Source: https://library.nclc.org/fdl/010402-0
Timestamp: 2020-05-31 20:42:51
Document Index: 2012198

Matched Legal Cases: ['arts\n4', 'arts\n5', '§ 44', '§ 45', '§ 57', '§ 57', '§ 5519', '§ 425', '§ 425', '§ 429', '§ 429', '§ 429', '§ 429', '§ 433', '§ 433', '§ 433', '§ 433', '§ 435', '§ 435', '§ 435', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', '§ 436', 'art 436', 'art 436', 'art 436', 'art 436', 'art 436', 'art 436', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', '§ 437', 'art 437', 'art 437', '§ 444', '§ 444', '§ 444', '§ 444', '§ 444', '§ 453', '§ 453', '§ 453', '§ 453', '§ 453', '§ 453', '§ 453', '§ 453', '§ 453', '§ 455', '§ 455', '§ 455', '§ 455', '§ 455', '§ 455', '§ 455', '§ 5481', '§ 5512', '§ 5514', '§ 5515', '§ 5516', '§ 5517', '§ 5531', '§ 5532', '§ 5533', '§ 5536', '§ 5552', '§ 6101', '§ 6102', '§ 6103', '§ 6104', '§ 6105', '§ 6106', '§ 6107', '§ 6108', '§ 310', 'art\n16', '§ 310', '§ 310', '§ 310', '§ 310', '§ 310', '§ 310', '§ 310', '§ 310', '§ 227', '§ 64', '§ 64', '§ 7701', '§ 7702', '§ 7703', '§ 7704', '§ 7705', '§ 7706', '§ 7707', '§ 7708', '§ 7709', '§ 7710', '§ 7711', '§ 7712', '§ 7713', '§ 316', '§ 316', '§ 316', '§ 316', '§ 316', '§ 316', '§ 1961', '§ 1962', '§ 1963', '§ 1964', '§ 1965', '§ 1966', '§ 1967', '§ 1968', '§ 1341', '§ 1343', '§ 3729', '§ 3730', '§ 3731', '§ 3732', '§ 3733', '§ 3009', '§ 8401', '§ 8402', '§ 8403', '§ 8404', '§ 8405']

