The People's Lawyer Consumer News Alert
Center for Consumer Law
  Volume 97 Number 8

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The People’s Lawyer’s Tip of the Day

In Texas, it is unlawful for a business to charge more to someone who uses a credit card. On the other hand, it is legal to give a discount for someone who pays cash. Why? Credit card companies discount the amount they pay a merchant when you pay with a credit card. A store receives "more" when a customer pays cash. Giving a discount to cash customers is a way to treat both cash and credit card customers the same.



For more general information about the law, check out my website.

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General Mills Scraps Forced Arbitration

General Mills, parent company to Cheerios, Yoplait, and Progresso, is calling a stop to its controversial plan to strip its customers of their legal rights. Just days ago, the company posted changes to its legal terms on its website. Under the modified terms, customers who engaged the company online would lose the right to resolve disputes in court. For example, if a customer 'liked' Cheerios on Facebook and later had a dispute with the company, he could be forced into arbitration.



After strong public backlash, General Mills clarified that the new terms did not apply to customers who engaged the company on Facebook or Twitter. Instead, the new policy only applied to customers who subscribed to the company newsletter, downloaded coupons from its website, or other similar activity.



The clarification didn't do much to ease customer backlash. On Saturday, General Mills issued a statement that the company will be reverting to its previous legal terms, which do not mention arbitration.



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Phones to Have Kill Switches By 2015

With mobile phone theft so common, industry associations have been looking for a way to combat the problem. It appears they've found an answer.



A mobile phone "kill switch" will become an industry standard by 2015. A "kill switch" is a system for remotely disabling smartphones and wiping data. Although initially resisted by many, the five largest carriers in the United States have signed a voluntary agreement to back the implementation of the theft-deterrent system. Manufacturers Apple, Google, Microsoft, and Samsung have also signed on, promising that all smartphones manufactured for sale after July 2015 will include a "kill switch."



So what happens if a thief steals a smartphone, but wipes the data? According to CTIA-The Wireless Association, the thief will be unable to use or register the device after the "kill switch" is activated.



Apple's latest operating system, iOS7, already includes technology called Activation Lock, which prevents phones from being reactivated.


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Your Money

Are you considering a credit card balance transfer? If so, this calculator is for you!
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For the Lawyers

Court finds TCPA consent based on ten-year old conduct.

An Illinois District court used ten-year old proof that a consumer gave his phone number as his contact point to satisfy the express consent defense under the TCPA.

The court described the express consent defense as follows: “[P]ersons who knowingly release their phone numbers have in effect given their invitation or permission to be called at the number which they have given, absent instructions to the contrary.” The plaintiff had filled a prescription at a Walgreens pharmacy in 2002, when he provided his cellular phone number to a Walgreens pharmacist “who told him that his number was needed for potential identity verification purposes.” The court found that because plaintiff had elected to provide his cellular telephone number as his point of contact ten years earlier, and never provided Walgreen Co. with “instructions to the contrary,” the mere passage of time could not vitiate consent, opining that “consent under the TCPA does not expire on its own; it must be revoked.”
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