Federal deception law : FTC and CFPB rules, RICO, False Claims Act, telemarketing, debt relief, and parallel state statutes / Jonathan Sheldon ; contributing authors: Carolyn L. Carter [and others].
2012
KF1609 .S43 2012 (Map It)
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Details
Author
Title
Federal deception law : FTC and CFPB rules, RICO, False Claims Act, telemarketing, debt relief, and parallel state statutes / Jonathan Sheldon ; contributing authors: Carolyn L. Carter [and others].
Published
Boston, MA : National Consumer Law Center, [2012]
Copyright
©2012
Call Number
KF1609 .S43 2012
Edition
First edition.
ISBN
9781602481213 (pbk.)
1602481210 (pbk.)
9780943116105 (series)
0943116104 (series)
1602481210 (pbk.)
9780943116105 (series)
0943116104 (series)
Description
xxiii, 408 pages : illustrations, forms ; 28 cm.
System Control No.
(OCoLC)823319575
Note
"With companion website"--Cover.
Bibliography, etc. Note
Includes bibliographical references and index.
Linking Note
Unfair and deceptive acts and practices (7th ed. 2008) split into: Unfair and deceptive acts and practices (8th ed. 2012), and: Federal deception law (1st ed. 2012).
Record Appears in
Added Author
Added Corporate Author
Table of Contents
About the Companion Website, Other Search Options
ix
ch. 1
First Considerations
1.1.
Introduction to This Treatise
1
1.2.
Relation to NCLC's Unfair and Deceptive Acts and Practices
1
1.3.
Topics Covered by Other NCLC Treatises
1
1.4.
Organization of This Treatise
2
1.5.
Companion Website; Other On-Line Services
3
1.6.
What Is "UDAP"?
3
1.7.
Clearinghouse Citations
4
ch. 2
FTC Trade Regulation Rules
2.1.
Overview
5
2.1.1.
Introduction
5
2.1.2.
Rules Not Covered in This Chapter
5
2.2.
FTC Trade Regulation Rulemaking
6
2.2.1.
The Nature of Trade Regulation Rules
6
2.2.2.
Scope
6
2.2.3.
Private Remedies
6
2.2.3.1.
No FTC Act Private Right of Action for FTC Rule Violations
6
2.2.3.2.
FTC Rule Violation As a State UDAP Violation
7
2.2.4.
FTC Remedies
8
2.2.5.
CFPB Remedies
8
2.3.
The FTC Credit Practices Rule
8
2.3.1.
General Overview
8
2.3.2.
Similar FRB, OTS, and NCUA Rules for Banks
9
2.3.3.
FTC Staff Letters As Precedent
10
2.3.4.
Confession of Judgment Provision
10
2.3.5.
Waiver of Exemption Clauses
10
2.3.6.
Wage Assignments
10
2.3.7.
Household Goods Security Interests
11
2.3.8.
Pyramiding Late Charges
12
2.3.9.
Co-Signer Warning Notice
13
2.3.10.
Private Remedies for Creditor Remedies Rule Violations
14
2.3.11.
Attempts to Circumvent FTC Credit Practices Rule
14
2.4.
Used Car Rule
15
2.4.1.
The Rule's Scope
15
2.4.2.
Rule Requirements
15
2.4.3.
Common Rule Violations
16
2.4.4.
Remedies for Rule Violations
16
2.4.5.
When Buyer's Guide Warranty Disclosure Conflicts with Warranty Provided in the Sales Agreement
17
2.4.6.
FTC Used Car Rule Does Not Insulate Sellers from UDAP Liability
17
2.5.
Door-to-Door and Off-Premises Sales
17
2.5.1.
The FTC Cooling-Off Period Rule Described
17
2.5.2.
Interrelation of FTC Rule with State Law
19
2.5.3.
Interrelation of FTC Rule and State Law with Truth in Lending Rescission
20
2.5.4.
Scope of the FTC Rule
20
2.5.4.1.
Sales Outside the Home Are Also Covered
20
2.5.4.2.
Effect of Prior Negotiations, Seller Being Invited to the Home
20
2.5.4.3.
Buyer-Initiated Visits to Home to Repair Personal Property
21
2.5.4.4.
