Class Action Bill H.R. 985 Will Hobble Consumers’ Rights

A bill currently in the Senate’s hands could leave millions of U.S. consumers without a way to assert their rights against unfair business practices.

The Fairness in Class Action Litigation Act of 2017, known as H.R. 985, bundles together several changes to how class action lawsuits and multidistrict litigation play out in court. On its face, this bill may appear to make only superficial changes in litigation procedure.

But in fact, these procedural changes are designed by and for business interests who seek to avoid accountability for violations of consumer protection laws. If enacted, H.R. 985 would significantly curtail consumers’ ability to bring large-scale litigation against businesses that cause widespread harm to consumers.

How H.R. 985 Could Affect You

As an example of how H.R. 985 could infringe on consumers’ rights, consider how it might have affected this Hydroxycut dietary supplements class action settlement.

In this consolidated class action lawsuit, plaintiffs Daniel Garcia and Kevin Branca were able to bring false advertising claims related to 33 different Hydroxycut products marketed by defendant Iovate Health Services Sciences USA Inc.

Garcia and Branca didn’t necessarily try all 33 Hydroxycut products themselves. But since the false advertising claims they raised applied similarly to that entire line of products, the two plaintiffs were allowed to bring claims on behalf of a large Class of consumers who purchased any of those products.

Current law allowed the court and the parties to resolve all these allegations in a single class action lawsuit. It also gave Garcia and Branca the benefit of representing a much larger plaintiff Class, putting more at stake for Iovate.

Those higher stakes gave Garcia and Branca greater bargaining leverage to negotiate a settlement on behalf of the plaintiff Class. The resulting settlement provides refunds to a whole Class of consumers who purchased any of those Hydroxycut products over a nearly eight-year period.

But this litigation wouldn’t have worked out that way under H.R. 985. Among many other proposed changes, H.R. 985 would limit Class membership to persons who suffered the same “type and scope of injury” as the named plaintiffs.

Had that requirement been in place during the Hydroxycut litigation, it would have significantly shrunk Garcia and Branca’s plaintiff Class. The two plaintiffs would have been limited to representing only Class Members who bought the same Hydroxycut products that they did, leaving purchasers of other Hydroxycut products out in the cold.

With a much smaller Class to represent, Garcia and Branca may not have had enough incentive to bring their claims in the first place. And even if they did, their smaller Class would have given them much less bargaining advantage in negotiations.

That’s why business interests back H.R. 985. It would make class action litigation vastly more burdensome and less effective for consumers. More and more business defendants accused of consumer rights violations would come out smelling like a rose.

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

It’s not too late to prevent H.R. 985 from moving forward. As of right now, the House has passed the bill and referred it to the Senate. You can help stop this bill from becoming law by contacting your senators and asking them to vote against H.R. 985.

To get in touch with your senators, call the Capitol switchboard at (202) 224-3121 and ask the operator to connect you to their offices.

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