The Consumer Financial Protection Bureau has spent years putting together research on arbitration clauses, class-action lawsuits and waivers, in preparing a proposed rule it released in May.
This month, the Federal Trade Commission (FTC) decided it wanted a piece of the action as well, announcing it would look into the effectiveness of class-action settlement notice programs.
The FTC announced it issued orders to eight claims administrators, requiring them to provide information on procedures they use to notify class members about settlements and the response rates for various methods of notification.
The orders are a part of the FTC’s Class Action Fairness Project, which strives to ensure that class action settlements in consumer protection and competition matters provide appropriate benefits to consumers.
Under the project, the FTC said it monitors class actions and files amicus briefs or intervenes in appropriate cases; coordinates with state, federal and private groups on important class action issues; and monitors the progress of legislation and class action rule changes.
Also included in the project are two proposed studies: the Notice Study, which examines consumer perception and understanding of class action notices and the options they provide to consumers, and the Deciding Factors Study, which analyzes factors that influence consumers’ decisions to participate, opt out of or object to a class action settlement.