Emergency Exception
21
2.5.4.5.
Mail and Telephone Sales
22
2.5.4.6.
Leases, Rent-to-Own Transactions, Transactions Under $25
22
2.5.4.7.
Sales of Real Property, Home Improvements, Securities, and Insurance
22
2.5.4.8.
Transactions Subject to Truth in Lending Rescission
22
2.5.4.9.
What Sellers Are Covered
22
2.5.5.
Scope of State Laws
23
2.5.5.1.
Overview
23
2.5.5.2.
Coverage That Is Broader Than the FTC Rule
23
2.5.5.3.
Narrower Coverage Than the FTC Rule
24
2.5.5.4.
Level of In-Home Contact Required Under State Statutes
25
2.5.5.5.
Particular Interpretations of State Law Scope Provisions
26
2.5.6.
Consumers' Rights Under FTC Rule, State Statutes
26
2.5.6.1.
Mechanics of Three-Day Cancellation Right
26
2.5.6.2.
No Recovery for Services Performed Prior to Cancellation
27
2.5.6.3.
Continuing Right to Cancel If Notice Is Defective
27
2.5.6.4.
Other Consumer Protections
28
2.5.7.
Consumer Remedies Under Cooling-Off Rule, State Statutes
29
2.6.
Mail or Telephone Order Merchandise Rule
29
2.6.1.
The FTC Rule
29
2.6.2.
State Mail and Telephone Order Laws and Regulation
30
2.7.
Negative Option Rule
31
2.8.
Franchise and Business Opportunity Rules
31
2.8.1.
Overview and History of the FTC Franchising and Business Opportunity Rules
31
2.8.2.
The FTC's Franchising Rule
32
2.8.3.
The FTC's Business Opportunity Rule
33
2.8.3.1.
Introduction
33
2.8.3.2.
Scope
33
2.8.3.3.
Substantive Requirements
33
2.8.4.
Other FTC, State UDAP Precedent
34
2.9.
Funeral Rule
37
2.9.1.
The FTC Rule
37
2.9.2.
State Claims
38
2.10.
FTC Guides
38
ch. 3
Consumer Financial Protection Bureau Rulemaking
3.1.
Introduction
41
3.1.1.
The Consumer Financial Protection Bureau
41
3.1.2.
CFPB Rules Covered in This Chapter
41
3.2.
UDAAP Rulemaking and Other UDAAP Interpretations
42
3.2.1.
UDAAP Rulemaking
42
3.2.2.
UDAAP Guidance
42
3.2.2.1.
General
42
3.2.2.2.
Marketing and Sales of Credit Card Add-On Products
43
3.2.2.3.
Mortgage Servicing for Military Homeowners Ordered to Relocate
43
3.2.2.4.
CFPB Supervision and Examination Manual
43
3.3.
Disclosure Rules
43
3.4.
Right to Information Rules
44
3.5.
Scope of CFPB Rulemaking
44
3.6.
No Direct Private Enforcement of CFPB Rules
45
3.7.
Federal Enforcement of CFPB Rules
45
3.8.
State Enforcement of CFPB Rules
46
3.9.
CFPB Rules' Relationship to State Law
46
ch. 4
The FTC Holder Rule and State Law Counterparts
4.1.
Overview
47
4.1.1.
Importance of the FTC Holder Rule
47
4.1.2.
FTC Holder Rule Versus Other Theories of Lender Liability
48
4.1.2.1.
Credit-Sale Obligations Assigned to Creditor
48
4.1.2.2.
Seller-Related Claims in Seller-Arranged Loans
49
4.1.2.3.
Raising Seller-Related Claims Against the Credit Card Issuer
49
4.1.2.4.
Loan-Related Claims in Direct Loans
49
4.1.2.5.
Raising Seller-Related Claims in Lease Transactions
50
4.1.2.6.
Stopping Check Payments As a Response to the Seller's Misconduct
50
4.2.
Scope of the FTC Holder Rule
50
4.2.1.
Operational Scope of the Holder Notice
50
4.2.2.
Legal Scope of the Rule
51
4.2.2.1.
