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Cal. High Court Softens Draconian Arbitration Fee Rule
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August 19, 2025
Cal. High Court Softens Draconian Arbitration Fee Rule
By: Robert Ward
California law has often tested just how much room the Federal Arbitration Act (FAA) leaves for states to regulate consumer arbitration agreements. Last week, in Hohenshelt v. Superior Court,[1] the California Supreme Court determined that at least one claimant-favoring provision of the California Arbitration Act (CAA), California Code of Civil Procedure § 1281.98 comes close to, but does not cross, that line. At the same time, to avoid preemption, the court offered businesses some relief from the unforgiving interpretation applied by many California courts. Section 1281.98 requires the party who drafts an arbitration agreement—in the consumer context, the company—to pay all required fees within thirty days of receiving the arbitration provider’s invoice.[2] If the company fails to pay the fees…
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Ready, Set, Go: More States Adopt Privacy Laws
July 30, 2025
Ready, Set, Go: More States Adopt Privacy Laws
By: Nicole Kardell
Note the below chart was updated on July 24, 2025 to reflect recent developments. The number of U.S. states that have adopted privacy laws grows regularly. Fortunately, there seems to be quite a bit of crossover, at least when it comes to thresholds that companies must meet in order to trigger compliance requirements. We provide below a chart that summarizes these thresholds by state, including…
Fame, FTC, and Fine Print: Navigating Advertising Rules in an Evolving Landscape
May 12, 2025
Fame, FTC, and Fine Print: Navigating Advertising Rules in an Evolving Landscape
By: Abbey Block
Ryan Seacrest is most well-known for his role as the charismatic host of popular television shows like American Idol and Wheel of Fortune. But more recently, Seacrest has taken on a new business venture, becoming the spokesperson for the social casino platform, Chumba Casino. Chumba Casino, launched in 2012, allows players to engage in online casino-style games. Seacrest began his partnership with the brand in…
What the Payday Proposal Would Do
June 3, 2016
What the Payday Proposal Would Do
By: Ifrah Law
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to regulate payday lending and auto-title loan companies. Right now, it is merely a proposal, meant to undergo the notice and comment period until September 14, 2016. But if the rule goes into effect, it would be a significant imposition on the lending business. The CFPB has been studying the effects of payday lending…
CFPB Scare Tactics: The New Arbitration Rules
May 5, 2016
CFPB Scare Tactics: The New Arbitration Rules
By: George Calhoun
Recently, I wrote about the CFPB’s plans to issue new regulations restricting arbitration clauses in certain consumer contracts. Today, the agency announced those new rules and CFPB Director Richard Cordray is expected to discuss them at the agency’s field hearing in Albuquerque, New Mexico. As expected, the new rules eliminate the use of class action waivers and otherwise restrict the availability of arbitration in consumer…
Judge Flunks Case Against LabMD, FTC Appeals
April 20, 2016
Judge Flunks Case Against LabMD, FTC Appeals
By: Jeffrey Hamlin
In March 2015, I wrote about the ongoing dispute between the FTC and LabMD, an Atlanta-based cancer screening laboratory, and looked at whether the FTC has the authority to take enforcement action over data-security practices alleged to be insufficient and therefore “unfair” under section 5(n) of the Federal Trade Commission Act (“FTCA”). On November 13, 2015, an administrative law judge ruled that the FTC had…
Wells Fargo Learns That Recording Calls In California Can Be Costly
April 5, 2016
Wells Fargo Learns That Recording Calls In California Can Be Costly
By: Michelle Cohen
In the past few years, many organizations such as Capital One, Bass Pro Outdoor, and the Cosmopolitan Hotel have faced class actions alleging violations of California’s call recording law. This week, California’s Attorney General demonstrated that her office, working with state prosecutors, will also vigorously enforce the law under the state’s criminal statutes. Attorney General Harris announced an $8.5 million dollar settlement with Wells Fargo…
Arbitration Under Fire: Brace Your Company for Less Contract Freedom and More Class Actions
March 31, 2016
Arbitration Under Fire: Brace Your Company for Less Contract Freedom and More Class Actions
By: George Calhoun
Since the Federal Arbitration Act (FAA) of 1925, the United States has had a policy preference for arbitration, even when an arbitration provision includes language barring class action litigation. We saw this most recently in December 2015 when the Supreme Court reversed a decision by a California Court of Appeal to invalidate a class-arbitration waiver within a service agreement between DirecTV and its customers.[1] But…
