbreviated New Drug Application (ANDA) when a patent infringement suit is filed. The Act includes a provision for a district court to shorten or extend the Act’s thirty-month stay on FDA approval if “either party to the action failed to reasonably cooperate in expediting the action”

Collision Course - Science, Law, And Regulation In The Emerging Science Of Low Dose Toxicity, Jody A. Roberts

Villanova Environmental Law Journal (1991 - )

No abstract provided.

Eatin' Good? Not In This Neighborhood: A Legal Analysis Of Disparities In Food Availability And Quality At Chain Supermarkets In Poverty-Stricken Areas, Nareissa Smith

Michigan Journal of Race and Law

Many Americans-especially the poor-face severe hurdles in their attempts to secure the most basic of human needs-food. One reason for this struggle is the tendency of chain supermarkets to provide a limited selection of goods and a lower quality of goods to patrons in less affluent neighborhoods. Healthier items such as soy milks, fresh fish, and lean meats are not present in these stores, and the produce that is present is typically well past the peak of freshness. Yet, if the same patron were to go to another supermarket owned by the same chain--but located in a wealthier neighborhood-she would …

Alternative Dispute Resolution In Small Consensual Litigation: Too Much Of A Good Thing?, Mark S. Simms

Cardozo Journal of Conflict Resolution

The evolution of equity in tort has brought about the use of alternative methods of dispute resolution in reaching settlements in mass tort cases: "Indeed, equity is a progressive force in the law. When formal adjudication cannot provide a plain, adequate, and complete remedy, the system of ADR should be flexible enough to deliver individualized justice." It appears, however, that the use of ADR is not always a prudent exercise of the court's power, nor is it always conducive to individual justice. This Note examines the Gray case, in which the court appointed a special master, thereby assigning one man …

Shareholder Bylaws And The Delaware Corporation, Christopher M. Bruner

Scholarly Works

Much like hostile tender offers in the 1980s and 1990s, shareholder bylaws purporting to limit board authority in key areas of corporate governance are, once again, forcing Delaware's courts to grapple with the fundamental nature of the corporate form.

In this (short) essay written for a roundtable discussion at the 2009 Annual Meeting of the Southeastern Association of Law Schools, I discuss CA, Inc. v. AFSCME Employees Pension Plan - the 2008 opinion in which the Delaware Supreme Court began to define the nature and scope of the shareholders' bylaw authority. In CA, Inc. the court held that a proposed …

Don't Get Enough Credit: The Need For An Impartial Consumer Credit Report Appeal Tribunal In Ontario, Kent Glowinski

Journal of Law and Social Policy

Reviews the regulatory history of credit bureaus in Ontario, the interplay of privacy and consumer law vis-a-vis consumer credit reporting, case law and credit bureau liability, and discuss the policy rationale for a Credit Report Appeal Tribunal.

Warranties In The Box, James J. White

Articles

Thousands of times each day, a buyer opens a box that contains a new computer or other electronic device. There he finds written material including an express "Limited Warranty." Sometimes the box has come by FedEx directly from the manufacturer; other times the buyer has carried it home from a retail merchant. Despite the fact that it is standard practice for the manufacturer to include a limited written express warranty on the sale of such products,' and despite the fact that both the manufacturer and the buyer believe that warranty to be legally enforceable, the law on its enforceability is …

Ask The Professor: Who Has, Or Who Should Have, Jurisdiction Over Cds Clearing?, Ronald Filler

Articles & Chapters

No abstract provided.

Privacy By Deletion: The Need For A Global Data Deletion Principle, Benjamin J. Keele

Library Staff Publications

With global personal information flows increasing, efforts have been made to develop principles to standardize data protection regulations. However, no set ofprinciples has yet achieved universal adoption. This note proposes a principle mandating that personal data be securely destroyed when it is no longer necessary for the purpose for which it was collected. Including a data deletion principle in future data protection standards will increase respect for individual autonomy and decrease the risk of abuse of personal data. Though data deletion is already practiced by many data controllers, including it in legal data protection mandates wil further the goal of …

Deception, Decisions, And Investor Education, Jayne W. Barnard

Faculty Publications

Tens of millions of dollars each year are spent on investor education. Because older adults (those aged sixty and older) are disproportionately victims of investment fraud schemes, many educational programs are targeted at them. In this Article, Professor Barnard questions the effectiveness of these programs. Drawing on recent studies from marketing scholars, neurobiologists, social psychologists, and behavioral economists examining the ways in which older adults process information and make decisions, she offers a model of fraud victimization (the "deception/decision cycle") that explains why older adults are often vulnerable to investment fraud schemes. She then suggests that many of the factors …

The Subprime Crisis And The Link Between Consumer Financial Protection And Systemic Risk, Erik F. Gerding

Publications

This Article will appear in a May 2009 symposium issue of the Florida International University Law Review on the global financial crisis. This Article argues that the current global financial crisis, which was first called the “subprime crisis,” demonstrates the need to revisit the division between financial regulations designed to protect consumers from excessively risky loans and safety-and-soundness regulations intended to protect financial markets from the collapse of financial institutions. Consumer financial protection can, and must, serve a role not only in protecting individuals from excessive risk, but also in protecting markets from systemic risk. Economic studies indicate it is …

Code, Crash, And Open Source: The Outsourcing Of Financial Regulation To Risk Models And The Global Financial Crisis, Erik F. Gerding

Publications

The widespread use of computer-based risk models in the financial industry during the last two decades enabled the marketing of more complex financial products to consumers, the growth of securitization and derivatives, and the development of sophisticated risk-management strategies by financial institutions. Over this same period, regulators increasingly delegated or outsourced vast responsibility for regulating risk in both consumer finance and financial markets to these privately owned industry models. Proprietary risk models of financial institutions thus came to serve as a "new financial code" that regulated transfers of risk among consumers, financial institutions, and investors.

The spectacular failure of financial-industry …

Talking The Talk, Or Walking The Walk? Outcome-Based Regulation Of Transnational Investment, Jerry Ellig, Houman B. Shadab

Articles & Chapters

Today, individual U.S. retail investors have virtually limitless opportunities to invest their money, with a notable exception: they cannot directly invest in securities of foreign issuers and still be protected under U.S. law. This missing opportunity deprives U.S. investors of the ability to fully diversify their investments and also imposes undue costs and risks upon investors seeking to invest directly overseas. This Article shows that a Securities and Exchange Commission ("SEC") policy of "mutual recognition" of foreign regulatory regimes that achieve investor protection outcomes comparable to those of the SEC would solve this problem. A foreign issuer or other entity …