When Big Name Brands Break the Rules: Top 5 High Profile Consumer Protection Cases


by Contributor

(Jun. 10, 2019) — When consumers are the victim of Big Brands who violate consumer protection laws, it’s especially a travesty with so much trust put into brand loyalty.

It’s no mystery that most of the time Big Business only has its own interests in mind. But did you know that there are consumer protection laws in place to protect you? Many class action lawsuits that you hear about in the news are a result of breaking these laws.

Ready to learn about some of the biggest payouts from businesses breaking consumer protection laws? We’ll cover five of them. But first, what exactly are consumer protection laws?

What are Consumer Protection Laws?

But what are consumer protection laws? They ensure the rights of consumers and help maintain a competitive marketplace. They also ensure businesses don’t use unfair tactics to secure advantages over competitors.

In the United States, the Federal Trade Commission (FTC) enforces consumer protection laws. They do this by protecting consumers, securing competition, and advancing organizational performance.

And some of these payouts can reach billions of dollars. If you believe a company has taken advantage of you, contact this law firm to start a class action lawsuit.

Curious about some of the biggest cases the FTC took against Big Brands? Here are five of the costliest incidents of brand breaking consumer protection laws.

  1. Herbalife: $200 Million

Everyone is aware of the dangers of pyramid schemes, but today they’ve often been re-branded as multi-level marketing (MLM). These groups sign up new recruits promising to solve all their financial worries. But that’s rarely the case.

One prime example is Herbalife, a company making billions of dollars in revenue. Despite promising new recruits a way to get rich, most only made about $300 dollars.

The FTC determined that Herbalife emphasized bringing in new recruits over the actual selling of products. In other words, it was effectively a pyramid scheme. This resulted in a $200 million payout for customer redress.

  1. Dish Network: $280 Million

If you’ve ever experienced joining the “Do Not Call” registry, you know it’s life-changing. But for Dish Network customers, they could find no relief from telemarketer calls. Because of their connections with telemarketing partners, they’d let them call individuals on their “Do Not Call” list.

As a part of the class action suit, up to $1,200 per call was awarded to Dish Network customers.

  1. Kia/Hyundai: $395 Million

Recently, it was discovered that Hyundai and Kia were overestimating fuel efficiency. All in all, about 900,000 vehicles had an incorrect fuel efficiency estimate. This affected hundreds of thousands of vehicle drivers.

Despite several appeals, the final ruling was for $210 million for Hyundai and $185 for Kia. The grand total was almost $400 million. This resulted in a lump sum payout for Hyundai owners of $353 and Kia owners of $667.

  1. Western Union: $586 Million

You all know the story: a loved one needs cash to get out of jail, or a Nigerian prince needs a small amount of cash to afford to send you a large gift. Overseas scammers rely on Western Union to complete these transactions.

Clearly, this is violating the better interests of their consumers. So the FTC filed a hefty suit against the company. Any cases of fraud between 2004 and 2017 can now get some of that money back.

  1. Volkswagen: $14.7 Billion

This is likely the most famous example on the list and was all over the news a few years ago. Volkswagen cheated on their emission tests to pretend that their cars were up to standard. This violated both the Environmental Protection Act and consumer protection laws.

As a result, the FTC has ordered $10 Billion to compensate consumers via a buyback, terminating leases, or fixing those vehicles. They required an extra $4.7 billion to correct the extra pollution and to invest in zero-emissions technology.

Do You Know of a Business Violating Consumer Protection Laws?

If you know of any cases where a business has violated consumer protection laws, don’t stay silent! Get in contact with a lawyer today.

After all, you’re not the only victim. You could help thousands of other consumers receive compensation.

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