Relevance of the Rule's Legal Scope
51
4.2.2.2.
Sales Transactions Covered
51
4.2.2.3.
Coverage of Leases
52
4.2.2.4.
Covered Sellers
52
4.2.2.5.
Rule Applies to Financed Sale and Purchase Money Loans
52
4.2.2.6.
Does the Rule Apply to Loans with an Amount Financed Exceeding a Dollar Threshold?
53
4.2.2.7.
Implications If Rule Does Not Apply to Loans Exempted from Truth in Lending
54
4.2.2.8.
Student Loans
54
4.3.
Operation of the FTC Holder Rule
54
4.3.1.
Seller-Related Claims Covered by the Rule
54
4.3.2.
Consumer's Claims Can Offset Remainder Due on the Note
56
4.3.3.
Effect on Security Interest
57
4.3.4.
Recovery of Amounts Already Paid
57
4.3.4.1.
General
57
43.4.2.
Recovering from a Prior Holder
58
4.3.4.3.
Is Recovery of Amount Paid Only Available When Consumer Could Rescind the Sale?
58
4.3.4.3.1.
Courts that get it wrong
58
4.3.4.3.2.
FTC in 2012 clarifies that these courts are wrong
59
4.3.4.3.3.
Rule itself and staff guidelines also support this conclusion
59
4.3.4.3.4.
Courts that get it right
60
4.3.4.3.5.
Consumer tactics if a court still gets it wrong
60
4.3.4.4.
Is Recovery of Amounts Paid Available Only When Otherwise Permitted By State Law?
60
4.3.5.
Are Attorney Fees Limited by the Cap?
61
4.3.6.
Multiple or Punitive Damages
62
4.3.7.
No Limit on Creditor's Liability for Own Conduct
62
4.3.8.
Impact of Federal Statutes Limiting Creditor's Derivative Liability
62
4.3.8.1.
TILA Limits on Assignee Liability
62
4.3.8.2.
ECOA limits on Assignee Liability
63
4.3.8.3.
Relation to the Magnuson-Moss Warranty Act
63
4.3.9.
Liability of Holders of Securitized Debt
64
4.3.10.
Liability of FDIC or Subsequent Holders
64
4.3.11.
Relation of FTC Rule to State Law
65
4.3.11.1.
FTC Rule Overrides Only Less Protective State Laws
65
4.3.11.2.
The LaBarre Court's Misinterpretation
66
4.3.12.
Does the FTC Holder Rule Create Federal Jurisdiction?
67
4.3.13.
Consumer's Waiver of Claims Against the Holder
67
4.3.14.
Holder's Refusal to Accept Liability Under FTC Holder Rule As an Independent UDAP Violation
68
4.4.
Theories of Recovery When FTC Holder Notice Is Improperly Omitted
68
4.4.1.
General
68
4.4.2.
UCC Makes the Absent Holder Notice an Implied Contract Term
69
4.4.2.1.
UCC Article 9 Requires Notice to Be Implied Into the Contract
69
4.4.2.2.
Revised Article 3 Requires the Holder Notice to Be Implied in Negotiable Instruments
69
4.4.2.3.
Case Law Implying the Notice into the Contract Without the Aid of The UCC
69
4.4.3.
State Holder Statutes
70
4.4.4.
Omission of Holder Notice As the Holder's UDAP Violation
70
4.4.4.1.
General
70
4.4.4.2.
Holder's Actions As a Deceptive Practice
70
4.4.4.3.
Holder's Actions As a Violation of State UDAP Regulations
71
4.4.4.4.
Holder's Actions As an Unfair Practice
72
4.4.4.5.
Are the Creditor's Actions Within the UDAP Statute's Scope?
72
4.4.5.
Aiding and Abetting Seller's Omission of Holder Notice
73
4.4.6.
Do State Law Theories for Omitted Holder Notice Apply to National Banks and Federal Savings Associations?
73
4.5.
State "Holder" Statutes
74
ch. 5
Telemarketing Fraud: The FTC Rule and State Counterparts
5.1.
Introduction
79
5.1.1.
Topics Covered in This Chapter
79
5.1.2.
Authority for FTC Telemarketing Sales Rule
79
5.2.