1.4.2 The Appendices | NCLC Digital Library
1.4.2 The Appendices
Chapter 1 First Considerations
1.1 Introduction to This Treatise
1.2 Relation to NCLC’s Unfair and Deceptive Acts and Practices
1.3 Topics Covered by Other NCLC Treatises
1.4 Organization of This Treatise
1.4.1 The Chapters
1.4.3 Pleadings and Primary Sources
1.4.4 Unreported Cases
1.5 What Is “UDAP”?
Chapter 2 FTC Trade Regulation Rules
2.1.2 Rules Not Covered in This Chapter
2.2 FTC Trade Regulation Rulemaking
2.2.1 The Nature of Trade Regulation Rules
2.2.3 Substantive Scope of FTC Rulemaking
2.2.4 Private Remedies
2.2.4.1 No FTC Act Private Right of Action for FTC Rule Violations
2.2.4.2 FTC Rule Violation As a State UDAP Violation
2.2.5 FTC Remedies
2.2.6 CFPB Remedies
2.3 The FTC Credit Practices Rule
2.3.1 General Overview
2.3.2 Similar FRB, OTS, and NCUA Rules for Banks
2.3.3 FTC Staff Letters As Precedent
2.3.4 Confession of Judgment Provision
2.3.5 Waiver of Exemption Clauses
2.3.6 Wage Assignments
2.3.7 Household Goods Security Interests
2.3.8 Pyramiding Late Charges
2.3.9 Co-Signer Warning Notice
2.3.10 Private Remedies for Credit Practices Rule Violations
2.3.11 Attempts to Circumvent FTC Credit Practices Rule
2.4 Used Car Rule
2.4.1 The Rule’s Scope
2.4.2 Rule Requirements
2.4.3 Common Rule Violations
2.4.4 Remedies for Rule Violations
2.4.5 When Buyers Guide Warranty Disclosure Conflicts with Warranty Provided in the Sales Agreement
2.4.6 FTC Used Car Rule Does Not Insulate Sellers from UDAP Liability
2.5 Door-to-Door and Off-Premises Sales
2.5.1 The FTC Cooling-Off Period Rule Described
2.5.2 Interrelation of FTC Rule with State Law
2.5.3 Interrelation of FTC Rule and State Law with Truth in Lending Rescission
2.5.4 Scope of the FTC Rule
2.5.4.1 Sales Outside the Home Are Also Covered
2.5.4.2 Effect of Prior Negotiations, Seller Being Invited to the Home
2.5.4.3 Buyer-Initiated Visits to Home to Repair Personal Property
2.5.4.4 Emergency Exception
2.5.4.5 Mail and Telephone Sales
2.5.4.6 Leases, Rent-to-Own Transactions, Transactions Under $25 or $130
2.5.4.7 Sales of Real Property, Home Improvements, Securities, and Insurance
2.5.4.8 Transactions Subject to Truth in Lending Rescission
2.5.4.9 What Sellers Are Covered
2.5.5 Scope of State Laws
2.5.5.2 Coverage That Is Broader Than the FTC Rule
2.5.5.3 Narrower Coverage Than the FTC Rule
2.5.5.4 Level of In-Home Contact Required Under State Statutes
2.5.5.5 Particular Interpretations of State Law Scope Provisions
2.5.6 Consumers’ Rights Under FTC Rule, State Statutes
2.5.6.1 Mechanics of Three-Day Cancellation Right
2.5.6.2 No Recovery for Services Performed Prior to Cancellation
2.5.6.3 Continuing Right to Cancel If Notice Is Defective
2.5.6.4 Other Consumer Protections
2.5.7 Consumer Remedies Under Cooling-Off Rule, State Statutes
2.6 Mail, Internet, or Telephone Order Merchandise Rule
2.6.1 The FTC Rule
2.6.2 State Mail and Telephone Order Laws and Regulations; Other Claims
2.7 Negative Option Rule
2.8 Franchise and Business Opportunity Rules
2.8.1 Overview and History of the FTC Franchising and Business Opportunity Rules
2.8.2 The FTC’s Franchising Rule
2.8.3 The FTC’s Business Opportunity Rule
2.8.3.1 Introduction
2.8.3.2 Scope
2.8.3.3 Substantive Requirements
2.8.4 Other FTC, State UDAP Precedent
2.8.5 Other Claims
2.9 Funeral Rule
2.9.1 The FTC Rule
2.9.2 State Claims
2.10 FTC Guides
Chapter 3 Consumer Financial Protection Bureau UDAAP Standards
3.1.1 The Consumer Financial Protection Bureau
3.1.2 Constitutionality of Appointment and Limits on Removal of the CFPB Director
3.1.3 The Scope of This Chapter
3.1.4 CFPB Rules Not Covered in This Chapter
3.2 UDAAP Standards
3.2.2 Deception
3.2.3 Unfairness
3.2.4 Abusive Practices
3.2.4.1 General Standard
3.2.4.2 Material Interference with a Consumer’s Understanding
3.2.4.3 Taking Unreasonable Advantage
3.2.4.4 Taking Advantage of the Consumer’s Lack of Understanding
3.2.4.5 Consumers’ Inability to Protect Their Own Interests
3.2.4.6 Consumer Reliance on the Financial Services Provider
3.2.5 Distinguishing Deceptive, Unfair, and Abusive Practices
3.3 UDAAP Rules
3.4 CFPB’s UDAAP Guidance Bulletins
3.4.2 Collection of Consumer Debts
3.4.3 Mortgage Servicing for Military Homeowners Ordered to Relocate
3.4.4 Marketing and Sales of Credit Card Add-On Products
3.4.5 Marketing of Credit Card Promotional Offers
3.4.6 Additional Fees When Paying Bills by Telephone
3.5 CFPB Supervision and Examination Manual
3.6 Scope of CFPB UDAAP Authority
3.6.1 Consumer Financial Products and Services
3.6.2 Limits on Covered Persons and Exemptions
