Consumer Fraud & Abuse

Whatley Drake & Kallas's Consumer Fraud practice encompasses virtually any unfair or deceptive tactics used to influence consumers. These tactics include false advertising or representation, the sale of defective products, and pyramid schemes, as well as bait and switch scams.

The firm has a history of significant recoveries for consumers, going back to the settlement of nearly a billion dollars for home-owners with defective polybutylene plumbing.

The firm is currently litigating cases on behalf of consumers in the following areas, among others:

• Mobile Homes with inadequate insulation
• Products that are deceptively advertised as having ingredients that they do not.
• Products that are advertised as being organic when they are not.

Consumer Fraud litigation includes individual cases as well as class actions. These cases can involve the wrongful conduct of corporate, insurance and finance companies including bad faith. Most states have consumer protection statutes designed to punish businesses that take advantage or prey on unsuspecting consumers.

Cases:

In re Motor Fuel Temperature Sales Practices Litigation
WDK has been appointed to lead discovery efforts in a consumer class action against national gasoline companies including Conoco, BP, Shell and others who allegedly conspired in a profit-reaping scheme to sell “hot” gasoline which left consumers short-changed at the pump. Gasoline expands when heated; consumers who thought they were receiving a gallon of gas unknowingly received less due to its warmer temperature.

Jell-O’s Calcium Claims Deceptive
Lloyd, et al v. Kraft Foods Global, Inc.
WDK represents consumers in a class action complaint against Kraft Foods alleging that consumers are duped into believing the company’s Jell-O brand instant pudding products are a good dietary source of calcium when they actually contain no calcium as sold.

Thread Count Inflated Deceptively on Sheets and Linens
White v. Bed Bath and Beyond
WDK represents a class of purchasers of bedding and linen products from Bed Bath and Beyond. Bed Bath and Beyond inflated the thread count of certain two-ply and multi-ply linens and other bedding products by counting threads in a manner which the Federal Trade Commission has ruled is deceptive to consumers. WDK, along with other counsel, reached a settlement with Bed Bath and Beyond, which provided refunds or gift cards to purchasers of these bedding products, that is pending Final Approval in the United States District Court for the District of New Jersey.

Amex Air Flight and Baggage Insurance
Hoffman v. American Express Travel Related Services Co., Inc.
WDK is a member of the Plaintiffs Executive Committee that is prosecuting a certified nationwide class action in California state court against American Express Travel Related Services on claims arising out of ATRS’ marketing and sale of air flight and baggage insurance. The case is set for trial in November, 2008 in Fremont, California.

Thread Count Inflated Deceptively on Sheets and Linens
Day v. Smartbargains, Inc.
WDK represents a class of purchasers of bedding and linen products in a national class action filed in Massachusetts state court for violations of the Massachusetts Consumer Protection Statute. Smartbargains, in conjunction with their vendor, High Country Linens, inflates the thread count of certain two-ply and multi-ply linens and other bedding products by counting threads in a manner which the Federal Trade Commission has ruled is “deceptive” to consumers. This case is similar to the Bed Bath and Beyond litigation recently settled by the firm which is awaiting final approval in the United States District Court for the District of New Jersey.

Mobile Home Manufacturers Failing Consumers
River Birch Homes, Inc. v. Mahone
WDK is involved in the Class Arbitration of claims that manufacturers of mobile homes are not complying with FTC regulations with respect to insulation within the homes nor with notifications requirements due at point of purchases.

Mobile Home Insulation Fraud
Browder v. Fleetwood Homes
The firm brought a national class action on behalf of purchasers of certain Fleetwood brand mobile homes under California law for unfair or unlawful business practices, including false advertising, for failure to include in the mobile home the amount of insulation represented and advertised to customers.

Lead Contaminated Vitamins
Pineda v. Vitamin Shoppe
WDK represents a class of purchasers of Vitamin Shoppe’s “Especially for Women” vitamins. The complaint alleged that testing revealed that some of these vitamins were contaminated by lead and/or contained less calcium than the label indicated. Vitamin Shoppe denied all wrongdoing. WDK obtained a settlement on behalf of the class, who received refunds of 100% of the value of the purchase price of the products or 125% of the purchase price if they choose store credit, which is pending final approval in Superior Court for Bergen County, New Jersey.

“Organic” Labeled Milk Not Actually “Organic”
Snell v. Aurora Organic Dairy
WDK serves on the Executive Committee in a national class action on behalf of consumers against Aurora Organic Dairy, and several retailers including Wal-Mart, Costco, and Safeway, in the United States District Court for the District of Colorado for violations of various states’ consumer protection statutes. Aurora and the retailers misrepresented that the milk produced by Aurora was “organic” when in fact it is not “organic” and does not comply with Federal requirements for the labeling of organic products.

On-Star Vehicle Safety System Subscribers Lose Service
Christian Borum v. GM, OnStar and Subaru
This is a case as a result of GM's and OnStar's plans to terminate OnStar service to vehicles equipped with analog only OnStar equipment. OnStar is a unique in-vehicle telecommunication safety system that provides automatic crash notification to emergency responders, stolen vehicle location, remote door unlock and remote diagnostics in the event of problems with airbags, anti-lock brakes or other systems. Because of the planned switch, thousands of OnStar owners, lessees and subscribers who have digital OnStar systems will lose the benefits of this safety system, will be exposed to an increased risk of serious personal injury and harm, and their motor vehicles will lose substantial value.

Lead Contaminated Toys from China
In re Mattel, Inc. Toy Lead Paint Products Liability Litigation, MDL No. 1897
WDK is Co-Lead Counsel for a class of consumers of recalled toys due to their lead content or that were defectively designed with magnets which could come loose potentially injure children manufactured and sold by Mattel and Fisher Price. The suit seeks recovery for the purchase prices as well as reimbursement for medical testing.

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