Scope of the FTC Telemarketing Sales Rule
79
5.2.1.
General Coverage
79
5.2.2.
Partial Exemption for Customer Initiated Calls
80
5.2.3.
Exemptions That Apply Even to Telemarketer-Initiated Calls
81
5.2.3.1.
Transactions Not Completed Until After Face-to-Face Meeting
81
5.2.3.2.
Transactions Covered by Other FTC Rules
81
5.2.3.3.
Business-to-Business Exception
81
5.2.3.4.
General Limits to the FTC's Jurisdiction
81
5.2.4.
No Coverage for On-Line Fraud
82
5.3.
The Rule's General Requirements and Prohibitions
82
5.3.1.
General
82
5.3.2.
Required Disclosures
83
5.3.3.
Prohibited Misrepresentations
83
5.3.4.
Negative Option Features
85
5.4.
Restrictions on Billing and Payments
85
5.4.1.
Introduction
85
5.4.2.
Limits on Obtaining or Disclosing Unencrypted Account Information
85
5.4.3.
Limits for All Payment Methods, Including Credit Cards and Debit Cards
86
5.4.4.
Limits on Check, Electronic Funds Transfer, Telephone Bill, and Other Payment Methods
86
5.4.4.1.
Introduction
86
5.4.4.2.
Requirements for Payments Not Including a Written Signature
87
5.4.4.3.
Additional Requirement When Payment Involves Preacquired Account Information and Free-to-Pay Conversion
87
5.5.
Special Regulation of Certain Transactions
88
5.5.1.
Advance Fee Loans
88
5.5.2.
Credit Repair
88
5.5.3.
Offers to Recover Amounts Lost Through Past-Telemarketing Fraud
89
5.5.4.
Debt Relief Services
89
5.5.5.
Credit Card Protection Products
89
5.5.6.
Investment and Business Opportunity Sales
90
5.5.7.
Prize Promotions
90
5.5.8.
Charitable Contributions
90
5.6.
Remedies
91
5.6.1.
Private Remedies
91
5.6.1.1.
Remedies Under the Telemarketing and Consumer Fraud and Abuse Prevention Act
91
5.6.1.2.
Other Private Remedies for Rule Violations
92
5.6.1.3.
Private Remedies for Telemarketing Fraud Independent of Rule Violations
92
5.6.2.
State Remedies
92
5.6.3.
Federal Remedies
93
5.7.
Parties to Sue
93
5.7.1.
The Telemarketer
93
5.7.2.
The Seller
93
5.7.3.
Those Facilitating Credit Card Laundering
94
5.7.4.
Other Third Parties
94
5.7.5.
Third-Party Liability Outside the Rule
95
5.8.
Records That Telemarketers and Sellers Must Keep
96
5.9.
State Telemarketing Fraud Statutes
97
5.9.1.
General
97
5.9.2.
Right to Cancel
97
5.9.3.
Scope of State Telemarketing Statutes
97
5.9.4.
Federal Preemption and Constitutionality
98
5.10.
Tips to Prevent, Limit Fraud
98
5.10.1.
Withholding Payment on Credit Card Bill for Fraudulent Telemarketing Sale
98
5.10.2.
Reporting Telemarketing Fraud
98
5.10.3.
Stopping Future Consumer Victimization
99
ch. 6
Unwanted Calls and Texts, Junk Faxes, and Spam
6.1.
Litigation and Remedies Concerning Unwanted Calls, Texts, and Faxes
101
6.1.1.
Overview
101
6.1.2.
The FTC Telemarketing Sales Rule and the Telemarketing and Consumer Fraud and Abuse Prevention Act
101
6.1.3.
The Telephone Consumer Protection Act
102
6.1.3.1.
Overview
102
6.1.3.2.
TCPA Scope
103
6.1.3.3.
Challenges to the TCPA and FCC Regulation
103
6.1.3.4.
Availability of a Private Right of Action
105
6.1.3.5.
Standing to Sue
105
6.1.3.6.
Private Remedies
106
6.1.3.7.
Class Actions
108
6.1.3.8.
Government Enforcement
109
6.1.3.9.
Who Is Liable
110
6.1.3.10.
