Myriad class action lawsuits brought under New Jersey’s Truth-in-Consumer, Contract Warranty and Notice Act (TCCWNA) could be called into question because of the Supreme Court’s ruling in Spokeo, Inc v. Robins that plaintiffs must prove concrete harm.
Due to its potential for high statutory damages awards, TCCWNA has become a favorite of plaintiffs’ lawyers for bringing class actions against online retailers for their terms of service agreements, claiming they violate consumers’ rights.
“The companies are arguing that [TCCWNA] claims should be dismissed because of lack of standing under the U.S. Supreme Court’s decision in Spokeo Inc. v. Robins,” reports Legal Newsline. “Plaintiffs say the exact opposite — that the violation of the statute itself is the concrete harm that confers standing.”
Whether Spokeo can help defendants is still a pending issue in several cases, including a class action recently filed against Facebook.