Top 10 Consumer Protection Stories of 2024

2024 was an especially exciting year in the always exciting, always evolving, always essential world of consumer protection. Significant developments across various sectors have already profoundly impacted consumers and businesses, from landmark court rulings to enhanced regulatory measures. The attorneys at Consumer Attorneys combed through the annals of 2024 and identified the following consumer protection stories and developments as the 10 most important, most interesting, and most consequential of 2024:

10. Record-Setting Fines for Online Privacy Violations

In 2024, the Federal Trade Commission (FTC) and state attorneys general imposed record fines on companies violating online privacy laws. Social media giant X (formerly Twitter) faced a $150 million fine for failing to protect user data after promising enhanced privacy measures. Meanwhile, a major data broker was ordered to pay $120 million for illegally selling sensitive personal information, including health and location data, without user consent. These enforcement actions highlight the growing focus on holding companies accountable for safeguarding consumer data.

9. Federal Trade Commission Targets Deceptive AI Practices

The FTC also intensified its scrutiny of artificial intelligence (AI) applications, particularly those misleading consumers. In September, the FTC took enforcement action against DoNotPay, a company that marketed itself as the “world's first robot lawyer.” The FTC alleged that DoNotPay made unsubstantiated claims about its AI capabilities and failed to test the quality of its legal services. The company agreed to a settlement, including a $193,000 fine and restrictions on future marketing claims.

8. Lawsuits Alleging Unauthorized Data Sharing

A class of consumers filed a class-action lawsuit against LexisNexis, alleging the unauthorized collection and sale of personal data, including GPS information, without consumer consent. The lawsuit claims that LexisNexis shared driving behavior data with third parties, such as insurance companies, potentially impacting consumer privacy and leading to higher insurance premiums.

TikTok encountered several legal challenges concerning its handling of children's data. The U.S. Department of Justice sued the company for allegedly violating the Children’s Online Privacy Protection Act (COPPA). Additionally, Texas filed a lawsuit accusing TikTok of unlawfully sharing children's personal information without parental consent. These cases highlight growing concerns over data privacy and the protection of minors online, as well as the need for stringent consumer protection measures in the digital age.

7. Maine Sues Major Oil Companies Over Climate Impact

The state of Maine took a bold step by filing a lawsuit against major oil companies, including Exxon Mobil, BP, Shell, Chevron, and Sunoco, accusing them of decades of deceit about the environmental damage caused by fossil fuels. According to the lawsuit, these companies knew as early as the 1960s about the harmful effects their products had on the planet but chose to mislead the public while prioritizing profits over environmental responsibility. The state alleges that these actions significantly contributed to climate change, endangering Maine’s ecosystems and coastal communities. The lawsuit seeks substantial damages to fund adaptation and mitigation efforts, including protecting vulnerable coastal areas from rising sea levels and increased storm intensity. This case underscores the growing legal pressure on the fossil fuel industry to take accountability for its role in the global climate crisis.

6. FTC Reports the Astounding Cost of Fraud

The FTC revealed staggering data showing that consumers reported losing over $10 billion to fraud in 2023—a 14% increase from 2022. This alarming rise underscores the growing sophistication and scale of scams targeting everyday Americans. Investment scams caused the most significant financial damage, with reported losses surpassing $4.6 billion. These schemes often prey on individuals seeking financial security, luring victims with false promises of high returns while wiping out their savings.

Other prevalent scams included online shopping fraud, romance scams, and impersonation schemes, which collectively accounted for billions in losses. Many of these tactics exploited digital platforms, where scammers used social media, email, and fake websites to deceive victims. Seniors and financially vulnerable individuals were disproportionately affected, with many losing their life savings to elaborate schemes.

The FTC stressed the urgent need for increased consumer education to help people recognize and avoid fraud. It also called for stronger enforcement actions to hold bad actors accountable, including enhanced penalties and cooperation with law enforcement agencies. These record-breaking figures highlight the critical importance of vigilance and advocacy in protecting consumers from fraud's devastating financial and emotional toll.

