In Cour v. Life360, Inc., the United States District Court for the Northern District of California granted a defendant’s motion to dismiss a claim under the Telephone Consumer Protection Act, finding that the defendant’s system for sending text messages did not constitute “making” a call under the statute. In reaching
South Carolina Governor Signs Money Transmitter Law
On June 9, South Carolina Governor Nikki Haley signed into law the South Carolina Anti-Money Laundering Act. The South Carolina AML Act, among other requirements, imposes a licensing requirement for persons and entities engaged in money transmission in the state. South Carolina is now the 49th state to implement a law regulating money
Ninth Circuit Rules Every Debt Collector Must Send Verification Notice
In a case of first impression, the U.S. Court of Appeals for the Ninth Circuit held in July that all debt collectors must send debtors a verification notice. “In other words, if there are multiple debt collectors that try to collect a debt, each one must send the required notice after its first communication with
Urban Outfitters, Anthropologie Dodge Putative ZIP Code Class Action Under Spokeo
The Court of Appeals for the District of Columbia shot down a putative class action brought against Urban Outfitters, Inc., and Anthropologie, Inc., which had alleged that the companies violated D.C. consumer protection statutes by collecting customer ZIP code information during in-store checkout. The July 26 ruling remanded the suit for dismissal, and held that
Federal Judge Denies Hearst Communications’ Motion to Dismiss Privacy Lawsuit
Federal courts continue to interpret and analyze the Supreme Court’s decision in Spokeo, Inc. v. Robins. Recently, a federal judge in New York permitted a lawsuit against Hearst Communications, Inc., to move forward after considering supplemental briefing on Article III standing.
Plaintiffs Suzanne Boelter and Josephine Edwards subscribe to magazines published by Hearst. Plaintiffs
Marketplace Lender Challenges Scope of CFPA and What Constitutes UDAAP
In 2015, the Consumer Financial Protection Bureau filed a lawsuit against CashCall, Inc., a marketplace lender, alleging that it violated the Consumer Financial Protection Act’s (“CFPA”) prohibition on unfair, deceptive, or abusive acts and practices (“UDAAP”) by making usury loans in violation of the state laws in which the consumers were located.
On
FTC Announces $200 Million Settlement with Herbalife, Requires Restructured Business Model
The FTC announced that it has reached a settlement with Herbalife that includes a $200 million payment to compensate consumers. In addition to the payment, the settlement agreement has an unusual provision requiring a complete restructuring of Herbalife’s existing business model.
In its complaint against the company, the FTC alleges that Herbalife claimed that people
CFPB Outlines Overhaul of Acceptable Debt Collection Practices
On July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules seek to curb “excessive or disruptive” communication by restricting collectors from calling debtors numerous times a day, require debt collection companies to have “more and better
Background Screening Class Certified in Obsolete Information Case
On July 26, a Northern District of California judge certified a class of applicants who claimed that S2Verify, a background check company, included obsolete criminal information on their background reports in violation of the Fair Credit Reporting Act. In certifying the class, the Court found that the alleged harm was sufficient under the U.S. Supreme
Spokeo-Based Motion to Dismiss Filed in Pennsylvania Federal Court
In Long v. Southeastern Pennsylvania Transportation, the named plaintiffs applied for positions as bus operators with the Southeastern Pennsylvania Transportation Authority (“SEPTA”). SEPTA allegedly extended each of the plaintiffs a conditional offer of employment, which was contingent upon a background check. In each instance, the plaintiffs disclosed the existence of a drug conviction to