3.7 No Direct Private Enforcement of UDAAP Standards
3.8 Federal Enforcement of CFPB Rules
3.9 State Enforcement of CFPB Standards
3.10 CFPB Rules’ Relationship to State Law
Chapter 4 The FTC Holder Rule and State Law Counterparts
4.1.1 Importance of the FTC Holder Rule
4.1.2 FTC Holder Rule Versus Other Theories of Lender Liability
4.1.2.1 Credit-Sale Obligations Assigned to Creditor
4.1.2.2 Seller-Related Claims in Seller-Arranged Loans
4.1.2.3 Raising Seller-Related Claims Against the Credit Card Issuer
4.1.2.4 Loan-Related Claims in Direct Loans
4.1.2.5 Raising Seller-Related Claims in Lease Transactions
4.1.2.6 Stopping Check, Debit Card, or Other Payments As a Response to the Seller’s Misconduct
4.2 Scope of the FTC Holder Rule
4.2.1 Operational Scope of the Holder Notice
4.2.2 Legal Scope of the Rule
4.2.2.1 Relevance of the Rule’s Legal Scope
4.2.2.2 Sales Transactions Covered
4.2.2.3 Application to Mortgage Loans
4.2.2.4 Coverage of Leases
4.2.2.5 Covered Sellers
4.2.2.6 Public and Nonprofit Entities
4.2.2.7 Rule Applies to Financed Sale and Purchase Money Loans
4.2.2.8 Does the Rule Apply to Loans with an Amount Financed Exceeding a Dollar Threshold?
4.2.2.9 Implications If Rule Does Not Apply to Loans Exempted from Truth in Lending
4.2.2.10 Student Loans
4.3 Operation of the FTC Holder Rule
4.3.1 Seller-Related Claims Covered by the Rule
4.3.2 Consumer’s Claims Can Offset Remainder Due on the Note
4.3.3 Effect on Security Interest
4.3.4 Recovery of Amounts Already Paid
4.3.4.2 Recovering from a Prior Holder
4.3.4.3 Is Recovery of Amount Paid Only Available When Consumer Could Rescind the Sale?
4.3.4.3.1 Courts that get it wrong
4.3.4.3.2 Full Federal Trade Commission clarifies that these courts are wrong
4.3.4.3.3 Courts that get it right
4.3.4.3.4 Consumer tactics if a court still gets it wrong
4.3.4.4 Is Recovery of Amounts Paid Available Only When Otherwise Permitted by State Law?
4.3.5 Are Attorney Fees Limited by the Cap?
4.3.6 Multiple or Punitive Damages
4.3.6a Other Remedies
4.3.7 No Limit on Creditor’s Liability for Own Conduct
4.3.8 Impact of Federal Statutes Limiting Creditor’s Derivative Liability
4.3.8.1 TILA Limits on Assignee Liability
4.3.8.2 ECOA Limits on Assignee Liability
4.3.8.3 Relation to the Magnuson-Moss Warranty Act
4.3.9 Liability of Holders of Securitized Debt
4.3.10 Liability of FDIC or Subsequent Holders
4.3.11 Relation of FTC Rule to State Law
4.3.11.1 FTC Rule Overrides Only Less Protective State Laws
4.3.11.2 The LaBarre Court’s Misinterpretation
4.3.12 Does the FTC Holder Rule Create Federal Jurisdiction?
4.3.13 Consumer’s Waiver of Claims Against the Holder
4.3.14 Holder’s Refusal to Accept Liability Under FTC Holder Rule As an Independent UDAP Violation
4.4 Theories of Recovery When FTC Holder Notice Is Improperly Omitted
4.4.2 UCC Makes the Absent Holder Notice an Implied Contract Term
4.4.2.1 UCC Article 9 Requires Notice to Be Implied into the Contract
4.4.2.2 Revised Article 3 Requires the Holder Notice to Be Implied in Negotiable Instruments
4.4.2.3 Case Law Implying the Notice into the Contract Without the Aid of the UCC
4.4.3 State Holder Statutes
4.4.4 Omission of Holder Notice As the Holder’s UDAP Violation
4.4.4.1 General
4.4.4.2 Holder’s Actions As a Deceptive Practice
4.4.4.3 Holder’s Actions As a Violation of State UDAP Regulations
4.4.4.4 Holder’s Actions As an Unfair Practice
4.4.4.5 Are the Creditor’s Actions Within the UDAP Statute’s Scope?
4.4.5 Aiding and Abetting Seller’s Omission of Holder Notice
4.4.6 Do State Law Theories for Omitted Holder Notice Apply to National Banks and Federal Savings Associations?
4.5 State “Holder” Statutes
Chapter 5 Telemarketing Fraud: The FTC Rule and State Counterparts
5.1.1 Topics Covered in This Chapter
5.1.2 Authority for FTC Telemarketing Sales Rule
5.1.3 History of the Telemarketing Sales Rule
5.2 Scope of the FTC Telemarketing Sales Rule
5.2.1 General Coverage
5.2.2 Partial Exemption for Customer Initiated Calls
5.2.3 Exemptions That Apply Even to Telemarketer-Initiated Calls
5.2.3.1 Transactions Not Completed Until After Face-to-Face Meeting
5.2.3.2 Transactions Covered by Other FTC Rules
5.2.3.3 Business-to-Business Exception
5.2.3.4 General Limits to the FTC’s Jurisdiction
5.2.4 No Coverage of Online Fraud
5.3 The Rule’s General Requirements and Prohibitions
5.3.2 Required Disclosures
5.3.3 Prohibited Misrepresentations
5.3.4 Negative Option Features
5.4 Restrictions on Billing and Payments
5.4.2 Limits on Obtaining or Disclosing Unencrypted Account Information
5.4.3 Limits for All Payment Methods, Including Credit Cards and Debit Cards
