1. Agreements to arbitrate with class action waivers can help prevent small consumer claims from becoming class action lawsuits.
2. The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) is often used as the basis for class action lawsuits targeting small charges deemed deceptive or ambiguous.
3. Small charges in regular consumer transactions can lead to large class action lawsuits under FDUTPA.
4. Add on charges by automobile dealers, environmental fees by automobile repair shops, shipping fees on internet orders, and various fees in the airline industry are commonly targeted by Plaintiff’s attorneys under FDUTPA.
5. Successful FDUTPA claims can be costly for businesses, as Plaintiff’s attorneys are entitled to attorney’s fees, and class action claims can be devastating for any size business. – A properly drafted sales contract with a valid arbitration clause and class action waiver can deter individual and class FDUTPA claims.
– In McKenzie Check Advance of Florida, LLC v. Betts, the Florida Supreme Court found that a class action waiver within an arbitration agreement was enforceable, even if it might violate state law, because it was preempted by the Federal Arbitration Act.
– The case involved claims that check cashing services were actually loans with usurious rates, and the plaintiffs had signed an arbitration agreement with a class action waiver each time they cashed a check. 1. Agreements to arbitrate can deter small consumer claims by requiring consumers to fund expensive filing fees.
2. Including a class action waiver in the arbitration agreement can prevent class litigation of small consumer claims.
3. Businesses should periodically review their contracts to ensure they effectively require arbitration and waive class action claims.
4. In the case of HHH Motors, LLP v. Holt, the First District Court of Appeal found no agreement to arbitrate a FDUTPA claim, despite the presence of an arbitration clause in one contract, due to a subsequent contract containing a merger clause.
5. Protecting a business from these claims requires specific advice from an experienced attorney and a detailed analysis of the business.
6. An arbitration agreement with a class action waiver can be a cost-effective tool to prevent individual claims from becoming class action claims.
https://www.jimersonfirm.com/blog/2015/06/protecting-your-business-from-the-florida-deceptive-and-unfair-trade-practices/
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