FTC

A 60-year-old Navy veteran needed money fast. So he did what far too many people do in that situation and applied for a short-term “payday-type” loan. When all was said and done, he was charged well over 100 percent interest. Seriously. One major player in the industry offered a $2,600, 47-month loan, and sought a total repayment of $20,280.03! That’s a 204.94 percent annual percentage rate!

Most of us realize that short-term lenders make their nut on exorbitantly high interest rates, but states have systematically cracked down on these companies and capped the interest they’re allowed to charge. State regulators have had a good deal of success in recent years securing hefty settlements for citizens victimized under state usury laws.

But our Navy veteran friend wasn’t so lucky. He got his loans from the wrong companies, and the state Department of Banking had to tell him that they were powerless to assist him.

It’s hard to believe a company can so blatantly thumb its nose at the rules, but they have a secret and some Biglaw bigshots on retainer to fight tooth-and-nail to protect their lending practices….

double red triangle arrows Continue reading “The Legal Trick Payday Lenders Are Using To Skirt The Law”

* Bob McDonnell, former governor of Virginia, guilty of 11 counts of corruption. Maureen McDonnell guilty of 8. If only they’d gotten that severance motion. [Wonkette]

* The best way to catch drunk drivers is to give them something to crash into. [Legal Juice]

* Chaumtoli Huq, a former general counsel to the New York Public Advocate, has filed a federal lawsuit alleging that NYPD officers arrested her for waiting on the sidewalk outside a restaurant. She says she was targeted for being Muslim. [Gawker]

* In somewhat related news, Prawfsblawg pointed me to this interesting Slate piece on the effect that body-worn cams — the en vogue solution to police misconduct pushed by many including Huq’s old boss — really have on policing. [Slate via Prawfsblawg]

* Google paying $19 million to settle the FTC suit over kids making in-app purchases. It was going to be a $5 million settlement, but the FTC told Google that they would let them skip level 410 in Candy Crush if they kicked in another $14 million. [Washington Post]

* Some people have a problem with duct-taping kids to force them to take naps. Kids are growing up soft these days. [Lowering the Bar]

* And guess what? The D.C. Circuit is hearing the Halbig case en banc. Nullifying any argument that the Supreme Court act immediately to resolve a circuit split. Seems like someone predicted this outcome while the mainstream media wet themselves over a Supreme Court showdown. [Constitutional Accountability Center]

* Adam Steinbaugh got a DMCA takedown notice for criticizing a company for… overactive DMCA takedown notices. He replies eloquently. [Adam Steinbaugh's Blog]

Ed note: This post originally appeared on Ad Law Access.

That the FTC has announced another weight loss settlement is no news at all. The FTC averages about six new weight loss orders per year. The new settlement, nevertheless, is notable as a reminder of the following points.

The FTC has the power to impose bans. The Order against the marketers of Double Shot diet pills “permanently restrain[s] and enjoin[s]” them from advertising or selling “any weight-loss product.” The FTC does not frequently impose bans in weight loss cases, but bans have been used before in similar instances where extreme Gut Check claims (discussed below) have been made.

double red triangle arrows Continue reading “The FTC Has Announced a Weight Loss Settlement … But Wait, Keep Reading”


Ed note: This post originally appeared on InfoLawGroup.

Last week, the FTC released a study it conducted in connection with price-comparison apps, deal apps and apps that allow people to pay for purchases using their mobile device while shopping in brick-and-mortar stores. The newly released study is the latest commentary from the FTC in a long line of workshops and reports that started in 2012 on the issue of mobile apps, mobile payment mechanisms and related matters, such as mobile cramming and mobile security. Here are the key takeaways from the latest study:

double red triangle arrows Continue reading “Mobile Apps: FTC Says Vague Privacy Policies and Lack of Terms a Problem”

* The New York Court of Appeals put the hurt on defunct firms seeking unfinished business fees from former partners who left for greener pastures. Sorry, I didn’t follow ATL protocol: “Dewey think firms should collect unfinished business fees?” [WSJ Law Blog]

* We reported on the Tinder lawsuit yesterday. Here’s a collection of all the messed up texts involved. [Valleywag]

* Facebook’s lawyer is now calling the emotional manipulation study it recently conducted “customer service.” Dear Internet: Despite all your rage, you’re still just rats in a cage. [The Atlantic]

* So if you’re studying for the MPRE, blow jobs aren’t the preferred legal fee. [Legal Profession Blog]

* How did your last cell phone bill look? Because the FTC says T-Mobile knowingly added hundreds of millions of charges on. At least that girl in pink was cute, huh? [USA Today]

* BNP Paribas is confident it can pay its record fine. [Dealbook / New York Times]

* Meanwhile, Putin accused the U.S. of trying to use the BNP fine to blackmail France into turning its back on Russia. Because conspiracy theories are awesome. [Bloomberg]

* Lawsuit filed because right-wingers totally miffed that black people voted for a Republican. [Sun Herald (Mississippi)]

* Lawyer explains to court how people illegally implanted a silicon chip in her head. No word on her feelings about Mondays. [Tampa Bay Times]

* How much juice content did Coca-Cola think allowed them to market a product as juice? The answer will actually surprise you unless you really, really hate Coke. [PR Log]

* Defendants should not have access to the Internet because they could beat someone to death with an iPad. I guess. [Lowering the Bar]

* Mobile crammers settle for $10 million. The charge will appear on their next month’s phone bill. [Law and More]

* Like most things in life, the path to victory involves beginning from the KISS principle. [Katz Justice]

* Of all the over-the-top immigration control efforts in this country, arresting a couple in bed for not being “married enough” is one of the craziest. [Sun Sentinel]

* The American Bar Association, fresh off loosening its accreditation standards, is actually trying to dupe kids into thinking this is the best time to attend law school. Check out this ad. And if you want to play with it in Photoshop, that would be cool too…

double red triangle arrows Continue reading “Non-Sequiturs: 06.16.14″

* Confessions of a litigious mind: Trial attorney admits he was trained as a spy. [What About Clients?]

