In order to avoid civil and criminal penalties, any commercial company producing consumer goods or related products, like automotive vehicles, knows it will need to fashion its business around meeting certain product safety standards. For example, for consumer products, companies must ensure that their products comply with several related statutes and regulations, including the Consumer Product Safety Act, 15 U.S.C. § 2051 et seq., the Consumer Product Safety Improvement Act, Pub. L. No. 110-314, 122 Stat. 3016, and the Federal Hazardous Substances Act, 15 U.S.C. § 1261 et seq., as implemented by the U.S. Consumer Product Safety Commission. Likewise, for automotive vehicles, companies must comply with the Motor Vehicle Safety Act (“MVSA”), 49 U.S.C. § 30101 et seq. and the regulations set forth by the National Highway Traffic Safety Administration. Importantly, both sets of laws include a mechanism by which products can and should be recalled if found to be defective and unsafe subsequent to being sold to consumers. Moreover, such recall efforts typically take the form of a multimedia campaign, including but not limited to mass publications, individual mailings, and targeted telephone calls, in part because such efforts allow companies to provide notice of safety issues to the greatest subset of customers in the most efficient, quick, and cost-effective way possible.

UNITED STATES – The Consumer Financial Protection Bureau (CFPB) recently proposed a new rule for public comment that would prohibit providers of certain consumer financial products and services from using arbitration agreements with consumers as a means of blocking the consumer’s filing or participation in a class action. The proposed rule further requires such companies to report arbitration claims, awards, and related materials to the CFPB for possible publication. Some commentators have suggested that such a…

UNITED STATES – Ever since the Consumer Product Safety Improvement Act of 2008 (“CPSIA”) increased the cap on civil penalties from $1,825,000 to $15 million for related violations of the consumer product safety laws, the U.S. Consumer Product Safety Commission (“CPSC”) has steadily—and substantially—increased the amount of civil penalties it has sought from companies violating federal product safety regulations. CPSC Chairman Elliot Kaye has repeatedly called for much higher penalties against violating companies. But up…

UNITED STATES – Big business was dealt a blow this past July when the FCC issued a new Declaratory Ruling that significantly strengthens the Telephone Consumer Protection Act (TCPA). The TCPA is probably best known for spurring the FCC in 2003 to implement a National Do Not Call Registry (Registry) that generally prohibits telemarketers from placing solicitation calls to consumers who have added their names to the Registry. The FCC has since issued in 2012…