Keeping Class Actions Honest

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I don’t generally support the conservative crusade against class action lawsuits, but there’s not much question that some can be pretty abusive while others are little more than fee generators with no real benefit for consumers. In particular, I really hate class actions that generate nothing for consumers but minuscule coupons that are basically just free marketing gimmicks for the companies that ripped them off in the first place. On this score, Todd Zywicki praises Ted Frank’s Center for Class Action Fairness:

This is an issue that I worked on extensively while I was at the FTC, so I have some familiarity with how outrageous some of these settlements are and how important work like Ted’s is in protecting consumers.  In particular, what I became aware of is how many of these lawsuits are essentially settled in a collusive bargain between class counsel and the defendant.  Usually the defendant pays a couple million dollars to the lawyers and gives coupons or some similar redress to the members of the class.  In one case a judge noted that the coupons — which allowed class members to get discounts on future purchases — essentially amounted to a request for a court-ordered promotional scheme.  An example (in a case well after I left the Commission) was the FTC’s intervention in the Netflix settlement.

The danger here for a liberal, of course, is that there’s no telling how much of the CCAF’s work is genuinely dedicated to preventing consumer ripoffs and how much — either now or later — shades into a more general assault on the civil tort system. I’m in favor of the former, not so much the latter. Worth keeping an eye on, though, if Frank really does stick to consumer protection.  CCAF’s website is here.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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