Class Action Roundup - November 20

Another week down and another look at some class action news. Read on to see what’s been going on.

Vizio – Are Smart TVs Too Smart?

Vizio has been hit with a class action lawsuit alleging that its smart TVs violate privacy laws. So, what does that entail exactly? The suit, which is seeking a hefty $5 million award on behalf of TV owners, says that this new generation of internet-capable TVs has been commandeering large amounts of data straight from people’s homes. The way it shakes out, Vizio uses internal software to collect information about what people are watching, what video games they’re playing, and what time of day they’re doing these things. The company then relays that information through a third-party data broker in order to match the data to households or even to individuals. People like their privacy, so they aren’t very happy about some company they bought a TV from having detailed information about their viewing habits.

So, while it’s already a privacy issue as it is, the suit goes on to claim that there is a complete lack of consent when it comes to Vizio’s information-gathering methods. According to the suit, Vizio failed to inform people that they were being spied on – and sent off their customers’ information by default. It’s possible to turn the setting off, but the suit says that the option is lost in the far reaches of the TV’s settings, virtually unreachable for those who aren’t tech savvy.

If this case gains some momentum, it could have a heavy impact on the TV industry and allow for stronger enforcement of privacy law in general. We could be about to see an answer to the increasingly invasive methods that companies are using to gather marketing data. If you’d like more info on the subject, Jeff John Roberts over at Fortune.com has a great article that is definitely worth checking out.

Live Nation Sued for Ticket Withholding

Should you be paying less for concert tickets? This New Jersey lawsuit says so. Live Nation Entertainment was hit with a putative class action that accuses the concert promoter of withholding a portion of available concert tickets for certain connected insiders. According to the suit, for some events, only 10 percent of the tickets were actually being sold to the general public. This means that without the right connections, concertgoers were left at the mercy of ticket scalpers and paying two to four times the amount listed at the box office.

What this case breaks down to is a claim that Live Nation provides the best tickets to venues, artists and ticketing companies, who are then scalping those tickets for more than face value, which clearly goes against a Consumer Fraud Act provision that requires 95 percent of tickets to be made available to the public. Live Nation avoided similar claims recently after the plaintiffs failed to present sufficient facts to back their claims. Concertgoers are hoping for a different outcome this time, because why should the less connected have to suffer outrageous ticket prices anyway?

Connecticut Workers Aren’t Allowed to Sue after Plant Explosion

A group of 40 uninjured workers filed a claim seeking lost wages after their plant closed because, well, it blew up. The court ruled, however, that the Connecticut workers couldn’t sue after the incident even though the explosion was allegedly caused by the negligence of their general contractor. In a unanimous decision, the court found that the workers couldn’t recoup wages on the grounds that widening the construction company’s liability to the explosion to include the damages done to the workers would significantly increase the number of people who could file a similar claim and that a rise in claims wasn’t likely to result in better safety protocols at sites like the power plant.

It sounds a bit strange that they couldn’t sue to get their lost wages back, but it helps to look at it from a strictly legal standpoint. If this ruling were to favor the workers, it would have given the green light for class actions to pop up whenever there’s an accident in the workplace. It doesn’t limit the legal right of anyone who has been tangibly harmed by injury or property damage, but it does cut down on the number of unnecessary class actions. The court also noted that because the workers lost their jobs through no fault of their own, they are able to seek unemployment insurance benefits.

Kia Recalls Vehicles Over Steering Problems

Yes, more vehicle recalls. Kia motors is recalling more than 255,000 Kia Soul vehicles after a problem with the steering assembly was discovered. The affected 2014 to 2016 Kia Souls are reported to contain a defect that may cause a loss of steering and increase the driver’s risk of getting into a crash.

Unfortunately, this isn’t the first recall Kia has announced this year. In March, they recalled around 209,000 Kia Souls because a portion of the vehicle’s accelerator pedal had the tendency to bend and even fracture if the driver applied enough force. On top of that, the Soul is at the center of several lawsuits – a proposed class action said that Kia marketed cars with shatter-prone sunroofs (2014-2015 Souls) and then refused to pay for repairs.

So, if you are looking for a new car, it might be wise to stay away from this particular model until they get things back on track.