Consumer Label Suits’ Catch-22

April 6, 2017, 9:30 PM

Consumers suing over allegedly misleading product labels sometimes get caught in a legal Catch-22.

Typically, consumers filing such false labeling complaints allege that after buying a product, they discovered an alleged deception that enticed them to make the purchase.

But knowledge of this alleged deception, though key to fraud-based allegations, can also pose a major problem for these consumers in federal court.

Judges have split on whether such now-enlightened plaintiffs have constitutional “standing” to represent either themselves or a class on one of the most significant aspects of their cases: claims seeking label changes.

Courts disallowing standing for such claims ...

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