Class-Action

Best Websites to Learn About Consumer Law Issues — Our DuPage and Cook County, and Chicago Consumer Lawyers Can Assist You in Junk Fax, Privacy Rights, TCPA and Other Consumer Rights Lawsuits

February 15, 2009 | Peter S. Lubin and Patrick Austermuehle

One of the best websites to learn about junk fax law issues and the Telephone Consumer Protection Act (“TCPA”) and to find lawyers in your region who focus on junk fax lawsuits is the website of TCPALaw.com.

The website contains comprehensive information about the TCPA and junk fax case law and lawsuits. There is no better place on the internet to learn about the TCPA and junk fax issues.

Our firm has actively pursued junk fax class action and individual cases for a number of years. We have sucessfully prosecuted and settled junk fax class-actions resulting in subtantial settlements for the victims who have had the opportunity to collect much of their statutory damages through a claims process. We are currently prosecuting and investigating class actions in Chicago, Maryland and throughout the country involving violations of statutory privacy rights involving other federal statutes such as the Fair Credit Reporting Act (“FCRA”).

Best Websites to Learn About Consumer Law Issues — Our DuPage and Cook County, and Chicago Consumer Lawyers Can Assist You in Your Lemon Law, Auto and RV Fraud, Unfair Debt Collection, Unfair Wage Practices Claims and Other Consumer Rights Lawsuits

February 1, 2009 | Peter S. Lubin and Patrick Austermuehle

One of the best websites to learn about consumer law issues and to find lawyers who focus on consumer rights issues is the website of the National Association of Consumer Advocates.

The website contains numerous links to sections on Auto Fraud, Lemon Law, Predatory Lending Practices, Credit Reporting Problems and Debt Collection Abuse.

Class action lawsuits our firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. Lubin Austermuehle is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers’ rights are protected from corporate misdeeds.

Direct Deception Not Necessary in Consumer Fraud By Omission, Rules Appeals Court

January 22, 2009 | Peter S. Lubin and Patrick Austermuehle

In a consumer fraud class action, the Fifth District Court of Appeal has ruled that consumers may sue over a manufacturer’s intentional suppression of important facts, even when when disclosure of the hidden information would have alerted the consumer to the product’s dangers and caused the consumer not to purchase the product. In De Bouse v. Bayer, 5-06-0077 (Oct. 9, 2008), plaintiff Teresa De Bouse filed a proposed class action against pharmaceutical companies Bayer and GlaxoSmithKline, as well as several individuals, alleging that they violated the Illinois Consumer Fraud and Deceptive Business Practices Act by intentionally concealing information casting doubt on the safety and efficacy of the statin drug Baycor.

This is actually the second appellate decision in De Bouse; the Illinois Supreme Court had returned it to the appeals court with instructions to reconsider it in light of a contemporary decision on the Consumer Fraud Act called Barbara’s Sales v. Intel Corp., 227 Ill. 2d 45, 879 N.E.2d 910 (2007). In that case, the state Supreme Court held that claims that a product was “the best” was “puffing” (routine exaggeration by advertisers) and did not amount to deception. Thus, a deceptive advertising campaign was not enough to violate the Consumer Fraud Act in this case, the Supreme Court ruled. The Fifth District, on remand, pointed out that while the drug makers were accused of a deceptive advertising campaign, their campaign was not “puffing” and involved alleged suppression of material facts so Barbara’s Sales did not apply.

The original appeal to the appeals court came with three certified questions:

Best Websites to Learn About Consumer Law Issues — Our Chicago Consumer Attorneys Can Assist You in Your Internet Fraud, Lemon Law, Auto and RV Fraud, Unfair Debt Collection, Unfair Wage Practices Claims and Other Consumer Rights Lawsuits

January 5, 2009 | Peter S. Lubin and Patrick Austermuehle

The National Consumers League’s Fraud Center is one of the best informational websites on the internet to learn about consumer rights and protection issues. Informed consumers are best armed to protect themselves from consumer scams and consumer frauds. The website contains sections for Telemarketing Fraud, Internet Fraud, Scams Against Businesses, Scams Against Elderly, Counterfeit Drugs, and a Fraud News section.

Lubin Austermuehle is a private consumer rights law firm who associates with other law firms around the country that can help you recover funds lost due to fraud against brick and mortar companies in the United States with assets. All too often with many internet and telemarketing frauds this may not be possible as the scam artists may be overseas, hard to locate or without assets.

