French consumer protection authorities have reported Shein to authorities for allegedly selling childlike sex dolls on its website. The DGCCRF cited the online descriptions and categorization of the dolls as potentially constituting child pornography. In response, Shein removed the products and initiated an investigation into how the listings bypassed its screening measures. The company is also reviewing its marketplace to remove any similar items sold by third-party vendors.
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Amazon has agreed to a historic $2.5 billion settlement with the Federal Trade Commission (FTC) due to claims of tricking customers into Prime subscriptions and hindering cancellation. The settlement includes a record $1 billion civil penalty and $1.5 billion in refunds for affected Prime customers who were either unintentionally enrolled or faced difficulties in canceling. The FTC alleged that Amazon violated the Restore Online Shoppers’ Confidence Act, making it difficult for consumers to understand and manage their subscriptions, a process internally referred to as “Iliad”. The FTC began its investigation in 2021, eventually leading to the lawsuit and settlement, which occurred before a separate antitrust case was filed against the company.
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The Trump administration has reversed a Biden-era plan mandating airlines compensate passengers for flight delays and cancellations, up to $775, due to issues within the companies’ control. The Department of Transportation is withdrawing the proposal, citing alignment with administration priorities. Airlines for America, a trade group, expressed encouragement, while an agency spokesperson stated they would reconsider requirements exceeding congressional mandates. This decision comes amidst a broader deregulatory push by the Trump administration, reversing numerous consumer protections.
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The Canadian Food Inspection Agency (CFIA) has identified twelve instances of “maple washing,” where grocers use Canadian branding on imported food products. The CFIA received complaints between February and May, and while the agency took action in each case, no fines were issued. In one instance, the issue took four months to resolve, involving avocado oil at a Sobeys-owned store. Concerned consumers and experts advocate for stricter enforcement, including fines, to prevent misleading labeling and ensure the integrity of “Buy Canadian” initiatives.
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The Federal Trade Commission (FTC) is suing Fitness International, the operator of LA Fitness and related brands, alleging that the company intentionally makes it challenging for consumers to cancel gym memberships. The FTC claims that the company’s cumbersome cancellation methods, including in-person or mail-in options with numerous hurdles, resulted in hundreds of millions of dollars in unwanted recurring fees for customers. Despite Fitness International’s recent introduction of online cancellations, the FTC asserts that the process remains overly complex and that the company fails to adequately disclose cancellation terms. The FTC is seeking a court order to halt the alleged practices and obtain refunds for affected consumers.
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The Consumer Financial Protection Bureau, under the direction of Russell Vought, has been quietly reversing settled enforcement actions, benefiting large corporations at the expense of consumers. Navy Federal Credit Union was released from an $80 million refund agreement regarding illegal fees, while other companies like Toyota Motor Credit and Wise received reduced penalties or had pending cases dismissed. The Trump administration has also undermined consumer protections by halting routine exams of financial entities and overturning rules designed to save Americans money. This pattern of dismantling consumer protections has led to a largely inoperable CFPB, with numerous complaints flooding the agency, leaving consumers vulnerable to financial harm.
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The implementation of the “click-to-cancel” rule, designed to simplify subscription cancellations, has been halted by a federal appeals court just days before its effective date. The Federal Trade Commission’s (FTC) rule, which would require businesses to obtain consent for recurring charges and allow for easy cancellation, was blocked due to a procedural error related to a preliminary regulatory analysis. Despite the FTC’s intentions to protect consumers and the Biden administration’s support, the court vacated the rule, citing deficiencies in the rulemaking process. Meanwhile, the FTC is proceeding with its case against Amazon’s Prime program regarding alleged enrollment and cancellation issues.
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Tesla’s Danish subsidiary has been fined 190,000 kroner for misleading advertising practices in 2019. The company failed to fully disclose registration taxes, delivery fees, and provide a clear financing example in its marketing materials. This omission violated consumer protection laws, requiring consumers to have complete information before purchase. While the fine levied is significantly lower than what current regulations would mandate, the violation predates a 2022 rule change increasing penalties based on company turnover.
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The Trump administration is systematically dropping numerous lawsuits against major corporations, including Boeing, Capital One, Southwest Airlines, and Coinbase, initiated by the previous administration. These cases involved allegations of fraud, consumer deception, and regulatory violations. Consumer advocates strongly condemn this action, arguing it eliminates critical consumer protections and allows businesses to operate with impunity. The Trump administration defends its actions as reducing unfair enforcement, while simultaneously easing merger approvals, potentially further concentrating corporate power.
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The Swiss Federal Supreme Court ruled against the use of animal names for vegan meat substitutes, reversing a lower court’s decision. The court found terms like “planted.chicken” misleading to consumers, rejecting the argument that they were fanciful names. This decision impacts Zurich-based Planted Foods, a producer of pea-protein-based meat alternatives. The ruling potentially sets a precedent for similar cases across Europe.
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John Q. Hosedrinker