Class Action Bill Would Devastate Consumer Rights

The Fairness in Class Action Litigation Act of 2017 or HR 985 was passed by the House of Representatives. The bill, if it becomes law, will effectively end class actions.

Class actions are a way in which the average American can hold companies accountable for large scale harm to a large number of people through fraud, design defects, violations of civil rights and employment laws. Although individual recoveries in class actions can be relatively small, the litigation is a way to ensure companies remain accountable to the American consumer.

HR 985 is a product of decades long lobbying by business interests and efforts by Republican representatives and conservative Supreme Court justices to curtail consumer rights in the American justice system.

If passed, the bill will prohibit federal courts from certifying a class action unless:

• “In a class action seeking monetary relief for personal injury or economic loss, each proposed class member suffered the same type and scope of injury as the named class representatives;
• No class representatives or named plaintiffs are relatives of, present or former employees or clients of, or contractually related to class counsel; and
• In a class action seeking monetary relief, the party seeking to maintain the class action demonstrates a reliable and administratively feasible mechanism for the court to determine whether putative class members fall within the class definition and for the distribution of any monetary relief directly to a substantial majority of class members.”

The bill also curtails attorneys’ fees, limits discovery, and permits appeals of Class certification. Other provisions are included that would act to frustrate class action litigation for plaintiffs.

HR 985 will have a chilling effect on establishing a Class of injured consumers exists. Under the bill, class action plaintiffs will be required to establish that each member of their proposed Class was harmed by the “same type of scope of injury.” This will make class action lawsuits difficult because it will be very hard for a plaintiff to show that every other purchaser was harmed in the exact same way as them.

Further, the bill includes a host of provisions that will cripple litigation by adding unnecessary complications. This will make it less likely for class action attorneys to take on cases, as well as cause problems for non-profits that use class action litigation to protect civil rights.

The American Bar Association has derided the legislation, along with civil rights and labor groups. An article in The New York Times called HR 985 “[a] chilling little bill” and stated it “could have the effect of ending the class action as an American Institution.”

The outcome of the bill is hard to predict. Top Class Actions believes HR 985 would have a devastating effect on consumer rights and those interested should contact their representatives.

What Can I Do to Stop H.R. 985 From Passing?

If you want to see Consumer Rights protected, contact your state’s U.S. Senators today and tell them to vote NO on H.R. 985, the Fairness in Class Action Litigation Act of 2017. Your senators can be reached by calling the Capitol Switchboard at (202) 224-3121 and asking the operator to connect you with their offices.

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