Class action lawsuits our firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. Lubin Austermuehle is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers’ rights are protected from corporate misdeeds.

FTC Website Provides Useful Tips for Recognizing Telephone and Telemarketing Fraud — Our Chicago Area Consumer Lawyers and Telemarketing Fraud Attorneys Can File Private Lawsuits if You are the Victim of Telephone or Telemarketing Fraud

January 4, 2009 | Peter S. Lubin and Patrick Austermuehle

The Federal Trade Commission (“FTC”) website provides useful information regarding recognizing telephone and telemarketing frauds.

The website states:

Who’s Calling? Recognize & Report Phone Fraud

Best Websites to Learn About Consumer Law Issues — Our Chicago Consumer Attorneys Can Assist You in Your Lemon Law, Predatory Lending, Auto and RV Fraud, Unfair Debt Collection, Unfair Wage Practices Claims and Other Consumer Rights Lawsuits

January 4, 2009 | Peter S. Lubin and Patrick Austermuehle

One of the best websites to obtain information about consumer law topics and purchase consumer and lawyer oriented publications and books about consumer rights issues is the website of the National Consumer Law Center.

A particularly well done book offered by the National Consumer Law Center is called Surviving Debt. It is a “how to” book that consumers can use to learn about their rights regarding matters such as unfair debt collection practices. The National Consumer Law Center provides a detailed description of the book.

The National Consumer Law Center describes Surviving Debt as follows:

Illinois Tenants Entitled to Interest on Security Deposit, Fifth District Rules

December 4, 2008 | Peter S. Lubin and Patrick Austermuehle

As Chicago class action attorneys, our firm has been able to help many Illinois tenants protect their rights under a special state law that not every renter knows about. The Illinois Security Deposit Interest Act requires many Illinois landlords to pay their renters the interest on security deposits. The law applies to landlords of buildings with 25 or more rental units, and to deposits held six months or more. Under those circumstances, the law requires landlords to pay interest on security deposits once a year, after the end of the yearly rental agreement, except when the renter owed unpaid rent. Landlords who willfully fail to do this can be sued for the amount of the withheld interest, as well as attorney fees and court costs.

That was the case in Wang v. Williams and Royal Rentals, 343 Ill.App.3d 495, 797 N.E.2d 179, 277 Ill.Dec. 832 (Sept. 10, 2003). Zhiyuan Wang of Carbondale sued his landlord, Royal Rentals, for failing to return his security deposit, failing to pay interest during the two years he rented from Royal, consumer fraud and breach of contract. The trial court dismissed his interest claim and his breach of contract claim, both of which were based on the Security Deposit Interest Act, because Wang’s lease included a provision stating “TENANTS agree to waive right to interest on security deposit.” Wang appealed to the Fifth District Court of Appeal.

On appeal, Royal Rentals argued that legal rights, including Wang’s rights under the Security Deposit Interest Act, can be waived when the right in question is conferred only for the benefit of individuals rather than the public. The court found this unconvincing. It pointed out that the Security Deposit Interest Act protects the rights of renters, a class of people. In support, it cited several cases, including Gittleman v. Create, Inc., 189 Ill. App. 3d 199, 545 N.E.2d 237, 240 (1989), a similar case in which tenants sued their landlord for a security deposit refund and interest. That lease had a provision reading “It is understood that the security deposit is net of security deposit interest, if any.” That court found for the tenants, saying the provision was intentionally vague about how interest should be paid and suggesting that the landlord used that vagueness to try to circumvent the Security Deposit Interest Act.

Three Leading Profession Organizations Have Published a New Guide to Preventing Business Fraud — If Your Business Has Been a Victim of Fraud Our Experienced Chicago, Naperville, Wheaton and Oak Brook Business Trial Attorneys Can Help Recover Your Losses

November 15, 2008 | Peter S. Lubin and Patrick Austermuehle

New guidelines for fighting fraud have just been released by three leading professional organizations. “Managing the Business Risk of Fraud: A Practical Guide” is sponsored by the ACFE, The Institute of Internal Auditors (IIA), and the American Institute of Certified Public Accountants (AICPA). Principles for establishing effective fraud risk management, regardless of the type or size of an organization, are outlined in the guide.