5.4.4 Limits on Check, Electronic Funds Transfer, Telephone Bill, and Other Payment Methods
5.4.4.1 Introduction
5.4.4.2 New Requirements Prohibiting Telechecks and Certain Other Forms of Payment
5.4.4.3 “Express Verifiable Authorization” Required for All Payment Methods Other Than Credit Cards and Debit Cards
5.4.4.4 Additional Requirement When Payment Involves Preacquired Account Information and Free-to-Pay Conversion
5.5 Special Regulation of Certain Transactions
5.5.1 Advance Fee Loans
5.5.2 Credit Repair
5.5.3 Offers to Recover Amounts Lost Through Past Telemarketing Fraud
5.5.4 Debt Relief Services
5.5.5 Credit Card Protection Products
5.5.6 Investment and Business Opportunity Sales
5.5.7 Prize Promotions
5.5.8 Charitable Contributions
5.6 Remedies
5.6.1 Private Remedies
5.6.1.1 Remedies Under the Telemarketing and Consumer Fraud and Abuse Prevention Act
5.6.1.2 Other Private Remedies for Rule Violations
5.6.1.3 Private Remedies for Telemarketing Fraud Independent of Rule Violations
5.6.2 State Enforcement
5.6.3 Federal Enforcement
5.7 Who Is Liable
5.7.1 The Telemarketer
5.7.2 The Seller
5.7.3 Those Facilitating Credit Card Laundering
5.7.4 Other Third Parties
5.7.5 Third-Party Liability Outside the Telemarketing Sales Rule
5.7.6 Defendants’ Ability to Enforce an Arbitration Requirement
5.8 Records That Telemarketers and Sellers Must Keep
5.9 State Telemarketing Fraud Statutes
5.9.2 Right to Cancel
5.9.3 Scope of State Telemarketing Statutes
5.9.4 Federal Preemption and Constitutionality
5.10 Tips to Prevent, Limit Fraud
5.10.1 Withholding Payment on Credit Card Bill for Fraudulent Telemarketing Sale
5.10.2 Reporting Telemarketing Fraud
5.10.3 Stopping Future Consumer Victimization
Chapter 6 Unwanted Calls and Texts, Junk Faxes, and Spam
6.1 Scope of This Chapter
6.2 Overview and Scope of the FTC Rule: Comparison to the TCPA
6.2.1 FTC Telemarketing Sales Rule: Substantive Prohibitions, Comparison to TCPA
6.2.2 Scope of the FTC Rule: Comparison to the TCPA
6.2.3 Limited Private Enforcement of FTC Rule
6.2.4 The Telephone Consumer Protection Act
6.2.4.1 Overview of TCPA Requirements
6.2.4.2 TCPA Scope; Effect on State Laws
6.2.4.3 Challenges to the TCPA
6.2.4.3a Validity of FCC Rulings and the Weight to Be Given to Them
6.3 Restrictions on Autodialed or Prerecorded Calls to Cell Phones, Other Sensitive Numbers
6.3.1 Nature of the Prohibition
6.3.1a What Is a “Call”? When Is a Call Made to a Cell Phone?
6.3.1b What Is a Prerecorded or Artificial Voice Call?
6.3.2 What Is an Autodialer?
6.3.2.1 Introduction
6.3.2.2 The FCC’s Pre-2015 Orders Remain in Effect After ACA International and Encompass Most Dialers
6.3.2.2.1 Introduction
6.3.2.2.2 The only formal effect of ACA International on the ATDS definition is that certain portions of the FCC’s 2015 order are set aside
6.3.2.2.3 The D.C. Circuit’s references to the 2003 and 2008 FCC orders do not overturn them
6.3.2.2.4 ACA International does not provide a basis for courts to disregard the 2003, 2008, or 2012 orders
6.3.2.2.5 The ATDS definitions in the FCC’s 2003, 2008, and 2012 orders encompass most dialers used by robocallers
6.3.2.3 Interpreting the Statutory Definition of ATDS
6.3.2.3.1 Introduction
6.3.2.3.2 The term “capacity” in the statutory definition should be interpreted broadly
6.3.2.3.3 Is a device that stores numbers to be dialed an ATDS?
6.3.2.3.4 The term “sequential” in the autodialer definition should be interpreted broadly
6.3.2.4 Review of Circuit Decisions
6.3.2.5 Preview dialing and other evasions; manually dialed calls
6.3.3 Scope of the Prohibition
6.3.3.1 General Scope
6.3.3.2 Exemptions
6.3.4 Exceptions for Calls Made with Consent
6.3.4.1 Prior Express Written Consent Is Required for Telemarketing Calls
6.3.4.2 Prior Express Consent Is Required for Debt Collection and Other Non-Telemarketing Calls
6.3.4.2.1 Prior oral or written consent is sufficient
6.3.4.2.2 Methods of obtaining consent
6.3.4.2.3 Is mere provision of a cell phone number express consent to receive autodialed or prerecorded calls?
6.3.4.3 Consent of the Called Party Is Required; Reassigned Numbers
6.3.4.3.1 Courts’ interpretation of “called party” and their treatment of reassigned numbers
6.3.4.3.2 The FCC’s 2015 interpretation and the effect of ACA International
6.3.4.4 Revocation of Consent
6.3.4.4.1 Consumers have the right to revoke consent at any time, in any reasonable way
6.3.4.4.2 What methods of revoking consent are reasonable?
6.3.4.4.3 Revocation of consent that was provided as a term in a contract
6.3.4.4.3a Can the consumer’s manner of revoking consent be limited by contract?