* A Fordham Law professor running for governor. [New York Times]

* Are messenger bags unprofessional for lawyers? My firm bought us messenger bags with firm logos so this wasn’t a question for me. [Corporette]

* New carbon regulations on the horizon and industry is already gearing up for a fight. [Breaking Energy]

* FTC charging Jerk.com with deceiving customers. What a paradox, because if the FTC is right this seems like truth in advertising. [IT-Lex]

* Larry Klayman is suing the entity he founded, Judicial Watch, for defamation. Somehow Orly Taitz is involved. [South Florida Lawyers]

* Hey recent grads! Do you need to frame your shiny new diploma? Mountary is offering a 20 percent discount to ATL readers. Just enter the code “atl20″ at checkout. [Mountary]

* Bruce Allen Murphy has a new biography on Justice Antonin Scalia that proposes that far from forging a conservative Court, Justice Scalia’s actions have undermined building a conservative team of justices. Also he reminds us that Scalia was totally an affirmative action hire. Video after the jump…. [YouTube]

double red triangle arrows Continue reading “Non-Sequiturs: 05.30.14″

Caution: May lead to malpractice suits.

* Just like he said in 2008, President Barack Obama says that he’s going to close Guantanamo Bay, and this time, he means it. No, really, he appointed a Skadden partner to handle it, so we know he means business now. [Blog of Legal Times]

* The Supreme Court just invalidated Arizona’s proof-of-citizenship voter registration law, so of course Ted Cruz wants to add an amendment to the Senate immigration reform bill to require citizenship to vote because, well… duh. [Politico]

* According to a Pew Research survey, a majority of Americans think Edward Snowden should be prosecuted for his NSA leaks. It’s also likely that same majority don’t even know what Edward Snowden leaked. [USA Today]

* It looks like Jon Leibowitz, the FTC’s ex-chairman, got some great birthday presents this week. Davis Polk partnership and a SCOTUS victory aren’t too shabby. [DealBook / New York Times]

* They don’t give a damn ’bout their bad reputation: malpractice claims filed against attorneys and firms were up in 2012, and some say mergers and laterals are to blame. [WSJ Law Blog (sub. req.)]

* If you’re worried about your low GPA when applying to law school, you haven’t been reading the news. You’ll get in everywhere you apply. [Law Admissions Lowdown / U.S. News & World Report]

* ¡Ay dios mío! The Hispanic National Bar Association is hoping that a week spent in law school will inspire minority high school students to become lawyers in the distant future. [National Law Journal]

DaNae Couch

* The Department of Justice has reached yet another settlement in the Deepwater Horizon oil spill case, this time with Transocean Ltd. for $1.4 billion in civil and criminal penalties and fines. [National Law Journal]

* “[W]ith success comes regulatory scrutiny.” Google convinced the FTC to close its ongoing antitrust probe by promising to change its allegedly shady patent usage and purportedly skewed search terms. [Bloomberg]

* According to Littler Mendelson, federal contractors might want to consider sending out sequestration-related layoff notices to employees in order to comply with the WARN Act. America, f**k yeah! [Government Executive]

* Governor Andrew Cuomo will have a major impact on the New York Court of Appeals when appointing new judges. It could be a partisan decision, but his father, former Governor Mario Cuomo, insists his son will leave politics at home. [Capital New York]

* When you write in defense of the value proposition of law school, you wind up in the op-ed pages of the NYT. When you tell the truth about it, you wind up in the opinion pages of the WSJ. [Wall Street Journal (sub. req.)]

* Remember Danae Couch, the Texas Tech law student who was crowned as Miss Texas? She’ll compete for the Miss America title next weekend. If you’d like to help her become a finalist, you can vote for her here! [KFYO]

I’ll miss you the most, my little cupcake.

* Billable hours in Biglaw are down 1.5 percent, and 15 percent of U.S. firms are planning to reduce their partnership ranks in early 2013. Thanks to Wells Fargo for bringing us the news of all this holiday cheer! [Thomson Reuters News & Insight]

* Hostess may be winding down its business and liquidating its assets, but Biglaw will always be there to clean up the crumbs. Jones Day, Venable, and Stinson Morrison Hecker obviously think money tastes better than Twinkies. [Am Law Daily]

* How’s that “don’t be evil” thing working out for you? Google’s $22.5M proposed privacy settlement with the FTC over tracking cookies planted on Safari browsers was accepted by a federal judge. [Bloomberg]

* Greenberg Traurig and Hunton & Williams face a $7.2B suit from Allen Stanford’s receiver over a former attorney of both firms’ alleged involvement in the ex-knight’s Ponzi scheme. [Houston Business Journal]

* Perhaps the third time will be the charm: ex-Mayer Brown partner Joseph Collins was convicted, again, for helping Refco steal more than $2B from investors by concealing the company’s fraud. [New York Law Journal]

* H. Warren Knight, founder of alternative dispute resolution company JAMS, RIP. [National Law Journal]

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