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Articles Posted in Consumer Fraud/Consumer Protection

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FTC Wins Judgment Against Company Engaged in Student Loan Fraud

The FTC sued a student loan debt relief company that promised consumers that it would reduce their monthly student loan payments, or arrange for their student debts to be forgiven in whole or part by their student loan servicers. Instead, the company kept most of the money sent to them…

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Illinois Attorney General Sues Juul for Allegedly Targeting Younger Users

Although e-cigarettes were first marketed as a way for smokers to quit smoking, not only has it been proven that they are not an effective way to quit smoking, but e-cigarette companies, like Juul, have actually gotten young people addicted to nicotine by targeting teens and young adults who had…

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Insurer Not Required to Defend Distributor that Fraudulently Shipped Uncertified Lumber

A building contractor in Minnesota ordered a specific brand of flameproof lumber from a Chicago distributor of commercial building materials. Unbeknownst to the contractor, the distributor substituted its in-house brand of lumber in the order. The in-house brand of lumber had not been certified to meet the safety standards required…

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Consumers Can’t Sue Candy Manufacturer for Deceptive Packaging

Two consumers initiated a class action suit against Fannie May alleging that they were deceived by the size of the candy boxes that they purchased. The consumers argued that the boxes contained an acceptable level of empty space, amounting to over a third of the volume of the boxes. The…

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That “Gorgeous Rehab” Is Actually an Alleged Money Pit According to a Recent Consumer Fraud Lawsuit

Alison Victoria, a Chicago native and one of the stars of HGTV’s “Windy City Rehab” has said that she wants to take over Chicago and put her stamp on every neighborhood. Whether fellow Chicagoans want that is another matter, and one that is currently being handled (at least in part)…

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Liability for Use of Non-Disparagement Clauses in Form Contracts with Consumers

In early 2017, the Consumer Review Fairness Act (CRFA), 15 U.S.C. §45b, took effect. With the passage of this law, the Federal Trade Commission has begun using the CRFA to crack down on businesses that use non-disparagement provisions in consumer contracts to attempt to prevent consumers from posting negative reviews in…

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FTC Investigation Leads to Filing Complaint against Cosmetics Company Accused of Posting False Customer Reviews Online

Real product reviews are a great tool for helping consumers make better, informed decisions. Many of these reviews come from real customers who really used the product. Other reviews, however—particularly those on websites, in blogs, and on social media—are not from legitimate customers but come from companies that use fake…

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No Love Lost between FTC and Match.com as FTC Files Suit for Misleading and Unfair Practices

  Online dating sites are an increasingly common way people seek to find romance. But, according to the Federal Trade Commission, these sites could also be a source of scams or a haven for scammers. The FTC recently filed a lawsuit against the company that owns popular dating sites and…

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Court Finds Student Loan Servicer can be Sued Under State Consumer Protection Law

A student loan debtor sued her loan servicer, arguing that the servicer had violated Illinois consumer fraud law by asserting that its customer representatives were experts in repayment options and acted in a borrower’s best interest when they were in fact instructed to steer borrowers into payment options that benefited…

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Out-of-State Defendants Score Win as Court Strikes Nonresident Class Members for Lack of Personal Jurisdiction

An Illinois Federal District court recently handed Telephone Consumer Protection Act (“TCPA”) claim defendants a win of sorts by slashing the size of a putative class, striking all out-of-state residents from the putative class on personal jurisdiction grounds. The case, Garvey v. American Bankers Insurance Co. of Florida, is just…

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