6.3.4.4.4 Partial revocation of consent
6.3.4.5 No Established Business Relationship Exception
6.3.5 Special Rules for Calls to Collect Debts Owed to or Guaranteed by the United States
6.3.5.1 The Budget Act Amendment and the FCC’s Proposed But Withdrawn Rules; Unconstitutionality
6.3.5.1a Effective Dates
6.3.5.2 Scope of the FCC’s Rules (Now Withdrawn)
6.3.5.3 Persons and Numbers That May Be Called (Now Withdrawn)
6.3.5.4 Limits on the Number, Times, Duration, and Content of Calls (Now Withdrawn)
6.3.5.5 The Right to Request That Robocalls Stop (Now Withdrawn)
6.3.5.6 Violations of the Rules (Now Withdrawn) Are Actionable Under Section 227(b)(3)
6.3.5.7 Other Laws That Apply to These Calls
6.3.6 Private Remedies; Who May Sue
6.3.7 Investigating and Documenting TCPA Cell Phone Cases
6.4 Prerecorded Calls to Residential Lines
6.4.2 Scope and Exceptions
6.4.3 Prior Express Written Consent Required
6.4.4 Required Disclosures for All Prerecorded Calls
6.4.5 Requirement of Opt-Out Mechanism for Prerecorded Telemarketing Calls
6.4.6 Private Remedies
6.5 FTC and FCC Do-Not-Call Rules
6.5.1 Company-Specific Do-Not-Call Lists
6.5.2 Nationwide Do-Not-Call List
6.5.2.1 Authority
6.5.2.2 Scope of the FTC and FCC Do-Not-Call Rules
6.5.2.3 Exemptions
6.5.2.4 Operation of the Do-Not-Call Rules
6.5.2.5 Relationship to State Do-Not-Call Laws
6.5.3 Remedies for Rule Violations
6.6 Other Restrictions on Unwanted Calls
6.6.1 Threats and Obscene Language; Harassment
6.6.2 Misrepresentations and Disclosure of the Purpose of Telemarketing Calls
6.6.2.1 FTC Rule Requirements
6.6.2.2 TCPA Disclosure Requirements
6.6.3 Abandoned Calls
6.6.4 Restrictions on Calling Times
6.6.5 Transmitting Caller ID Information and Prohibition of Caller ID Blocking
6.6.6 State Statutes Limiting Unwanted Calls
6.7 Text Messages
6.7.2 TCPA Prohibits Use of Automatic Dialing Systems to Send Text Messages Without Consent
6.7.3 Extremely Limited Exceptions to the General Prohibition
6.7.4 Remedies
6.8 Junk Faxes
6.8.1 TCPA Limits on Junk Faxes
6.8.2 Types of Junk Faxes Prohibited
6.8.2.1 Unsolicited Advertising
6.8.2.2 Exemption When Fax Sent Pursuant to Express Invitation or Permission
6.8.2.3 Exemption for Established Business Relationship
6.8.2.4 Notice Requirement If Fax Sent Pursuant to Established Business Relationship or Explicit Permission
6.8.3 Other Junk Fax Restrictions and Requirements
6.8.4 Junk Fax Litigation and Remedies
6.8.5 State Junk Fax Claims
6.9 Private Causes of Action Under the TCPA and Parties Liable
6.9.1 Private Causes of Action Under the TCPA
6.9.2 Who Is Liable
6.9.2.1 “Any Person”
6.9.2.2 Fax Cases
6.9.2.2.1 Liability of the person on whose behalf the advertisement is faxed
6.9.2.2.2 Fax blasters
6.9.2.3 Direct Liability for “Making” or “Initiating” a Call
6.9.2.4 Creditor’s Liability for Debt Collector’s Autodialed or Prerecorded Calls to Cell Phones
6.9.2.5 Seller’s Liability for Telemarketers’ Calls
6.9.2.6 Principal’s Liability for Robocalls to Cell Phones for Purposes Other Than Debt Collection
6.9.2.7 Joint Venture, Aiding and Abetting, and Liability of Individuals, Parent Companies, Subsidiaries
6.9.2.8 Federal Contractors
6.10 Article III Standing
6.10.2 Spokeo’s Interpretation of Article III Standing
6.10.3 Article III Standing for Unlawful Robocalls and Texts
6.10.3.1 Types of Harm Caused by Robocalls; Substantive Versus Procedural
6.10.3.2 The Invasion of Privacy Caused by Robocalls Provides Article III Standing
6.10.3.2.1 Invasion of privacy is actionable at common law
6.10.3.2.2 Congress clearly identified invasion of privacy as a legally cognizable harm
6.10.3.3 The Intrusion upon and Occupation of the Capacity of the Consumer’s Phone Caused by Robocalls Provides Article III Standing
6.10.3.4 Wasting the Consumer’s Time and Causing Risk of Injury Due to Interruption and Distraction Provides Article III Standing
6.10.3.5 The Vast Majority of Decisions, Consistent with Spokeo, Hold That the Harm Caused by Receipt of Illegal Robocalls Meets Article III Requirements
6.10.4 Article III Standing for Prerecorded Telemarketing Calls to Residential Lines and Violations of the Do-Not-Call Rule
6.10.5 Article III Standing in Junk Fax Cases
6.10.6 Informational Injuries in TCPA Cases
6.10.7 Allegations of Harm in TCPA Cases
6.10.8 Sample Briefs and Practice Aids
6.11 TCPA Litigation
6.11.1 Jurisdiction in Federal and State Court
6.11.2 Arbitration of TCPA Claims
6.11.3 Pleadings and Counterclaims
6.11.3.1 The Complaint
6.11.3.2 Counterclaims
6.11.4 Investigation and Discovery
6.11.5 Burden of Proof
6.11.5a Evidence and Trial Issues
6.11.6 Statute of Limitations and Other Defenses
6.11.7 Recovering from Defendant’s Insurance Policy
6.12 Private TCPA Remedies
6.12.1 Overview of TCPA Remedies
6.12.2 Multiple Violations
6.12.3 Willfulness or Knowledge As a Requirement for Treble Damages
6.12.4 Attorney Fees
6.12.5 Class Actions
6.12.6 Remedies Under UDAP Statutes and Other State Laws
6.13 Government Enforcement
6.14 Unsolicited Bulk Commercial Email (Spam)
6.14.1 Background
6.14.2 Federal CAN-SPAM Act
6.14.2.1 Substantive Prohibitions
6.14.2.2 CAN-SPAM Remedies
6.14.3 Other Federal Restrictions on Spam
6.14.3.1 The Telephone Consumer Protection Act
6.14.3.2 FTC Rules
6.14.3.3 Federal Criminal Statutes
6.14.3.4 Trademark Infringements
6.14.4 State Anti-Spam Laws
6.14.4.1 Substantive Prohibitions
6.14.4.2 Preemption
6.14.4.3 Constitutional Challenges to State Anti-Spam Statutes
6.14.4.4 Remedies Under State Anti-Spam Laws
6.14.5 Other State Law Claims
6.14.5.1 UDAP Claims
6.14.5.2 Common Law Tort Claims
6.14.5.3 State Telemarketing and Door-to-Door Statutes
6.14.6 Available Defendants in a Private Cause of Action
6.14.7 Consumer’s Consent As a Defense
Chapter 7 The Federal Racketeer Influenced and Corrupt Organizations Act (RICO)
