Consumer Protection

FINRA Announces UBS Puerto Rico Bond Fund Cases to Move Forward

April 21, 2014 | by Staff Attorney

On Monday, April 14, 2014, the Financial Industry Regulatory Authority (FINRA) announced that it would lift the hold that it had put on some cases related to the collapse of Puerto Rico Bond Funds.

FINRA has been able to expand its pool of arbitrators that will be available to hear the cases. There are approximately 700 eligible arbitrators on its roster who have agreed to serve in Puerto Rico, where the majority of the 209 cases received to this point, are to be heard.

Last summer, investor fears began to rise when Detroit filed for bankruptcy. Investors, seeing a city go bankrupt, became concerned with Puerto Rico’s $70 billion in municipal debt. As fear set in, investors in the UBS Puerto Rico family of closed-end municipal bond funds began to lose billions. Nineteen of these funds lost $1.66 billion during the first nine months of 2013.

Hits of the 80’s and 90’s Sounding Like Fraud: Gana LLP Files Suit Against Producer of Classic Tunes

April 16, 2014 | by Staff Attorney

Music lovers looking to reminisce while enjoying classic hits from the 80’s and 90’s may not be getting what they paid for. Producers have created and marketed a compilation of some of those classic tunes, which include songs such as “Only In My Dreams” by Debbie Gibson, “Jenny/867-5309” by Tommy Tutone, “Hold On” by Wilson Phillips, and “Ice Ice Baby” by Vanilla Ice. Unfortunately, the packaging and marketing of these discs never alerted consumers to the fact that they were not purchasing the original recordings.

On March 20, 2014, Gana Weinstein LLP filed a class action suit, on behalf of Celeste Farrell and other individuals who purchased the music albums: “Hits of the 80’s: Platinum Collection” 2-CD set and/or “Hits of the 90’s: Platinum Collection” 2-CD set. The Complaint alleges that Tutm Entertainment (also known as Drew’s Entertainment) misled consumers by failing to indicate that these albums were comprised of inferior quality re-recorded songs. The Complaint further avers that Tutm Entertainment allowed consumers to believe that they were purchasing a compilation of original recordings, and thus distorted their ability to make an informed purchase decision.

The story has gained significant traction, as it was picked up by various news outlets only two days after the Complaint was filed with the United States District Court, District of New Jersey. As reported by Hollywoodreporter.com, re-recording is considered to be an open secret within the music industry, with musicians often having legitimate, albeit self-serving, reasons for re-recording their original hits. The site explains that artists are often required to work around contractual obligations and copyright termination to generate additional revenue from some of their classic hits. Musicians rights to re-record, however, do not absolve Tutm Entertainment and other music producers and sellers of music of their obligation to be completely forthcoming with consumers. The New Jersey Consumer Fraud Act explicitly prohibits any deception, misrepresentation, or knowing concealment intended to be relied on in connection with the sale or advertisement of merchandise.

FCC Clamps Down on Unsolicited Texts and Phone Calls

December 25, 2013 | by Staff Attorney

Consumers receive unwanted texts and calls from companies. Overtime consumers become frustrated by the plethora of messages on their home phones, faxes or mobile devices. The intrusion can not only be harassing, but also is costly for consumers. The Telephone Consumer Protection Act (TCPA) and the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) address the underlying problems faced by many consumers.

The TCPA restricts solicitation and the use of automated telephone equipment. Unsolicited communications under the TCPA is broadly defined to include “any material advertising the commercial availability or quality of any property, good or services which is transmitted to any person without that person’s prior express invitation or permission in writing or otherwise.” The types of restricted activity include:

To make any call using any automated telephone dialing service or prerecorded voice.