Consumer fraud laws, which exist in all fifty states, regulate the way businesses can advertise, market and sell their products and services to consumers. Generally, these laws broadly prohibit deception in dealing with consumers. Deceptive acts include bait and switch schemes - where one product or service is offered but another actually delivered; false advertising; high-pressure sales tactics; and use of form contracts and fine print to mislead consumers.

Wolf Popper LLP has successfully represented consumers in a wide range of consumer fraud actions:

American Bankers Insurance Group, Inc. consumer litigation - Wolf Popper represented a nationwide class of consumers who alleged that defendants advertised credit insurance that would make the consumer's monthly minimum payment if you "die, or become disabled or become unemployed" and then improperly denied insurance claims based on the alleged failure of the consumer to have purchased the correct type of insurance. This lawsuit resulted in a complete recovery for the class including payment in full of disputed coverage claims and required the insurance company to revise its solicitations so future customers would not be misled.

Princeton Economics Group, Inc. v. American Telephone & Telegraph Company consumer litigation - This case arose because AT&T advertised a particular telephone system as an excellent choice for small businesses due to its "conference call" features, but the phone system did not work well for this purpose because the conference feature did not allow participants to amplify the sound. This case resulted in a settlement to the class valued at approximately $90 million, which, at the time, was the largest settlement of a consumer action in the New Jersey state courts.

General Motors Corporation consumer litigation - In this consumer litigation plaintiffs alleged that certain models of cars were equipped with faulty brakes containing defective caliper pins. These new cars constantly required brake repairs. This action resulted in a recovery of $19.5 million for economic damages to members of the Class.

HIP consumer litigation - This consumer litigation involved medical insurance. Plaintiffs alleged that HIP wrongfully refused to cover the services of anesthesiologists in connection with covered surgeries. This litigation resulted in a 100% recovery for members of the class, as all class members received full reimbursement for their anesthesiologists' bills.

Among the firm's current consumer fraud cases are actions against PayPal, the largest on-line payment system, for wrongfully withholding its customer funds; and an action against New Horizons Worldwide, Inc. a technical school, for failure to provide computer training as promised. The firm also is prosecuting a consumer class action against Mercedes-Benz for failure to disclose that the combination of tires, wheels and rims installed on certain model cars may necessitate the premature replacement of and damage to the wheels and tires; and a consumer class action against Smithkline Beecham for failure to disclose that a vaccine it markets for lyme disease may cause treatment-resistant arthritis.

If you have questions or information concerning consumer fraud, please contact Emily Madoff at Wolf Popper.