7.1.1 The Structure of RICO
7.1.2 Advantages and Disadvantages of RICO Claims
7.1.3 Relation to and Displacement by Other Statutes
7.1.4 RICO’s Interstate or Foreign Commerce Requirement
7.1.5 Liberal Construction
7.2 The RICO Defendant
7.3 Pattern of Racketeering Activity or Collection of an Unlawful Debt
7.3.2 Racketeering Activity
7.3.2.2 Elements of Mail Fraud
7.3.2.3 Mail Fraud’s Mailing Requirement
7.3.2.4 Aiding and Abetting Mail Fraud
7.3.2.5 Wire Fraud
7.3.3 “Pattern” of Racketeering Activity
7.3.3.1 Introduction
7.3.3.2 Supreme Court Guidance
7.3.3.3 Closed-Ended Continuity
7.3.3.4 Open-Ended Continuity
7.3.3.5 Relationship Aspect of Pattern
7.3.3.6 Factors Facilitating Proof of a Pattern
7.3.4 Collection of an Unlawful Debt
7.4 The “Enterprise”
7.4.2 Entities Making Up an “Association in Fact”
7.4.3 Level of Association Necessary for an Association in Fact
7.4.3.1 Introduction
7.4.3.2 The Enterprise’s “Ongoing Organization”
7.4.3.3 A Continuing Unit
7.4.3.4 Relation of Enterprise to the Racketeering Activity
7.4.4 Enterprise Must Be Distinct from Defendant for Section 1962(c) Claims
7.4.4.2 The Defendant-Employees Enterprise
7.4.4.3 The Defendant-Employer Enterprise
7.4.4.4 The Defendant-Parent Corporation Enterprise
7.4.4.5 The Defendant-Subsidiary Enterprise
7.4.5 Subsections 1962(a), (b), and (d) Generally Do Not Require a Distinct Enterprise
7.4.6 Strategies to Find the Corporation Liable
7.4.6.1 Introduction
7.4.6.2 Respondeat Superior
7.4.6.3 Indemnification and Insurance
7.4.6.4 Aiding and Abetting
7.5 Enterprise’s Relationship to the Predicate Offenses
7.5.2 Proceeds of Illegal Conduct Invested in the Enterprise: Section 1962(a)
7.5.3 Acquiring an Interest in the Enterprise Through Illegal Conduct: Section 1962(b)
7.5.4 Participation in the Enterprise Through Illegal Conduct: Section 1962(c)
7.5.5 Conspiracy: Section 1962(d)
7.6 Required Injury
7.6.2 Injury from Predicate Offense’s Relationship to the Enterprise
7.6.2.1 Injury Under Section 1962(a)
7.6.2.2 Injury Under Section 1962(b)
7.6.2.3 Injury Under Section 1962(c)
7.6.2.4 Injury Under Section 1962(d)
7.6.3 Proximate Causation Required
7.6.4 Type of Injury Required for a RICO Claim
7.6.5 Indirect Injury to Third Parties
7.6.6 Is the Injury Concrete and Ripe?
7.7 Pleading
7.7.1 Local Requirements for Case Statements
7.7.2 Pleading Fraud—Particularity Requirement in Rule 9(b)
7.7.3 Avoiding Rule 11 Claims
7.8 Litigation
7.8.1 Service of Process, Venue, and Jurisdiction
7.8.2 RICO Statute of Limitations
7.8.3 RICO Standard of Proof
7.8.4 Use of Offensive Collateral Estoppel Against the RICO Defendant
7.8.5 Res Judicata or Collateral Estoppel As Defense to RICO Claim
7.8.6 In Pari Delicto Defense
7.9 Private Remedies
7.9.1 Actual Damages
7.9.2 Treble and Punitive Damages
7.9.3 Attorney Fees and Costs
7.9.4 Prejudgment Interest
7.9.5 Injunctive and Other Equitable Relief
7.10 RICO Consumer Cases in the Courts
7.10.1 Examples of Successful Consumer RICO Cases
7.10.1.1 Mortgage Lending
7.10.1.2 Predatory Non-Mortgage Lending and Rent to Own
7.10.1.3 Auto Financing, Leasing, and Repossessions
7.10.1.4 Land Sales, Retirement Communities, and Nursing Homes
7.10.1.5 Trade Schools
7.10.1.6 Insurance, Annuities
7.10.1.7 Miscellaneous
7.10.2 Examples of Unsuccessful Consumer RICO Cases
Chapter 8 State RICO and Civil Theft Statutes
8.2 Advantages of State RICO Statutes
8.2.1 Strategic Advantages of State RICO Statutes As Compared to Federal RICO
8.2.2 Strategic Advantages of State RICO Laws As Compared to UDAP Statutes
8.3 Validity and Interpretation of State RICO Statutes
8.4 Elements of a State RICO Claim
8.4.1 Predicate Offenses
8.4.2 Pattern Requirements
8.4.3 Enterprise Requirements
8.5 Statute of Limitations
8.6 Litigating State RICO Cases
8.6.1 Jurisdictional and Procedural Issues
8.6.2 Who May Be a Defendant in a State RICO Suit?
8.6.3 Private Remedies Under State RICO Statutes
8.7 Application of State RICO Statutes to Consumer Fraud
8.8 State Civil Theft and Crime Victims Statutes
8.8.1 Civil Theft Statutes
8.8.2 Other Statutes That Provide a Private Cause of Action for Crime Victims
Chapter 9 The Federal False Claims Act
9.1.2 History of the Federal False Claims Act
9.1.2.1 Early History
9.1.2.2 Civil War Origins of the Federal False Claims Act
9.1.2.3 1943 Federal False Claims Act Revisions
9.1.2.4 Defense Industry Fraud Prompts 1986 FCA Liberalization
9.1.2.5 2009 and 2010 Amendments
9.2 Advantages and Disadvantages of the Federal False Claims Act
9.3 Elements of an FCA Case
9.3.1 False Claims Covered by the Statute
9.3.2 Standards for Liability
9.3.3 Who May File a False Claims Act Case
9.3.3.1 Introduction
9.3.3.2 Persons Excluded from Bringing a False Claims Act Case
9.3.3.3 Relator Must Introduce Non-Public Information or Qualify As an Original Source
9.3.3.4 Relator May Not File Action Based on Same Facts As Pending Case
9.4 The FCA’s Litigation Procedures
9.5 FCA Claims Are Not Subject to Arbitration Requirements
9.6 Remedies
9.7 Incentives Available to the Relator
9.8 Examples of False Claims Act Cases
9.9 The FCA’s Whistleblower Protection
9.9.2 Arbitration Requirements and Whistleblower Retaliation Claims
9.10 State False Claims Acts
9.10.1 Relation of State and Federal False Claims Acts
9.10.2 Who May File a State False Claims Act Case
9.10.3 Claims Covered and Exemptions Provided
9.10.4 State Procedural Requirements
9.10.5 Other Considerations
9.11 Other Statutes That Give Rewards to Whistleblowers
9.12 False Claims Act Checklist
Chapter 10 Regulation of Debt Relief Services
10.2 Types of Debt Relief Services
10.2.1 Credit Counseling
10.2.1.1 History and Effectiveness
10.2.1.2 Debt Management Plans Described
10.2.1.3 DMP Pros and Cons
10.2.1.4 The Credit Counseling Requirement Before Filing Bankruptcy
10.2.2 Debt Settlement Services
10.2.2.2 Debt Settlement Abuses
10.2.3 Debt Negotiation Services
10.2.4 Debt Elimination
10.3 Nonprofit Versus For-Profit Services
10.3.1 Impact of the Distinction
10.3.2 IRS Standards for Nonprofit Status
10.3.3 FTC Standards for Nonprofit Status
10.4 The Credit Repair Organization Act (CROA)
10.4.2 Debt Relief Services and the CROA
10.4.2.1 Does the CROA Apply to Debt Relief Services?
10.4.2.1a CROA Requirements for Credit Repair Organizations
10.4.2.2 CROA Requirements That Apply to “Any Person”
10.4.2.3 Requirements Applicable to “Any Person”