Jurisdiction in State and Federal Court
110
6.1.3.11.
Pleadings and Discovery in TCPA Litigation
111
6.2.
FCC and FTC Restrictions on Unwanted Calls
112
6.2.1.
Threats and Obscene Language; Harassment
112
6.2.2.
Misrepresentations and Disclosure of the Call's Purpose
112
6.2.3.
Restrictions on Auto Dialers and Prerecorded Messages to Cell Phones, Other Sensitive Numbers
113
6.2.3.1.
General
113
6.2.3.2.
Limited Exceptions; Debt Collection Calls
113
6.2.3.3.
Private Remedies
114
6.2.4.
Prerecorded Calls to Residences
114
6.2.4.1.
General
114
6.2.4.2.
Exceptions
114
6.2.4.3.
Disclosures When Prerecorded Calls Are Allowed
115
6.2.4.4.
Private Remedies
116
6.2.5.
Abandoned Calls
116
6.2.6.
Company-Specific Do-Not-Call Lists
117
6.2.7.
General Do-Not-Call Lists
118
6.2.7.1.
Authority
118
6.2.7.2.
Scope of the FTC and FCC Do-Not-Call-Rules
118
6.2.7.3.
Operation of the Do-Not-Call Rules
119
6.2.7.4.
Remedies for Rule Violations
119
6.2.8.
Restrictions on Calling Times
119
6.2.9.
Transmitting Caller ID Information and Prohibition of Caller ID Blocking
120
6.2.10.
State Statutes Limiting Unwanted Calls
120
6.3.
Text Messages
121
6.3.1.
Introduction
121
6.3.2.
TCPA Prohibits Use of Automatic Dialing Systems to Send Text Messages
121
6.3.3.
Extremely Limited Exceptions to the General Prohibition
122
6.3.4.
Remedies
122
6.4.
Junk Faxes
122
6.4.1.
TCPA Limits on Junk Faxes
122
6.4.2.
Types of Junk Faxes Prohibited
123
6.4.2.1.
Unsolicited Advertising
123
6.4.2.2.
Exemption When Fax Sent Pursuant to Express Invitation or Permission
123
6.4.2.3.
Exemption for Established Business Relationship
124
6.4.2.4.
Notice Requirement If Fax Sent Pursuant to Explicit Permission or Established Business Relationship
125
6.4.3.
Other Junk Fax Restrictions and Requirements
125
6.4.4.
Junk Fax Litigation and Remedies
126
6.4.5.
State Junk Fax Claims
126
6.5.
Unsolicited Bulk Commercial E-mail (Spam)
126
6.5.1.
Background
126
6.5.2.
Federal CAN-SPAM Act
128
6.5.2.1.
Substantive Prohibitions
128
6.5.2.2.
CAN-SPAM Remedies
129
6.5.3.
Other Federal Restrictions on Spam
130
6.5.3.1.
The Telephone Consumer Protection Act
130
6.5.3.2.
FTC Rules
130
6.5.3.3.
Federal Criminal Statutes
130
6.5.3.4.
Trademark Infringements
131
6.5.4.
State Anti-Spam Laws
131
6.5.4.1.
General
131
6.5.4.2.
Constitutional Challenges to State Anti-Spam Statutes
132
6.5.4.3.
Remedies Under State Anti-Spam Laws
132
6.5.5.
Other State Law Claims
133
6.5.5.1.
UDAP Claims
133
6.5.5.2.
Common Law Tort Claims
133
6.5.5.3.
State Telemarketing and Door-to-Door Statutes
134
6.5.6.
Available Defendants in a Private Cause of Action
134
6.5.7.
Standing to Sue a Spammer Under State Law
135
ch. 7
The Federal Racketeer Influenced and Corrupt Organizations Act (RICO)
7.1.
Overview
137
7.1.1.
The Structure of RICO
137
7.1.2.
Advantages and Disadvantages of RICO Claims
138
7.1.3.
Relation to and Displacement by Other Statutes
138
7.1.4.
RICO's Interstate or Foreign Commerce Requirement
139
7.1.5.
Liberal Construction
139
7.2.
The RICO Defendant
140
7.3.
