The People's Lawyer Consumer News Alert
Center for Consumer Law
  Volume 99 Number 1

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The People’s Lawyer’s Tip of the Day

Are you responsible for damage caused by your children? In most cases a parent is not automatically liable for things done by a child. Generally, for the parent to be responsible, it is necessary to show the parent negligently supervised the child, and that is why the damage occurred. Kids will be kids and when something goes wrong, parents are usually not responsible.



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

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Ford Recalls 1.39 Million Vehicles

The vehicle recalls continue! In a year filled with recall after recall, Ford was the latest to throw its brand into the hat. On Thursday, Ford announced recalls for 1.39 million vehicles. Most of the recalls relate to a possible loss of power steering. Of the 1.39 million vehicles, about 1.186 million are in the United States.



The Ford power steering problem has been linked to at least fifteen known accidents. According to the National Highway Traffic Safety Administration, letters to affected owners will be sent by July 25.


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DOT Fines Southwest for Deceptive Ads

Late last year, Southwest Airlines ran commercials in Atlanta advertising $59 flights to Chicago, New York, and Los Angeles. After an investigation, federal regulators found no seats were actually available for the advertised rate. As a result, authorities found that Southwest violated full-fare advertising rules by promoting a rate for which no seats existed.



The United States Department of Transportation fined Southwest $200,000. Since Southwest has violated the same law twice within one year, it must pay an extra $100,000 immediately.



Full-fare advertising rules were put in place so consumers would not be deceived when searching for plane tickets. When advertising a particular rate, rules state that a "reasonable number" of seats must be available at that price.

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MetroPCS Phones Could Stop Working

If you use MetroPCS for your mobile service, your phone may stop working next month. Following last year's merger with T-Mobile, MetroPCS will be switching to T-Mobile technology. As a result, consumers who purchased their phones before July 2013 will need to buy a new phone to maintain their service.



Will your phone stop working?

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Your Money

Will driving to a cheaper gas station actually save you money?
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For the Lawyers

Credit card fees are not unconstitutional.

The Ninth Circuit held that cardholders do not have a claim that fees imposed by the issuer violate substantive due process. The court noted that the jurisprudence developed to limit punitive damages in the tort context does not apply to contractual penalties, such as the credit card fees at issue.
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