By definition, price gouging is the act of increasing the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair. It’s also just a shady thing to do, especially when it involves people already reeling from a natural disaster. To that end, Texas is suing three businesses for allegedly price gouging consumers before and after Hurricane Harvey. [More]
fines
Frontier, American & Delta Fined $850,000 For Involuntary Bumping, Damaged Bag Violations, Delayed Refunds
By 7.24.17
Frontier Airlines, American Airlines, and Delta Air Lines must pay hundreds of thousands of dollars in fines after the Department of Transportation found the carriers violated consumer protection rules related to refunds, disability assistance, and other issues. [More]
Dish Network Ordered To Pay Record $280 Million For Illegal Telemarketing Calls
By 6.6.17
Sure, we say all the time that robocalls are annoying, and agencies like the FTC and FCC talk all the time about how some of them are illegal. But how much trouble does a big company get in these days for actually getting caught making the illegal calls? About $280 million, it turns out. [More]
Santander Bank To Pay $26M Over Subprime Auto Loan Practices
By 3.29.17 — Updated: 5.10.17
One of the nation’s largest providers of automobile financing, Santander Bank, has agreed to pay $26 million to end a two-state investigation into the financial institution’s alleged violation of state consumer protection laws related to its auto loan underwriting practices. [More]
Keurig To Pay $5.8M Over Failure To Report Defective Coffee Brewers
By 2.22.17
Under federal law, manufacturers, distributors, and retailers are required to immediately report information regarding possible safety defects to the Consumer Product Safety Commission within 24 hours of obtaining reasonable supporting evidence. Keurig allegedly didn’t follow that rule when it came to the Dec. 2014 recall of 7 million MINI Plus Brewing Systems, and now the company must pay $5.8 million. [More]
Equifax, TransUnion To Pay $23M For Misleading Consumers About Credit Monitoring
By 1.3.17
The nation’s three largest credit reporting agencies — TransUnion, Equifax, and Experian — not only collect consumers’ financial information to assist lenders in gauging whether or not someone is qualified for a loan, fit for a job, or can afford a place to live, they also provide people with credit-related products and resources that are meant to help them keep tabs on or improve their credit. But, according to federal regulators, Equifax and TransUnion haven’t been upfront about the costs and usefulness of these products, and now they’re on the hook for a total $23.1 million in fines and refunds. [More]
Kia, Hyundai Agree To Pay $41.2M To 33 States & D.C. Over Fuel Economy Issues
By 10.27.16 — Updated: 10.31.16
Hyundai and Kia agreed Thursday to pay $41.2 million to dozens of states four years after it was revealed that the carmakers overstated the fuel efficiency of certain vehicles. [More]
Dear New Yorkers: Your Short-Term Airbnb Listing Could Lead To $7,500 Fine
By 10.21.16 — Updated: 10.24.16
It’s already illegal for New York residents to list their unoccupied apartments on Airbnb for less than 30 days, but now it’s illegal and it could cost them: Governor Andrew Cuomo on Friday signed into law a measure that penalizes hosts up to $7,500 for such listings. [More]
Best Buy To Pay $3.8 Million For Selling Recalled Products
By 10.4.16
It’s against the law to sell any product that has been officially recalled by the U.S. Consumer Product Safety Commission, but back in 2014 Best Buy and its closeout stores were found selling electronics and furniture after they had been recalled. The retailer then allegedly continued selling additional recalled items well into 2015. Now, to close the book on these allegations, Best Buy has agreed to pay a $3.8 million penalty. [More]
Report: Takata In Talks To Resolve Criminal Allegations From Deadly Airbag Debacle
By 9.28.16
Nearly two years after Takata announced it was subject to a federal criminal investigation related to its handling of shrapnel-shooting airbags, the Japanese auto parts maker is reportedly working to make a deal with the Justice Department to resolve allegations of criminal wrongdoing. [More]
Short-Term Loan Startup LendUp Ordered To Pay $3.6M Over Alleged Lending Violations
By 9.27.16
When a company promises to lend you money and rebuild your credit — all through your phone — it can be hard to pass up the offer, especially when you’re in a pinch. But what happens when that lender doesn’t deliver? It gets fined millions of dollars by the federal government, or at least that’s the case for online lender LendUp. [More]
Feds Fine TitleMax, TitleBucks Parent Company $9M Over Alleged Illegal Loan Practices
By 9.27.16
The terms and conditions for short-term, high-cost loans can often be confusing, making it difficult to decipher just how much a borrower will spend to repay an initial loan. That was apparently the case for TMX Finance, the company behind TitleMax, as federal regulators fined the company $9 million for allegedly luring consumers into costly loan renewals by presenting them with misleading information about monthly plans. [More]
For-Profit College Operator Bridgepoint Agrees To Forgive $23.5M In Student Loans
By 9.12.16
Two months after Bridgepoint Education, the operator of for-profit colleges Ashford University and the University of the Rockies, revealed it was being investigated by the Department of Justice over its federal student aid funding, another federal agency has ordered the company to forgive $23 million in student loans and pay an $8 million penalty over allegedly illegal student lending practices. [More]
Wells Fargo On The Hook For $185 Million For Opening Unauthorized Accounts
By 9.8.16 — Updated: 9.30.16
More than a year after the city of Los Angeles sued Wells Fargo for alleged customer account abuses, including pushing employees into opening unauthorized accounts to make sales quotas, the banking giant has been ordered to pay more than $185 million in refunds and penalties. [More]
Four Airlines Fined For Misinforming Passengers About Compensation For Lost Bags & Being Bumped
By 8.29.16
If you’re involuntarily bumped from an overbooked flight, or if your bags are lost, the airline owes you some form of compensation. It turns out that four carriers — American, United, Alaska, and Southwest Airlines — haven’t exactly been forthright with all their passengers when it comes to getting what they are owed. [More]
Local Governments Say AT&T, Verizon Aren’t Paying 911 Fees
By 8.9.16
In much of the country, local 911 call centers are funded from mandatory fees of around $1/line placed on phone bills. However, recently filed lawsuits allege that AT&T, Verizon and others are slashing the 911 fees they charge business customers, resulting in hundreds of millions of dollars uncollected. [More]
Ashley Furniture To Pay $1.75M Over Worker Safety Violations
By 6.9.16
Following reports of more than 1,000 employee injuries, home furnishings retailer Ashley Furniture has agreed to pay $1.75 million to settle numerous allegations by the Occupational Safety and Health Administration.
[More]
British Airways, Lufthansa & Air France Fined For Treatment Of Disabled Passengers
By 4.15.16
Four months after the U.S. Department of Transportation fined United Airlines $2 million for violating rules protecting air travelers with disabilities, the agency is continuing to police the skies when it comes to disabled passengers. This time, levying fines against Lufthansa, British Airways, and Air France. [More]
