What Is Consumer Protection Litigation?

Consumer protection litigation plays a vital role in upholding the rights and well-being of individuals in their interactions with businesses and marketplace transactions. As consumers, we rely on the integrity, safety, and fairness of the products and services we purchase. However, consumer protection laws come into play when those expectations are violated, providing a legal framework to address grievances and seek justice. According to the Federal Trade Commission, consumer complaints regarding scams, fraud, and online shopping reached a staggering 2.1 million in 2020, illustrating the magnitude of consumer issues nationwide.

This article will explore the fundamentals of consumer protection litigation, its significance, and its impact on safeguarding consumer rights. By understanding these basics, you can untangle the intricate threads of consumer protection laws, empower yourself as an informed consumer, and take proactive steps to protect your rights and interests. 

Consumer Protection Litigation: Areas

Consumer protection litigation refers to legal actions taken by individuals or groups against businesses or organizations to safeguard the rights and interests of consumers. It encompasses a range of legal proceedings, including lawsuits, class actions, and regulatory enforcement actions, to hold companies accountable for unfair, deceptive, or fraudulent practices. 

When consumer rights are violated, individuals or groups may pursue legal action to seek compensation, obtain injunctive relief, or secure other remedies. Litigation can be initiated by affected customers, consumer advocacy organizations, or government agencies responsible for consumer protection.

The following areas of consumer protection litigation are the most common fields that typically see lawsuits to this degree.

Prescription Drugs and Medical Devices

Prescription drugs and medical devices constitute a significant area of consumer protection litigation. This field focuses on legal actions related to the safety, effectiveness, marketing, and distribution of pharmaceutical drugs and medical devices. 

In recent years, this area of consumer litigation has been demonstrated by the litigation surrounding the opioid crisis in the United States. Various pharmaceutical companies have faced numerous lawsuits and legal actions from states, local governments, and individuals, alleging that they had contributed to the widespread misuse and addiction to prescription opioids. 

Food and Dietary Supplements

There is a specific field of consumer protection litigation that focuses on legal actions related to food and dietary supplements, including the safety, labeling, advertising, and quality of the products. Consumer protection laws aim to ensure that these products meet regulatory standards, provide accurate information to consumers, and do not pose risks to public health. 

In 2019, many consumers filed lawsuits against companies for using terms like “natural” or “organic” when the ingredients or manufacturing processes did not meet the required standards. Similarly, in 2020, the U.S. Food and Drug Administration (FDA) issued warning letters to several companies promoting dietary supplements claiming to prevent or cure COVID-19. The FDA took action to protect consumers from misleading claims and potential harm associated with these unproven products. 

Complex Consumer Fraud

Complex consumer fraud refers to sophisticated schemes or fraudulent activities perpetuated by people or organizations to deceive and exploit consumers for financial gain. It involves complex schemes that often span multiple jurisdictions, employ advanced technology, and target many victims. 

For instance, in the early 2000s, Bernie Madoff orchestrated a Ponzi scheme that defrauded thousands of investors over several decades. He promised consistently high investment returns but used new investors' funds to pay earlier investors rather than generating actual profits. The scheme collapsed in 2008, leading to significant losses for individuals and charitable organizations. The fallout from this case prompted significant litigation to recover funds and compensate victims. 

Other examples of complex consumer fraud include pyramid schemes, securities fraud, identity theft, telemarketing scams, or internet-based fraud.

Deceptive Practices, Data Privacy, and Telemarketing

Deceptive practices, data privacy, and telemarketing encompass a crucial area of consumer protection litigation that focuses on combating fraudulent or misleading practices, safeguarding consumer privacy, and regulating telemarketing activities. This field of litigation exists to protect consumers from deceptive business practices, unauthorized use of personal information, and intrusive telemarketing tactics. 

In 2018, a lawsuit was filed against Facebook for mishandling user data. It was revealed that a political consulting firm, Cambridge Analytica, had improperly obtained the personal data of millions of Facebook users. Various regulatory authorities and individuals filed lawsuits, alleging that Facebook had engaged in deceptive practices by allowing third-party access to user data without proper consent, resulting in a $725 million settlement in 2022.

U.S. Active and Veteran Service Member Fraud

U.S. Active and Veteran Military Fraud refers to a specific area of consumer protection litigation that focuses on protecting active-duty military personnel and veterans from fraudulent practices and exploitative schemes that specifically target them. 

For example, since 2016, the U.S. Department of Justice (DOJ) has actively pursued legal actions against for-profit educational institutions that use deceptive practices to recruit and enroll military service members and veterans. These institutions, often referred to as "military-friendly" schools, may misrepresent the quality of their programs, job placement rates, or the transferability of credits. They may also exploit benefits like the GI Bill by manipulating tuition costs or providing substandard education and training. 

Other examples include predatory lending practices, housing scams, unlawful foreclosures, fraudulent investment schemes targeting military benefits, or identity theft explicitly aimed at military personnel.

Tobacco Product Litigation

Tobacco product litigation denotes the legal actions taken against tobacco companies and their products to protect consumer health, seeking compensation for damages and holding the tobacco industry accountable for its actions. 

While tobacco product litigation has regularly made headlines since the late 1990s, the field has recently seen an upward trend in cases towards e-cigarette companies, especially those related to youth vaping. Lawsuits have been filed against companies accused of marketing their products to minors, making false health claims, and not adequately disclosing the risks associated with e-cigarettes. 