5. Biden Administration Proposes Rules to Simplify Subscription Cancellations

In a push to combat “junk fees” and bolster consumer protection, the Biden administration unveiled proposed rules aimed at making subscription cancellations as simple and transparent as sign-ups. The new regulations would require businesses to offer straightforward online cancellation options and ensure they obtain clear, explicit consent before billing customers. These measures directly address widespread consumer frustrations with opaque cancellation processes, surprise charges, and unauthorized renewals.

The proposed rules also target tactics that trap consumers in unwanted services, such as hiding cancellation steps in hard-to-navigate websites or using deceptive language to deter them from opting out. By emphasizing transparency and ease, the administration seeks to eliminate a major pain point in consumer transactions, ensuring that companies prioritize fairness and accountability. These changes represent a broader effort to protect consumers from predatory practices that erode trust in subscription-based businesses.

4. CFPB Distributes $384 Million to Victims of Illegal Lending Practices

In a significant enforcement action, the Consumer Financial Protection Bureau (CFPB) announced the distribution of $384 million to approximately 191,000 consumers harmed by the illegal lending practices of Think Finance. The company was found to have engaged in predatory lending, including charging exorbitant interest rates and fees that violated consumer protection laws. This restitution underscores the CFPB's commitment to addressing predatory lending practices and safeguarding vulnerable consumers.

3. Supreme Court Bolsters Consumer Financial Protection Bureau's Authority

The U.S. Supreme Court delivered a major victory for the CFPB in 2024, affirming its structure and funding mechanism in two key decisions. In one case, the Court upheld the constitutionality of the CFPB's funding, which comes from the Federal Reserve instead of annual congressional appropriations. Critics had argued this arrangement violated the Appropriations Clause of the Constitution, but the Court ruled it lawful, ensuring the agency's independence. Separately, the Court declined to hear another challenge to the CFPB's structure, leaving lower court rulings that affirmed its constitutionality in place. These decisions solidify the CFPB's authority to regulate consumer financial products and services, including mortgages, credit cards, and car loans.

2. Credit Reporting Giants Under Fire: Equifax and TransUnion Face Major Legal and Financial Setbacks in 2024

A couple of incidents underscore why increased scrutiny of major credit reporting agencies is justified and essential to protect consumer data and ensure fair practices.

In May 2024, Equifax faced a significant legal challenge when mortgage lenders First Financial Lending and Greystone Mortgage filed a proposed class-action lawsuit against the company. The plaintiffs accused Equifax of monopolizing the electronic income and employment verification services market, leading to inflated prices for these essential services. The lawsuit alleges that Equifax's exclusive contracts and strategic acquisitions stifled competition, granting the company near-total control over critical verification processes used in mortgages, car loans, and apartment rentals.

Additionally, in March 2024, a unit of TransUnion agreed to pay $37 million to resolve claims of misusing data collected under contracts with federal banking regulators. The company allegedly incorporated anonymized federal credit card data into products sold to commercial customers without proper authorization, raising concerns about data privacy and misuse.

1. Goldman Sachs and Apple Fined $89 Million Over Credit Card Program Violations

In a significant enforcement action, the CFPB fined Goldman Sachs and Apple a combined $89 million for violations related to their joint credit card program, the Apple Card. The CFPB found that the companies failed to properly investigate consumer disputes and misled customers about interest-free financing options. Goldman Sachs agreed to pay $19.8 million in consumer redress and a $45 million civil penalty, while Apple was fined $25 million. This case underscores the importance of compliance with consumer protection laws in financial services.

The 2024 Consumer Protection Wrap Up

Throughout 2024, consumer protection took center stage as regulatory agencies, courts, and advocates ramped up efforts to address rampant misconduct and safeguard consumer rights across industries.

These pivotal developments marked a year of meaningful action, from cracking down on data misuse to holding corporations accountable for deceptive practices. And every step of the way, Consumer Attorneys was there, fighting to protect your rights, challenge corporate overreach, and ensure justice for those harmed by unfair practices.

Your case may not make the news, but to us, it’ll be one of the most important things we do.