Pattern of Racketeering Activity or Collection of an Unlawful Debt
141
7.3.1.
Introduction
141
7.3.2.
Racketeering Activity
141
7.3.2.1.
General
141
7.3.2.2.
Elements of Mail Fraud
141
7.3.2.3.
Mail Fraud's Mailing Requirement
143
7.3.2.4.
Aiding and Abetting Mail Fraud
144
7.3.2.5.
Wire Fraud
144
7.3.3.
"Pattern" of Racketeering Activity
145
7.3.3.1.
Introduction
145
7.3.3.2.
Supreme Court Guidance
145
7.3.3.3.
Closed-Ended Continuity
146
7.3.3.4.
Open-Ended Continuity
147
7.3.3.5.
Relationship Aspect of Pattern
150
7.3.3.6.
Factors Facilitating Proof of a Pattern
151
7.3.4.
Collection of an Unlawful Debt
151
7.4.
The "Enterprise"
153
7.4.1.
General
153
7.4.2.
Entities Making Up an "Association in Fact"
153
7.4.3.
Level of Association Necessary for an Association in Fact
154
7.4.3.1.
Introduction
154
7.4.3.2.
The Enterprise's "Ongoing Organization"
155
7.4.3.3.
A Continuing Unit
156
7.4.3.4.
Relation of Enterprise to the Racketeering Activity
156
7.4.4.
Enterprise Must Be Distinct from Defendant for Section 1962(c) Claims
157
7.4.4.1.
General
157
7.4.4.2.
The Defendant-Employees Enterprise
158
7.4.4.3.
The Defendant-Employer Enterprise
159
7.4.4.4.
The Defendant-Parent Corporation Enterprise
159
7.4.4.5.
The Defendant-Subsidiary Enterprise
160
7.4.5.
Subsections 1962(a), (b), and (d) Generally Do Not Require a Distinct Enterprise
161
7.4.6.
Strategies to Find the Corporation Liable
162
7.4.6.1.
Introduction
162
7.4.6.2.
Respondeat Superior
162
7.4.6.3.
Indemnification and Insurance
164
1.4.6.4.
Aiding and Abetting
164
7.5.
Enterprise's Relationship to the Predicate Offenses
165
7.5.1.
Introduction
165
7.5.2.
Proceeds of Illegal Conduct Invested in the Enterprise: Section 1962(a)
165
7.5.3.
Acquiring an Interest in the Enterprise Through Illegal Conduct: Section 1962(b)
165
7.5.4.
Participation in the Enterprise Through Illegal Conduct: Section 1962(c)
166
7.5.5.
Conspiracy: Section 1962(d)
169
7.6.
Required Injury
171
7.6.1.
General
171
7.6.2.
Injury from Predicate Offense's Relationship to the Enterprise
171
7.6.2.1.
Injury Under Section 1962(a)
171
7.6.2.2.
Injury Under Section 1962(b)
172
7.6.2.3.
Injury Under Section 1962(c)
173
7.6.2.4.
Injury Under Section 1962(d)
173
7.6.3.
Proximate and "But For" Causation
173
7.6.4.
Type of Injury Required for a RICO Claim
176
7.6.5.
Indirect Injury to Third Parties
177
7.6.6.
Is the Injury Concrete and Ripe?
178
7.7.
Pleading
180
7.7.1.
Local Requirements for Case Statements
180
7.7.2.
Pleading Fraud---Particularity Requirement in Rule 9(b)
180
7.7.3.
Avoiding Rule 11 Claims
185
7.8.
Litigation
186
7.8.1.
Service of Process, Venue, and Jurisdiction
186
7.8.2.
RICO Statute of Limitations
187
7.8.3.
RICO Standard of Proof
189
7.8.4.
Offensive Collateral Estoppel
190
7.8.5.
Defensive Collateral Estoppel
190
7.9.
Private Remedies
191
7.9.1.
Actual Damages
191
7.9.2.
Treble and Punitive Damages
191
7.9.3.
Attorney Fees and Costs
192
7.9.4.
Prejudgment Interest
192
7.9.5.
Injunctive and Other Equitable Relief
193
7.10.
