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The SEC Signs on to Arbitration
FEATURED
September 29, 2025
The SEC Signs on to Arbitration
By: George Calhoun
Early last week, on September 17, 2025, the SEC announced that it will no longer consider the presence of a mandatory arbitration provision in a company’s charter or bylaws when deciding whether to accelerate the effectiveness of a registration statement. This policy shift will permit companies to include arbitration clauses in their governing documents to require securities litigants (including class action plaintiffs) to pursue their claims in arbitration proceedings rather than court cases. The decision leaves open how arbitration provisions might apply in direct actions versus derivative actions. Nonetheless, this could result in a significant reduction in private securities litigation. The SEC focused its decision on the recent trend in U.S. Supreme Court precedent concerning the Federal Arbitration Act and…
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Cal. High Court Softens Draconian Arbitration Fee Rule
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…
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…
What Priorities Will FTC Stress in Its Impending Online Advertising Guidelines?
August 21, 2011
What Priorities Will FTC Stress in Its Impending Online Advertising Guidelines?
By: Nicole Kardell
If you advertise or sell over the Internet, be aware that changes are afoot at the FTC that will affect your business. The Commission is in the midst of revamping its Dot Com Disclosures, guidelines it prepared back in 2000 regarding online advertising. It issued a request for public comment on prospective revisions in late May. Now that the comment period has ended in early…
FTC’s Mortgage Acts and Practices Advertising Rule May Not Help Consumers
August 15, 2011
FTC’s Mortgage Acts and Practices Advertising Rule May Not Help Consumers
By: Nicole Kardell
The FTC recently issued the Mortgage Acts and Practices – Advertising Final Rule. This rule is the FTC’s response to a congressional directive to address unfair or deceptive acts in the mortgage loan industry. Briefly, the MAP Rule (1) gives the FTC and state authorities the ability to seek civil penalties for deceptive mortgage advertising, (2) clarifies and provides examples of what constitutes deceptive mortgage…
Should FTC Sue Law Schools For Misrepresentation?
July 11, 2011
Should FTC Sue Law Schools For Misrepresentation?
By: Jeff Ifrah
On May 25, 2011, a class action was filed against the Thomas Jefferson School of Law (TJSL) in San Diego for intentionally misrepresenting employment data of recent alumni. The complaint states that in order to continue attracting students despite exorbitant law student debt and a depleted legal job market, TJSL has “adopted a practice of misrepresenting its post-graduation employment statistics.” These facts aren’t unique. According…
Internet Affiliates Fight Back in Court Against Illinois Retail Tax
June 30, 2011
Internet Affiliates Fight Back in Court Against Illinois Retail Tax
By: Ifrah Law
An organization that represents online affiliates filed suit in federal court this month challenging the constitutionality of a new Illinois law targeted at collecting sales tax from Web retailers. Internet retail giant Amazon.com has threatened to cut off its marketing affiliates in Illinois in an effort to avoid paying the tax, and other companies are threatening similar action. We have previously examined the potential effects…
Since When Did the FTC Start Regulating Cyber Security?
May 11, 2011
Since When Did the FTC Start Regulating Cyber Security?
By: Nicole Kardell
There’s no question that the Federal Trade Commission has the authority to prevent deceptive and unfair trade practices, such as false or misleading claims directed at consumers. Somehow, however, that authority has morphed into a much broader reach than one would have expected on the basis of common sense. We’ve written extensively about such jurisdictional overreaching by the FTC in the health food industry (see,…