10.4.3 CROA Requirements
10.4.3.1 Moved—Requirements for Credit Services Organizations
10.4.3.2 Moved—Requirements Applicable to “Any Person”
10.4.4 CROA Remedies
10.5 The FTC Telemarketing Sales Rule (TSR)
10.5.2 Application of the TSR to Debt Relief Services
10.5.2.1 Definition of Debt Relief Service
10.5.2.2 Telemarketing, Telemarketers, and Sellers
10.5.2.3 Required Use of the Telephone
10.5.2.4 Coverage of Those Assisting Telemarketing
10.5.3 TSR Requirements for Debt Relief Services
10.5.3.1 Prohibition Against Collection of Fees Before Results Are Achieved
10.5.3.2 Escrowing Fees
10.5.3.3 Disclosures
10.5.3.4 Deceptive Telemarketing Acts and Practices
10.5.3.5 Unsubstantiated Claims
10.5.4 Recordkeeping Requirements
10.5.5 Private Remedies and Government Enforcement
10.6 Fair Debt Collection Practices Act
10.7 State Regulation of Debt Relief Services
10.7.1 Licensing and Other Substantive Requirements
10.7.1.1 Registration and Licensing Requirements
10.7.1.2 Other Substantive Requirements
10.7.2 Debt Relief Services Within the Scope of State Statutes
10.7.2.1 Introduction
10.7.2.2 ULC Debt Management Act Applies to Debt Settlement
10.7.2.3 Other State Legislation Explicitly Applying to Debt Settlement
10.7.2.4 When Coverage of Debt Settlement Is Unclear
10.7.3 Whether Attorneys Are Exempt
10.7.4 Constitutional and Jurisdictional Challenges to State Debt Relief Statutes
10.7.5 Private Remedies
10.8 Other Claims
10.8.1 UDAP Claims
10.8.2 Unauthorized Practice of Law; Attorney Malfeasance
10.8.3 RICO Claims
10.8.4 Common Law Claims
10.8.5 Consumer Bankruptcy
10.8.6 When Debt Relief Agency Is Insolvent or Files for Bankruptcy
Chapter 11 Other Statutes Protecting Consumers
11.1 Antitrust Statutes
11.1.1 Federal Antitrust Laws
11.1.2 State Antitrust Laws
11.2 Statutes Regulating Unsolicited Goods
11.3 Plain English Statutes
11.4 Statutes Protecting Non-English Speakers
11.4.2 Federal Requirements Regarding Use of Non-English Language
11.4.3 State Statutes Requiring Use of a Non-English Language
11.4.3.1 State Requirements
11.4.3.2 Impact of English-Only and English Official Language Laws
11.4.4 UDAP and Unconscionability Claims
11.5 Restore Online Shoppers’ Confidence Act
11.6 The Federal Computer Fraud and Abuse Act
11.6.2 CFAA Prohibitions Relevant to Consumers
11.6.3 Consumer Remedies
Appendix A FTC Trade Regulation RulesFootnotes
A.2 Selected FTC Statutory Provisions
A.2.1 FTC Standard Rulemaking Authority
15 U.S.C. § 44. Definitions
15 U.S.C. § 45. Unfair methods of competition unlawful; prevention by Commission
15 U.S.C. § 57a. Unfair or deceptive acts or practices rulemaking proceedings
15 U.S.C. § 57b. Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices
A.2.2 FTC Streamlined Rulemaking Authority Regarding Automobile Dealers
12 U.S.C. § 5519. Exclusion for auto dealers
A.3 Negative Option Rule—16 C.F.R. § 425
16 C.F.R. § 425.1. The rule
A.4 FTC Rule Concerning Cooling-Off Period for Sales Made at Homes or at Certain Other Locations
16 C.F.R. § 429.0. Definitions
16 C.F.R. § 429.1. The Rule
16 C.F.R. § 429.2. Effect on State laws and municipal ordinances
16 C.F.R. § 429.3. Exemptions
A.5 FTC Rule Concerning Preservation of Consumers’ Claims and Defenses
A.5.1 The Rule
16 C.F.R. § 433.1. Definitions
16 C.F.R. § 433.2. Preservation of consumers’ claims and defenses, unfair or deceptive acts or practices
16 C.F.R. § 433.3. Exemption of sellers taking or receiving open end consumer credit contracts before November 1, 1977, from requirements of § 433.2(a)
A.5.2 FTC Advisory Opinion
A.6 Mail, Internet, or Telephone Order Merchandise Rule
16 C.F.R. § 435.1. Definitions
16 C.F.R. § 435.2. Mail, Internet, or telephone order sales
16 C.F.R. § 435.3. Limited applicability
A.7 FTC Franchise Rule—16 C.F.R. § 436
16 C.F.R. § 436.1. Definitions
16 C.F.R. § 436.2. Obligation to furnish documents
16 C.F.R. § 436.3. Cover page
16 C.F.R. § 436.4. Table of contents
16 C.F.R. § 436.5. Disclosure items
16 C.F.R. § 436.6. Instructions for preparing disclosure documents
16 C.F.R. § 436.7. Instructions for updating disclosures
16 C.F.R. § 436.8. Exemptions
16 C.F.R. § 436.9. Additional prohibitions
16 C.F.R. § 436.10. Other laws and rules
16 C.F.R. § 436.11. Severability
Appendix A to Part 436—Sample Item 10 Table
Appendix B to Part 436—Sample Item 20(1) Table
Appendix C to Part 436—Sample Item 20(2) Table
Appendix D to Part 436—Sample Item 20(3) Table
Appendix E to Part 436—Sample Item 20(4) Table
Appendix F to Part 436—Sample Item 20(5) Table
A.8 FTC Business Opportunity Rule—16 C.F.R. § 437
16 C.F.R. § 437.1. Definitions
16 C.F.R. § 437.2. The obligation to furnish written documents
16 C.F.R. § 437.3. The disclosure document
16 C.F.R. § 437.4. Earnings claims
16 C.F.R. § 437.5. Sales conducted in Spanish or other languages besides English
16 C.F.R. § 437.6. Other prohibited practices
16 C.F.R. § 437.7. Record retention
16 C.F.R. § 437.8. Franchise exemption
16 C.F.R. § 437.9. Outstanding orders; preemption
16 C.F.R. § 437.10. Severability
Appendix A to Part 437—Disclosure of Important Information About Business Opportunity
Appendix B to Part 437—Disclosure of Important Information About Business Opportunity (Spanish-Language Version)
A.9 FTC Credit Practices Rule
16 C.F.R. § 444.1. Definitions
16 C.F.R. § 444.2. Unfair credit practices
16 C.F.R. § 444.3. Unfair or deceptive cosigner practices
16 C.F.R. § 444.4. Late charges
16 C.F.R. § 444.5. State exemptions
A.10 FTC Funeral Industry Practices Rule
16 C.F.R. § 453.1. Definitions
16 C.F.R. § 453.2. Price disclosures
16 C.F.R. § 453.3. Misrepresentations
16 C.F.R. § 453.4. Required purchase of funeral goods or funeral services
16 C.F.R. § 453.5. Services provided without prior approval
16 C.F.R. § 453.6. Retention of documents
16 C.F.R. § 453.7. Comprehension of disclosures
16 C.F.R. § 453.8. Declaration of intent
16 C.F.R. § 453.9. State exemptions
A.11 FTC Used Car Rule
16 C.F.R. § 455.1. General duties of a used vehicle dealer; definitions
16 C.F.R. § 455.2. Consumer sales—window form
16 C.F.R. § 455.3. Window form
16 C.F.R. § 455.4. Contrary statements
16 C.F.R. § 455.5. Spanish language sales
16 C.F.R. § 455.6. State exemptions
16 C.F.R. § 455.7. Severability
Appendix B Selected Consumer Financial Protection Act Provisions
12 U.S.C. § 5481. Definitions
12 U.S.C. § 5512. Rulemaking authority