RICO Consumer Cases in the Courts
194
7.10.1.
Examples of Successful Consumer RICO Cases
194
7.10.1.1.
Mortgage lending
194
7.10.1.2.
Predatory Non-Mortgage Lending and Rent to Own
195
7.10.1.3.
Auto Financing, Leasing, and Repossessions
195
7.10.1.4.
Land Sales, Retirement Communities, and Nursing Homes
196
7.10.1.5.
Trade Schools
196
7.10.1.6.
Insurance, Annuities
196
7.10.1.7.
Miscellaneous
197
7.10.2.
Examples of Unsuccessful Consumer RICO Cases
198
ch. 8
State RICO and Civil Theft Statutes
8.1.
Introduction
201
8.2.
Advantages of State RICO Statutes
201
8.2.1.
Strategic Advantages of State RICO Statutes As Compared to Federal RICO
201
8.2.2.
Strategic Advantages of State RICO Laws As Compared to UDAP Statutes
202
8.3.
Validity and Interpretation of State RICO Statutes
203
8.4.
Elements of a State RICO Claim
204
8.4.1.
Predicate Offenses
204
8.4.2.
Pattern Requirements
205
8.4.3.
Enterprise Requirements
206
8.5.
Timing of Offenses and Statute of Limitations
208
8.6.
Litigating State RICO Cases
208
8.6.1.
Jurisdictional and Procedural Issues
208
8.6.2.
Who May be a Defendant in a State RICO Suit?
209
8.6.3.
Private Remedies Under State RICO Statutes
209
8.7.
Application of State RICO Statutes to Consumer Fraud
211
8.8.
State Civil Theft and Crime Victims Statutes
211
ch. 9
The Federal False Claims Act
9.1.
Background
213
9.1.1.
Introduction
213
9.1.2.
History of the Federal False Claims Act
213
9.1.2.1.
Early History
213
9.1.2.2.
Civil War Origins of the Federal False Claims Act
214
9.1.2.3.
1943 Federal False Claims Act Revisions
214
9.1.2.4.
Defense Industry Fraud Prompts 1986 FCA Liberalization
214
9.1.2.5.
2009 and 2010 Amendments
215
9.2.
Advantages and Disadvantages of the Federal False Claims Act
215
9.2.1.
Advantages
215
9.2.2.
Disadvantages
216
9.3.
Elements of an FCA Case
216
9.3.1.
False Claims Covered by the Statute
216
9.3.2.
Standards for Liability
216
9.3.3.
Who May File a False Claims Act Case
216
9.3.4.
Need the Individual Plaintiff's Knowledge of the False Claim Be Unique?
217
9.4.
The FCA's Litigation Procedures
217
9.5.
Remedies
217
9.6.
Examples of False Claims Act Cases
217
9.7.
The FCA's Whistleblower Protection
219
9.8.
Other Statutes That Give Rewards to Whistleblowers
219
9.9.
False Claims Act Checklist
219
ch. 10
Regulation of Debt Relief Services
10.1.
Introduction
221
10.2.
Debt Management, Settlement, Negotiation, and Elimination Services Distinguished
221
10.2.1.
Credit Counselors and Debt Management Plans
221
10.2.1.1.
General
221
10.2.1.2.
The Requirement of Credit Counseling Before Filing Bankruptcy
222
10.2.2.
Debt Settlement Services
223
10.2.3.
Debt Negotiation Services
224
10.2.4.
Debt Elimination
224
10.3.
Nonprofit Versus For-Profit Services
225
10.3.1.
Background
225
10.3.2.
IRS Standards for Nonprofit Status
226
10.3.3.
FTC Standards for Nonprofit Status
227
10.4.
Federal and State Credit Repair Laws
227
10.4.1.
Introduction
227
10.4.2.
Scope and Applicability to Debt Relief Services
228
10.4.3.
CROA Requirements
229
10.4.4.
CROA Remedies
229
10.5.
The FTC Telemarketing Sales Rule
229
10.5.1.
Introduction
229
10.5.2.
Debt Relief Services Covered
229
10.5.3.
Rule Requirements for Debt Relief Services
231
10.5.3.1.
