The creator of Wen hair care products, and the products manufacturer, Guthy-Renker LLC, have proposed a $26.25 million settlement to end class action claims filed by women across the country who allege that the product, which is promoted as containing no harsh chemicals, left them with severe hair loss and bald spots. Plaintiffs claim that the hair care product left them with hair loss, breakage and rashes, arguing that the product contains caustic ingredients that cause follicle damage. Bolstering the plaintiffs’ position is the fact that the FDA has recently issued a safety alert for Wen products after receiving more than 127 adverse event reports from consumers who had problems with the product. Read more…
Class Actions Blog
Respected US District Judge Jed Rakoff refuses to enforce Uber’s arbitration and class action waiver clauses
In a strongly worded decision, Judge Rakoff began his opinion by raising suspicion about whether the Federal Arbitration Act could properly be applied in today’s commercial context:
Application of [the federal policy favoring arbitration] to the Internet is said to inhere in the Federal Arbitration Act, as if the Congress that enacted that Act in 1925 remotely contemplated the vicissitudes of the World Wide Web. Nevertheless, in this brave new world, consumers are routinely forced to waive their constitutional right to a jury and their very access to courts, and to submit instead to arbitration, on the theory that they have voluntarily agreed to do so in response to endless, turgid, often impenetrable sets of terms and conditions, to which, by pressing a button, they have indicated their agreement.
New York Times article suggests forced arbitration clauses (like those in Gretchen Carlson case) protect sexual predators
Here is the link to a New York Times article that is critical of the Forced Arbitration Clause in Gretchen Carlson’s Fox News Contract. http://www.nytimes.com/2016/07/14/business/media/gretchen-carlsons-contract-could-shroud-her-case-in-secrecy.html?ref=business&_r=0
The Oregonian is reporting that people that sign up to use the Biketown bikes in Portland, Oregon have 30 days to opt out of the Forced Arbitration Clause in the sign-up agreement.
Here is the link: http://www.oregonlive.com/commuting/index.ssf/2016/07/how_to_keep_your_right_to_sue.html.
Preparations are underway for the Democratic Convention in Philadelphia. The Draft Democratic Platform unequivocally supports an individual’s right to his or her day in court and efforts to limit forced arbitration clauses in employment and service contracts. Read more…