12 U.S.C. § 5514. Supervision of nondepository covered persons
12 U.S.C. § 5515. Supervision of very large banks, savings associations, and credit unions
12 U.S.C. § 5516. Other banks, savings associations, and credit unions
12 U.S.C. § 5517. Limitations on authorities of the Bureau; preservation of authorities
12 U.S.C. § 5531. Prohibiting unfair, deceptive, or abusive acts or practices
12 U.S.C. § 5532. Disclosures
12 U.S.C. § 5533. Consumer rights to access information
12 U.S.C. § 5536. Prohibited acts
12 U.S.C. § 5552. Preservation of enforcement powers of States
Appendix C Federal Regulation of Telemarketing, Robocalls, Junk Faxes, and Spam
C.1 Telemarketing Fraud
C.1.1 Telemarketing and Consumer Fraud and Abuse Prevention Act
15 U.S.C. § 6101. Findings
15 U.S.C. § 6102. Telemarketing rules
15 U.S.C. § 6103. Actions by States
15 U.S.C. § 6104. Actions by private persons
15 U.S.C. § 6105. Administration and applicability of chapter
15 U.S.C. § 6106. Definitions
15 U.S.C. § 6107. Enforcement of orders
15 U.S.C. § 6108. Review
C.1.2 FTC Telemarketing Sales Rule
16 C.F.R. § 310.1. Scope of regulations in this part
16 C.F.R. § 310.2. Definitions
16 C.F.R. § 310.3. Deceptive telemarketing acts or practices
16 C.F.R. § 310.4. Abusive telemarketing acts or practices
16 C.F.R. § 310.5. Recordkeeping requirements
16 C.F.R. § 310.6. Exemptions
16 C.F.R. § 310.7. Actions by states and private persons
16 C.F.R. § 310.8. Fee for access to the National Do Not Call Registry
16 C.F.R. § 310.9. Severability
C.2 Telephone and Fax Solicitations
C.2.1 Telephone Consumer Protection Act
C.2.1.1 Introduction
C.2.1.2 Telephone Consumer Protection Act—Selected Provisions
Uncodified Congressional Findings of the TCPA of 1991
47 U.S.C. § 227. Restrictions on the use of telephone equipment
C.2.2 FCC Rule on Telemarketing, Robocalls, and Junk Faxes
47 C.F.R. § 64.1200. Delivery restrictions
47 C.F.R. § 64.1601. Delivery requirements and privacy restrictions
C.3 Spam E-Mail
C.3.1 CAN-SPAM Act
15 U.S.C. § 7701. Congressional findings and policy
15 U.S.C. § 7702. Definitions
15 U.S.C. § 7703. Prohibition against predatory and abusive commercial e-mail
15 U.S.C. § 7704. Other protections for users of commercial electronic mail
15 U.S.C. § 7705. Businesses knowingly promoted by electronic mail with false or misleading transmission information
15 U.S.C. § 7706. Enforcement generally
15 U.S.C. § 7707. Effect on other laws
15 U.S.C. § 7708. Do-Not-E-Mail registry
15 U.S.C. § 7709. Study of effects of commercial electronic mail
15 U.S.C. § 7710. Improving enforcement by providing rewards for information about violations; labeling
15 U.S.C. § 7711. Regulations
15 U.S.C. § 7712. Application to wireless
15 U.S.C. § 7713. Separability
C.3.2 FTC CAN-SPAM Rule
16 C.F.R. § 316.1. Scope
16 C.F.R. § 316.2. Definitions
16 C.F.R. § 316.3. Primary purpose
16 C.F.R. § 316.4. Requirement to place warning labels on commercial electronic mail that contains sexually oriented material
16 C.F.R. § 316.5. Prohibition on charging a fee or imposing other requirements on recipients who wish to opt out
16 C.F.R. § 316.6. Severability
Appendix D State Telemarketing Statutes Summarized
Appendix E Federal RICO Statute
E.1 The Federal RICO Statute
18 U.S.C. § 1961. Definitions
18 U.S.C. § 1962. Prohibited activities
18 U.S.C. § 1963. Criminal penalties
18 U.S.C. § 1964. Civil remedies
18 U.S.C. § 1965. Venue and process
18 U.S.C. § 1966. Expedition of actions
18 U.S.C. § 1967. Evidence
18 U.S.C. § 1968. Civil investigative demand
E.2 Federal Wire and Mail Fraud Statutes
18 U.S.C. § 1341. Frauds and swindles
18 U.S.C. § 1343. Fraud by wire, radio, or television
Appendix F State RICO Statutes Summarized
Appendix G Federal False Claims Act
31 U.S.C. § 3729. False claims
31 U.S.C. § 3730. Civil actions for false claims
31 U.S.C. § 3731. False claims procedure
31 U.S.C. § 3732. False claims jurisdiction
31 U.S.C. § 3733. Civil investigative demands
Appendix H State False Claims Act Statutes Summarized
Appendix I State Debt Relief Statutes Summarized
I.2 The Uniform Debt-Management Services Act
I.2.1 Introduction
I.2.2 The Uniform Debt-Management Services Act (2011)
I.3 State-by-State Analysis of Debt Relief Legislation
Appendix J Mailing of Unordered Merchandise
39 U.S.C. § 3009. Mailing of unordered merchandise
Appendix K Restore Online Shoppers’ Confidence Act
15 U.S.C. § 8401. Findings; declaration of policy
15 U.S.C. § 8402. Prohibitions against certain unfair and deceptive internet sales practices
15 U.S.C. § 8403. Negative option marketing on the internet
15 U.S.C. § 8404. Enforcement by Federal Trade Commission
15 U.S.C. § 8405. Enforcement by State attorneys general
Appendix L Federal Computer Fraud Abuse Act
FTC Interpretation Letters
Door-to-Door Sales Rule
Other TRRs
Agency Guides, Interpretations
Telemarketing, Junk Faxes
FTC Telemarketing Sales Rule
Other Federal Rules
The appendices are generally organized in the same order as the chapters to which they relate. FTC rulemaking legislation and nine FTC trade regulation rules (organized by their Code of Federal Regulations number) are found in Appendix A, infra. CFPB rulemaking authority and remedies are found in Appendix B, infra, and relevant CFPB rules will also be included in this appendix when enacted.
Appendix C, infra, contains federal statutes and rules relating to telemarketing fraud, inconvenient calls, junk faxes, and spam. This includes the Telemarketing and Consumer Fraud and Abuse Prevention Act and, enacted pursuant to that Act’s authority, the FTC Telemarketing Sales Act. Also included are the Telephone Consumer Protection Act and Federal Communications Commission rules under that Act, as well as the federal CAN-SPAM Act and FTC rules under that Act. Appendix D, infra, summarizes state telemarketing fraud statutes.
Appendix E, infra, reprints the federal RICO statute; Appendix F summarizes state RICO statutes; Appendix G reprints the federal False Claims Act; Appendix H summarizes state false claims acts; and Appendix I summarizes state statutes relating to debt relief and credit counseling. Appendix J, infra, reprints a federal statute concerning delivery of unordered merchandise. Appendix K, infra, contains the Restore Online Shoppers’ Confidence Act, and Appendix L, infra, reprints the Federal Computer Fraud Abuse Act.