Class Action Fairness Act

The Class Action Fairness Act (CAFA) was enacted in the United States in 2005 to establish the guidelines and procedures for class action lawsuits, particularly those involving significant sums of money and cases where plaintiffs and defendants are from different states. Class action lawsuits meeting specific criteria, such as involving more than 100 plaintiffs and over $5 million in aggregate damages, can be removed from state courts to federal courts.

For example, CAFA was used in the case of Volkswagen's "Clean Diesel" Marketing, Sales Practices, and Products Liability Litigation. This class action lawsuit involved Volkswagen (VW) and its alleged use of emission-cheating devices in diesel vehicles. The case, filed on behalf of thousands of VW vehicle owners, sought compensation for the affected consumers due to the vehicles' deceptive marketing and environmental impact. 

Consumer Product Safety and Tampering

Consumer product safety and tampering involve an area of consumer protection litigation that focuses on ensuring the safety and integrity of products available in the market. It includes regulations, standards, and legal measures to safeguard consumers from dangerous or defective products and prevent deliberate, malicious tampering that could harm consumers. 

To illustrate, in 2023, Johnson & Johnson settled a lawsuit concerning using their talcum powder for $8.9 billion. The lawsuit claimed that the company knew about the presence of asbestos in their talcum powder products but failed to warn consumers about the potential health risks, including cancer and other life-threatening illnesses. As a result, many individuals sought legal action. 

How To File a Consumer Protection Claim

While the specific steps and procedures can vary depending on your jurisdiction and the nature of the consumer protection issue, the following list outlines how these events typically occur.

1. Gather evidence

Collect all relevant documents and evidence related to the issue. This may include receipts, contracts, warranties, photographs, correspondence, and other supporting materials pertinent to your specific circumstances.

2. Review consumer protection laws

Familiarize yourself with the consumer protection laws and regulations applicable in your jurisdiction. These laws vary by country and may cover product safety, false advertising, unfair business practices, or specific consumer rights.

3. Contact the company

Reach out to the company or seller involved in the dispute. Explain the issue clearly and provide any supporting evidence. In many cases, the company may be willing to resolve the matter directly with you.

4. File a complaint with the regulatory authorities

If direct communication with the company does not lead to a satisfactory solution, consider filing a complaint with the appropriate regulatory authority or consumer protection agency. These agencies enforce consumer protection laws and can guide further steps.

5. Seek legal advice

Consulting with a consumer protection attorney can be beneficial if the issue remains unresolved or involves significant harm or financial loss. An attorney can assess the situation, advise you on your rights, and guide you through the legal process.

6. File a lawsuit

As a last resort, filing a lawsuit in civil court may be necessary. An attorney can help prepare legal documents, gather evidence, and represent you in court proceedings. Be aware that filing a lawsuit can be lengthy and complex, so weighing the potential benefits and costs is essential.

Potential Outcomes of Consumer Protection Lawsuits

Consumer protection lawsuits can lead to various outcomes depending on the nature of the case, jurisdiction, applicable laws, and the specific circumstances involved. The following list includes some potential outcomes that may arise from consumer protection lawsuits.

1. Monetary compensation

One of the most common outcomes is awarding monetary damages to the affected consumer. This compensation aims to reimburse the consumer for financial losses, such as the cost of the defective product, medical expenses, property damage, or any other economic harm suffered due to the consumer protection violation.

2. Injunctive relief

Consumer protection lawsuits can result in injunctive relief, a court order requiring the defendant to stop engaging in harmful or deceptive behavior. This outcome seeks to prevent the defendant from continuing the illegal conduct and protect other consumers from similar harm. 

3. Product recalls or repairs

In cases where a product is found to be unsafe or defective, a consumer protection lawsuit can lead to a product recall or repair. The court may order the manufacturer or seller to take appropriate measures to rectify the issue and ensure the safety of consumers.

4. Changes in business practices

Consumer protection lawsuits can prompt changes in the defendant's business practices. The court may require them to modify their marketing techniques, disclose accurate information, or adhere to specific consumer protection regulations. 

5. Regulatory actions

Consumer protection lawsuits can trigger investigations by regulatory authorities. If the court finds merit in the lawsuit, it may refer the case to the appropriate regulatory agency, which can take further actions such as fines, penalties, or revocation of licenses or permits.

6. Class action settlements

A consumer protection lawsuit can result in a class action settlement in cases where multiple consumers have been affected by the same issue. This occurs when a group of individuals with similar claims collectively brings a lawsuit against the defendant. If the lawsuit is successful, a settlement may be reached that provides compensation or other remedies to the affected class members.

How To Find a Consumer Protection Litigation Attorney

Finding a consumer protection litigation attorney can be crucial for navigating complex legal matters and maximizing your chances of success. Their role is to provide you with the legal knowledge, guidance, and representation necessary to comprehend the intricate nature of consumer protection laws and protect your rights as a consumer. Your attorney's main objective is to achieve the best possible outcome for your case, whether through negotiation, settlement, or litigation.

If you need help determining where to begin, consult our legal directory of well-qualified attorneys with experience in this field. Each listed attorney is carefully screened to ensure they meet high standards of professionalism and expertise. With a user-friendly interface and search functionality, our directory makes it easy to find consumer protection litigation attorneys in your area.