Download “Managing the Business Risk of Fraud”

Our commercial litgation attorneys work closely with auditors, accountants, forensic accountants and certified fraud examiners to determine the extent of the damages your business has suffered due to fraud. We bring suit to recover the lost funds. Our experienced business and commercial litigation attorneys with offices in or near Naperville, Wheaton, Oak Brook and Chicago have helped businesses and individuals recover substantial losses in individual or class action lawsuits arising from business fraud by vendors, employees and others. To review a summary of the business and fraud lawsuits we have handled click here. To contact us for a free consultation about business fraud or other business litigation issues fill out the form on the left side of this blog or click here.

Chicago Federal District Court Strikes Down Mandatory Arbitration Clause

October 28, 2008 | Peter S. Lubin and Patrick Austermuehle

A consumer fraud case here in Chicago met an interesting end in late September. In Trujillo v. Apple Computer, No. 07 C 4946, 2008 WL 4368937 (N.D.Ill., Sept. 22, 2008) lead plaintiff Jose Trujillo filed a proposed class action against Apple and AT&T Mobility, the iPhone’s service provider. Trujillo contended that Apple and AT&T did not disclose a de facto service fee of $79 plus shipping for the iPhone’s battery, which must be replaced after 300 charges. That claim failed when the U.S. District Court for the Northern District of Illinois granted summary judgment to Apple and AT&T on Sept. 23 on the merits of Trujillo’s claims. However, as Chicago, Naperville and Oak Brook consumer rights and consumer fraud attorneys, we are very interested in a decision from the same court on the day before handing a victory to consumers. The court decided to not compel the mandatory binding arbitration required in Trujillo’s contract with AT&T, finding that contract procedurally unconscionable under Illinois state law.

According to court documents, AT&T was the only wireless phone carrier for the iPhone when Trujillo purchased the phone in 2007. (Without a service provider, the iPhone’s telephone function will not work.) Trujillo activated a service plan with AT&T online, through Apple’s iTunes software, which directs the user to AT&T’s Web site. In order to sign up, the user must click a box indicating that he or she has read and agrees to AT&T’s service agreement. The service agreement is many pages, and in fact, displays as multiple separate pages on AT&T’s Web site. If the user does not check the box indicating that he or she has read this agreement, that user cannot sign up and will not have access to all of the iPhone’s functions.

In court papers filed earlier in the case, AT&T argued that Trujillo had the opportunity to read the service agreement when he signed up for service through iTunes. It also said he had access to the service agreement before this, in two separate ways: in paper booklets at the Apple store and online, on the AT&T Wireless Web site. But in later supplementary papers, it admitted that neither of those statements was true. The paper booklets, it turned out, were not available in the Apple store, though they may have been available in an AT&T store that Trujillo later visited to have a credit check done. The court’s opinion also noted that a footnote in the new papers said the applicable terms of service were not available online after all, though an obsolete version was available through the Web site’s search function. The true terms of service were available when Trujillo signed up through iTunes, it said, but in a small window, with the language relevant to arbitration about two-thirds of the way through.

Class Certification Allowed Even in Cases With Small Damages

October 27, 2008 | Peter S. Lubin and Patrick Austermuehle

Chicago and Oak Brook-based Lubin Austermuehle has recently been working on a proposed class action consumer protection case with national reach, in tandem with colleagues in Maryland. Our case alleges violations of the Fair Credit Reporting Act, a federal law regulating when and how credit reporting agencies may provide information about consumers to third parties like marketing companies. The FCRA requires that credit agencies may only give out consumers’ information if they have written permission or to companies that will extend a “firm offer of credit” to the consumers.

Our proposed lead plaintiff received a flyer offering him an automotive loan from a company that turned out to allegedly have nothing to do with the offer. That is, there was no firm offer of credit, in violation of the FCRA. It’s important that our plaintiff suffered no actual financial damage due to this privacy violation, fortunately. However, under the FCRA, he doesn’t need to if the violation of the law was “willful.” Instead, he may sue for “statutory damages,” an amount of money set by law, as well as the cost of attorneys’ representation and any punitive damages the court decides to impose to punish illegal or very unethical behavior by the defendant.

The statutory damages authorized by the FCRA are very small by the standards of modern litigation — $100 to $1,000 per person. In fact, this amount is so small that it might discourage both plaintiffs and their lawyers from pursuing a case, given the small reward. However, a proposed class action changes that landscape dramatically. In a class action, plaintiffs with the same complaint share the same lawyers, in essence pooling their resources. In doing so, they also pool the money they stand to win, from which the lawyers are paid. This allows them to move forward with a claim they might otherwise have had to abandon — giving them greater access to justice.