Consumer Protection and Legal Actions

This living topic covers a range of federal and regulatory actions taken to protect consumers against unfair business practices. Key issues include misleading advertising, restrictive repair policies, hidden fees, and anti-competitive behavior. The articles highlight enforcement actions by agencies such as the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) against major companies like Capital One, Adobe, and Harley-Davidson. These actions seek to ensure transparency, fair competition, and consumer rights, illustrating ongoing efforts to hold corporations accountable and safeguard consumer interests.

Latest

Equifax fined $15 million over its handling of consumer disputes

The Consumer Financial Protection Bureau said the firm failed to investigate claims

Featured Class Action and Legal News photo

The Consumer Financial Protection Bureau has imposed a $15 million fine on Equifax, a consumer reporting agency, for failing to adequately investigate consumer disputes regarding credit reports. The enforcement action highlighted what it said were significant lapses in Equifax's processes, which have led to inaccuracies in consumer credit scores and reports.

The CFPB said its investigation revealed that Equifax consistently ignored consumer-submitted documents and evidenc...

Read Article
Featured Class Action and Legal News photo

Article Timeline

Newest
  • Newest
  • Oldest
2025
2024
2023
Article Image

FTC probes infant formula makers suspected of anti-competitive activity

The Federal Trade Commission (FTC) has opened an investigation into manufacturers of infant formula to determine if the various companies engaged in collusion on their bids for state contracts, in violation of antitrust laws.

Companies bid against one another to win contracts to supply food for the Women, Infants and Children program, which includes infant formula. The FTC says any collusion on bids would likely increase the cost of the product.

Abbott Labs, the maker of Similac infant formula, told the Wall Street Journal that it is cooperating with the investigation. Lawyers for the company have said they are unaware of any collusion and are in the dark about what triggered the probe.

The industry has drawn regulator’s attention since the COVID-19 pandemic, when a shutdown of Abbott’s main production facility, coupled with supply chain issues, created shortages in the infant formula market.

In February 2022, Abbott recalled powder formulas, including Similac, Alimentum, and EleCare, that were manufactured at its Sturgis, Mich., plant. The firm said it had received complaints related to Cronobacter sakazakii or Salmonella Newport in infants. Cronobacter sakazakii can cause fever, poor feeding, excessive crying, or low energy in infants.

In June, Abbott Labs reopened the Sturgis facility but it took several weeks to make it fully operational.

The Federal Trade Commission (FTC) has opened an investigation into manufacturers of infant formula to determine if the various companies engaged in collus...

Article Image

FTC finalizes settlement sending $425 million to Fortnite players

The Federal Trade Commission (FTC) has finalized its recent order and will require Epic Games, the company that makes the popular Fortnite video game, to pay $425 million to consumers.

Back in December, the FTC and Epic games reached an agreement to settle charges that the company employed dark patterns to trick users to make unwanted purchases. The FTC also charged that the company allowed children to run up large bills without their parent’s approval.

The company agreed to pay the FTC $520 million, with $425 million going to reimburse consumers.

“Fortnite’s counterintuitive, inconsistent, and confusing button configuration led players to incur unwanted charges based on the press of a single button,” the agency charged. “The company also made it easy for children to make purchases while playing Fortnite without requiring any parental consent.”

When players complained or tried to dispute the charges, the FTC charged Epic locked them out of their accounts.

What to do

If you or your children played Fortnite and ended up buying things you didn’t want, you’re probably due a refund. The FTC is in the process of setting up its compensation system.

For starters, refunds will be made to:

  • Parents whose children made an unauthorized credit card purchase in the Epic Games Store between January 2017 and November 2018

  • Fortnite players who were charged in-game currency (V-Bucks) for unwanted in-game items (such as cosmetics, llamas, or battle passes) between January 2017 and September 2022

  • Fortnite players whose accounts were locked between January 2017 and September 2022 after disputing unauthorized charges with their credit card companies.

The FTC said it will send emails to consumers who made in-game purchases when it has developed instructions for applying for a refund. However, if you think you are eligible you should bookmark www.FTC.gov/Fortnite and check it from time to time.

It costs nothing to apply for a refund, so if you are contacted by someone claiming to be from the FTC and requesting payment, the FTC said you are dealing with a scammer. 

The Federal Trade Commission (FTC) has finalized its recent order and will require Epic Games, the company that makes the popular Fortnite video game, to p...

2022
Article Image

Here’s how to claim your share of the multimillion-dollar Fortnite settlement

The Federal Trade Commission (FTC) has announced how it plans to distribute $245 million of a $520 million settlement with Epic Games, the maker of the Fortnite video game. Players and parents of children who play the game may be in line for compensation.

According to the FTC, the company charged parents and gamers of all ages for unwanted items and locked the accounts of customers who disputed wrongful charges with their credit card companies.

The FTC plans to make refunds available to:

  • Parents whose children made an unauthorized credit card purchase in the Epic Games Store between January 2017 and November 2018

  • Fortnite players who were charged in-game currency (V-Bucks) for unwanted in-game items (such as cosmetics, llamas, or battle passes) between January 2017 and September 2022

  • Fortnite players whose accounts were locked between January 2017 and September 2022 after disputing unauthorized charges with their credit card companies.

No action is required right now

The agency has not disclosed when it plans to begin the distribution of the funds. If you believe that you are eligible for a payment, you don't need to do anything right now. 

“When we have more information about the refund program, we will post updates here and send email notices to customers who paid for in-game purchases,” the FTC said.

Officials suggest that people who think they are eligible bookmark FTC.gov/Fortnite and check back often for updates. You can also sign up here to get email updates about the refund program.

Since a lot of money is involved and so many people may be eligible for compensation, the FTC warns consumers to beware of scammers who try to take advantage of the situation. The FTC said it never asks you to pay to file a claim or get a refund. Don't pay anyone who promises you an FTC refund in exchange for a fee.

The Federal Trade Commission (FTC) has announced how it plans to distribute $245 million of a $520 million settlement with Epic Games, the maker of the For...