Prohibition Against Collection of Fees Before Results Are Achieved
231
10.5.3.2.
Escrowing Fees
232
10.5.3.3.
Disclosures
232
10.5.3.4.
Deceptive Telemarketing Acts and Practices
233
10.5.3.5.
Unsubstantiated Claims
233
10.5.4.
Recordkeeping Requirements
233
10.5.5.
Private Remedies and Government Enforcement
233
10.6.
Fair Debt Collection Practices Act
234
10.7.
State Regulation of Debt Relief Services
234
10.7.1.
Statutes Requiring Registration and Licensing
234
10.7.2.
Types of Debt Relief Services That Must Be Licensed or Registered
236
10.7.3.
Substantive Provisions
239
10.7.4.
Constitutional and Jurisdictional Challenges to State Debt Relief Statutes
239
10.7.5.
Private Remedies
240
10.8.
Other Claims
241
10.8.1.
UDAP Claims
241
10.8.2.
Unauthorized Practice of Law; Attorney Malpractice
242
10.8.3.
RICO Claims
242
10.8.4.
Common Law Claims
242
ch. 11
Other Statutes Protecting Consumers
11.1.
Anti-Trust Statutes
243
11.1.1.
Federal Antitrust Laws
243
11.1.2.
State Antitrust Laws
243
11.2.
Statutes Regulating Unsolicited Goods
244
11.3.
Plain English Statutes
245
11.4.
Statutes Protecting Non-English Speakers
246
11.4.1.
Introduction
246
11.4.2.
Federal Requirements Regarding Use of Non-English Language
246
11.4.3.
State Statutes Requiring Use of a Non-English Language
247
11.4.4.
UDAP and Unconscionability Claims
248
Appendix A
FTC Trade Regulation Rules
A.1.
Introduction
251
A.2.
Selected FTC Statutory Provisions
251
A.3.
Negative Option Rule---16 C.F.R. [§] 425
254
A.4.
FTC Rule Concerning Cooling-Off Period For Sales Made at Homes or at Certain Other Locations
255
A.5.
FTC Rule Concerning Preservation of Consumers' Claims and Defenses
256
A.5.1.
The Rule
256
A.5.2.
FTC Advisory Opinion
257
A.6.
Mail or Telephone Order Merchandise
259
A.7.
FTC Franchise Rule---16 C.F.R. [§] 436
261
A.8.
FTC Business Opportunity Rule---16 C.F.R. [§] 437
277
A.9.
FTC Credit Practices Rule
282
A.10.
FTC Funeral Industry Practices Rule
283
A.11.
FTC Used Car Rule
286
Appendix B
Selected Consumer Financial Protection Act Provisions
295
Appendix C
Federal Regulation of Telemarketing, Junk Faxes, and Spam
C.1.
Telemarketing Fraud
311
C.1.1.
Telemarketing and Consumer Fraud and Abuse Prevention Act
311
C.1.2.
FTC Telemarketing Sales Rule
313
C.2.
Telephone and Fax Solicitations
320
C.2.1.
Telephone Consumer Protection Act
320
C.2.2.
FCC Rule on Telemarketing and Junk Faxes
325
C.3.
Spam E-Mail
328
C.3.1.
CAN-SPAM Act
328
C.3.2.
FTC CAN-SPAM Rule
337
Appendix D
State Telemarketing Statutes Summarized
341
Appendix E
Federal RICO Statute
E.1.
The Federal RICO Statute
359
E.2.
Federal Wire and Mail Fraud Statutes
365
Appendix F
State RICO Statutes Summarized
367
Appendix G
Federal False Claims Act
373
Appendix H
Mailing of Unordered Merchandise
383
Appendix I
Finding Pleadings and Primary Sources on the Companion Website
I.1.
Introduction
385
I.2.
Pleadings and Primary Sources Found on the Companion Website
385
I.3.
How to Access the Website
386
I.4.
Locating Documents on the Website
387
I.5.
How to Use the Documents, Find Microsoft Word Versions, and Locate Additional Features
390
I.6.
Electronic Searches of This and Other NCLC Titles' Chapters
390
I.7.
Finding Additional Pleadings
390
Index and Quick Reference
391