On August 10, the CFPB issued an interpretive rule stating that digital marketing providers that are involved in the identification or selection of prospective customers or the selection or placement of content to affect consumer engagement including purchase or adoption behavior, are subject to the CFPB’s jurisdiction. The rule ostensibly clarifies the scope of companies that are “service providers” under the Consumer Financial Protection Act (“CFPA”) to include digital marketing providers, and thereby subjecting them to the CFPB’s authority to prohibit unfair, deceptive, abusive acts or practices (UDAAPs).
A New York federal court recently granted Apple a motion to dismiss a case where an alleged class accused Apple of misleading consumers about the waterproof nature of their iPhones. Apple had several allegedly misleading advertisements about their iPhones, with advertisements stating that the iPhone 11 is “water resistant up to 2 m for 30 min.” The court granted Apple’s motion to dismiss because the plaintiffs did not allege how they were harmed by Apple’s advertisements. Apple’s user manuals and warranties also disclaimed coverage for liquid damage. While the plaintiffs’ phones allegedly malfunctioned due to some amount of water contact, the court found that the plaintiffs failed to plead that their iPhones were damaged due to their reliance on the advertisements. Additionally, the plaintiffs failed to identify any warranty claiming that Apple’s products could withstand water damage.
Continue Reading The Latest Win for Apple: Dismissal of Class Action about iPhones